(7 years, 7 months ago)
Commons ChamberThe hon. Gentleman is right that the UK will do everything it possibly can to support the current ceasefire and, importantly, to safeguard humanitarian support in the region, too. That is down to our diplomatic tools and diplomatic efforts, but, importantly, we are also making sure that all agencies work together to deliver the vital humanitarian support that is required.
Like all Conservatives, I, too, want to focus on making sure that every penny of taxpayers’ money goes to helping the world’s poorest, which is exactly the mission of our Department. At the same time, my hon. Friend will know that overseas development assistance saves lives and transforms lives. He specifically refers to money spent on consultants, which is something that my Department is currently reviewing. [Interruption.]
(7 years, 9 months ago)
Commons ChamberThe hon. Gentleman raises an important issue. Social media is overall a good that is used for good intents—it is even used by political parties for campaigning and in other ways—but it can also be abused and ill-used by people who wish to bully others, and there are Members of this House who have suffered significantly as a result of bullying and trolling on social media. The Home Office is well apprised of this issue. Over the years—I did this when I was Home Secretary—it has been talking to the companies about their responsibilities. The issue is best addressed through the terms and conditions of the companies themselves, and I am sure that the Home Secretary has listened very carefully to the hon. Gentleman’s point.
In the teeth of opposition from the Conservative party, the last Labour Government changed the law to make sure that all prisoners were released halfway through their sentence, irrespective of whether they had misbehaved in prison or still posed a threat to the public—[Hon. Members: “Rubbish!”]
That must have contributed to the upsurge in violence in our prisons. Does the Prime Minister agree with the previous Labour Government that prisoners should be released halfway through their sentence, irrespective of how badly they have behaved or the threat they pose to the general public, or does she agree with me that this is an outrage that flies in the face of public opinion and must be reversed?
The important point, as my hon. Friend indicates, is that when decisions are taken about the release of prisoners, proper consideration is given to the impact of that release on the wider community. That is why this issue has been looked at, and I can assure him that it was an issue of concern when I was Home Secretary. But this is not just about the conditions under which prisoners are released; it is actually about how we ensure that we have measures in place to rehabilitate ex-offenders. That is why the work that has been done by previous Justice Secretaries, which is being continued by the current Justice Secretary, is important to ensure that we reduce reoffending by prisoners when they are released.
(9 years, 8 months ago)
Commons ChamberMy hon. Friend makes a good point. Several newspapers have today reported that that would indeed be the effect of an after-the-event revision in gross national income. Some of the amendments that we will consider today attempt to deal with that problem.
Is it not worse than that, though? Given what the Chancellor said in the autumn statement, and given the OBR’s projections, Government spending as a proportion of GDP will have to come down. As the OBR has highlighted, even health spending will have to come down as a proportion of GDP. If the Bill goes through unamended, the percentage of Government spending that goes on overseas aid would have to keep rising, rather than remaining constant. Our amendments are designed to deal with that anomaly.
My hon. Friend is absolutely right. That is one of the reasons why we are attempting to change the definitions in the Bill.
As I mentioned, there are several new clauses, two new schedules and 22 amendments. I propose to speak first to new clause 1 and new schedule 1 and then to contrast them with new clause 4 and new schedule 2, together with several amendments thereto that have been tabled by my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg). I will then deal with the proposed changes to the definitions in the Bill and one or two stand-alone amendments that do not fit into the other categories. I will deal with the accounting period at the same time. I will then speak to a series of amendments that would reduce the figure from 0.7% to 0.35% and explain how that proposal arose.
My hon. Friend mentioned our hon. Friend the Member for North East Somerset (Jacob Rees-Mogg). Perhaps I should point out that he has been detained as one of his children is performing in a Christmas event at school, but he will be dashing here as soon as he can to speak to his amendments. I thought that I ought to put that on the record.
I am extremely grateful for that intervention, because I was looking towards where our hon. Friend normally sits in the Chamber and was somewhat concerned by his lack of presence. I am relieved that he will be able to deal with amendments 8, 9, 10, 11 and 37, which stand in his name. I will touch on those briefly at the end of my remarks. Before that, I will deal with the definitions of the accounting period, the 0.35% proposal, the issue of enforcement, which is dealt with in new clause 2, and amendments 1, 2 and 3, tabled by my hon. Friend the Member for Christchurch (Mr Chope).
Concerns were raised on Second Reading about the original Bill’s provision for a new body that was to be known as the independent international development office. That had been provided for in clause 5. Although the clause was relatively short, the related detail in the schedule to the Bill was extensive. Subsection (1) simply stated that there should be established an independent body, known as the independent international development office—I shall refer to it from now on as the IIDO—and subsection (2) provided that the schedule should make provision for it. The schedule provided a lot of details about the membership of the IIDO, including who its employees were going to be, its duties, its annual report, its accountability and reporting requirements, its financial arrangements, and its internal financial accounting and audit requirements. It was a comprehensive statement of what was to be required of the new body.
My hon. Friend is making a powerful case for new clause 1. Given that the proponents of the Bill say that the proposals in new clause 4 received overwhelming support when they formed part of the Bill on Second Reading, does he not think that those people should have the opportunity to vote for the Bill that they voted for on Second Reading rather than for a Bill that a few individuals decided to change in Committee? Is new clause 4 not, therefore, helpful because it would allow people to vote for the Bill that they thought they were voting for the first time around?
I certainly hope that the House will have the opportunity to choose between the options that are available. The will of the House may well be for a new body to be established, but I have concerns about that. A new quango will need staffing; it will need to find new premises, probably at great expense—perhaps in London, or perhaps in another part of the country; it will need to set up a new website; and it will need to set up its own accounting functions. It will need to start from scratch, whereas the ICAI is already up and running. In Committee, my right hon. Friend the Member for Eddisbury (Mr O’Brien) said of the ICAI that
“we have been extremely pleased with the members who have served on it under an expert chairmanship.”
Of course, my right hon. Friend was a DFID Minister back in 2010 when this body was being established. He went on to say:
“They were able to make their own selection of the projects they wanted to examine, after looking at a menu of options. None of that was steered by or in any way discussed with Ministers or the Department. It was entirely an opportunity for ICAI to make its own judgment; indeed, that is precisely what it has done over the years. I think everyone would agree that that has had a good and beneficial effect, in terms of scrutiny and ensuring real accountability for the massive aspirations that are tied to this public money reaching the intended destinations and public goods. ICAI now has a track record.”––[Official Report, International Development (Official Development Assistance Target) Public Bill Committee, 11 November 2014; c. 36.]
My right hon. Friend clearly thinks that there may be a role for the ICAI and I hope it will find favour with the House.
Clause 5 states:
“The Secretary of State must make arrangements for the independent evaluation of the extent to which”
the aid
“provided by the United Kingdom represent value for money”.
The Bill does not say how that will be achieved, so without either new clause 4 or new clause 1 Members will potentially be voting for a pig in a poke.
My hon. Friend is absolutely right. I hope that when the Minister addresses this sub-group of amendments he will explain exactly how the provision in the version of clause 5 that was inserted in Committee—it is not the same version that the House agreed on Second Reading—will be achieved in practice. It is all very well to say that the Secretary of State
“must make arrangements for the independent evaluation of the extent to which ODA”
represents value for money, but it would be helpful to know exactly how that particular provision will be delivered.
Is not the danger with the Bill as crafted that, in effect, the Government will be responsible for deciding what constitutes an independent evaluation and for marking their own homework? Surely it is the duty of this House to set up the basis on which we think the Government should be scrutinised, rather than leave it to them to decide for themselves what constitutes independent evaluation.
My hon. Friend is right. Indeed, more suspicious minds than mine may wonder why the Government are reluctant to include a provision to enable either the ICAI or my hon. Friend’s proposed body to carry out independent evaluation and oversee the Department’s work. There may be a good answer to that and I look forward to hearing the Minister’s explanation.
My hon. Friend, as ever, is absolutely right. That is one reason why new clause 5 should be included in the Bill. As we all know, a substantial part, if not the largest part, of EU funds are disbursed in regional grants to the poorer parts of the EU.
Just to give an illustration, the overseas aid Department gives aid to Moldova, which is the poorest country in Europe. If Moldova were to become a member of the EU, we would be expected to make higher contributions to the EU to pay for all the work that would need to be done to bring Moldova up to scratch. The money we currently give to Moldova in overseas aid would then have to go somewhere else. In effect, the money would be spent twice.
I am grateful to my hon. Friend for that example, which is a perfect reason why it would make sense to accept new clause 5.
New clause 6, also tabled by my hon. Friend the Member for Shipley, concerns the calculation of gross national income for the purposes of section 1. As has already been touched on briefly in an intervention by my hon. Friend the Member for Christchurch, some difficulty has arisen this week concerning national statistics. As often happens, to be fair, they are subject to revision as more information comes in and more firms send their statistics to the Office for National Statistics.
New clause 6 therefore proposes:
“Adjustments to the figure provided to Parliament as the UK’s gross national income as at the end of the financial year shall not change or invalidate the UK’s performance against the target under section 1.”
Together with the other amendments that are being proposed, that would go some way towards dealing with the problem we have seen this week.
Amendment 16 proposes:
“Clause 1, page 1, line 4, leave out ‘gross national income’ and insert ‘final gross national income of the preceding year.’”
It would also deal with the problem of changes being made to the gross national income after the figures had been reported.
Amendment 5 is slightly different. It was tabled by my hon. Friend the Member for North East Somerset, who has disappeared for the moment. It proposes:
“Clause 1, Page 1, line 5, at end insert “when the central government net cash requirement is in surplus.””
That is an important change, given the overall position of our nation’s finances, and I am sure that my hon. Friend will have more to say about this and his other amendments before the House today.
Amendment 20 would
“leave out “met” and insert “progressed toward”.”
That would cut down on the number of times the Secretary of State has to account for not having met the target.
Amendment 6, which would amend clause 1, page 1, line 7, deals with the inclusion of a role for the Office for Budget Responsibility. This is perhaps one of the most important amendments being proposed this morning, because rather than leaving matters as are currently provided for in the Bill it would be much better if the responsibility for determining whether the target had been met was decided by the independent OBR.
The OBR has been much in the news this week, as it has given its report on the nation’s finances. Again, rather than having the current provision in the Bill, it would be much more sensible if this task was given to the independent OBR. It would not be much of a further imposition on its resources. It is the organisation that has these figures, and each week, each month and each year it has to report to this House. It will be the first organisation to know whether the figure—0.7% or any other figure that the House may decide upon—has been met.
New clause 7, also in this sub-group, was tabled by my hon. Friend the Member for Shipley and is entitled, “Applicability and expiry of the provisions of this Act”. Subsection (1) reads:
“This Act shall come into force on such a day appointed by the Secretary of State by an order contained in a statutory instrument.”
My hon. Friend is absolutely right. It makes sense for those who want to see the United Kingdom making the maximum impact with the money available for international aid, including some who have tabled amendments, to make the reporting requirements—everyone accepts we need some means of evaluation so there must be reporting requirements—as simple as possible. I cannot understand why we make them so complicated by putting them on a different basis from all the other Government accounts. It seems to me logical and common sense to assess the accounting period on the same basis as for all other annual accounts.
Amendments 21 to 26 would reduce the figure of 0.7% to 0.35%. Before anyone jumps up to say that this will mean cutting our aid in half, let me say that that is not necessarily so. This issue reveals the problem with the Bill. At the end of the day, the Government could continue to spend more than 0.35% on international aid; they could continue to spend 0.7% or even 0.8% on it if they were so minded. It is worth while considering why this figure of 0.7% has achieved almost mythical proportions.
Does my hon. Friend agree that we need some flexibility around what is affordable for the country? Simply having a very high target every year, irrespective of the country’s financial circumstances, is ludicrous. These amendments would thus allow some flexibility to take much more account of the nation’s finances.
My hon. Friend is absolutely right. I will not go into all the detail, but other countries have realised this point. If the suggestion of 0.35% were adopted and the Government decided on it—I do not think for one second that they will—it would put us in the pack rather than being second in the list, as we are at the moment. We would not be behind the rest of the world. It is worth looking at the detail of the figures. Anyone who does so will see that, rather bizarrely, for most of the last two or three decades we have spent around 0.35% and that it is only in the past three or four or probably five or six years—and incredibly since the financial crash—that there has been a huge increase at a time when the country can arguably least afford it.
I am conscious of the fact that there are many amendments, so I shall move on quickly to deal with the final two groups. My hon. Friend the Member for Christchurch has tabled three amendments, one of which is amendment 2. It sets out one of the criteria for evaluation of the policy and provides that it should be
“relevant, sustainable and capable of having a measurable impact.”
I look forward to hearing my hon. Friend’s explanation of the definition of “sustainable”. Perhaps he will convince me that that can be easily assessed. Amendments 8, 9, 10, 11 and 37 were tabled by my hon. Friend the Member for North East Somerset. I should mention in passing that any Member who looked at the Notices of Amendments in the Table Office yesterday should bear it in mind that at that stage amendment 37 appeared as amendment 10. The second “amendment 10” should have been “amendment 37”. I am sure that my hon. Friend will set out in convincing detail his reasons for believing that the amendments should be accepted.
It is right and proper for the Bill to be scrutinised this morning. Millions of people outside the House support this country’s aim and ambition to do all that it can to help those around the world who are starving and need help—no one denies that—but I do not think that giving special status to our aid programme has universal support in this country, and I think it important in a democracy for all sides of the argument to be put.
As I have attempted to say during the last few minutes, the amendments would not wreck the Bill. In fact, they would make it more understandable. If they were implemented, more rather than less money would be available for international development. They would make the Bill more straightforward and transparent, and would increase the funding available for international aid.
The hon. Gentleman is rattling through these amendments at a rate of knots, and we can barely keep up with his arguments. He glossed over the subject of the international development body to scrutinise this. He voted for that on Second Reading, and he voted for a money resolution to put that into being, so could he give us some detail as to why he seems now not to support something that he voted for previously?
Forgive me for teaching the hon. Member how this place works, but we vote for the principle of the Bill on Second Reading and then we go into Committee and vote for amendments that allow for the Bill to enact that principle. We viewed, on a cross-party basis, that this was the best way to go forward, and so I will move on.
On the calculation of ODA and GNI, the amendments deal with the time frame of calculation, opportunities to synchronise aid reporting with financial accounting, and the detail of which payments should be included within the calculation of ODA. Given hon. Members’ widely acknowledged preference for turning back the clock, I suppose we should not be surprised by the amendment changing the calculation for ODA to be based on the UK’s GNI from 1975—when, I am assured, a packet of Spangles cost just 2p. I was more perplexed by the move from the internationally accepted calendar year as the calculating period to the financial year of April to March, and of course in their amendment 19, their redefinition of “financial year” to a period of little over 100 days. I am sure the House will be relieved to hear that, again, the terms of this calculation form part of the same internationally agreed covenant.
That concern led to arguments on which payments should be included in the calculation of ODA, and specifically hon. Members’ contention that this 0.7% figure should include payments to the EU, welfare benefits paid to foreign nationals and welfare benefits to UK nationals living abroad, among others. I am afraid ODA is officially defined and therefore this amendment would clearly frustrate the will of the Bill and the principle moved on Second Reading.
