Oral Answers to Questions
Priti Patel Excerpts(7 years, 2 months ago)
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Ms Margaret Ritchie (South Down) (SDLP)
The Secretary of State for International Development (Priti Patel)
The hon. Lady will be aware that a judicial review into UK arms exports to Saudi Arabia is currently under way, and that we cannot comment on ongoing legal matters. The role of the Department for International Development in the export licence process is to provide advice on criterion 8 of the Consolidated EU and National Arms Export Licensing Criteria, which assesses whether a country can afford the export.
Ms Ritchie
Following the recommendation made by the International Development Committee and the Business, Energy and Industrial Strategy Committee in November, what progress has been made in formally including DFID in cases in which the proposed arms transfer might ultimately be used, as is the case with Yemen and equipment supplied to Saudi Arabia?
Priti Patel
I thank the hon. Lady for her question. Specifically on DFID’s involvement, we engage across government on some of the really significant issues that are associated with Yemen, particularly on the humanitarian aspect. As I mentioned in my opening answer, there is a case under way right now, so I cannot comment on those ongoing legal matters.
Michael Fabricant (Lichfield) (Con)
Given the situation in Saudi Arabia, and indeed in China and other countries, does the Secretary of State not think it rather hypocritical to be carrying on about Trump—or is that out of order, Mr Speaker?
Priti Patel
As my hon. Friend will have just heard me say very specifically with regard to Saudi Arabia and to export licences, a judicial review is under way and we cannot comment on ongoing legal matters.
Ann Clwyd (Cynon Valley) (Lab)
Famine looms over Yemen, as the Secretary of State will know. What is the UK doing to ensure that aid is not being impeded by the Saudi-led coalition?
Priti Patel
The right hon. Lady may be aware that the UK has not just funded the Yemen appeal, but led the way in the UN with our support. We are the fourth largest bilateral donor. DFID and the British Government have been very clear and direct on the matter of working on the ground and of making the case to the Saudi Arabian authorities that they must not impede humanitarian aid and support. We have been working with many of our international partners to monitor the access routes to ensure that supplies can get into Yemen, which, as she knows, is vital at this difficult time.
Tom Brake (Carshalton and Wallington) (LD)
On the subject of granting export licences to Saudi Arabia and indeed to other countries, does DFID make representations about matters such as civilian casualties and breaches of international humanitarian law?
Priti Patel
I can assure the right hon. Gentleman that we do more than make representations, and we do so not just through Government, but directly. I have dealt directly with the authorities in Saudi Arabia and with the Kingdom of Saudi Arabia relief fund, and made some very specific requests with regard not just to the situation on the ground and the conflict, but, as I have already said to the right hon. Lady, to getting support to the people who need help in this crisis.
Mr David Burrowes (Enfield, Southgate) (Con)
The Secretary of State for International Development (Priti Patel)
The situation in Syria is devastating and appalling. The UN estimates that 13.5 million Syrians are in need of humanitarian assistance, and 1.5 million are living in siege-like conditions. There are 4.9 million refugees in the region. The UK, as my hon. Friend will know, has been at the forefront of the international effort in providing support to the region and to Syria directly.
Mr Burrowes
I commend that leading effort. Can the Secretary of State assure me that our aid is reaching Christian refugees who face jeopardy because, sometimes, they avoid the official camps for fear of persecution? Those who end up in those camps face further persecution because of their faith.
Priti Patel
My hon. Friend is right to raise that matter. It is a really important issue given the movement of migrants and refugees. Ensuring the safety of refugees and protecting them from persecution is absolutely at the heart of the UK’s involvement, especially with regard to the aid and support that we provide in Syria and the wider region. I can assure him that all the agencies and partners with which we work pay particular attention to monitoring the welfare and safety of minorities, including those of Christians.
Thangam Debbonaire (Bristol West) (Lab)
I recently had a very helpful meeting with one of the DFID Ministers about the situation in the berm—an area of no man’s land between Jordan and Syria. I am aware of how much the Government are doing with aid, but will the Secretary of State please update us on the humanitarian situation in the berm and what else is being done and could be done to help those refugees?
Priti Patel
I thank the hon. Lady for raising the appalling situation in the berm; it is a devastating situation. She asked about what we are doing. Obviously, work has taken place through our agencies and partners, and more directly with the Jordanian Government. We are working with them in a very difficult, hostile terrain and territory in order to ensure that people and children are being protected and that they are getting access to food and water, which, frankly, is a major priority in the berm.
Anna Soubry (Broxtowe) (Con)
Last week, I met a number of Syrian refugees along with the hon. Member for Tooting (Dr Allin-Khan); we were guests of Oxfam in Jordan. The Secretary of State was also in Jordan not that long ago. Will she tell us what plans she and the Government have to continue to support Jordan in its magnificent efforts—a country of 9 million people that has taken in and housed 1.5 million Syrian refugees? What more can we do to help Jordan?
Priti Patel
I thank my right hon. Friend for her question. She has seen at first hand the incredible and remarkable work in Jordan—a host country and a host community. It is under great strain and pressure, particularly economically, but also in providing the vital support that is needed. What more are we going to do? Post the London conference is the Brussels conference. I have been clear—this is exactly why I was in Jordan—about the additional support that we will give to Jordan, not just as the UK but through the international community, with the World Bank and the International Monetary Fund, and through many of the reforms taking place in Jordan itself.
Peter Grant (Glenrothes) (SNP)
Priti Patel
I thank the hon. Gentleman for his question. In besieged areas inside Syria, there are enormous problems of access to humanitarian aid and things of that nature. On drones, we are examining all options for getting aid into besieged areas in Syria. That includes the possibility of using drones to deliver aid directly.
Mr Peter Bone (Wellingborough) (Con)
The Government should be congratulated on being the second biggest donor in the area—second only to the United States. We can look after more people closer to home than we can in this country. What is the Secretary of State doing to encourage other European countries to match our level of support for the region?
Priti Patel
My hon. Friend raises a really important point. We are constantly calling on other donor countries to step up and effectively pull their fingers out by putting more money into the international system. The Government are leading reform of the international system: we are challenging donor countries to be much more efficient and effective in how we distribute aid and get resources directly to people in the country and in the region.
Albert Owen (Ynys Môn) (Lab)
Like the Secretary of State, I met thousands of children in the camps of Jordan, Lebanon and Turkey who had fled Syria; I saw etched on their faces the fear they had experienced while in Syria. As others have done, I welcome the work in those host countries, but is the Secretary of State not embarrassed that the Government have turned their back on our obligation to take 3,000 unaccompanied children who have fled Syria and are in Europe?
Priti Patel
I, too, have met and spoken to hundreds of such children and seen and heard from them directly the trauma that they have experienced in travelling from Syria into the neighbouring countries. The hon. Gentleman cannot justify saying that we are not helping those children: we take the welfare of unaccompanied asylum-seeking children more than seriously. We have made very clear commitments to those children and that is what we are doing. We have committed to resettling 20,000 Syrian nationals through the Syrian vulnerable persons resettlement scheme and 3,000 of the most vulnerable children. That is on top of being the second largest bilateral donor to Syria and inside the region.
Kate Osamor (Edmonton) (Lab/Co-op)
I thank the Secretary of State for all the work she is doing in Syria, but I draw her attention to the humanitarian crisis in the Lake Chad region, where around 450,000 children are at risk of severe acute malnutrition. Can she assure me that the Government’s response to this crisis is purely humanitarian, and does she think the UK is acting in good time?
Mr Speaker
I am sure that the hon. Lady meant also to refer to Syria—it was probably a slip of the tongue—as that is the question on the Order Paper. She probably did, but I did not hear it.
Priti Patel
I thank the hon. Lady for speaking about the humanitarian crises in Syria and in the Lake Chad region; she is right to mention the awful situation there. UK aid is clearly directed and focused on providing food, water and shelter to give protection to the most vulnerable people who need that life-saving support at this very difficult time.
Alex Cunningham (Stockton North) (Lab)
Kate Osamor (Edmonton) (Lab/Co-op)
Despite the leading role that the former Prime Minister played in shaping the sustainable development goals globally, there has been slow progress domestically. Will the Secretary of State update the House on the progress of implementing the goals across Government Departments?
The Secretary of State for International Development (Priti Patel)
The global goals are absolutely embedded not just in what the Department for International Development does, but across Government. As I may have mentioned in response to other questions, we are in the process of revising every single departmental plan across Government, and the global goals will be fully recognised in that process.
Mr Laurence Robertson (Tewkesbury) (Con)
The Secretary of State for International Development (Priti Patel)
The humanitarian situation in South Sudan is deeply concerning, with 4.9 million people who do not have enough to eat. Famine has been declared in the Unity State. We are monitoring the situation and working to get direct aid into South Sudan at what is, quite frankly, a devastating time for that country.
Mr Robertson
I thank the Secretary of State for her response and for the work that she is carrying out in South Sudan. As well as providing the immediate humanitarian assistance, is there any prospect of building some sort of in-country resilience for the future?
Priti Patel
My hon. Friend makes an important point. Our priority, of course, is emergency aid—food assistance and water. We are also asking others to step up, particularly donors. We are calling on all sides that are involved in the conflict to end the fighting, because we need long-term political solutions if we going to end the current crisis.
Patrick Grady (Glasgow North) (SNP)
The famine declared in South Sudan is the first anywhere in the world for six years. Last night the all-party Sudan and South Sudan group launched its report on the need for peace in the wider region. How is the Secretary of State’s Department responding specifically to these crises? Will she confirm that she will defend the aid budget so that it focuses on those in desperate need and is not subject to smash-and-grab raids by the Foreign Secretary to support diplomatic empowerment funds?
Priti Patel
It is important that we recognise the state of the world right now. We are seeing four crises—four famines—around the world. We are in an unprecedented time. This is the first time we have seen this situation since the last certified famine in 2000. I do not see it as an issue about how we spend money across Government Departments; it is about how the UK shows global leadership when it comes to times of humanitarian crisis in the world. The British Government are leading the world right now, calling on others to step up, but also saving lives and changing lives at this critical time.
Dame Caroline Spelman (Meriden) (Con)
The Anglican communion and the Anglican Alliance have a network of churches in southern Sudan and can help to get aid to those who most need it. How is the Secretary of State engaging with the Anglican communion in that area?
Priti Patel
My right hon. Friend is absolutely right: the Church community—the Anglican communion—are present there. We are working with all partners because of the nature of the challenging situation on the ground. Let us be very frank: there is no easy solution in terms of aid access and getting support to people, so we are working with all partners. It is important to recognise that all partners and humanitarian workers are doing very difficult work in very challenging situations. This House should praise them all for what they are doing at this difficult time.
Mr Gregory Campbell (East Londonderry) (DUP)
We have been offering assistance for some considerable time in the general area, but given the problems that have been generated in South Sudan in the past six months, can the Secretary of State outline what specific steps have been taken to get assistance to the people there in recent months?
Priti Patel
I absolutely can. We have been very specific, not only in terms of UK support through the partner network that I have referred to but through DFID and the UK presence on the ground, in getting direct assistance to people. The situation is challenging. People are being persecuted and violence is driving them out of their homes. People are now in camps. We are working to protect civilians and ensure that within those camps they are protected and safeguarded as well as in receipt of food, shelter and water.
Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)
The Secretary of State for International Development (Priti Patel)
This year the world faces numerous humanitarian crises, to which I have already referred. Parts of South Sudan are now in famine and there is a credible risk of famine in Yemen, north-east Nigeria and Somalia. That is why today I have announced new packages of support. The UK’s message to the world is clear: we need to act now to help innocent people who are starving to death.
Henry Smith
Can my right hon. Friend be more specific about measures her Department is taking to help to address the potential crisis that is developing in Somalia, South Sudan and other countries in the region?
Priti Patel
Specifically, our focus right now is on emergency food and water. That is where the need is. We are talking about more than 1 million people in both countries who need urgent support. They are the focus of our attention right now. Obviously, working with our partners, we will make assessments to see what additional support we will need to continue to put in.
Imran Hussain (Bradford East) (Lab)
The Rohingya are among the most persecuted people in the world today. In recent weeks and months, they have faced new waves of violence perpetrated by the Burmese Government. How much of the £95 million budget for the Burma project will go towards much-needed assistance for the Rohingya, and what steps are the Government taking to ensure that that happens?
Nigel Huddleston (Mid Worcestershire) (Con)
Priti Patel
The UK has much to celebrate when it comes to global leadership on gender equality. Of course, International Women’s Day will be another strong example of that. We not only continue to champion the rights of women and girls but, importantly, support them in their own economic development and empowerment prospects.
Roger Mullin (Kirkcaldy and Cowdenbeath) (SNP)
Priti Patel
I did not fully hear the question, but I did hear the most important point, which was that of Africa and economic development. The British Government, through UK aid, are at the forefront of leading the way when it comes to prosperity and economic development. We will continue to do exactly more of that. [Interruption]
Mr Speaker
Order. We are discussing matters affecting some of the most vulnerable people on the face of the planet. Let us have a bit of order for Mary Robinson.
Mary Robinson (Cheadle) (Con)
Priti Patel
My hon. Friend is right to raise this important issue. Education is crucial in the camps but also in the region. In both Jordan and Lebanon we have helped to support more than 200,000 children to have access to education. The UK, once again, is leading the way to enable more and more children to go to school in the region.