Finally, I come to the applicability and expiry of the Act and other technicalities, and the amendments concerning a public referendum, implementation once we have achieved budget surplus, and a sunset clause that limits this Bill to a period of just five years. I do not know whether hon. Members are experiencing a personal crisis of confidence in their own representative capabilities, but they might be interested to know that 29.5 million of the British public give charitably each month, and that on average the British public believe we should give not 0.7%, but around 1.5% of our nation’s wealth to help development. I hope that will reassure the hon. Member for Shipley (Philip Davies) in particular, who worries this Bill enjoys the support of only
“a few middle-class, Guardian-reading, sandal-wearing, lentil-eating do-gooders with a misguided guilt complex”
and helps them to
“feel better about themselves”.—[Official Report, 12 September 2014; Vol. 585, c. 1232.]
I can also reassure him I have never voluntarily eaten a lentil.
Moving to the five-year time limit, the hon. Gentleman may be surprised to learn that I, too, want to reach a time where we are able to repeal this Act, not because I aspire to living in a UK that is less generous, but because I aspire to living in a world which is more equal, and where each country has the resources, institutions and industry that it needs to be independent of foreign aid. With the greatest respect, when this moment arrives it will be dictated by the humanitarian need that remains, not the diktat of a few Members of Parliament determined to frustrate the passage of this Bill.
We reject these amendments. It is time to pass this Bill.
The Bill places a simple duty on a Minister to report to this House. The amendments fall into four categories. The first is those that seek to negate or reduce that reporting duty, or indeed place the burden of that reporting duty on somebody else—a new body or the OBR, or, indeed, make it subject to judicial review. I, however, prefer the simplicity and the authority of reporting to this House.
The amendments in the second category seek to change the means of calculation on which the report is based, either by changing from a calendar year to a financial year, by adopting a figure of 0.35%, by using the preceding year’s gross national income or by including other payments, such as those made to the EU. I, as a Minister, would find a couple of those amendments quite convenient, but I do not believe that it is the purpose of this House to make Ministers’ lives more convenient. As the hon. Member for Luton South (Gavin Shuker) has said, these matters are defined internationally. The purpose of the Bill is to meet an international commitment, and to mess about with the calculation would be to undermine the fundamental purpose of the Bill.
The amendments in the third category are those that are mischievous—namely, those that would seek to reduce the salaries of Ministers if we were to fail to meet the commitment. We know, however, that those who have tabled those amendments would be glad that Ministers had not met the commitment—indeed, they would probably wish to pay them more for not having met it. The amendments in this category also seek to provide for a referendum, a sunset clause or some other such impediment to implementing the Bill.
The amendments in the fourth category are those that are, frankly, trivial. Those who have tabled them would have us argue today about the meaning of commonly understood terms such as “value for money” and “reasonably practical”. It is my estimate that none of the new clauses or amendments would improve the Bill. Indeed, they all seek to undermine it. I call on those hon. Members to withdraw them and, if they do not do so, I call on the House to reject them.
I want to begin by saying how regrettable it is that the Minister and the shadow Minister have treated the House with such contempt this morning by making no attempt at all to engage with the debate. Basically, they think they have a right to just come along, stand up and sit down without offering any explanation of the Government’s position or that of the official Opposition, in an attempt to railroad through the House a Bill that has very little public support. They really should be ashamed of themselves for treating the House with such contempt today. We are no wiser about the position of the Government or the Opposition on the amendments, or about their arguments for or against them, even though they supported some of them on Second Reading and supported the money resolution passed in the House. It is unfortunate that the Minister and shadow Minister have chosen to adopt this tactic today; it does neither of them any credit. I will attempt to fill in some of the gaps that they have left unfilled today.
If you will allow me, Mr Speaker, I will go through the new clauses and amendments tabled in my name first. Then I will comment briefly on those tabled by my hon. Friends. New clause 3 deals with the relevant period for annual reporting. The international agreement, which we keep being told makes the Bill so essential, actually dates back to the mid-1970s, yet all of a sudden it has become a matter of urgency that, in 2014, we should implement something that was agreed back then. That agreement included provisions for reporting on a calendar basis, and the Bill proposes that the target should be reported and calculated on that basis. However, we do not work on that basis in this House. We have a financial year. We could end up with some unintended consequences with this legislation, whereby it tries to put into a calendar year what this House does in a financial year. The Office for Budget Responsibility, the Treasury and all Departments calculate things on a financial year basis—all departmental budgets operate on that basis. So it is just not practical to decide that one Department should be able to opt out of that framework and have its budgets determined on a calendar basis, unlike every other Department.
My hon. Friend is right about that. I know that what he says reflects a proposal that he has put forward, with which I have much sympathy. I will discuss it a little later, if he will allow me.
What is in the Bill will mean that in a financial year in this House the Government may not be spending 0.7% of their budget on overseas aid—they may be spending more or they could be spending less. Whatever this House decides, it must treat the Department for International Development in the same way as every other Department, and a financial year should be the basis for that. I hope that the Government will reflect on this matter, because I do not know how this arrangement will work otherwise. I have no idea how they propose it will work either. It would have been helpful if the Minister had set out how it would work from a Treasury, OBR and general reporting perspective and what implications there may be. As he failed to take the opportunity to do so, we are none the wiser.
New clause 4 would set the Bill back up as it was on Second Reading, by putting in place the independent international development office. That was deemed necessary by the Bill’s proponents on Second Reading, but now, all of a sudden, it has become completely unnecessary. We have been given no explanation from anybody today as to why a few members of the Committee decided to strike it out. No doubt the shadow Minister, the Minister and the promoter of the Bill all connived to take it out, yet no explanation has been given this morning as to why they choose to do so. That is why I say that they have treated the House with contempt. We have been given no explanation of why the Committee chose to act in the way it did. My new clause has provided the opportunity for the House to revisit this matter. If it thought this body was important on Second Reading, I want to know why it is no longer important.
I worry about this situation very much. I am not one for having bureaucratic bodies set up willy-nilly, with limitless budgets, in order to empire-build for no particular purpose, but when the right hon. Member for Berwickshire, Roxburgh and Selkirk (Michael Moore) proposed the Bill he thought that this independent international development office would have a serious purpose. That purpose was to evaluate
“the relevance, impact, value-for-money and sustainability of ODA.”
It was also to
“develop systems to verify the extent to which ODA is spent efficiently and effectively.”
We have to worry about why the Government and the official Opposition are so keen that that is no longer the case. Does that mean they do not want any body being given a remit to evaluate the relevance, impact, value for money and sustainability of overseas aid? Might it be embarrassing for the Government and for the official Opposition—if they one day hope to be in government? Their actions will not now be independently monitored by a body that commands any great confidence—that seems to be the implication of the Government and the Opposition taking this bit of the Bill out. It means that they do not want to be scrutinised on how well this money is spent—and no wonder. We have seen time and again—I gave some examples on Second Reading, which I will not rehearse again today—that money has been spent on the most ridiculous things in the name of overseas aid. These things would not command any support among the British public, but they come under the overseas aid budget. Of course what is happening here is that Ministers do not want that level of scrutiny.
My hon. Friend the Member for Bury North (Mr Nuttall) has proposed an alternative, and it may well be that it makes more sense than mine.
I am not precious about whose new clause is accepted, which body we have or whether an existing body could do the job properly. That is of no concern to me. My concern is that there is some independent evaluation and scrutiny of how the money is spent. Many people around the country feel that overseas aid is about taking money from poor people in rich countries and giving it to rich people in poor countries. They see millions of pounds siphoned off by dictators around the world for a new fleet of Mercedes, or whatever it may be. Dictators of some countries probably think that the Government should include a Mercedes catalogue with the aid that they are giving. Those are the legitimate concerns of many of my constituents and many people around the country. Those concerns will only be enhanced when they realise that the two main parties and the promoter of the Bill have removed from the Bill any attempt to ensure that the money is spent effectively, wisely, and for the good of the people it is supposed to help. We have not had any explanation as to why they have made that decision today.
The hon. Gentleman says “absolute rubbish” from a sedentary position, but there is lots of evidence that that does happen. In fact, he makes my case for me. If he thinks it is rubbish, then let us set up a body to prove that it is a load of rubbish. What his party and the Government fear is a body that points out that these things are happening, and so they have done away with it, because it may be embarrassing for all these things to be out in the open. We should have a body, which this House voted for on Second Reading, to scrutinise objectively what the Government are doing to ensure that the money is being spent wisely. How on earth can anyone disagree with that? What is there to disagree with about ensuring that the money is spent wisely and for the purposes for which it was intended? Why does no one have the nerve to stand up and disagree with it? They would rather slouch in their seats and try to railroad this Bill through Parliament.
My hon. Friend the Member for Bury North mentioned the Independent Commission for Aid Impact. Chief Commissioner Graham Ward said:
“We saw very little evidence that the work DFID is doing to combat corruption is successfully addressing the impact of corruption as experienced by the poor.”
When the hon. Member for Cardiff South and Penarth (Stephen Doughty) says “rubbish”, he is at odds with what the ICAI chief commissioner said about corruption. Indeed, the chief commissioner went on to say:
“Indeed, there is little indication that DFID has sought to address the forms of corruption that most directly affect the poor: so called ‘petty’ corruption. This is a gap in DFID’s programming that needs to be filled.”
When we have the ICAI making that point for us, it is perfectly obvious that signing up to a blank cheque of overseas spending needs to be properly monitored. The ICAI has made it clear that the Government are not doing that effectively at the moment. Now it seems that the Government do not want anybody to judge how well they are spending the money. It is completely unacceptable to taxpayers to expect them to hand over money without any proper scrutiny.
New clause 5 requires a calculation of overseas aid spending for the purposes of clause 1 and asks that the calculation of ODA includes the amount paid by the UK to the EU, welfare benefits paid to foreign nationals and welfare benefits paid to UK nationals living abroad. All those things should be included in the 0.7% target, as I do not see how they could not be described in one way or another as overseas aid.
Let me give an example to illustrate. We as a country hand over to the EU just short of £20 billion every year and I think that we receive back about £8 billion a year, although my hon. Friend the Member for Bury North is the expert in these matters. One purpose of the money that comes back to the UK is for it to be spent in the areas of greatest deprivation in the UK. That is what the European Union does and, fortunately I guess, the UK clearly does not have that many areas of mass deprivation in an EU context, which is why we get so little back compared with what we put in. The extra money that we have put in is then diverted around the rest of the EU, in effect to prop up the poorest countries and to try to bring their economies up to a level similar to that of the rest of the EU. That is the purpose of how the EU is funded: it is about taking money from the richest countries and handing it over to the poorest. If that does not constitute overseas aid, I do not know what does.
If the Minister had had the courtesy to speak for more than five seconds flat, we might have known his opinion on this, but I thought that the purpose of overseas aid was to take money from the richest countries in the world and transfer it to the poorest. That is exactly what our funding to the EU does on a European basis. That seems to me to be overseas aid, without any controversy. It therefore seems quite extraordinary that everybody now argues that that is not overseas aid, that it should not be counted as such and that it should be paid on top of it. That means that our overseas aid spending will be not 0.7% but considerably higher— probably 2% of GDP by the time we add in all these other factors.
There is a clear case that our money to the EU should be classed as overseas aid and therefore form part of this target. Then, of course, we have welfare payments paid to foreign nationals. In recent years, far too many people from other countries have come to this country and, to be honest, migration is at levels that we cannot cope with. We are regularly told by people who are in favour of all this immigration that all these people will not stay here but will go back so we should not worry about it at all. I do not believe that, but I am humouring those people. That is their argument, but if that is the case it is perfectly clear that people are coming over here to get some of our British money, as we might want to describe it, to take back to their much poorer country. That seems to me to qualify as overseas aid by anybody’s standards, because in some cases the money is passed back to the country of origin while the person is in the UK. We are basically handing our money out to benefit the economies of those much poorer countries and we give a considerable amount in that way.
The third part of the new clause involves welfare benefits paid to UK nationals living abroad. Again, this is a considerable amount. I cannot find the figures offhand, but from recollection I would say that in the region of £3.8 billion a year is given by the Department for Work and Pensions to UK nationals living in countries around the world. That money does not benefit the UK economy in any shape or form. It benefits the economy of the country where those people reside, so that is clearly UK taxpayers’ money going out to benefit the economy of the other countries around the world. It seems to me that that is also overseas aid according to anybody’s reasonable definition.
Does my hon. Friend find it astonishing that jobseeker’s allowance is included in those benefits? It is difficult to understand why the country is paying people jobseeker’s allowance when they are not even in the country.
My hon. Friend is absolutely right. You would not let me get sidetracked into discussing the definitions of benefits and how they should be paid, Mr Speaker, and I do not want to do so either, but it is worth mentioning in passing that £1 million a year of jobseeker’s allowance goes to people who live abroad. Like my hon. Friend, I am not entirely sure how they can qualify as a jobseeker, but that is a slightly incidental point.
I have the figures now for your benefit, Mr Speaker. In 2013-14, £3.6 billion of DWP money was given to people living abroad. That is a considerable amount of taxpayers’ money that benefits those countries and I do not really see why it should not count in the overseas aid budget. On all three counts, the Minister might want to explain why his Department does not think that that is the case, because he has given no indication of that at all.
New clause 5 also covers the administrative costs of the Department for International Development, its agencies and its associated public bodies. My hon. Friend the Member for Bury North touched on this and I am grateful to him for his support for my new clause in that regard. I am not entirely clear where the administrative costs for DFID and its agencies stand, and if people did not rattle through their speeches so fast, we might all actually learn something. Are administrative costs counted as overseas aid or do we say that overseas aid is paid over and above them? I am not entirely clear. I am clear, however, that they should be included in the overseas aid budget because, as my hon. Friend said, that gives the best possible guarantee that the Department will cut its cloth to ensure that as much money as possible is handed over to the people who need it most rather than being spent on self-serving bureaucracy. We are none the wiser today, but perhaps that might be clarified at some point in the future.
My hon. Friend’s point about administrative costs is very important. Does he recall that when Margaret Thatcher was Prime Minister, she vetoed having the Department responsible for overseas development based in what is now Richmond house in Whitehall? She thought that that would be an ostensible gross waste of money and that money being spent on overseas aid should go to the countries in need rather than being spent on administrative costs.
I am grateful to my hon. Friend for that intervention. As in virtually everything, Lady Thatcher was right about that. To be honest, it is a pity that her views do not carry more sway today because we would not find ourselves debating such a ridiculous and pointless Bill if she were still at the helm.
New clause 6 is about the calculation of gross national income, which, in many cases, is one of the most important parts of the Bill. We certainly should not gloss over this quickly because it involves the spending of a considerable amount of taxpayers’ money based on whatever happens to be the calculation at any one time.
This is very serious. The Minister is a good man normally—I have no idea what has come over him today. He should be ashamed of himself for not treating the matter with the seriousness that it deserves. He should explain the Government’s position.
The situation is even worse than that. There will be pressure always to overspend above the target because in years when GDP turns out to be less good, there will be no means of clawing the money back, but where it has grown faster, there will be an expectation that more money will be paid or a statement laid. Therefore, there is a pressure in the Bill for there to be more than 0.7%.