Tommy Sheppard (Edinburgh East) (SNP)
Fiona Bruce (Congleton) (Con)
The Independent Commission for Aid Impact is a unique body created to scrutinise DFID. What assurances can Ministers give that the forthcoming review of ICAI’s own performance will be conducted independently of the Department that it scrutinises?
Priti Patel
I can assure my hon. Friend that the tailored review of ICAI will be carried out in accordance with the guidance that has been set very clearly for the reviews of non-departmental public bodies, including all the relevant and appropriate levels of independence.
Lucy Powell (Manchester Central) (Lab/Co-op)
Priti Patel
The hon. Lady is absolutely right to raise the importance and significance of fair trade. This is at the heart of everything that we in DFID stand up for, in terms of principles and values. In our economic development work, that is exactly what we are championing throughout DFID.
Nusrat Ghani (Wealden) (Con)
Daesh continues to commit genocide against the Yazidi people. May I ask the Secretary of State what aid is being targeted to support Yazidi men and women?
Priti Patel
My hon. Friend will have heard my earlier response about the persecution of minorities in conflict areas, particularly with regard to the middle east crisis. We are working with all our partners to ensure that the Yazidi people are receiving aid and protection through our partnership-working on the ground.
Oral Answers to Questions
Priti Patel Excerpts(7 years, 4 months ago)
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Nigel Mills (Amber Valley) (Con)
The Secretary of State for International Development (Priti Patel)
UK development assistance has helped to reduce poverty and promote stability in Tajikistan since 2002. Between 2011 and 2016, DFID’s work has improved rural lives, promoted women’s economic empowerment, and delivered an important investment climate and managed public financial reforms.
Nigel Mills
I am grateful for that information. During a recent visit to Tajikistan, I saw the good work that DFID had been doing, but many people have expressed concern about the fact that certain projects have been quite slow to be approved. Will my right hon. Friend update the House on the Department’s commitment to Tajikistan and on when those projects might be signed off?
Priti Patel
I thank my hon. Friend, both for his question and for going to see DFID’s work in-country. The Minister of State, my hon. Friend the Member for Penrith and The Border (Rory Stewart), is overseeing new international development programmes, details of which will be published in due course.
Central Asia, including Tajikistan, represents an important strategic imperative in terms of our wider development objectives. We are, of course, committed to ensuring that commitments are implemented and that we start to deliver on those programmes later in the year.
Kerry McCarthy (Bristol East) (Lab)
Tajikistan is very much at risk from climate change, which could threaten all the good work that is being done to improve livelihoods and economic development. Is dealing with that an element of DFID’s programme?
Priti Patel
As the hon. Lady will know, a variety of challenges exist in this part of central Asia. Dealing with climate change is one, but others are economic security, financial management and performance issues. DFID’s combined approach will help to deliver greater economic security in the long run.
Craig Williams (Cardiff North) (Con)
The Secretary of State for International Development (Priti Patel)
What has happened in Aleppo is a tragedy and underlines the regime’s callous tactics of siege, starvation and indiscriminate bombardment. Through the UK’s humanitarian leadership and diplomatic efforts, we are doing all we can do to support the protection of civilians and, importantly, ensure that they receive the aid they so desperately need.
Craig Williams
I thank the Secretary of State for that answer. The UK committed £510 million in support at the London Syria conference in February last year. Is she on course to hit that target?
Priti Patel
I thank my hon. Friend for his question on this important issue, which gives me the chance to restate to the House the British Government’s commitment to, and long-standing support for, Syria. We have surpassed that pledge of £510 million made at the Syria conference last year. It is fair to say not only that the UK can be proud of its support, but that we have ensured that there is the right support in terms of humanitarian supplies and the focus for the region, while at the same time using our international convening power to work with others globally to ensure that we do everything we possibly can to support Syria and the region.
Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)
At the world humanitarian summit in Istanbul last year, the United Kingdom committed to the centrality of protection as a fundamental principle. How has that guided DFID’s approach to the situation in Aleppo, and what lessons will we learn from the tragedy of Aleppo for future civilian protection?
Priti Patel
The hon. Gentleman makes an important point in relation to the conference last year and how the humanitarian community can come together and not just learn lessons, but understand ways of working in times of severe crisis and of conflict. There are a number of lessons we can learn, including on agencies working together, the pooling of resources, and making sure that Governments across the world are working together strategically in terms of both resource allocation and, importantly, our convening power—the leverage we all have collectively in the international space to challenge Governments where they are inflicting harm and causing grief and devastation, and to make sure that we stand shoulder to shoulder and are united in how we tackle the challenge.
Victoria Prentis (Banbury) (Con)
Priti Patel
First, I commend my hon. Friend on her work on, and leadership in, Singing for Syrians; it is an incredible organisation and has been very successful in raising important funds. On making sure that the money is not wasted and goes directly into the region and in-country, we not only support, fund and collaborate with trusted partners, but, importantly, measure the outcomes that we are delivering in these essential humanitarian policies.
Alison McGovern (Wirral South) (Lab)
The Secretary of State is already talking about Aleppo in the past tense, but the besiegement is still happening right now, and the British Government must do more. What representations has she made to the Foreign Secretary about putting in place more and harder sanctions on Russia?
Priti Patel
The hon. Lady is absolutely right. The situation not only in Aleppo but in Syria full stop is beyond comprehension. She asks about representations. The Foreign Secretary and I work hand in hand on international issues, and the Government are calling for greater collaboration on access to humanitarian routes into besieged areas. This is not a case of one Department versus another; it is the voice of the British Government working together to make public representations and representations behind the scenes.
Dame Caroline Spelman (Meriden) (Con)
Before the war, Aleppo had Syria’s largest population of Christians. Now it is estimated that 90% of them have fled. In Parliament today, Open Doors will launch its World Watch List, which shows that religious persecution is one of the key drivers of migration. What can my right hon. Friend’s Department do to help the poor, persecuted Christians of Aleppo?
Priti Patel
My right hon. Friend is absolutely right to highlight the plight of persecuted Christians, especially in the context of Aleppo and Syria. She asks what we can do. This is not just a matter for DFID; the whole Government must speak out on the issue and constantly make it clear that the persecution of minorities and religious groups is totally unacceptable. That is the right thing to do. We also need to make that case within the international community and work collaboratively with donor countries and other countries across the world.
Patrick Grady (Glasgow North) (SNP)
Following the announcement during the Christmas recess that DFID would be piloting the use of drones to deliver medical supplies in Tanzania and to map weather damage in Nepal, what discussions has the Secretary of State had with Ministers in the Ministry of Defence about how drone technology could be used to deliver aid or assess humanitarian need in Aleppo and other parts of Syria?
Priti Patel
The hon. Gentleman is right to highlight the fact that we have been innovating and looking at new technology in relation to aid provision via drones. A lot of work is taking place in that space, and we have had a number of debates in the House about other ways of delivering humanitarian assistance, particularly in besieged areas. In the specific context of besieged areas in Syria, work is taking place and there have been discussions. I can assure the House that we are actively pursuing this issue, not just in DFID but across the Government.
Mr James Gray (North Wiltshire) (Con)
The Secretary of State’s heart is very much in the right place, as we all know, but the fact is that the greatest humanitarian catastrophe of modern times is taking place in Aleppo, Raqqa and Mosul today. In contrast to the warm words that we have heard in the exchanges of the past few minutes, should we not now admit that there is precious little that we in the liberal west can do to alleviate the appalling circumstances in Aleppo unless we have the support of the United Nations and Russia?
Priti Patel
My hon. Friend makes an important point. In terms of the work that the Government are doing, we must never lose sight of the fact that we are leading in humanitarian assistance and support. People are in desperate need, and we have the right focus on giving them all the necessary support. The other point is diplomacy. It is the job of the Government to carry on putting on the pressure, and we must use all the avenues of international diplomacy to put that pressure on, where it is needed.
Kate Osamor (Edmonton) (Lab/Co-op)
I should like to focus on Idlib in north-western Syria, where civilians who have fled Aleppo are the main target of Government strikes. Will the Secretary of State tell the House how DFID is supporting those wounded and displaced civilians?
Priti Patel
I thank the hon. Lady for her focus on the humanitarian issue in Syria, which is of course associated with Idlib as well. She asks about the work that is taking place. There are extensive humanitarian efforts in terms of relief, food and shelter in what is a desperate situation. As she and the whole House will know, I have spent a great deal of time working with all the agencies that we are directly supporting and funding to ensure that supplies are getting through, and they are. I would add the caveat that this is taking place in a challenging environment and climate. We are getting supplies through, but it is increasingly difficult to do so.
Steve Double (St Austell and Newquay) (Con)
Graham Evans (Weaver Vale) (Con)
The Secretary of State for International Development (Priti Patel)
Whether by giving to Syrian refugees, providing access to food or clean water, or creating jobs across Africa, UK aid helps us to meet our obligations to the world’s poorest. Such investment is also firmly in Britain’s national interest because it tackles the root causes of global problems while focusing on delivering world-class programmes that deliver value for money for UK taxpayers.
Graham Evans
The Secretary of State has previously said that she is looking at allocating DFID funding to peaceful co-existence projects, including Save a Child’s Heart, whose valuable work brings Palestinians and Israelis together. Can she update the House on that very worthy project?
Priti Patel
I am pleased to confirm that we are indeed working on a range of co-existence programmes in Israel and the Occupied Palestinian Territories to support tangible improvements, as my hon. Friend the Minister of State has said. The programme is now in its final design phase and will be launched at the beginning of the financial year. [Interruption.]
Mr Speaker
Order. I understand the air of anticipation in the Chamber just before Prime Minister’s questions, but I remind the House that we are discussing matters that affect the poorest people on the face of the planet. They should be treated with respect.
Imran Hussain (Bradford East) (Lab)
The protection of civilians in Aleppo must remain our absolute priority, but if we are to provide food, water, shelter and humanitarian relief to civilians who, for four years, have faced the horrors of an inhumane war, we need to ensure that the ceasefire, although currently holding, remains more than a brief pause. Can the Secretary of State therefore say what efforts the Government are making to ensure that conflict does not reignite in Aleppo? What contingency plan does DFID have in place to continue providing aid to civilians should the conflict reignite? We must not see humanity in meltdown again.
Priti Patel
The 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.
Philip Davies (Shipley) (Con)
Priti Patel
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.]
Mr Speaker
Order. The Secretary of State’s replies must be heard with courtesy. It is rather alarming when some of her own Back Benchers are not according her the proper respect. She must be accorded the proper respect.
Mr Christopher Chope (Christchurch) (Con)
Priti Patel
My hon. Friend will know that our priority is, of course, economic development and making sure that, through our aid, we are delivering long-term sustainable economic development and prosperity in everything we do. He is also right to note that DFID is working across the Government as we leave the European Union to look at unilateral trade preferences and the work we can do to grow our trade footprint across the world.
Deidre Brock (Edinburgh North and Leith) (SNP)
Priti Patel
We have been unequivocal in our commitment to 0.7% and, in addition, it is a manifesto commitment. Let me restate again, for the benefit of the House, that the focus of my Department is on poverty reduction and on ensuring that that money is spent to drive taxpayer value and deliver programmes for the poorest in the world.
Mr Speaker
I call Pauline Latham. The hon. Lady wanted to ask a question earlier. Is she no longer inclined to do so?
Ian Austin (Dudley North) (Lab)
Priti Patel
I thank the hon. Gentleman for his question. He will have heard in the previous responses our commitment to co-existence programmes and how they will not just drive the right values, but help to bring the two communities together in a very constructive way—this is in addition to our focus on targeted spending on public schemes such as health and education programmes within the region.
Multilateral Development Bank Replenishments
Priti Patel Excerpts(7 years, 5 months ago)
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The Secretary of State for International Development (Priti Patel)
In a world of global instability, effective international partnerships are more important than ever.
Britain has a proud track record as a global partner, contributor and problem solver. Our investment in institutions such as the World Bank helps us meet our responsibilities to the world’s poorest and is firmly in Britain’s national interest.
As a true leader on the world stage, Britain is successfully driving action to strengthen the multilateral system to ensure it is capable of meeting the unprecedented demands of the 21st century.
The world needs strong global institutions that are relevant not only for today but for the future—which is why ongoing reform at the World Bank is so important.
The UK is succeeding in securing these reforms. Following successful engagement from the UK and others, the International Development Association—which delivers the Bank’s work in the poorest countries—has agreed to:
double the investment that goes to fragile states;
increase support for poor countries dealing with protracted crises and hosting large numbers of refugees;
secure opportunities for job and wealth creation; and
boost investment in the private sector.
These reforms build on good progress made over the past three years. The recent multilateral development review found that the World Bank is one of DFID’s top performing partners, but there are still improvements to be made.
DFID is driving all agencies to be fully transparent about what, why, where and how they spend taxpayers’ money. We are pressing all our multilateral partners, including the World Bank, to publish their spending in line with international transparency standards, open up their management overheads and other costs to greater scrutiny, and push for similar tough requirements all the way down the supply chain.
The UK will continue to press the Bank and its partners to make further progress and deliver even stronger results on the ground.
Last week, the IDA negotiations that took place in Yogyakarta reached agreement on the replenishment of IDA to cover the period July 2017 to June 2020. The negotiations secured a total of $75 billion for IDA 18.