My hon. Friend is right. Nobody could deny that if the recalculation means that we have underspent, everyone will be clamouring for the extra money to be found for a non-existent project somewhere in the world just to satisfy themselves, but if the GDP figure is downgraded, there will not be many in the House calling for some of the money to be clawed back. The Bill, in effect, sets a minimum target for spending, not an amount. That is not what most people have in mind. The public will be confused about why they have to spend an extra £550 million—I have no idea where the money would come from—to meet this arbitrary target because it did not happen to match the projection that was made. That is ridiculous.
My new clause 6 means that none of those adjustments would be made. If the calculation was wrong but the money was spent in good faith on a good-faith calculation, that should be that. There should be no end-of-year recalculation of the budget based on an upgrade or a downgrade—it could work either way and I cannot predict which way it would go. It strikes me as ridiculous that the Treasury should have to dig out money from nowhere just to hit a particular target. That is why the new clause is so important.
The way in which GNI is calculated is changing: 0.7% of the old GNI is quite different from 0.7% of the new GNI. For no reason other than statisticians deciding to calculate things differently, the taxpayer will have to find hundreds of millions of pounds extra in order to hit the 0.7% target.
Will my hon. Friend make it clear that the Office for National Statistics has had to change the way national income is measured because the ONS was required to bring it into line with the rest of the EU? It is because we are members of the EU that we have to do this.
I am grateful to my hon. Friend for that. I am sure everybody in the country will be pleased to know that the taxpayer has been stuffed because of the European Union—not for the first time and, no doubt, not for the last time.
The fact remains that we have a new calculation. This is not a pledge that was made in the 1970s or even when the proponents of the Bill first wanted to enshrine it in law. We are being asked to sign up to something entirely different from what we were originally told, and it will cost the British taxpayer more. If 0.7% of the old calculation was good enough, why can we not stick to that figure and that calculation? Why do we have to move to the new calculation? What evidence is there that that is necessary? What is the thinking behind it? We have had no explanation of that. Nobody has even touched on the issue. The taxpayer is expected to hand over a few extra hundreds of millions of pounds. Some in the House do not care that they are spending other people’s hard-earned money willy-nilly, but I care about people’s hard-earned money and the taxes that they pay, and I want to make sure that those are spent properly. It is just an accountancy figure to many Members, who do not care.
The GNI figure is essential. By passing the Bill unamended and without my new clause, we are at the whim of any future recalculation of GNI which requires the Government to hand over even more to hit the arbitrary 0.7% target. We should not allow that to happen. My new clause 6 would put in place safeguards for the taxpayer.
New clause 7 is also extremely important. It deals with one of the assertions from the Opposition. It provides that the Bill would take effect only after a referendum had taken place and had resulted in more than 50% of the people voting in favour of the target. I am constantly told that the target is extremely popular out in the country, that everybody wants to see it met, and that only a few reactionaries do not. I am prepared to take my case to the country and have it tested in a referendum. If more than 50% of people vote to spend all that money on overseas aid, I will be the first to accept that. I will try to make sure that the money is spent as well as possible, and I will accept the will of the people in a referendum.
My hon. Friend makes the point particularly well. I am pretty confident that the majority of the public are on our side on this issue. It is important to note, in relation to new clause 6 and the percentage of GNI, that the OBR’s figures, published only this week, show that spending in every Government Department—that includes spending on health, defence, schools and education—will go down as a proportion of GDP over the next five years. I suspect that the majority of my constituents would want to protect the health budget, if anything, as a proportion of GDP.
Is not it extraordinary that we are effectively being asked to rubber-stamp a provision that will ensure that although spending in every other Government Department will go down as a proportion of GDP, spending on overseas aid will remain the same as a proportion of GDP? I cannot accept that that is the will of the British public. In fact, I am not entirely sure that we will see that it is the will of the House. I have proposed that 50% of the public should have to vote for it, but I suspect that we will not get anywhere near 50% of MPs voting for it today. Let us have some democratic legitimacy for the policy. Let us have it out in a referendum. Let the people decide what they want their taxes to be spent on.
I suspect that I will be proved right and that those arguing for the Bill will be proved wrong. Of course, if they are right, they have nothing to fear from a referendum. I want to know why they fear the public’s opinion so much—we did not hear it today because they were so determined to rattle through their speeches. I think that we should put this to the people in a referendum, given that we seem to be embarking on a new constitutional settlement. In our constitution we have never gone down this route of protecting spending for one Department as a proportion of GDP. Let us see whether the British public are in favour of that new constitutional arrangement. I fear that they are not.
Of course, if the Bill is not amended today, overseas aid will become a bigger and bigger proportion of Government spending every year, because spending by every other Department will go down as a proportion of GDP. Nobody has admitted it so far, but that, in effect, is what the Bill will sign us up to. Is that really what Members think the public want, when there is so much pressure on our public services, our military and our transport system? Do they really think that they want a higher and higher proportion of Government spending to go on overseas aid? I do not think they do. My hon. Friend the Member for Christchurch (Mr Chope) has given us the polling, which suggests that is not the case either. I would like other Members to trust the public with their own money.
Subsection (3) of new clause 7 states:
“This Act shall only have effect in those years where the United Kingdom records a budget surplus.”
We are borrowing more than we expected this year. The Chancellor gave us the figures this week. He has done an excellent job in getting the deficit down—I am the first to praise him for that—but it is still far too high. It is about £5 billion higher than he anticipated it would be at this stage. The hon. Member for Luton South (Gavin Shuker) talked about how much money the British public give to charity. We are very generous in this country when it comes to helping those less fortunate than us. That is a proud tradition that I suspect and hope will continue. I would much prefer individuals to decide which charities to give their own money to, rather than the Government deciding what they should and should not be supporting through their taxes. That is an essential principle of mine.
My hon. Friend is absolutely right. I would be the first to say that when countries face some terrible humanitarian situation or natural disaster, the United Kingdom should always be at the forefront in helping them in their hour of need. However, if anybody thinks that our entire overseas aid budget goes on helping countries in their hour of need, they need to study much more closely what the budget is spent on.
When other countries are in their greatest hour of need, it is often our armed forces who come to their rescue soonest. It would therefore be better to spend the money with them so that they can respond.
My hon. Friend is absolutely right. I do not want to go down that cul de sac either, but it is worth noting in passing that we made a promise to spend 2% of GDP on defence, and that promise does not appear to have been legislated for anywhere. In fact, the OBR has calculated that, on current projections, it will actually drop to 1.5% by 2020. My hon. Friend makes a very good point on what is the most worthwhile thing to spend our money if we are to help other countries around the world.
My hon. Friend makes his point well and I agree with it, but I will make no further comment, because we would be going off the rails if we started debating a different Bill.
Subsection (4) of new clause 7 would allow the Secretary of State to
“vary the target… by an order contained in a statutory instrument in response to the UK leaving or joining a multilateral organisation which itself disburses”
overseas aid. I think that we need more flexibility in the Bill. We might join an organisation that is giving aid to something we already give aid to, in which case it would be ridiculous to in effect doubt the money that is already being spent. We have no idea what our future international relationships will be and what these international organisations may or may not be doing. The Bill should therefore have some flexibility whereby if we join an organisation that is already doing what we are doing, we do not, in effect, end up doing it twice, and the Government can adjust the target to take account of that.
The final part of new clause 7 is a sunset clause whereby the Act would cease to exist in the fifth year of its being in force. I am a big fan of sunset clauses generally; they should be used more widely. Often when we pass legislation in this House, we guess or second-guess its implications, and then find that it has no end of unintended consequences, yet it stays there on the statute book causing problems because nobody can be bothered to get rid of it or find the parliamentary time to do so. It would be much more sensible if, as a matter of routine, we introduced sunset clauses so that we were forced as a House to assess how legislation was working and whether it needed to be tweaked. That would force people to come back either with the same proposal or a revised proposal taking into account what we had learned.
If overseas aid is doing what it should be doing, then it should not be there in perpetuity. This goes to the heart of why this Bill is completely ridiculous. We should be saying to countries around the world: “You’ve got some issues that you need help with. It’s your responsibility to sort out your own issues, but we’ll give you a helping hand. We expect you to sort out your own arrangements on the rule of law and governance and so on to enable inward investment to be encouraged. Once you’ve sorted yourself out with our helping hand, we can then walk away and leave you to stand on your own two feet.” Surely the purpose of overseas aid, if it has any purpose whatsoever, is to help countries to stand on their own two feet; it should not be there in perpetuity. Why, therefore, does this Bill enshrine this level of spending in perpetuity? Are we accepting that overseas aid does not make any difference to these countries—that they do not get any long-term benefit from it and it is just a short-term sticking plaster to make us feel better? If it is achieving anything on a longer-term basis, then surely we should not need to keep spending all this money but should instead be tapering it off.
A sunset clause is a sensible provision to allow us to assess five years hence what is an appropriate figure for us to spend in order to deal with the world as it then is. It is complete lunacy to say that we are going to spend 0.7% in future years when we have no idea of what the world’s circumstances will be—what countries will need help, and how much.
There is no doubt about why Labour Members agree to these things. They believe that people should be judged simply on how much money they spend on something—that it is all about input. That is what the Labour party is all about. I remember, years ago, asking the then Government why truancy had got worse under their stewardship. They told me that they had spent £1 billion on tackling truancy, as if that made it all right; they wanted to be judged simply on their input. I thought that the fact that they had spent £1 billion on something that had got worse was terrible, but that is because I am a Conservative. I do not doubt that Labour Members think they should be judged on how much they spend and that it is all about input. What astonishes me is that people who like to describe themselves as Conservatives think we should be judged only on how much we spend and on our input, and have no judgment made on our output whatsoever. A sunset clause would help by making us look at the output of what we had done and whether it was worth persevering with.
I have previously outlined the difficulty of basing how much money we spend on an ongoing calculation throughout a year. Under amendment 16 the 0.7% figure that we spent would be based on the final adjusted figure for gross national income in the preceding year. No guesswork would be involved—it would be the final adjusted figure that everybody accepted as such. The figure that would be spent the following year would be 0.7% of the previous year’s GNI.
I accept the thrust of the amendment and what my hon. Friend is trying to achieve. However, the Office for National Statistics keeps on revising things over such an extended period that I would like to know when the final figure is deemed to be the final figure. He will be aware that the apparent double-dip recession that the socialists accused us of having turned out not to have existed once the figures were revised. This has become an increasing problem as the ONS has made more and more revisions to historical figures.
My hon. Friend makes a good point. My amendment does not give any particular date for a final figure; it refers to just one. By definition, it would be the final, final figure, whenever that was reached. It may well be that as a consequence of my amendment we would be dealing with figures from two or three years previously; I am not entirely sure.
My amendment would mean that we were not guessing the figure, so the Department could work in a certain year knowing what its budget was going to be for that year and not having to guess what it might be. That has to be a much more sensible way of managing its budget than having to second-guess things. It would also avoid what might be described as local authority syndrome. Once local authorities get to the end of the year in March—in this case, it would be December because we have this ridiculous new regime for DFID—they use up the rest of their budget because they have more money than they had anticipated. Let us not have any illusions that that would not happen if we stuck to this Bill in its current form.
Amendment 16 would allow the Department to know with certainty how much money it had for the year so that it could make plans for its spending based on that certain figure. Wherever one stands on overseas aid, that has to be a much more sensible way of dealing with things. I am sure that the Minister would appreciate knowing with certainty what his budget was going to be for the year rather than having to second-guess it.
Amendment 20 would mean that we would not have to have achieved the target but only to have “progressed toward” it. That would give the Bill more flexibility so that we do not need to have huge spikes in spending to meet an arbitrary figure, but the progression would be in the same direction.
Amendment 18 refers to replacing the calendar year with the financial year. I have spoken before about why it is so important that we should do that. Nobody else reports on the basis of a calendar year. The OBR does not, and the GNI figures are not worked out on that basis. The Minister could have helped us with this. I have no idea of who is going to calculate the 0.7% figure for the calendar year. We rely on the OBR for these figures, but it does not calculate them in that way, so how will we know whether we have hit the 0.7% figure?
Is it not obviously absurd to have one Government Department accounting on a different basis from all the other Government Departments? We cannot have one Department working to a calendar year when the whole Government budgetary process is based on a financial year. That is the fundamental flaw in the Bill.
I have made that point, but I agree with my hon. Friend.
Who will calculate the calendar year figure? As far as I understand it, it will not even be domestically set, because the OBR works to a financial year and so it will not be doing it. I suspect that the decision on whether we have hit this figure will be determined solely by the international body that calculates these things on the basis of a calendar year. In effect, we are setting up Government spending without any of our own controls over it—not even with our independent body determining it for us, but rather with it being done by an international body in whose calculations and figures we may or may not have any confidence. Having our Government spending determined not by ourselves—not even in this country—but by an international body is a very dangerous precedent to set.
Amendments 21 to 26 are consequential amendments that flow from one another. They would remove several references to 0.7% and replace them with 0.35%. I believe that I may have been overly generous with the target of 0.35%, but I am a generous kind of chap. I set out earlier the fact that we give lots of overseas aid—whether to the European Union or in welfare payments—that is not covered by the Bill. When all those things were added on, even if we were to accept my amendments and make the target 0.35%, we would be spending way over 0.7%. My amendments are, therefore, rather modest.
Mr Davies, that is very gracious of you. We both made our views clear last week, but today is another day. Of course I accept your apologies, because I know that you would not mean any discourtesy to the House or to whomever was in the Chair. Please continue with your speech in order.
Thank you for graciousness in accepting my apology, Madam Deputy Speaker, which is, I might add, typical of you.
After that brief interlude, amendment 37 would remove clause 6(2), which states that the Act will come into effect in June 2015. My hon. Friend the Member for Christchurch has tabled a sensible amendment, and I cannot see why anybody should object to it, to the effect that the legislation should come into effect the following January. It is the will of those who promoted and sponsored the Bill, and of those on both Front Benches, that it should be a calendar year operation. I think I have made it clear that it should operate on a financial year basis. Given that they have proposed that the Bill should operate on a calendar year basis, it is quite extraordinary that they have included the provision that it should come into effect in June 2015.
How on earth do we square that circle? How on earth will we determine, at the end of 2015, whether the Government have hit their half-yearly target? If they have overspent in the first bit of 2015 but underspent in the second bit of 2015, will the evaluation state that they have missed their target, even if they have spent 0.7% over the whole year? I am happy to be corrected by anybody who claims to know any better, but it seems to me that if the Bill comes into effect in June 2015, the Government will be required to have spent 0.35% on overseas aid between June and the end of the year, otherwise they will have broken the rules. If the Government had spent, for argument’s sake, 0.4% between January and June, and at the end of the year the international body that is set up to scrutinise how much every country has spent says that we have spent 0.72%, are we going to chastise ourselves because in the second half of the year we did not meet the legal requirement? I genuinely do not understand that. Perhaps the Minister could explain what his obligations will be under the Bill as drafted.
My hon. Friend raises a very serious and important point, because it is not the usual practice of this House to pass retrospective legislation. Indeed, as a constitutional principle it is very bad to pass retrospective legislation.