This funding will transform the lives of millions of the world’s poorest and most vulnerable people. Thanks to this investment up to: 180 million children will receive life-saving vaccines, 20 million births will be attended by skilled health personnel, 45 million will get access to clean water, 35 million people will get access to reliable electricity, 10 million teachers will be recruited or trained, and 200 million children and women will get proper nutrition. These are big numbers—and behind each one are real lives that will be fundamentally improved because of this investment.
Given these impressive results, the reforms made since the last IDA replenishment, and wider reform commitments, the UK has agreed to contribute £2,516 million as a grant over the life of the replenishment, and a highly concessional loan of £820 million that will be repaid to the UK Government, to this total.
This month also saw the conclusion of the 14th replenishment of African development fund negotiations, which secured a total of $7 billion for 2017-2019. This investment will give tens of millions of people in Africa better access to transport and electricity, and millions of people access to clean water. After securing commitments from the AfDF to greater focus on job creation, women’s empowerment, private sector investment and investment in fragile countries, the UK has agreed to contribute £460 million to this total.
The world is changing fast. We all need to raise our game. The great power of the multilateral system is its potential to be more than the sum of its parts. This is why the UK will work relentlessly to drive up its performance and get the most out of every pound of taxpayers’ money.
[HCWS380]
UK International Development
Priti Patel Excerpts(7 years, 5 months ago)
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The Secretary of State for International Development (Priti Patel)
Our world is changing. So our approach to development needs to adapt and keep pace with it. DFID will champion an open, modern and innovative approach to development.
Today I am publishing “Rising to the challenge of ending poverty: the Bilateral Development Review 2016” and “Raising the standard: the Multilateral Development Review 2016”.
These reviews build on the Government’s UK aid strategy published in 2015 and set out how UK aid will be focused on ending poverty and tackling great global challenges like mass migration, disease and climate change. It demonstrates how investing 0.7% of national income in international development will meet Britain’s moral obligation to the world’s poorest and work in the UK’s national interest.
The bilateral development review sets out how DFID will respond to these global challenges and contribute to a more prosperous, secure and stable world. DFID will follow the money, the people and the outcomes to make our aid more effective, transparent, and accountable to the poorest people in the world and to the taxpayers who fund our programmes.
The multilateral development review builds on a systematic assessment of the performance of 38 multilateral institutions funded by the UK through DFID. The review sets out how the UK, as a committed champion of the multilateral system, will work with its multilateral partners and press them hard to take radical action so they continue to raise their performance. We will back high performers while also pressing them to improve even further.
A copy of these papers and an accompanying document can be viewed online at: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2016-12-01/HCWS296/.
I will also place a copy in the Libraries of both Houses and make further copies available in the Vote and Printed Paper Offices.
[HCWS296]
International Financial Institution: Contingent Liability
Priti Patel Excerpts(7 years, 5 months ago)
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The Secretary of State for International Development (Priti Patel)
In 2015, the UK agreed to be a founder contributor of the Asian Infrastructure Investment Bank (AIIB). As set out in the summer Budget 2015, HM Treasury made an initial capital instalment of US$122,180,000, and committed to subsequent payments of the same amount by the UK Government over the four years from 2017 to 2020. The UK’s overall capital contribution will total US$3,054,500,000, of which these five payments together will make up 20% of “paid-in” capital contribution requiring a cash transfer. The other 80%, $2,443,600,000, is “callable capital”—the AIIB has the right to call for payment for these shares if there is a crisis affecting the bank’s assets or loans. As the paid-in capital is an investment, in return for which we get an asset of a share of the Bank, the Office for Budget Responsibility has forecast this payment as a financial transaction. Financial transactions do not add to public sector net borrowing.
Payment of the second annual contribution of $122,180,000 is in line with the authority provided by this House under the Asian Infrastructure Investment Bank (Initial Capital Contribution) Order 2015. Parliamentary approval for this will be sought in a supplementary estimate for the Department for International Development.
Further, the payment of the second instalment of the capital contribution incurs with it a contingent liability. In line with the AIIB articles of agreement, the contingent liability rises in line with the amount of callable capital paid. As such, the UK will increase its current contingent liability of $488,720,000, incurred when the initial capital instalment was paid by a further $488,720,000 to a cumulative total contingent liability of US$977,440,000. A Departmental minute to this effect was laid before Parliament on 1 December 2016 to give at least 14 sitting days’ notice of the intent to incur a contingent liability. The notice period will be completed on 9 January 2017.
Although the AIIB has the right to call for payment of this callable capital incurred when the initial capital instalment was paid, no such instance has occurred in any multilateral development bank in the past. If the liability were to be called, provision for any payment would be sought through the normal supply procedure.
In joining the AIIB the UK has demonstrated its support for China’s initiative to establish the AIIB to address the historic shortage of infrastructure investment in Asia. The AIIB will support economic growth in the region and drive up living standards. The UK’s membership will deepen economic ties with Asia and create opportunities for British businesses.
[HCWS305]
IBRD Loan to the Government of Iraq
Priti Patel Excerpts(7 years, 5 months ago)
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The Secretary of State for International Development (Priti Patel)
I have today laid a departmental minute outlining updated details of a contingent liability of the US dollar equivalent of £360 million which the Department for International Development (DFID) has undertaken, in respect of the World Bank Group.
On 25 October, I laid a departmental minute setting out DFID’s intention to guarantee a portion of a forthcoming development policy loan from the International Bank for Reconstruction and Development (IBRD) arm of the World Bank to the Government of Iraq, subject to finalising the details of the terms of the guarantee. Further consideration of the implications of the original arrangements for the treatment of the World Bank by credit rating agencies has led me to amend the element of the proposal relating to the treatment of any payments recovered from the Government of Iraq, in the event of a default and the guarantee subsequently being triggered.
The revised proposal entails the World Bank transferring the right to pursue and retain recoveries to the UK Government, should it wish to do so. This amendment to the guarantee arrangement will avoid undermining the Bank’s preferred creditor status, which is so critical to its ability to borrow at very favourable rates from the market and pass these on to its borrowers.
The change to the treatment of recoveries should have minimal, if any, impact on the probability of a default by the Government of Iraq. There remain strong incentives for Iraq avoiding entering into arrears as doing so would lead to the IBRD not agreeing any new lending, and not providing any lending agreed under existing loans; it would also entail the payment of penalty charges by the Government of Iraq.
In the event that a default did occur, and the guarantee is called, the UK would still provide compensation to the World Bank, in proportion to the UK’s guaranteed share of the overall IBRD loan. If this liability is called, provision for any DFID payment would be sought through the normal Supply procedure.
[HCWS291]
Commonwealth Development Corporation Bill
Priti Patel ExcerptsTuesday 29th November 2016
(7 years, 5 months ago)
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The Secretary of State for International Development (Priti Patel)
I beg to move, That the Bill be now read a Second time.
The Bill will raise the limit on the total cumulative level of financial support that can be provided to the CDC, the UK’s development finance institution. The CDC was founded by Clement Attlee’s Labour Government in 1948 and is the world’s oldest development finance institution. It is wholly owned by the UK Government and does not have private shareholders. Its mission is to tackle poverty by creating jobs and driving inclusive economic development for people in the poorest countries in Africa and South Asia.
The CDC exists to help to address what economists call a “market failure”: the desperate shortage of investment in the world’s poorest countries because, in part, of a misperception of the risks of doing business there. It addresses that market failure by providing investment capital to support the building of businesses throughout Africa and South Asia. Its explicit mandate is to drive labour-intensive growth by creating jobs and opportunities for working people. Since its creation, the CDC has been supported by all successive Governments—Labour, coalition and Conservative—because of its core purpose of tackling poverty through sustainable economic growth. I present the Bill in the hope that that spirit of cross-party support will continue. I look forward to colleagues across the House offering the fullest possible scrutiny, and I welcome the opportunity to constructively address any points that Members raise.
In recent years the UK has led the world in efforts to eliminate extreme poverty. The previous Labour Government made an important contribution, for example, in relieving the unpayable debts of the world’s poorest countries. Under David Cameron’s leadership, the UK become the first G7 country to meet its promise to spend 0.7% of our gross national income on international development. The current Prime Minister has made it clear that the Government will honour that commitment and intensify our leadership on key global issues such as tackling modern slavery.
The Government have also rightly made clear and bold manifesto commitments to tackle poverty directly.
Keith Vaz (Leicester East) (Lab)
I warmly congratulate the Secretary of State on her appointment to the Cabinet in this very important job—I know that she has been doing it for a while, but this is my first opportunity to do so. Later, she will meet the officers of the all-party group on Yemen. Will she confirm that the refocusing of funds in support of the CDC will not affect the Government’s commitment to the provision of emergency and humanitarian aid that she and her Minister of State have spoken of and given to Yemen over the past few years, as did her predecessor, the right hon. Member for Sutton Coldfield (Mr Mitchell), who is also in the Chamber?
Priti Patel
I thank the right hon. Gentleman for that welcome and for his remarks. He is right: successive British Governments have been very clear not just about their commitment to the CDC but about our collective focus on humanitarian need at times of crisis. I look forward to seeing the delegation from the all-party group later today, when I will of course speak more about the work that the Government are doing in Yemen, where we are seeing the most awful and horrendous catastrophe. I will speak to the right hon. Gentleman later in more detail about the type of interventions and the support we are providing to those trapped in that dreadful conflict.
By 2020, we will save 1.4 million children’s lives by immunising 76 million children against killer diseases. We will help at least 11 million children in the poorest countries to gain a decent education, improve nutrition for at least 50 million people who would otherwise go hungry, and help at least 60 million people get access to clean water and sanitation. We will lead the response to humanitarian emergencies. We will lead a major new global programme to accelerate the development of vaccines and drugs to eliminate the world’s deadliest infectious diseases, while investing to save lives from malaria and working to end preventable child and maternal deaths. We will also continue the inspirational leadership of my predecessor, my right hon. Friend the Member for Putney (Justine Greening), on women and girls.
Those commitments stand, along with our commitment to human development and directly meeting the needs of the world’s poorest, which is absolute and unwavering. Indeed, the first major decision I took in my role as Secretary of State for International Development was to increase the UK’s contribution to the Global Fund to Fight AIDS, TB and Malaria from £800 million to £1.1 billion. That will help to save millions of lives in the years ahead.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
The Secretary of State is outlining a long list of the Department for International Development’s achievements and her plans for the future, and she is praising her predecessors. Can she explain what has happened since she called for the Department to be scrapped and since she told the Daily Mail this year that most of our aid budget was being “stolen” and “squandered”? Those are her words.
Priti Patel
The hon. Gentleman has just heard not only what DFID has done in the past under two outstanding Secretaries of State—my predecessors, my right hon. Friends the Members for Sutton Coldfield (Mr Mitchell) and for Putney—which is a legacy that we will stand by in our manifesto commitments, but—[Interruption.] If the hon. Gentleman wants an answer, he should listen to my response.
I have already said that we will lead on major global programmes to accelerate the development of vaccines and drugs to eliminate many of the world’s diseases. The hon. Gentleman has also heard me respond to the right hon. Member for Leicester East (Keith Vaz) on the question of humanitarian crises and many of the immediate needs to which we are responding. Indeed, the hon. Gentleman will be aware that the very Select Committee of which he is a member is witnessing at first hand how aid is being spent in crisis situations, in refugee camps, and providing opportunities and, frankly, a lifeline to people around the world who are suffering. That is exactly what my Department is doing and what I am doing as Secretary of State, and I am disappointed that the hon. Gentleman—[Interruption.] This is not about briefing the press, and, if I may say so, I think the hon. Gentleman’s remarks do a huge disservice to the international development community. He is sitting there smugly smiling, but it is an international community that comes together—[Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. The hon. Gentleman knows that he should not make remarks from a sedentary position, but if he is going to make remarks from a sedentary position, he should not use the word “you” because he should not be accusing me of anything.
Priti Patel
It is not just in times of crisis that the international development community comes together. My Department is championing economic development and investing in people and human capital. I appreciate that the hon. Gentleman may not like that and may disagree with it, but that is the core purpose of the Department.
Stephen Doughty
The Secretary of State is making some very strong statements. Of course I do not deride the work of the Department; I think it is doing a fantastic job. She has outlined many of the positive things it is doing and the humanitarian aid it is providing to refugees, but why did she say that most of the Department’s budget was being stolen and squandered, without any justification?
Priti Patel
As the hon. Gentleman knows from my appearances at the Select Committee, I have clearly stated that I will drive transparency and accountability in the Department. There have been examples. I am sorry that on an issue as important as not only saving lives but transforming lives and investing in people, he chooses to take such a narrow focus.
Tom Brake (Carshalton and Wallington) (LD)
On the subject of the Bill, does the Secretary of State recognise that there are concerns that the CDC is not in fact targeting the poorest countries? Although private sector investment is very welcome, surely it needs to be just as targeted and as effectively monitored as investment in non-governmental organisations and other ways of boosting aid.
Priti Patel
I thank the right hon. Gentleman for his comments. It is right that the focus is on development impact and on outcomes. That has been shown by many of the reforms that the CDC has undertaken since 2010. Yesterday, a National Audit Office report was published which showed exactly that.
Richard Fuller (Bedford) (Con)
Will my right hon. Friend please be reassured that her efforts to ensure that we have accountability and transparency in all aspects of public expenditure, but particularly in the area of international development, are a key part of maintaining public confidence behind the 0.7% target?