I agree. I am not entirely sure how any money spent in the first half of 2015 will apply to the Bill. It is a shame that the Minister could not give any explanation as to why it should start in June. Perhaps the Bill’s promoter, the right hon. Member for Berwickshire, Roxburgh and Selkirk, can shed some light on the importance of June 2015. Surely it makes sense to begin at the start of a calendar year if the provision is to be judged on the basis of a calendar year.
My new schedule 2 is a consequence of new clause 4 and would bring the Bill back to how it was envisaged by its promoter when he moved its Second Reading. I am happy to leave it to him to explain why the IIDO is so important. He was the one who put it in the Bill in the first place and I presume he did so not because it was pointless, useless, unnecessary or ridiculous, but because it was very sensible. My new clause 4 and new schedule 2 give him the opportunity to explain why this particular international body is so important. Perhaps we could test the will of the House on whether it should be reinserted, given that the House as a whole voted for it only for a small Committee to take it out.
My hon. Friend the Member for Bury North made a very good case for new clause 1, which builds on the work of my right hon. Friend the Member for Sutton Coldfield and deals with the bodies that he brought into being. In effect, it would be a vote of confidence in them. Given the ICAI quote I gave earlier on the Government’s poor efforts in tackling corruption and how it affects the poorest people around the world, I think the ICAI rightly has a reputation for standing up to the Government and holding them to account. That is to the credit of my right hon. Friend and the ICAI. Given that it has shown its independence of mind and robustness, my hon. Friend the Member for Bury North made a very good case for giving it the independent oversight envisaged when the Bill came into being. There should be proper oversight of how the Government spend this money; they should not just be left to mark their own homework, as the Bill currently allows them to do.
New clause 2 was tabled by my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) and I have added my name to it. It would reduce the salaries of Cabinet Ministers by £1,000 a year if they did not meet the target they had imposed. Even though I have argued against the target and think it is a mistake, I do believe that Ministers should be held accountable for the legislation they pass. There is an important principle at stake. If the Government are going to pass such completely meaningless legislation, they should be held to account for it.
The Minister decried those of us who think that the salaries of Cabinet Ministers should be cut by £1,000 if they do not meet the target. He said that we were, in effect, arguing against ourselves, but the reality is quite the contrary—if the Government spend less than 0.7% and if Cabinet Ministers think it is so important, I would be very happy to see them topping it up with their own money. I do not think I am arguing against myself at all; all I am saying is that I would rather that those who argue in favour of spending all this money paid for it out of their own money rather than expect everyone else to cough up for their grandiose schemes.
Is my hon. Friend aware that, in an August 2012 report specifically on the introduction of targets in legislation, the Institute for Government made it clear that having no teeth or penalties to back them up
“brings into question the point of putting a target into law in the first place”?
I absolutely agree with that. Apparently this ridiculous Bill is very important, but there is no sanction if the Government do not deliver on it. Surely there must be some sanction available. If I understand the Bill correctly, the only sanction is that the Government would have to make a statement to the House—and that’s it! It does not even have to be an oral statement; it could be a written statement. What a complete joke! This is a piece of joke legislation and I am afraid that the Government are treating us with contempt by having no sanction in place if they do not deliver on it.
My hon. Friend is absolutely right. This sort of thing brings this place into contempt with the public. We have to guard against that.
I agree wholeheartedly with amendments 5 and 6, which were tabled by my hon. Friend the Member for North East Somerset, who will be able to offer a much better explanation of their merits. He also tabled amendments 7 and 8. Amendment 7 is very good. At present, the only sanction is that the Government will have to make a statement on why they have not achieved their target
“as soon as reasonably practicable”.
When will that be? What does that mean? Will we have to wait for a report to come out a year hence? It is completely meaningless and I cannot believe that anyone has fallen for it. My hon. Friend’s amendment, which is very sensible indeed and should be welcomed by the whole House, says that the statement should be made after
“no more than 10 days during which both Houses of Parliament are sitting”.
That would genuinely hold the Government’s feet to the fire, but, of course, in their haste to get anything on the statute book, it appears that, as usually happens on a Friday, hon. Members on both sides of the House are happy to accept it, even though it is completely meaningless.
I have to say to my hon. Friend that I do not agree with amendment 8. He wants to leave out the subsections in clause 2 that give reasons for why the Government have not hit the target. I will conclude shortly, so I hope my hon. Friend will be able to offer an explanation. Perhaps I have read it wrongly, but it seems to me that there are some reasons in the Bill as drafted for why the Government may not have hit their target of 0.7%. I would like to see as many of those reasons as possible in the Bill, but my hon. Friend wants to take them out.
I simply do not think it is right for a statement, which is a proceeding in Parliament, to be the subject of legislation. I think it is a direct interference in our proceedings through the legislative process.
I take my hon. Friend’s point. He is usually right on most things, so I always err on the side of thinking that he is right. I am still not entirely persuaded; he may be able to have a better go in a bit. I am happy to see some reasons for why the Government may not have been able to hit their target, and I would like to see them expanded rather than taken away. My hon. Friend has some work to do to persuade me to accept amendment 8.
Amendment 9 is very good. It basically says that if the Government do not hit the target, no action needs to be taken, which seems sensible. Amendment 10 does the same thing. Amendment 11 is a hybrid amendment in some respects, because I agree with clause 2(3), but disagree with subsection (4). My hon. Friend wants to take out both subsections. As I made clear earlier, I think that subsection (3) is helpful, because it gives reasons for why the Government may not have hit their target. Subsection (4) is completely pointless, so I agree with removing it.
My hon. Friend the Member for Christchurch has tabled some amendments as well. Amendment 1, which would leave out clause 3, is very sensible. It relates to the point about accountability to Parliament. It is clear that it is a meaningless clause. There is no accountability whatever for the measures in the Bill. Rather than pretending that there is, we ought to put the Bill out of its misery, be honest that there is no accountability and leave it at that.
We have discussed amendment 3, which is about the Bill coming into force on 1 January 2016. I cannot see how anyone can disagree with that—it is just common sense.
Amendment 2 is also a very good amendment. My hon. Friend the Member for Christchurch has a track record of tabling telling and sensible amendments, and he has struck oil again. Clause 5 states:
“The Secretary of State must make arrangements for the independent evaluation”
to show that there has been
“value for money in relation to the purposes for which it is provided.”
He wants to add that the way in which the money has been spent is
“relevant, sustainable and capable of having a measurable impact.”
I agree absolutely. Does anyone here disagree that the money should be spent in a way that is relevant, sustainable and capable of having a measurable impact? If they vote down amendment 2, they will, in effect, be saying that they do not think that it should be spent in that way. Of course it should be spent in that way. It would be helpful if the proponents of the Bill accepted that amendment as an improvement to the Bill to ensure that the money is spent as properly as possible.
The only point on which I take issue with my hon. Friend is the use of the word “sustainable”. It is one of those words that everybody bandies around, but nobody really knows what it means.
I applaud my hon. Friend for his ingenuity. Everybody is in favour of sustainability, but nobody knows what it means. It is a bit like social justice—everybody is in favour of it, but nobody really knows how to define it. Sustainability is definitely in that camp. I agree that it is hard to see how anybody can disagree with it, particularly the proponents of the Bill, as he says.
I have had a quick canter around an awful lot of amendments. I think that there are 30-odd amendments in the group. I apologise to the House for going through them so rapidly, but everybody wants to make progress. I look forward to hearing the proponents of the other amendments make a more cogent case than I have been able to make. As I made clear, I do not fully understand some of them. It is a great shame that the Minister and the shadow Minister have treated the House with such contempt and not even bothered to engage with the amendments that have been tabled or explain their position. One day, I hope that they will come to regret that. Some of my hon. Friends and I will keep arguing for common sense. I would love to hear why everyone in the House, other than a few of us, is against the Bill being put to a referendum.
I have tabled a number of amendments to the Bill, which I will speak to before turning to some of the amendments that have been tabled by my hon. Friends. I have tabled amendments in a number of categories. Some are intended to make the Bill achieve what it is intended to achieve, and some are offered up in a less friendly spirit towards the Bill, of which I fundamentally disapprove.
I will start with the most important proposal—the one that is intended to make the Bill serious. It seems to me that a lot of fine words are being spoken in passing a Bill that can do nothing at all: it has no sanction, but is merely an intention, an expression of good will. That is not the sort of reason for which legislation is passed. It does not have that majesty and authority that the statute book ought to have; it is a wish, a hope, a desire, but it is not something of fundamental strength and importance. Hence my new clause 2.
We hear from all parts of the House lots of pious talk and fine words about how important it is that we spend this money, but when it is suggested that there should be some enforcement of how the money is spent—that there should be some penalty if it is not spent—we hear that it is not possible, it is too difficult, it is unfair on the Ministers concerned. Surely it is simply a matter of making our legislative desire effective. If Ministers and shadow Ministers do not support new clause 2, one has to think that the Bill is merely a matter of fine words and pieties, and not a serious legislative desire.
That is why I challenge Front Benchers on both sides to accept new clause 2. I challenge them to do so on a bipartisan basis, because it is deliberately phrased so that the penalty comes into effect in the following financial year, so that if there is a change of Government, it will affect the incoming Ministers. Why? Because they all buy into this proposal. They are all in favour of frittering away public money overseas—of spending 0.7% of our wealth there, even though the statistical evidence is not available until some time after the money is supposed to have been spent. There are in-year revisions that inevitably lead to money being spent without the proper rigour being applied. Let them show that they really mean it, that they really are in this together, and that they really do subscribe to the pieties that they propose—to the fine words and grandiloquent sentiments that they express up and down the country—by saying that if they do not achieve it, they will accept a fine of £1,000 on their Cabinet colleagues in the following year.
One thousand pounds is the amount that has traditionally been used in this House to indicate the disapproval of the performance of a particular Minister in his or her duties, and it makes for a sensible extension to the Bill. I do not believe that anyone who supports the Bill can oppose new clause 2, because if they oppose it, they do not really mean what they say. Without this new clause, there is no effective mechanism of enforcement.
My hon. Friend the Member for Bury North (Mr Nuttall) said that there would be no teeth to the Bill without the new clause. Without the new clause, there are not even dentures, there are not even gums, to gnaw away at the failures that there may be in implementing the details of the Bill. Let us put in some mild teeth—some teeth that will have a little bit of a bite, but not a huge one. One thousand pounds will not devastate the financial circumstances of a Cabinet Minister over the course of the ensuing year, but it will make them put their money where their mouth is.
That is important, because this House is very good at spending taxpayers’ money and very happy to send it around the world, but what happens if we say instead, “No, it won’t be taxpayers, but the Ministers themselves who find that their money is reduced if they don’t do what they say.”? They run away, they are scared, they are frit, they do not like it, but they are quite happy to spend taxpayers’ money all around the world on projects that may or may not succeed, with almost no accountability to this House or anywhere else.
I am surprised that the shadow Minister, who is a sensible and wise fellow, has not decided to take up my new clause and put it forward as an Opposition proposal. I thought that I could reasonably have expected the Opposition to add their names to it as an indication of their passion for overseas aid—not a passion that I share, but one that is honourable, as long as it is taken to its logical conclusion. Hence, new clause 2 tries to pave the way for people to support what they believe in and what they want to do, by ensuring that it has meaning and meat, rather than being a simple expression of will.
Why do I dislike mere expressions of will in legislation? I do not believe that mere expressions of will are what Acts of Parliament are for. Acts of Parliament are not there to say that we believe in motherhood and apple pie, even though I happen to approve of both. I think that motherhood is a wonderful thing and I like apple pie, particularly if the apples are from Somerset and cream and sugar are provided, but that is not a matter for legislation. To put wish lists into legislation is a poor way of legislating. All legislation needs to have a consequence if it is ignored. It must not be free of any form of consequence and, therefore, open to being ignored by any future Government.
The only penalty provided for in the Bill is that a statement must be laid before the House. Statements are laid before the House every day. If Members look at the back of today’s Hansard, they will find a very interesting statement by my hon. Friend the Minister for Culture and the Digital Economy on a meeting that took place in Brussels on 27 November 2014. It is an important statement and an important part of European scrutiny, but the Government are not going to stand or fall on a written statement. Whether he made it today, yesterday or in a week’s time is not fundamental to how this nation is governed, and so, as a sanction, it is entirely worthless. Not even an oral statement is required. One wonders why the promoter and sponsors of the Bill have not come up with a suitable sanction. They may have thought of one that was better than the one I could—
I thank the Minister for his intervention. It reveals the extent of the weight he attaches to the views of our constituents. Members are voting in large numbers to increase and put into law the 0.7%, which represents a rising amount of output, as though they were doing something on behalf of their constituents, when they know that the vast majority of their constituents do not want them to do that.
Does the hon. Gentleman agree that his constituents, like mine, would not support the premise of the Bill, which means that, as spending as a percentage of GDP goes down as the cost of government as a whole is reduced, the Government will be spending a higher and higher percentage of their income on overseas aid? My constituents certainly would not want that, and I am sure that his would not want it either.
The hon. Gentleman is quite correct. He is one of the very few Members who appear actually to vote as their constituents would wish them to.
We have heard today that the numbers are being revised upwards still further. We are now going to be spending £12.4 billion on overseas aid. My party wants to reduce that amount—[Interruption.] We do not want to eliminate it entirely, as the hon. Member for Shipley (Philip Davies) might wish, but we want to cut it by 85%. That would give us a saving of £10.5 billion to spend on the priorities of our constituents.
The other question that Members around the House simply seem to ignore is that of whether we as a country can afford this. If we want to give overseas aid on a sustainable basis, we have to sell overseas more than we buy from overseas, yet we now have a current account deficit coming close to 5% of GDP. That figure is usually the sign of a country in crisis and in an unsustainable position, yet we are going to enshrine in law an obligation to make an overseas transfer of 0.7% of our GDP indefinitely, through force of law.
We saw the autumn statement and the Office for Budget Responsibility and its three-men-and-a-dog approach to forecasting the current account deficit. This blithely assumed that the 5% gap would disappear and become less than 2% over the forecast horizon. For some reason, it was assumed that overseas transfers would trend lower, but there is no serious prospect of that happening while we are handing over 0.7% of our resources as overseas aid, never mind our contributions to the EU and the rising amount of remittances that we see transferred overseas as a result of the degree of immigration we have seen in this country.
Absolutely. That is one area in which the British people are traditionally incredibly generous. I am talking about humanitarian disasters such as Ebola and the ghastly happenings in Syria at the moment. The British people as individuals are prepared to put their hands in their pockets to get out their own money and to contribute to these causes. Taxpayer support is at its best when it is in the form of matched-funding, because then the taxpayers’ money follows what the people want. We get into problems when we have an administrative Department second-guessing what people think and then saying, “Let’s have a slab of money thrown here and another slab there.” That is when overseas aid falls into disrepute.
In an earlier intervention, I quoted from the 2012 British social attitudes survey. I think it is worth re-emphasising what I said. When asked what their highest priority would be for extra Government spending against a list of possible options, 41.9% of people said health, 30% said education and 0.5% said overseas aid. When asked for their next preference, 31.5% said education, 29.5% said health and 0.5% said overseas aid. The problem is that people do not want extra taxpayers’ money to be spent in this area at a time when the increases in public expenditure on health and education are not as great as those on overseas aid.