Priti Patel
My hon. Friend is absolutely right. We owe that to those who contribute to the taxes that enable the Government to make these important decisions about international development, and in particular our humanitarian responses and how we spend and invest that money. As I will go on to say, there are many examples around the world of lives being transformed, and that is something that our country can be very proud of.
Fiona Bruce (Congleton) (Con)
Does my right hon. Friend agree that with regard to the concerns expressed about the CDC, the gravest relate to the period when the Opposition were in government—for example, the excessive levels of pay to CDC staff? Has the Conservative Government not got a grip of that, and is the CDC not much more efficient following the review in 2012 by the then Secretary of State?
Priti Patel
I thank my hon. Friend for her comments and observation. As I outlined at the beginning, the CDC is an established organisation that we should all be proud of. Clearly, there was a period before 2010 when the management of the CDC was, to put it mildly, not doing what it should have been doing. There were concerns about excessive pay and the lack of focus on development outcomes. Since 2010, when DFID led the way forward in working with the CDC, we have seen great progress.
Priti Patel
I must make progress.
As I mentioned earlier, contrary to some of the reports that we have seen in the past week, the future of the CDC will absolutely not come at the expense of DFID’s existing work on humanitarian support, human development and directly tackling what might be called the symptoms of poverty—disease, hunger and preventable suffering.
We all have a deep responsibility to tackle the underlying causes of poverty. That is why successive Governments have rightly focused increasingly on helping countries to grow, lifting the poorest out of poverty forever. That means creating jobs for the world’s poorest people, and driving the structural economic change that will end poverty permanently. To do this, we need to build the broadest possible coalition to fight poverty.
That includes NGOs and civil society organisations from the UK and from developing countries, which do such vital work. DFID’s recent civil society partnership review clearly stated the Government’s desire to work even more collaboratively with them in pursuit of these objectives.
Eliminating poverty also means working in partnership with multilateral agencies such as the Global Fund, with other bilateral development agencies, and directly with Governments in developing countries.
Mark Menzies (Fylde) (Con)
An example of that was the event that I and the Minister of State, Department for International Development, my hon. Friend the Member for Penrith and The Border (Rory Stewart) went to last week with His Royal Highness the ambassador of Saudi Arabia. DFID is working with wealthy donor countries to unlock enormous potential across the middle east. If not for the leadership shown by DFID, some of that work would be undone.
Priti Patel
I thank my hon. Friend for his comments. As he knows, a great deal of work is taking place with other Governments, helping them to develop their own capacity for aid, so that they can work more effectively bilaterally and with multilateral agencies. At a time when we see a great deal of conflict in that region, we are working on an agreement with some countries in the Gulf and the middle east on what their own development bodies and agencies can do to support humanitarian relief as a result of crises taking place on their doorstep.
Today I want to explain why CDC is a vital partner in our efforts to end poverty, for it is widely recognised that aid on its own will not eliminate poverty. No country can defeat poverty and leave aid dependency behind without the prospect of a functioning economy, sustainable economic growth, jobs, trade and investment. Development investments via CDC complement our other work and allow us to fight the scourge of poverty on all fronts. In the world today, faltering economic growth and rising young populations have exposed the chronic need for jobs and better opportunities. At present, most developing countries are not growing fast enough or industrialising fast enough to leave poverty behind.
The additional financing needed to achieve the UN sustainable development goals by 2030 is estimated at $2.5 trillion every year, but current investment levels are less than half that. As the UN and many international development banks have made clear, much of this finance will need to come from the private sector. The chair of the OECD’s development assistance committee, Erik Solheim, has stated:
“There is no longer a dispute about the need for private sector involvement in development. The role of DFIs”—
that is, development finance institutions—
“is to connect development aid with private investment, and explore how we can employ market forces in the world’s most challenging places.”
Dr Dirk Willem te Velde, head of the international economic development group at the Overseas Development Institute, writing in the Financial Times yesterday, said:
“Statistical evidence to be published by the Overseas Development Institute soon suggests that a £10bn increase in exposure of DFIs in Africa would raise average incomes and labour productivity by a quarter of a per cent, which is actually slightly above the average impact of aid overall. Most jobs are created by the private sector, and working with the private sector to create jobs is vital for inclusive growth.”
We know that that will be difficult in the poorest, most fragile and conflict-affected states. These are the hardest markets, where businesses will not go on their own because it is perceived as too risky, yet it is in those very places that jobs and economic opportunities are so desperately needed. CDC does exactly that by creating jobs, stimulating growth and supporting local business.
There are currently only a few investors in the world with the skills and risk appetite to create jobs and opportunities in the most difficult frontier markets. CDC is one of those investors. CDC uses its expertise and capital to support over 1,200 businesses in more than 70 developing countries to grow and create jobs. It is a great British success story that has a long history of creating jobs in the developing world.
This is not just about abstract numbers; importantly, it is about investing in people. The life-changing impact of CDC’s investments can be seen in countries such as Sierra Leone, where the UK has supported businesses to get up and running to drive forward the country’s recovery following the devastating Ebola crisis, which killed thousands and damaged the economy. In the words of Henry Macauley, Sierra Leone’s Energy Minister, whom I met just three weeks ago:
“CDC has played an important role in supporting key businesses during the Ebola crisis and continues to do so in Sierra Leone as the economy now recovers. They are an increasingly important investor in the nation’s power sector and I’ve found them to be a great and promising private sector partner.”
The life-changing impact of the CDC’s investment can also be seen through people such as Yvonne, in Uganda. Thanks to a CDC-supported loan, she could buy a vehicle, a scrubbing machine and a vacuum cleaner for her cleaning business and attend training courses. In just 10 years, she had expanded her business from one person to providing jobs for 175 people. It is people such as Yvonne who we should have in our minds as we debate the Bill.
In the past, legitimate concerns were raised about some aspects of the CDC’s performance. That is why, in recent years, the CDC has modernised and transformed its approach. In 2010, DFID undertook a public consultation and an extensive review of the CDC, and began moving the CDC in a new direction, including by bringing in a new board and chair and hiring a new chief executive. Under its new leadership, the CDC has transformed itself. Before 2011, it operated a financial-return-first strategy, with no screening tool to help filter out insufficiently developmental investments.
Keith Vaz
The Secretary of State may have answered this question, or she may be coming on to answer it, but there were concerns about some of the salaries paid to senior officials at the CDC and about the monitoring of administrative costs. Given that we support this organisation, which is moving in the right direction, is she satisfied that there is proper monitoring of that aspect of its work?