Does my hon. Friend agree that it is important for the public to know the whole truth about this Bill? As all parties have agreed that spending cuts need to take place in the next Parliament, the truth is that the more that is spent on overseas aid, the more that will need to be cut from other Departments such as health and education.
That must be correct. If we have a pot with a declining amount of money, we may be taking out more from that pot for one particular topic—overseas aid. We know now that, as a result of the change in the GDP, we will be spending an extra £400 million next year on overseas aid, raising the total amount to £12.4 billion.
That takes me back to the debate we had in this House on the climate change legislation, when my hon. Friend the Member for Shipley (Philip Davies) and I, along with three other Members, voted against Third Reading. One of the arguments in favour of the Bill was that it would set a global example and everybody would follow us. What has happened is quite the opposite. We have put on our hair shirts and increased the subsidies for electricity, thereby increasing the costs to consumers, whereas the rest of the world has carried on as though nothing much has happened. I do not see any evidence of other precedents that shows that the high-minded idea of setting an example means that everyone will follow us. We have already been spending roughly 0.7% of GDP on overseas aid, as has been said earlier, and very few big countries, if any, are following our example.
Is it not the case that since we have been increasing the amount we have been spending as a proportion of our GDP, other countries have been reducing the proportion they spend? That completely blows a hole in that argument and it looks as though other countries are leaving it to us to spend the money rather than doing it themselves.
No. The hon. Gentleman has had enough to say and I found him totally unconvincing.
What I do find convincing is a commitment to ensuring that as we have now reached 0.7% of GNI, it is perfectly reasonable that that should be written into legislation, and equally reasonable that the House should feel that there is accountability. Under the Bill there is a report to the House, whatever Government are in power, indicating how the figure was achieved, how the expenditure has been monitored, and how we honour the manifesto commitments of the major parties, which made the British people fully aware that such legislation would be put before the House.
Again, I congratulate the right hon. Member for Berwickshire, Roxburgh and Selkirk. The Bill is a major step forward. I will look my constituents in the eye, and I believe wholeheartedly that they believe that at a time of international pressure, such as we discussed this week, there is all the more reason why the poorest people in the poorest countries, who have given so much to this country over the years, should have their poverty respected, addressed and eradicated. That is what this excellent Bill seeks to do.
(9 years, 9 months ago)
Commons ChamberI beg to move,
That, for the purposes of any Act resulting from the International Development (Official Development Assistance Target) Bill, it is expedient to authorise any expenditure incurred under or by virtue of the Act by a Minister of the Crown or Government Department.
I just wonder whether the Minister felt any embarrassment about bringing forward this money resolution the week after a report showed how much money his Department gives out that is either wasted or goes in some form of corruption.
One of the things we always discover with reports is that there is always an expectation, or a request, that the Department for International Development will do more, which is the case at present.
We have several very successful programmes for the reduction of corruption. What we have had from the International Commission for Aid Impact is essentially a request that we develop further programmes to deal with corruption at the local level and reduce its impact on the lives of ordinary people. As a DFID Minister, I am happy to consider everything we can do to achieve that, and I regard the report as a useful pointer.
I reject entirely the allegations that any of the current programmes have led to an increase in the level of petty corruption. I think the report has got the wrong end of the stick. It is not clear to me where that information has come from and it is certainly not clear in the report.
I hardly think that a private Member’s Bill could be referred to as being “pushed through” in that way. If it had been a Government Bill, my hon. Friend might well have complained about the operation of the Whips and about it being railroaded through; he has often complained about that in the past. Surely he does not think that that is happening with a private Member’s Bill; that is absolute nonsense.
The Minister keeps repeating that approval of the Bill was expressed with the clear will of the House, but he also announced that 164 Members voted in favour of it. The last time I looked there were 650 MPs, so on what basis does he think that 164 Members represent the clear will of all 650?
The reason I keep repeating that the clear will of the House was expressed on that occasion is that it manifestly was. As my hon. Friend knows, the will of the House can be expressed through a majority of one. The fact that so many Members voted overwhelmingly in favour of the Bill’s Second Reading shows that that clearly was the will of the House. He is an aficionado of the House’s procedures on Fridays, and he will know that to get more than a quorum on a Friday is a substantial achievement. The fact that the House was filled with so many Members was a tremendous tribute to their strength of feeling and support for my right hon. Friend the Member for Berwickshire, Roxburgh and Selkirk’s Bill.
My hon. Friend makes an excellent point. I commend the Government for the work they are doing in Africa to tackle Ebola. We should be proud that this country is stepping up to the plate while other nations could do much more. However, it is institutional issues such as a lack of universal health care coverage—which we might have an opportunity to do something about in the post-2015 discussions—that will decide the fate of people in future outbreaks. We should not lose sight of that fact.
The hon. Gentleman said earlier that we should not be judged solely on how much we are spending, and I agree with that wholeheartedly. However, this Bill is precisely about being judged on how much we spend. It does not do any of the other things that he thinks worth while. Does he therefore agree that we should ensure that the money we are already spending is spent properly before we consider increasing it, rather than doing what the Bill seeks to do, which is to increase it first then come back later to see whether it has been spent properly?
It is clear that we need to be able to walk and chew gum at the same time. I do not view it as inconsistent to raise our budget over the coming years in line with a set figure that we have been signed up to for a long time, at the same time as tackling corruption. That policy will form a safeguard for future generations, which is why it has cross-party support.
I note that the hon. Gentleman has had considerably more time in the House than my good self—I believe he first sat on the green Benches in 2005, making quite an impact ever since—so I shall leave it to him to follow up that point with Ministers. It is true that we are committed to the Bill, and it is clear that we support the money resolution tonight.
The resolution focuses on money, not just integrity. It is therefore appropriate for us to reflect on the benefits that stem from our being a world leader in international development. Globally, we can see the true impact of poverty and the lack of opportunities, and how inequality and poor governance fuel extremism and hate. If we want the situation to change permanently, the only long-term solution is to invest in development.
The money resolution states that it will
“authorise any expenditure incurred under or by virtue of the Act by a Minister of the Crown or government department.”
How much money is the hon. Gentleman prepared to throw at it? The resolution says “any”, so how much money is he prepared to hand over?
I am sure that the hon. Gentleman will know, from his preparations for what I hope will be an entertaining speech, that the wording is fairly standard for a money resolution.
Our total spend is currently about 0.7% of GDP, and that will obviously be enforced by the Bill. Forgive me for saying that the general public may be misled—though certainly not by Members of this House—to believe that the amount we are spending is much greater. When asked, they said that on average 19% of our GDP is sent overseas, and when asked how much they thought should be sent overseas, they aimed for about 1.5%, so I am perfectly content with 0.7% to protect the poorest in the world’s community.
It will not surprise the House to hear that I support the money resolution. I am delighted that the Government have introduced it, and I am grateful to them for it. I welcome the speeches made from both Front Benches—
And especially from the Back Benches. They have helped to shine a light on some of the issues involved in the Bill. I am not too hopeful about reaching agreement on them during the remaining stages of the Bill, but I hope we might do so.
On 12 September, we had a very striking result—whether it involved the whole House or otherwise—with 164 right hon. and hon. Members in favour of the Bill and only six opposed to it. That demonstrated that there was broad support across the parties for the idea of putting the United Nations target for official development assistance at 0.7% of gross national income into law.
During that debate, many interventions and the speech of the hon. Member for Shipley (Philip Davies) opposed the principle of the Bill and raised concerns—such concerns have been raised again this evening—about how official development assistance is spent, whether it comes from UK taxpayers or from others across the world. I expect and hope, assuming that we have a money resolution and can go into Committee tomorrow, that the hon. Member for Aldershot (Sir Gerald Howarth) will make many of those points and ensure that the Bill is thoroughly scrutinised in Committee.
I can see where the hon. Gentleman is going with his intervention, but may I just say that decisions about other Bills, to which he may or may not be alluding, are way beyond my pay grade? Selfishly, as far as my Bill is concerned, I quite agree with him.
I welcome the fact that the efficiency and effectiveness of our official development assistance spending was a central feature of the debate a few weeks ago, as was entirely right. As currently constructed, the Bill includes a proposal, in clause 5 and the schedule, to introduce an independent international development office. The money resolution is required because of that provision, and it is fair to say that the specifics of the proposal have led to some discussion between the Minister, the Department and others who are interested in this matter.
Given that the office is the right hon. Gentleman’s initiative and that the money resolution is specifically about it, how much does he have in mind for its cost?
As little as possible, and that is the key to this whole process and to the discussions between the Government and me. Those discussions will be developed further in Committee if that is the will of the House. Specifically, we are talking about not only the principle of spending this degree of taxpayers’ money on official development assistance but appropriate scrutiny. I have listened carefully to the Government’s concerns, and I hope that we can find something that respects the principle, but does not burden the taxpayer with the undue costs of the machinery of government.
Let me try again. If the right hon. Gentleman is not prepared to put a figure on the cost, will he at least give us a cap, or is he asking us to write a blank cheque for his Bill?
I am not asking for a blank cheque. I certainly accept that this House needs to take a view, in due course, on how much should be spent. [Interruption.] That will be a matter on which the House can reflect on Report and beyond. The important principle of scrutiny is one on which Government Ministers, shadow Ministers and others agree. I hope that it will not be difficult to come to an agreement in Committee that will respect the principle of scrutiny.
We have a huge responsibility to the developing world to ensure that we help them out of poverty and into a much more hopeful future. We also have a responsibility to taxpayers in this country to ensure that the effectiveness and efficiency of that development assistance is appropriate and that this House is scrutinising it. I hope that we will be able to deliver that in Committee and when we report to the House in due course.
I am sorry but I will not give way, because the next speaker will be an Opposition Member and so many Government Members wish to speak.
On the work just in southern Africa, ICAI has said:
“The shortcomings that we saw in the programme and its serious deficiencies in governance; financial management; procurement; value for money; transparency of spending; delivery and impact, as well as its failure to use DFID’s body of knowledge in trade and poverty, have led to a marking of Red for the programme.”
The public expect us to be helping the poor and needy; they do not expect this. If Opposition Members have not been through the aid programmes, I would ask them to do so, because there are serious concerns about people lining their pockets and corruption. It is very difficult to get this sorted. Unfortunately, some of the reforms are not being put in place in some of the other countries. I suggest that before we start throwing more money at the problem, we help DFID by scrutinising these aid projects, and ensuring that the money we currently spend is well spent and getting to where it is supposed to go. I am pleased that DFID has dropped the innovative side of trying to find things to throw money at, because, unfortunately, “innovative” was not always in the best interests of the poor.
Is it not worse than that, because the money resolution we are discussing is not about giving any more money to anybody in need or in any overseas development—it is about creating a whole new organisation of bureaucrats? That is what we are being asked to pass; it does not give any help to anybody in need.
My hon. Friend is absolutely right about that. The report published on 31 October says:
DFID has not…developed an approach equal to the challenge, nor has it focussed its efforts sufficiently on the poor. While some programmes show limited achievements, there is little evidence of impact on corruption levels or in meeting the particular needs of the poor.”
Surely that is what all of us are interested in, rather than just throwing money at the matter. I will bring my remarks to a close, but I caution against rushing this through before we tackle the fact that we are not delivering money to the poor.
I rise to support the money resolution and the case made by the Minister, my hon. Friend the Member for Luton South (Gavin Shuker) and my right hon. Friend the Member for Coatbridge, Chryston and Bellshill (Mr Clarke). I am disappointed listening to Conservative Back Benchers, because it seems that they are attempting to undermine the clearly expressed will in this House in a vote on a Friday and to use this debate to pursue other agendas. That is disappointing because DFID helps some of the poorest people in the world, who are suffering from diseases such as Ebola and so on—[Interruption.] The hon. Member for St Albans (Mrs Main) is waving her report at me. I have read many reports about DFID’s effectiveness over the years, and the fact that those reports are available, that they are read by Ministers and by the Opposition and that questions are asked is testament to DFID’s openness and transparency in its programme. It is very misleading to quote selectively from those reports and not refer to the vast majority of DFID’s programmes, which are extremely effective in delivering poverty eradication and tackling some of the big challenges in our world.
The hon. Gentleman seems to be missing the point of the money resolution: the Government are already spending the amount of money that he wants spent on overseas aid. That is not at issue here; we are being asked to sign a blank cheque to create a new bureaucracy and organisation which does not give any money to poor people around the world.
It is more bluff and bluster from the hon. Gentleman: the type of rhetoric about blank cheques and throwing money at problems. If that is the view, would these Conservative Members say we should not be supporting the efforts against Ebola in west Africa, or we should not be helping to immunise children across the world, to educate people or to strengthen the Governments who need to be in place and to be strong to tackle the very corruption these Members are talking about?
(9 years, 11 months ago)
Commons ChamberI hope that hon. Members will acknowledge that I have given way fairly generously over the past 10 minutes, which has meant that I have not yet advanced most of my arguments. Even if I slightly despair of persuading the hon. Gentleman in the course of my arguments, I hope he will allow me to make them.
The right hon. Gentleman said that overseas aid works. If it works so well, surely we should be aiming to reduce the amount we spend. We will spend a certain amount of money, and it will work so well that we will no longer need to spend that amount. If the aid has worked, those countries will have been able to sort themselves out and therefore we will be spending less. Why do we need to fix a high amount of money for aid in perpetuity? That in itself proves that such measures do not work.
Simple and appealing as the hon. Gentleman’s logic may be to others, I am not sure that many people will be persuaded by it.
The hon. Gentleman puts absolutely the right argument, which I will now come to. By legislating in this House, we could be a catalyst for other countries to do more. We would be in a position for the long term to say to countries and Governments who are not spending enough domestically on education, health and anti-poverty programmes that we will match whatever extra money they give over a longer period of time. We would be giving certainty to our aid budget for many years ahead. It seems to me that those who are protesting today also ignore the fact that on average we spend only about £1.50 per child—all aid agencies put together—on the vaccination programme in Africa.
I am grateful; it is good to hear the right hon. Gentleman being so shameless about promises when he broke one on the Lisbon treaty.
On the point that if we spent 0.7% of our GNI on aid, every other country would follow us, how is it that as we have increased our aid budget, other countries have reduced the proportion they spend on aid? Is it not the case that they are using our increased spending as an excuse to reduce theirs? The right hon. Gentleman is giving the CND argument of the 1980s that if we were to get rid of our nuclear weapons, every other country would follow.
We know we are on a filibuster when a Conservative Member starts mentioning the Lisbon treaty and then mentions CND in the 1980s.
Why does the hon. Gentleman not get to the heart of the issue? Let us take one country—Sierra Leone: one health worker for every 5,000 people; the UK: one to 77. Sierra Leone has 100 doctors for a population that is bigger than Scotland’s, and 200 nurses and 100 midwives. Do we say as a result of that that the small amount of aid we give—the $12 per person for education and the $50 per person for health in sub-Saharan Africa—is too much? Do we say that it is too generous or too wasteful?
Let us project into the future. We know that this has been a summer of conflict—six wars around the world—and a summer of carnage for children. When we have 1.5 million child refugees displaced from Syria, with refugees in Iraq, Gaza, the Central African Republic and also South Sudan, how can we possibly justify not making a law that suggests that the small amounts of money that are given by the international community, which can make an absolutely huge difference, should continue? My claim is based not just on the success of what we have done and the enormity of what we still have to do, but on the cost-effectiveness of most of the aid that I see delivered by DFID and many other aid Departments round the world.
I thank the hon. Gentleman for making that point, and I believe he is absolutely on the money.
In respect of the growth of international terrorism, we have rightly become concerned in recent weeks over that strange phenomenon of the foreign fighter—the person with prospects, from a good home and with qualifications, who suddenly decides to go abroad and fight for the most extraordinary cause in the most bloodcurdling and violent and disordered way. They follow a long tradition of middle-class terrorists, be it the Baader-Meinhof or the Manson gang or the Red Brigades or the Sendero Luminoso. No doubt they will be the source of many academic treatises and doctoral theses, but undoubtedly the main recruiting ground—the overwhelming recruiting ground for terrorism—is the desperation of poverty, injustice and misgovernance, where young people have no prospect whatsoever but to take up arms and embrace the most desperate ideologies.
The Minister says that if we spend all of this money we will be safer, but as we have spent more on overseas aid our security threat level has actually gone up, not down, so that clearly is not working. We are being painted a picture suggesting that if we spend all of this money,people will stop coming in from Calais and poverty will be alleviated around the world, but we are spending the money, so this clearly is not working. Why is it that we are opposed to welfare dependency at home but we are entrenching it abroad?
We have only just reached the target. This is a sustained process, and we are just at the beginning of it. That is why we have the Bill. It is our hope that, as the right hon. Member for Kirkcaldy and Cowdenbeath said, by taking a lead on this, we will encourage others to follow. This is not a crusade. This is a matter of public policy in which we hope the rest of the world will follow us.
(9 years, 11 months ago)
Commons ChamberMy right hon. Friend is extremely generous.
In return for this extraordinarily favourable arrangement for British development policy, we have to honour the electorate by ensuring that we demonstrate that we really do secure the results that we promise—that for every pound of their hard-earned money, we really do secure 100p of development on the ground. That is why this Government have conducted multilateral and bilateral aid reviews, to ensure that we can demonstrate to the public that this money is really well spent.
My right hon. Friend keeps talking about how we should spend our money, but he might have noticed that we have not got any money. What he is actually asking us to do is borrow billions of pounds to pass on to other countries. The actual cost to the taxpayer is even more than 0.7% because we have to pay interest—
I add my congratulations to the right hon. Member for Berwickshire, Roxburgh and Selkirk (Michael Moore) on bringing forward this Bill. He and I served in the Cabinet that made the unanimous decision to protect spending not only on overseas aid but on health. I am proud of the fact that, when we came into government in 2010—a very difficult time for this country, when significant savings had to be made in public expenditure—there was a unanimous Cabinet decision to protect expenditure on the world’s poorest people.
I want to draw on that experience to underline the importance of the Bill. The UK is the first ever G8 country to reach the 0.7% target, joining other, smaller countries such as Norway, Sweden, Denmark, Luxembourg and the United Arab Emirates. It is significant that we are providing that leadership among the G8 countries.
I want to help some hon. Members understand the long history behind the figure of 0.7%. I have had one or two conversations this week in which hon. Members seemed to think that the 0.7% figure was plucked out of thin air; some have asked why it should not be 0.8%. Interestingly, the United Kingdom played a significant role in selecting the target. As long ago as 1958, the Churches in the United Kingdom first made the recommendation for the 0.7% target. It took until 1970 for the United Nations General Assembly to embrace the target unanimously. As a former Secretary of State who tried, successfully, to secure two United Nations agreements, which not every Member of this House has the opportunity to do, I would like to explain how difficult it is to get 193 nations to agree to do something unanimously. After all, how diverse is our world? It is significant that this unanimity exists on the development assistance agenda.
So it was that a resolution was passed that each economically advanced country would work towards 0.7% of its gross national income. It might sound like an arbitrary figure, but it is not, and it is agreed to by the United Nations. The target has seen some minor changes since it was first established, but the basic principle and the global commitment to it has remained consistent. As a 2010 OECD article states, it
“has been repeatedly re-endorsed at international conferences on aid and development down to the present day”.
It is also significant that development assistance is seen globally as something really special. There is not, for example, a United Nations agreement on what the target for expenditure on defence should be, and it is difficult to imagine that that could be achieved. There was a recent attempt to secure United Nations agreement on what percentage of GNI should be spent on health, but it has not proved possible to secure a unanimous agreement on that expenditure. I invite hon. Members to consider this: development assistance remains quite exceptional as the subject of a unanimous view of all nations on what we should seek to spend to help the world’s poorest people.
The idea that this is not an arbitrary figure is just a load of old drivel. It started off as 0.7% of GDP and now it is 0.7% of GNI, which is completely different. In fact, the definition of GNI is going to be revised in autumn 2014, which will produce a completely new calculation altogether. Which does my right hon. Friend think it should be—current GNI, future GNI, or the original GDP?
I do not believe that the figure is arbitrary. I am not a qualified statistician, but I know that gross national income is an accepted, more accurate measure of how much money a country has coming in. That is internationally accepted as well.
As we have seen, the UK is leading the way by reaching this target. That is a cause to be celebrated, which this Bill does in practical terms by enshrining it in statute. Although we have already reached the target this year, there remain strong arguments for enshrining these principles in law. First, the Bill recognises the significance of the achievements that have been made while simultaneously protecting the principles that underpin it.
Secondly, having the target in law limits the scope for political wrangling over the aid budget in future. That has a number of benefits. As Concern Worldwide has said,
“we won’t have to waste time quibbling over precisely how much to spend any more, and can instead focus on what’s really important: doing the most good with the money.”
Making a similar argument, the coalition of campaigners in the Turn Up Save Lives campaign, which focuses specifically on this Bill, has noted that
“putting our promises to the poorest beyond the day to day debates of party politics means policy-makers can focus on how we continue to improve the quality of aid, instead of having an annual debate on whether or not we intend to stick to our commitments.”
Opponents of aid targets in general sometimes argue that they are problematic because they encourage a focus on the level of aid rather than its effectiveness. That is a very important point, but focusing on the effectiveness of aid rather than its level is precisely what this Bill seeks to enable future Governments to be free to do. With the level of aid safeguarded in law, future Governments would be in a position to focus on getting value for money and using the aid in the most effective way possible. A further benefit of an aid target is that it gives a degree of predictability to the recipient countries. That enables them to plan more effectively for the long term, which, in turn, is likely to increase the effectiveness of any assistance. It encourages aid recipients to plan ahead far more effectively, which has led the poverty charity Results to comment:
“Having 0.7% fixed in legislation…means increasing the predictability of UK aid…bringing forward the day when those countries will become self-reliant”,
which is what we all want to see. The benefit is not restrictive, meaning that the aid budget is still responsive to our domestic fortunes. That is a really important point. The aid budget would be fixed at a percentage, but not at an absolute amount, allowing for adjustments in accordance with how the British economy is doing.
As the hon. Member for Llanelli (Nia Griffith) asserted, there is significant public support for this Bill and that must be taken into account.
I hear a challenge from beside me about where that is substantiated. For the record, according to the 2012 ComRes survey, 61% of adults supported the increases in overseas development assistance spending that enabled the Government to meet their 0.7%. Indeed, a third of those thought that 0.7% was too low. It is clear that the Bill has widespread support among the public and the third sector. The Turn Up Save Lives campaign is backed by 40 groups, including Oxfam, UNICEF, Tearfund, Christian Aid and Islamic Relief, to name but a few. I join the former Secretary of State for International Development, my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell), in applauding the work of those aid agencies working in some of the most difficult circumstances, particularly where their own lives are threatened, as we have seen this summer with hostage taking in centres of conflict.
Some would ask: why should we give aid at all? Some Members will undoubtedly question giving 0.7% of our GNI, but DFID’s budget for this financial year is about £13 billion, which equates to about 1.6p in every pound in the United Kingdom. According to Tearfund, of which I remind the House I am a vice-president, that figure is also less than the amount we spend on takeaway food in this country every year. It sometimes helps to bring percentages of GNI down to an incredibly practical level, so next time hon. Members order a takeaway, I ask them please to remember that our average spend on takeaways is more than we spend on overseas aid.
There is also an absolute moral argument that I do not think we can get away from. Given the recovery of our economy, there is some dispute about whether we are the world’s seventh richest nation or whether we are rising up to be the sixth richest nation. Sixth or seventh, we are among the richest nations in the world and I believe that means there is an absolute moral requirement on us to help the world’s poorest. As the Archbishop of Canterbury has said, critics of aid all too frequently
“ignore the transformative impact that aid can and does have in fragile countries struggling to meet basic human needs”.
The Turn Up Save Lives campaign points to the recent example of the civil war in Syria, where the combination of Government aid and contributions from the British public have enabled more than 1 million children to be reached with blankets and other supplies. Such figures provide a mere insight into some of the ways in which aid is having a transformative effect on people’s lives.
On a visit to Bangladesh earlier this year, I saw flood resilience that had been built through the capacity building of an aid agency, which gave me the idea that some of our own flood-affected communities at home could have done with such simple capacity building. I shall never forget visiting the huts of women in rural Bangladesh who were not able to read or write, but who, as a result of capacity building, had been taught how to generate an income for their village. As a result, they had built latrines in the village and had enough money to put solar panels on the roofs of the huts to provide internal lighting. As those women told me, with a real sense of empowerment in their eyes, “Maybe we can’t read and write, but some of our daughters are now able to go to university because they are able to study, even in the hours of darkness.”
If anybody in the House is still in doubt about the transformative nature of development assistance and about the way in which it creates not dependency but sustainability, I for one would be somewhat surprised. In the words of the former managing director of the World Bank, the current Finance Minister of Nigeria:
“Aid can be a facilitator. That is all aid can be. Aid cannot solve our problems. I’m firmly convinced about that. But it can be catalytic.”
I agree that the Bill will be a catalyst.
If I may, I would like to start by paying my tribute to Ian Paisley. It was a great privilege that when I made my maiden speech in Parliament, it came after a speech by the great man himself. I have always thought that that was a great honour. I was also very honoured to be invited to Speaker’s House for his 80th birthday celebration. I will always be grateful to him for inviting me. One of my favourite moments was going to his church in Ulster to listen to him giving a sermon. The verve with which he gave a sermon was even greater than that with which he made speeches in this House, if that is possible. I am extremely sorry to hear the news. In the short time that we were both in Parliament, he became a very good friend, along with many of his party colleagues. I send my sympathies to people in Northern Ireland and, in particular, to the current hon. Member for North Antrim (Ian Paisley) and his family. When we say that people will be very deeply missed, it is sometimes an exaggeration, but it certainly is not when we talk about Ian Paisley. As far as I am concerned, he was one of the finest parliamentarians this House has ever seen.
To return to the Bill—thank you for indulging me, Madam Deputy Speaker—this debate has been going for roughly three hours and there has been what might be called one-way traffic, with speeches on the merits of the Bill and the merits of aid more generally. It is only right, given that we are supposed to debate things in this House, that we spend some time listening to the other side of the argument. I hope that those who claim to believe in Parliament and parliamentary debate will not rush to vote for a closure motion to stop the other side of the argument being heard. That would rather demean them and their view of democracy and debate. I just say that in passing.
The Bill raises a number of questions. Does aid actually work? That is a legitimate area for debate. Should we spend 0.7% of gross national income on aid? That is another area of debate. Finally, should that spending be put into law? This Bill is gesture politics of the worst kind. Everybody here is saying why it is so important to spend 0.7% of GNI on aid, although they do not seem to care which definition of GNI is used. We are spending 0.7% of GNI on overseas aid. In fact, we are spending 0.72% of GNI on it. We therefore do not need to put it into law. Even the people who are saying that it is such a wonderful thing must recognise, by the fact that it is already happening, that we do not need a law in order to do it. If Parliament wants to do it, it can quite easily do so, as we have proved in this Parliament.
Does my hon. Friend share my concern about the constitutional propriety of trying to bind our successors?
I agree with my hon. Friend, and that is in effect what the Bill is trying to do.
I am not going to give way. We have heard so much from people in favour of the Bill, and now we are going to hear from people who have a more sensible opinion. The hon. Gentleman can keep raising his hand, but I am not going to give way.
I am trying to tell you why we are binding the hands of our successors.
We heard that in an intervention from one of the hon. Gentleman’s colleagues, who said that his whole intention in supporting the Bill was to ensure that future Parliaments did not change the law. The cat has already been let out of the bag.
It was rather galling to see the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) lecture the House on how we should not be breaking our promises. The man who promised a referendum on the Lisbon treaty and who shamefully and shamelessly avoided that promise has absolutely no right to come here and lecture the rest of us. [Interruption.] As my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) says from a sedentary position, the right hon. Gentleman promised us that he had ended boom and bust. He made that solemn promise on many occasions to the House.
On a point of order, Madam Deputy Speaker. It is the custom of this House when a Member intends to mention another Member that they give notice. May I ask you, Madam Deputy Speaker, whether the hon. Gentleman has given such notice to my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown)?
I thank the right hon. Gentleman for that point of order. I am sure that the hon. Gentleman who currently has the Floor, Mr Philip Davies, will make it clear that he has.
What I will make clear is that unlike the right hon. Member for Kirkcaldy and Cowdenbeath, who started the debate and then cleared off, I have been sitting here for the whole debate, so I am not sure how on earth you, Madam Deputy Speaker, or the right hon. Member for Coatbridge, Chryston and Bellshill (Mr Clarke), would expect me to have given him notice.
Further to that point of order, Madam Deputy Speaker, I understand that the purpose of that rule is to deal with a premeditated intention to embarrass a Member, not if the point under consideration is something that has arisen in the course of the debate.
Order. If I suggest that it might be in order for the hon. Gentleman to apologise, that is to keep good order in this place and to observe courtesies between Members. There should never be a situation where Members feel that a discourtesy has been made. I am certain that the hon. Gentleman meant no discourtesy, and I am sure he will say so.
I confirm that I certainly meant no discourtesy, Madam Deputy Speaker, but I stand by everything I said. I think I agreed with about 0.7% of what the right hon. Member for Kirkcaldy and Cowdenbeath said in his speech.
At some point, when you allow, Madam Deputy Speaker, Members on the Government Benches will no doubt be invited to support the closure of this debate. I want them to know exactly what they will be doing. Ultimately, they will be answerable to voters in their constituencies in the not-too-distant future. By allowing this Bill to go into Committee and to make progress, Members are basically signalling the death knell of the EU (Referendum) Bill promoted by my hon. Friend the Member for Bromley and Chislehurst (Robert Neill). At some point, all my hon. Friends will have to explain to their electorate, and to other candidates in that election, why they feel that this Bill is more important than that Bill. I do not believe it is, particularly given that the spending on aid is being achieved at the moment anyway. They will have to explain that, and I hope they feel relaxed about doing so. Many of my hon. Friends present—virtually all of them—are in safe seats, which seems to me probably no coincidence. However, I hope they will explain their actions to colleagues in less favourable circumstances, and I hope they know that that is what they will be doing when they go into the Lobby later today.
I am not surprised that the Liberal Democrats or the Labour party support the Bill. They are perfectly entitled to do so as it matches their philosophy. In a socialist philosophy, which Labour and the Liberal Democrats share, what is important is not outputs, but inputs.
I will not give way. We have heard so much drivel from people with a different opinion from me. I am trying to get some balance into the debate.
When Labour Members argue that we should be judged only on how much money we spend, it does not come as a great surprise, because that is what Labour and Liberal Democrat politicians have always argued for. I remember in the last Parliament asking why truancy under the then Labour Government was so terrible, and the Minister’s answer was: “We’ve spent £1 billion extra tackling truancy”, as if that was fine. Truancy had got worse, but that did not matter because they had spent £1 billion extra on tackling it. It struck me then as even more criminal than ever. They had spent £1 billion and truancy had still got worse. If they had said, “We’ve saved a bit of money and it’s got a bit worse”, that might have been some justification, but for it to get worse and to proudly boast, “That’s all right because we spent £1 billion extra”, is complete nonsense. So of course Labour and the Liberal Democrats believe in the Bill.
What I cannot understand in my heart is how any self-respecting person who wants to call themselves a Conservative can possibly subscribe to the view that we should be judged simply on a piece of legislation that sets out only how much we are to spend, and that it is irrelevant what we do with the money or whether we can afford it. Those should be the things a Conservative thinks about, but many of my colleagues seem to want to abandon their Conservative principles. I should perhaps be reassured that had the Government taken my view, most of my hon. Friends would be arguing the opposite of what they have been arguing today. They might be supporting this policy not through sincere belief but because of their desire for advancement. I do not know whether they believe in the Bill. In many respects, I hope they support it because they think it will help their advancement, because if they genuinely believe in it, I do not see how they can call themselves Conservatives in any shape or form.
There seems to be a view—a politically correct attack to close down debate—that runs simply: either a person is for international aid and therefore in favour of the Bill, or they are against international aid and therefore oppose the Bill. It is an all-or-nothing argument. If someone criticises Britain’s huge, often mismanaged aid budget, they are accused of not wanting to help the neediest in the world. It is designed to cover up mistakes in the overseas aid budget and ignore shortfalls. This politically correct campaign has allowed international aid to linger as such an inefficient part of Government spending, without sufficient checks or proper rigour.
I believe that humanitarian aid is very important. It provides relief for people who suffer from acute distress following conflict, famine, natural disasters and other emergencies. That work is vital. This country has always stepped up to its responsibilities, and I have no doubt it will always do so, when it sees images around the world of tragedies taking place. However, I am sceptical about the aid that dominates more than nine tenths of official aid spending—development aid. It is the predominance of this aid spending that we are mainly focusing on here. This aid offers continuous support to recipient countries in the areas of education, health, water and sanitation, government and civil society, economic infrastructure, economic production, debt relief and other things across many different Departments.
We have to consider the country’s financial position. Thanks to considerable overspends over many years by the Labour party, we have a huge debt mountain, and scandalously our debt payments are still as big as the budget of one of the biggest Departments. I hope that the right hon. Member for Coatbridge, Chryston and Bellshill will allow me to say that, because of the disastrous way in which the former Chancellor and previous Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath, ran this country, it seems that he was determined to make us a recipient of international aid rather than a contributor to it.
At a time of national austerity, it seems to me sensible that we would want to reduce the aid spending given to other countries. It would not have been a bad thing even to have frozen aid spending to other countries, but to increase it massively, as we have done, at the same time as we are making the case that we have no money and have to cut spending everywhere and cut our cloth accordingly, is completely and utterly ridiculous.
Would our constituents be right in asking this pertinent question: why is it appropriate for the Government to seek to hypothecate into the future for future Parliaments on this area of expenditure when in every other domestic area, including important areas such as literacy, social care and cancer, they set their face against such hypothecation? Is that not a reasonable question?
My hon. Friend is absolutely right. I personally think that if my constituents were asked for what area it was more important to guarantee a certain level of expenditure—the NHS or overseas aid; the defence budget or overseas aid; the police budget or overseas aid; the education budget or overseas aid?—the overseas aid budget would come off second best in any head-to-head contest. Lord only knows why on earth people in this place think that the public believe uniquely that this particular Government Department should have its funding increased massively and then protected at that level. To be perfectly honest, I think they all need to get out more.
I am not giving way to the hon. Lady.
We are not even spending taxpayers’ money. We keep on talking about how important it is to spend taxpayers’ money wisely, but we are not spending that money. We do not have any money. When will people understand that even now we are borrowing? Even after the Chancellor’s welcome measures, we are still borrowing £100 billion a year. We are not in a position to spend 0.7% of our GNI on overseas aid, because it is actually much more than that. What we are doing is borrowing money from other countries, paying interest on it to then hand it over to other countries. At the start of this Parliament, we were in the ludicrous situation of borrowing huge sums of money from China in order to give China overseas aid to help that country to get along. It could hardly be made up. No wonder most of my constituents think that the people here are round the bend.
We are, in effect, spending the money of taxpayers as yet unborn.
My hon. Friend is absolutely right.
Are we going to take into account the debt interest that we will have to incur on the money we are spending on overseas aid? Is that going to be taken into account as part of the 0.7%, or is that on top of the 0.7% that we are actually handing over? As I made clear in my intervention on my right hon. Friend the Member for Meriden (Mrs Spelman), the idea that we even know what we are spending is a complete nonsense as well, because the goalposts are always moving. It was first supposed to be 0.7% of GDP; now we are told it is 0.7% of GNI; and in the autumn of this year, apparently, how GNI is calculated is going to be changed, which will mean an upward revision to GNI, making our aid as a proportion of GNI lower so that we will have to spend even more on overseas aid to hit our 0.7% target.
No, I will not.
My right hon. Friend the Member for Meriden provided some of the history. I recommend the 6th report of the Lords Select Committee on Economic Affairs for the Session 2010 to 2012, which was a marvellous report on the effectiveness of overseas aid. This all dates back to the UN General Assembly of 1970. The idea that this target is somehow well thought through and relevant to today’s needs and environment is complete and utter nonsense. The target was first plucked out of the air 44 years ago. The idea that it is likely to be the right one to use now is for the birds. It is completely nonsensical to think that the right target in 1970 automatically must be the right target in 2014, when the world is so different.
Will my hon. Friend confirm that when that motion was adopted by the United Nations General Assembly, the aim was for countries to exert their best efforts to achieve the 0.7% target by the middle of the 1970s, not by the middle of the 2010s?
My hon. Friend is absolutely right. The original target is completely out of date. Indeed, I note in passing that if this matter is so important for the Labour party and vital for the future of the world, it is interesting that the attendance on their Benches is a bit thin. I think I have seen about 20 Labour Members come in the Chamber to support the measure. Perhaps they might want to explain why that is.
Is not the most important point that if we fix a Department’s budget as a proportion of the nation’s income, we grossly distort the actions of that Department? Departments should spend what they can afford on what they want to do within the limits of what is in the national interest. This measure would be grossly distorting and un-Conservative.
My hon. Friend is absolutely right. Let us just imagine what would happen if the Government intended to support a particular project somewhere, but found towards the end of the financial year that it was rife with corruption and therefore thought it best not to spend money on it. They would not be able to do that. The Government would not be allowed to say, “We’ll keep the money and not spend it,” but would be forced, at the last minute, to spend it, because Parliament had insisted that it had to be spent, come what may. How on earth is that a sensible way to ask a Department to act?
We heard the idea that if we did this and set the lead, all other countries would follow. We hear it time and again in different contexts. CND started this in the 1980s—“If we get rid of all our nuclear weapons, every other country in the world will follow.” We all knew—even the Labour party came to realise—that that was a load of old nonsense. Then we started hearing it on climate change—“If we hit our climate change targets and do all this, every other country in the world will follow”—but that has been proved to be a load of cobblers as well. All the big people churning out all the carbon emissions are doing absolutely nothing to curb them, apart from welcoming our industry to their countries, but still we hear it, even though it has been proved wrong time after time—“If we do this, every other country will follow.”
What has actually happened in practice? While we have been ramping up the proportion that we spend on overseas aid, similar countries in the developed world have been reducing the amount they spend as a percentage of their GNI. Why have they done that? There are two possible explanations. The first is that they actually have some sense and realise that if they cannot afford to spend the money, they would have to spend less on something that is a discretionary spend—something that we might consider doing at some point.
I will not.
Those countries have probably also thought, “Well, this is marvellous. We don’t need to worry about spending a bit less, because the United Kingdom is taking the strain. They can do all the heavy lifting. They’re spending so much more, so we can reduce our spending.”
My hon. Friend is making a powerful speech—[Interruption]—in which I can see hon. and right hon. Members are most interested. As the Select Committee on International Development has pointed out, because there were not the projects in which the British taxpayer could invest, one of the consequences of ramping up overseas aid by £4 billion over four years was that much of the money went to international aid agencies, which then administered it on behalf of the British taxpayer. However, as the Committee found, they were not as rigorous in ensuring value for money as our Department was.
On a point of order, Madam Deputy Speaker. I wonder whether you could provide some guidance. Is it not the practice and the courtesy of the House for Members to give way to Front Benchers who wish to intervene? The hon. Gentleman does not seem to want to let anybody on the Opposition Benches intervene and there is a Front Bencher indicating—[Interruption.]
Order. I do not need to be told whether it is a point of order, thank you very much. The hon. Gentleman is making a reasonable point, but I will answer him by saying that it is up to the person who has the floor whether he wishes to take an intervention and from where. It is up to each Member to decide the extent to which they wish to engage in debate.
Thank you, Madam Deputy Speaker. As I said at the start, we have had three hours of speeches from Members in favour of this Bill and I think the public and this House deserve to hear the viewpoint of people who do not support it. They have had plenty of time to make their case; it was just a pretty poor one.
No, I will not.
The other point I want to make is that we ought to bear in mind the money that is spent versus gifts in kind. We as a country should be encouraging people to give money privately. Private money that is spent, where people raise money for particular causes, should be taken off the amount that is spent by the Government. There are lots of people who raise money for very good causes around the world.
No, I will not.
I can mention two organisations in my constituency in that regard: Mpika Relief Fund does a fantastic amount of work helping people in Africa, and there is one in Burley-in-Wharfedale that does a similar job. They raise money for very worthwhile causes. I very much support what they do; I have even made donations to them in the past. What they spend their money on is much more worthwhile than these grandiose schemes that the Government come up with, where Ministers like to go out and say how wonderful they are because they are indulging their largesse everywhere. I prefer the smaller schemes that are run bottom-up from organisations like the ones in my constituency.
It might even be a good idea for the Government to offer tax relief for people who want to go out to other countries to help with particular projects. I would welcome that.
It might help my hon. Friend to know that, actually, the gift aid from those kinds of donations is included within the 0.7% we are talking about, so that is happening at the moment.
My hon. Friend is missing my point. I am not talking about gift aid on donations. I am talking about tax relief to help assist people who want to go out and do something practical themselves—who want to give up their job for a while to do something worthwhile. That would be a much more valuable and worthwhile thing for the Government to do than simply flex their muscles on how much they spend.
Because I am feeling in a generous mood, Madam Deputy Speaker, I will give way to the hon. Member for Wirral South (Alison McGovern), seeing as she is so excitable about intervening.
That must be one of the more curious attempts I have made to intervene on the hon. Gentleman. I cannot quite work out why he has allowed me to intervene now, but as he has, perhaps I might ask him, first, if he will congratulate the last Labour Government on their actions on gift aid and recognise the impact it has had, as has been pointed out. Also, is his argument really that there is no place at all for leadership on this issue from the UK Government, never mind what other countries do? Is it correct that he believes we have no moral leadership role at all?
Clearly the hon. Lady has not listened to a word I said. At the very start I said that I support the Government’s humanitarian aid, and I am in favour of tax relief—I am always in favour of anything that reduces the burden of taxation on people.
No, I am not giving way again. The last intervention was so poor that I do not think it justifies another one.
My right hon. Friend the Member for Meriden mentioned opinion polls and public support for these things. A YouGov-Cambridge poll in 2011 made clear the public’s opinion. The following question was asked:
“Along with spending on the NHS, the international aid budget is the only area of government spending that is not facing cuts. The government has promised to increase this budget by one third to 0.7% of Gross National Income (GNI) in line with international agreements signed previously. Generally speaking, how favourable or unfavourable are you towards this policy?”
Some 56% of those asked were unfavourable, and only 9% considered themselves to be very favourable to it.
When asked if they would support or oppose a freeze on spending on international development—at the level as it was then in 2011—69% of people said they supported a freeze. Also, 69% of respondents said international aid fails to reach ordinary people in the developing world and is wasted by corrupt Governments; 49% believed international aid enhances the power of bad Governments in developing countries; and 55% thought it discourages Governments in developing countries from spending money on their own people.
Those statistics mirror the feedback that I get from my constituents when we talk about spending on overseas aid. They understand the fact that this country has no money, that we are borrowing and spending way beyond our means and that we have to tighten our belts. They therefore find it extraordinary that we are spending about £4 billion a year more on overseas aid than we were in 2010. That is completely nonsensical and unjustifiable.
The Bill proves that overseas aid does not work. I remember going to see my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) to discuss these issues a few years ago. I told him that I would have more sympathy for overseas aid if he adopted a policy in which we considered the situation in every country individually and decided how we could help it to better itself by establishing a programme that would last for a certain number of years, after which we would expect it to have sorted out its governance and corruption. After that point, our assistance would eventually tail off and the country would stand on its own two feet and head off into the future.
If that were the Government’s policy on overseas aid, I would have some sympathy for it. I would want to scrutinise it, of course, but it seems pretty reasonable. However, the Bill does not propose that we do that; it proposes the exact opposite. It says that we are going to spend the same amount of money every single year in perpetuity. That is basically an acceptance that our assistance will fail, that it will not turn around a country’s fortunes or deal with the causes of poverty, and that it will just be a hand-out to make a few middle-class, Guardian-reading, sandal-wearing, lentil-eating do-gooders with a misguided guilt complex feel better about themselves. It will do nothing to alleviate the real causes of poverty in those countries.
We know that the current system does not work. We have been pouring tens of billions of pounds a year into Africa, year in, year out. How much further forward is Africa today, compared with when we started pouring in those tens of billions of pounds? It is barely any further forward at all—
Order. The hon. Lady will not shout across the Chamber, no matter how much noise the hon. Member for Shipley (Philip Davies) is making.
I am grateful to you, Madam Deputy Speaker. I always feel that I must be doing something right if I manage to wind up Opposition Members who hold idiotic views. It will be time for people on my side to worry when the Opposition start to agree with what they are saying. That should tell them that they are on the wrong side of the argument.
We know that the present policy is not working because the countries in question have not developed as much as they should have done. The question that I would pose to everyone is this: what do they think are the root causes of poverty in some of those countries in Africa? Is it that those countries are not getting enough aid? Does anybody really think that that would get to the root cause of the problem? Or is it perhaps that those countries have terrible governance and that the rule of law means nothing there? Could it be that outside companies will not invest in those countries, even though such investment would create wealth and prosperity, because they could have all their assets confiscated within a few weeks or months? We need to sort out all those factors if we want to sort out the problems in Africa, rather than simply handing over an ever-larger cheque every year and thinking that that will sort out all the problems of the developing world. It is idiotic and simplistic to think that that will work. Let us deal with the root causes and tell those countries that they need to get themselves sorted out—
I will not give way.
The reason that people want to invest in this country is that the rule of law is important to us. That is what we need to export to those other countries. We do not need to export cheques; that really does not work.
As someone who rarely wears sandals and never reads The Guardian, but who nevertheless believes it possible to multi-task, may I suggest that it is possible to feed people, educate people and deal with governance problems all at the same time? They are not sequential.
Well, it appears to have been beyond us. While we have been handing over all these cheques, in an increasing amount, year in, year out, those governance issues are still there. Perhaps the right hon. Gentleman can explain how well the £138 million or thereabouts—I am quoting from memory, so I may not be exactly right about the figure—that went to Zimbabwe last year is going in terms of governance? It does not seem to me to be hitting the mark in improving the future of that country.
If I had had time to make a speech—I now will not—I would have pointed out that I observed many examples in Africa in the 10 years I was involved in development before I came to this place where the money spent by this country and other donor countries has made a remarkable difference. Such examples can be found in Uganda, Nigeria and Botswana—there are many of these places. May I conclude my intervention by saying that some of these countries are so vulnerable, having had to deal with the Ebola virus, terrorism and so on, and they do not have the infrastructure that we are so lucky to have in the west? Could my hon. Friend not give some consideration to those points in his speech?
I am grateful to my hon. Friend for her intervention. I do not doubt that she is taken to all the successful programmes there have been, but I wonder whether she was taken to the following one. I wonder whether she was taken to Kenya. Forget about poverty and all this kind of thing, because apparently the most important priority in Kenya is graffiti. We gave to a £6.7 million aid project called Making All Voices Count, which pays for political graffiti in Nairobi. The spray murals are said to be useful as they
“engage with artists to spread data-based information in slums in order to empower citizens to make data-driven arguments”.
They are, apparently, also justified because they target police corruption through awareness. You couldn’t make it up: we are literally spraying money away. With £16.5 million of aid allegedly being stolen by Kenyan Ministers and officials in the past few years, it is nonsensical to suggest that all of this aid budget is going round doing all this good. A load of old nonsense is going on.
Let me talk about a project in Ethiopia. It is not about creating life opportunities through work or educating people. It empowers women through music, and we gave money to the so-called “Ethiopian Spice Girls”, a five-strong girl group called Yegna. That may bring a smile to people’s faces, until we realise that this is part of a bigger programme called the Girl Hub, to which DFID handed over £3.8 million. As a justification for that excessive expenditure the point was made that Ethiopian girls
“faced challenges such as forced marriage, violence, teen pregnancy, and dropping out of school”.
Of course they do—we all agree with that—but I think I must be out of touch because I thought the best way of tackling those things was to target those issues; I did not realise that the way to tackle them was to finance a girl group to sing about those problems. You could not make this up, but it is true.
It all goes to show that DFID has so much money that it does not know what to do with it, so it is scratting around for any kind of nonsensical, politically correct project to throw its money away on. But it is not throwing away its own money—this is our money. It is our constituents’ money that DFID is throwing away with gay abandon. It might make DFID feel good, but it does not do a great deal for my constituents who are seeing their money go up in smoke. What I want to know is who in DFID actually sits around a table and says, “I know, I think we should fund the ‘Ethiopian Spice Girls’. I think that is a good use of public money.” We can just imagine the discussion in the Department, where everyone around the table says, “I think that is a marvellous idea.” Does nobody in these Departments say, “Do you not think that’s a crass way to spend taxpayers’ money?” Is nobody there speaking up for taxpayers? I do not believe anybody is. This is just being done to satisfy the egos of politicians; it is not about doing anything to alleviate poverty.
I have been listening carefully to my hon. Friend’s speech. I am concerned that he is conflating those who are opposed to the Bill, as I am, because they think it is bad from a constitutional standpoint with the people who are genuinely opposed to aid. I am strongly in favour of the 0.7% target, but I just do not believe the Bill is the right way to achieve it. I am concerned that he is mixing up being opposed to aid in general with being opposed to the Bill.
My hon. Friend has a perfectly legitimate point of view, and I agree with much of it. As he has rightly identified, someone can support 0.7% of the budget going in overseas aid without supporting this Bill, because it already happens. We are supposed to pass laws here because we actually need a law to help something or prevent something that is very bad. He has rightly identified that the Bill is a solution looking for a problem, but I do not agree with him that we should be spending 0.7% of our budget on it. [Hon. Members: “Ah!”] I do not agree with that. I would like to think that I have made that abundantly clear. We cannot afford to spend that. There is no evidence that it is being well spent, so I agree with him.
This Government have made such an effort to stop welfare dependency at home, and I support everything that the Secretary of State for Work and Pensions has done to try to stop a culture of welfare dependency in this country. People cannot expect to sit and wait for their next handout from the state. How on earth can a Government who have done so much on welfare dependency—[Interruption.]
Order. The hon. Gentleman is speaking and is in order. I appreciate that he has a great deal to say and that there is a vibrant argument going on, but I point out to him that he has now spoken for 40 minutes, which is twice as long as anyone else in this debate. He has the Floor and has every right to go on speaking, but one must balance rights with responsibilities. He might like to consider courtesy and consideration for his fellow Members who also wish to speak, and have valid points to make this afternoon.
I am, as always, grateful to you, Madam Deputy Speaker, for your guidance. As I said at the start, we have had three hours of speeches from Members who are in favour of this Bill. As you have rightly said, I have spoken for 40 minutes in opposition. But I am a generous man, and I always seek to please you in particular. If it will please you, I will seek to draw my remarks to a close, but if you could indulge me for a couple more—[Interruption.] I could speak for a couple more hours. There is so much wrong with this Bill, we could go on for most of the day and most of the night as well.
I just want to make this point about welfare dependency. We have been doing so much to say to people here, “You cannot expect to sit back and wait for money to come to you without doing anything yourself.” In the same breath, DFID is entrenching welfare dependency abroad. Basically, it is saying to countries, “It doesn’t matter what you do with your governance or what you spend your money on; we will keep handing over the cheques come what may.”
Let us take India as an example. Why on earth are we still giving aid to India?
I will not give way; I am drawing my remarks to a close. India spends $35 billion a year on defence. It is spending hundreds of millions of dollars a year on a space programme. It is even developing its own overseas aid programme, yet we are still giving £200 million to it in overseas aid. It is grotesque. I could go on and on about the waste of money that we see in DFID and the fact that it is unjustifiable to keep spending so much money. But I will take your guidance, Madam Deputy Speaker, and draw my remarks to a close.
I just want to remind Members that as Conservatives we should be judging ourselves not on how much we spend, but on how effectively we spend the money and, crucially, on whether or not we can afford to spend the money that we are handing over. We cannot afford to spend all of this money at this moment in time, but that may well change.
I reiterate the point that I made at the beginning—that anybody here today who votes for a closure motion and for this Bill to go into Committee is basically saying that this Bill is more important to them than an EU referendum Bill. They will have to answer to their constituents on that point. I will be able to look my constituents in the eye and say that I did what I thought was right. This Bill is unnecessary. What we need is an EU referendum Bill, which is why I will vote against any closure motion and against this Bill. My colleagues are in danger of falling into the trap set by the Liberal Democrats and the Labour party.
On a point of order, Madam Deputy Speaker. Neither my hon. Friend the Member for Bury South (Mr Lewis) nor I were able to be present in the House when the sad news of the death of Lord Bannside was announced. Is there a mechanism whereby I and my colleague can express our deepest sympathy and sincere condolence to Baroness Paisley of St George’s and to the present hon. Member for North Antrim (Ian Paisley) and record our appreciation for a great parliamentarian who moved from initial controversy to become an absolute colossus of modern politics, one of the most important architects of the peace process and a man who will be greatly missed throughout these islands?
(10 years, 5 months ago)
Commons ChamberWe put a great deal of our money through multilaterals right across the Sahel, and we have committed £83 million in humanitarian support through the United Nations, the International Committee of the Red Cross and international non-governmental organisations across five countries—Mali, Burkina Faso, Chad, Mauritania and Niger.
5. What consideration she has given to making funds from her Department’s budget available to people in the UK affected by flooding.
The Government fully understand the need to help those in the UK affected by recent flooding, but Britain does not need to make a false choice between spending money to tackle flooding in the UK and spending it to save lives overseas through the aid budget. My right hon. Friend the Prime Minister has pledged that all immediate practical support and assistance will be provided to deal with the floods in the UK.
When natural disasters take place in other parts of the world, the Government are always quick to respond. At a time when money is tight and the Department’s budget is the only one not under any financial pressure, surely if people in the UK need aid following a natural disaster, the aid budget should be made available to them. Charity begins at home, and the Government should not treat people abroad more favourably than people in this country.
I quite understand what my hon. Friend says, and I fully share his wish to give proper assistance to those in the UK affected by flooding. The international development budget, within our 0.7% of gross national income commitment, has to be used for official development assistance as defined by the OECD. It is not possible for us to redefine ODA in a way that would allow it to be transferred immediately to domestic purposes. The assumption in his question is therefore a false choice. I am pleased to say that the Government can help flood victims at home as well as abroad.
The hon. Gentleman is quite right, and of course the UK has historical links with that part of Somalia. We have put in place the Somaliland development fund, and I am happy to give the hon. Gentleman more details of that. I had the chance to discuss the fund with the Somali community in the UK when I went to an event in Ealing recently.
T6. Can the Secretary of State tell us how much of her Department’s annual expenditure she estimates is wasted, poorly targeted, goes on corruption or is siphoned off by Governments and dictators?
As I said earlier, when I see waste, I am determined to cut it. We have targeted our bilateral programme on fewer countries and we are taking aid out of countries that we think can afford the development themselves. On corruption, only 5% of our bilateral aid goes as budget support direct to Governments, but if I have concerns about corruption I stop that budget support, as I have done in Uganda and Malawi.
(12 years, 3 months ago)
Commons ChamberFirst, let me join the right hon. Gentleman in welcoming the work that Foodbank does. I have visited one of its sites myself to see what it does. What is absolutely vital in these difficult economic times is that we do what we can to protect the poorest people in our country. That is why we have frozen the council tax, increased the basic state pension and uprated benefits in line with inflation, which has protected the people who need protection the most. Yes, we have had to cut tax credits for those people on £30,000, £40,000 or £50,000, but we have actually increased the tax credits that the poorest people receive.
The Prime Minister and I might not agree about everything, but we do agree about certain things. For example, we agree that I should never be promoted. [Laughter.] Another thing that we agree about is the need to put public sector pensions on a sustainable and affordable footing. In that context, judges are being asked to pay just 2% of their salary towards their pension, whereas the taxpayer pays 33%. That is neither affordable nor sustainable. Given the increases in pension contributions that we are expecting from other, lower-paid public sector workers, will the Prime Minister ensure that we apply the same tests and requirements to judges, too?
My hon. Friend makes an important point. Judicial pensions have always been treated separately, because of what judges do for our country, but on public sector pensions more generally we have managed to—[Interruption.]
(12 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I welcome the fact that we are having a debate on India and on human rights; I also welcome the Select Committee reports and the responses by DFID and the Foreign Office. However, it is unfortunate that two debates are being conflated into one afternoon. Traditionally, for the past 10 years or so, there has been a specific one-day debate here on human rights. I hope that what has happened today is not a harbinger of a future when the human rights debate will be added to something else, rather than being given a stand-alone debate. That is not something for Members at this sitting to decide, but I hope the message will get back to the Backbench Business Committee that an undertaking was previously given that human rights would take up a whole day throughout this Parliament. I hope that that will be adhered to in future.
I want, if I may, to refer to both human rights and India in the debate, which I understand goes on for three hours and can cover both subjects. Am I correct on that, Mr Davies?
The first half is about India. The second half is about human rights.
One follows the other. The next debate is about human rights.
We conclude this first and the next debate will be about human rights.
The hon. Gentleman can speak in the next debate—I think he indicated that he wanted to speak in it.
Human rights should wait for the next debate, but if the hon. Gentleman wants to speak about India he can do so now.
I shall briefly make a couple of points on India. My points will be half made, because, as I said, time is restricted and it should not be.
I welcome what has been said about the enormous poverty in India, and the number of people involved. I do not agree with the view in the popular press that we should not give aid to India; I think we should. I want to draw attention, as I did when I intervened on the right hon. Member for Gordon (Malcolm Bruce), to the treatment of Dalit peoples. I say that because I am chair of the trustees of the Dalit Solidarity Network.
Dalits are the largest group of people in the world who are systematically discriminated against on the basis of their descent and caste. They perform the worst jobs in the dirtiest conditions, and have the shortest life expectancy, the lowest level of education, the worst housing and the lowest pay and employment levels of any group in India or, indeed, the rest of the world. After numerous meetings with DFID, I accept its assurance that British aid is tied; the Department makes the point that we are not going to be involved unwittingly or otherwise in discrimination against Dalit peoples through our aid programmes, and that several projects and programmes enhance the lifestyle, values and opportunities of Dalit peoples. I welcome and support that aspect of what is happening.
I want to draw attention to the issue on a wider scale. It was raised at the Durban millennium summit in 2000 and will no doubt continue to be raised elsewhere. It cannot be right that a country with India’s aspirations to modernity and to taking its place in the world, including a permanent place on the UN Security Council—a country that is obviously a major power in every aspect—can allow such discrimination to continue. Whenever I have raised that matter with Ministers or politicians in India, during visits to India, or with the high commission here, those concerned always point to the Indian constitution, which was written by the great Dr Ambedkar, who was himself a Dalit, although he later changed his faith from Hindu to Buddhism. Dr Ambedkar’s constitution is a remarkable document and clearly outlaws discrimination on the basis of caste or descent. However, it is equally clear that in reality Dalit people’s opportunities to get access to justice do not exist in many parts of the country. Denial of access to the law, discrimination against them by the police and by employers, and the traditions that are continued in many villages, are inimical to the interest of Dalit people.
(13 years, 1 month ago)
Commons ChamberThe hon. Gentleman, who is enormously experienced in the ways of Parliament, will know that that is not a matter for me as the Secretary of State for International Development; it is a matter for the business managers and the usual channels. I suggest that he refers his question, on an appropriate occasion, to one of them.
Any Government can spend as much money as they want on overseas aid if they want to do so. Lots of Departments have very important priorities, so why do we have to have a specific target in law for overseas aid and not for anything else? Is this not just ludicrous gesture politics, rather than anything that is actually meaningful?
My hon. Friend is right to this extent: we could spend this hard-earned budget twice over, because there is need that we could satisfactorily address. But the world, many years ago, settled on a figure of 0.7%, and all of us have made a promise to stand by that commitment and the Government are absolutely right, even in these difficult economic circumstances, not to seek to balance the books on the backs of the poorest people in the world.