Priti Patel
That is an important point. Back in 2009, the CDC’s then chief executive was criticised quite extensively for the level of their salary and other pay, which stood at £970,000. The current chief exec’s total remuneration is now limited to a maximum of £300,000, and that is because the remuneration policies have changed dramatically since 2012. It is also important to reflect on the fact not only that pay across the organisation has been reduced by over 40%, but that compensation is no longer benchmarked, as it was prior to the changes in 2012, against the private equity industry. This is not a private equity firm at all. The CDC is now benchmarked against other development finance institutions, and any bonuses are based on the CDC’s development performance and returns, whereas, previously, they were based solely on financial performance. That has now changed.
Priti Patel
No, I will not give way.
Under its new leadership, the CDC has transformed itself. As I said, it operated a financial-return-first strategy before 2011. It has now introduced dual objectives to deliver development impact and financial return. It has developed completely new ways of assessing and measuring development through job creation and of screening prospective investments for development impact. It is an innovative and intelligent investor with a core mission of fighting poverty. That was recognised in yesterday’s NAO report, which stresses that DFID’s oversight of the CDC led to
“important, positive changes...a significant departure from the previous strategy”.
Following new objectives agreed with the UK Government, the CDC now invests only in Africa and south Asia, where 80% of the world’s poorest live, and where private capital is scarce. The CDC focuses now on the sectors that create the most jobs and on sectors that create environments for other businesses to thrive, such as infrastructure and financial services. In the last year, CDC-backed businesses have helped to create over 1 million new jobs, and they have paid over $7 billion in local taxes in the last three years. That is money that Governments can use to invest in vital services, such as health and education.
As yesterday’s NAO report recognised, the CDC has addressed Parliament’s concerns about pay, and salaries have been cut, as I have just outlined. The whole ethos of the organisation has changed and, importantly, strengthened, with oversight from DFID. The CDC of today is a different, and much improved, organisation from the one it was many years ago. Some of the media coverage in recent days has not properly reflected that important shift, and I urge all Members to look carefully at the facts rather than some of the reporting.
Of course, there is more to do. Therefore, as part of the Bill, my Department will work to improve the transparency of the organisation further and to strengthen further the assessment of its development impact. As the NAO recognised, my Department has commissioned several independent evaluations of the CDC’s impact. Just last year, a team from Harvard, reviewing the CDC’s investments from 2008 to 2012, concluded that they had been “transformational”, creating hundreds of thousands of new direct jobs and billions of pounds in increased earnings. We are currently in the design stages of a complex new study to generate even more detailed data on the wider market impacts of CDC investments. We are the first Government ever to conduct such an in-depth study into their development finance institution.
There is no question but that the CDC offers value for money. Over the last five years, we have seen significant returns from it. Every penny of profit generated by the CDC is reinvested into businesses across the world’s poorest and most fragile regions, making every taxpayer pound invested in the CDC go further. The NAO further concluded that the CDC now has
“an efficient and economic operating model”
with low costs, compared with other development finance institutions. CDC salaries are covered by the returns the CDC makes on investments, not from development budgets.
Wherever possible, the CDC invests in countries, and it uses neutral jurisdictions only when it is absolutely necessary to do so, to protect taxpayer moneys from being lost to weak legal systems and to bring confidence to other global investors in the hardest-to-reach markets. However, the CDC uses only financial centres that are compliant with international tax transparency standards, as monitored by the OECD’s global forum on transparency and exchange of tax information. There are no exemptions.
Far from hiding investments, the CDC was one of the first development finance institutions to make public investment information about every single investment. In fact, with DFID’s support, the CDC is now a global leader on transparency. It has signed up to the international aid transparency initiative and has an online searchable database on its website, allowing users to access information on every investment and fund in the CDC’s portfolio. I can assure the House that my Department will continue to be an active and engaged shareholder in the CDC, ensuring that it continues to deliver for the world’s poorest and the UK taxpayer.
Richard Fuller
My right hon. Friend is outlining a strong case for what she proposes for the CDC. However, on the issue of probity, there are tremendous resources in the City of London, which could provide support for some of the businesses the CDC invests in as they look to get to the next stage of growth capital. Is there any element in the Bill, or are there any DFID proposals, to encourage City of London firms to provide that support for DFID goals?
Priti Patel
It is important to acknowledge the City of London and the great expertise that exists there when it comes to not only investment in some of the most challenging parts of the world but transparency. Through the work the Government have done on tax and transparency, the City of London has moved incredibly far. My Department is working across the City of London on a range of issues, such as insurance. We are also looking at how we can do more on transparency and accountability, and that is absolutely right.
We will shortly be setting out a new investment policy for the CDC, covering the next five years. That will include a new reporting framework to better capture the broader impact of investments on development, beyond job creation and the tax revenue generated. We will ensure there is maximum transparency, so that CDC investments can be scrutinised and, importantly, so that their impact on combatting poverty is made clear. As I stated, the CDC has a strong and transparent track record on which to build. With our support and oversight, we want the CDC to do more, and that is why we need the Bill.
The Commonwealth Development Corporation Act 1999 set a £1.5 billion limit on the overall amount of Government financial assistance that can be provided to the CDC. That limit was reached in 2015. The need to raise the CDC’s capital limit was clearly signalled in the UK aid strategy back in 2015. The Bill builds on the economic development objectives of Clare Short’s 1999 Act and should be seen not as a new political direction, but as a logical continuation of the cross-party approach that has been in place for decades.
Any money given to CDC will meet the internationally agreed rules about which spending counts as aid. Raising the limit by £4.5 billion to £6 billion and introducing a delegated power to raise the limit further via statutory instrument to £12 billion over time will enable the UK to accelerate the CDC’s growth, so that the UK can deliver on its international development objectives. Let me stress that this £6 billion is not an annual spend; it is a cumulative figure and a limit placed on the total amount of financial assistance that a Government could provide to the CDC over a period of time before coming back to the House to seek a further increase via statutory instrument.
James Duddridge
I fully support what my right hon. Friend is saying. This is a progressive, cross-party movement, and this is not a radical piece of legislation. Decisions have not been made to spend the full £6 billion straight away, but if the Department did commit to spend right up to that limit and fund it each year up to 2020, it would still represent only 8% of the Secretary of State’s budget, so 92% of aid would be spent in a more traditional way. This is a progressive move, not a radical change.
Priti Patel
I thank my hon. Friend for his comments. He is absolutely right about the 8% figure. It is also worth pointing out, putting this into context, that total aid spending over the course of this Parliament is likely to be £60 billion.
Some inaccurate reports have suggested that this Bill somehow paves the way for the entire aid budget to be given to the CDC in perpetuity. That is clearly not the case. Increasing the capital limit does not guarantee that we will use our resources in this manner, or commit us to any increases in capital. My priority is to ensure that we achieve maximum value for money with UK aid. The provision of any new capital to the CDC will require a full and detailed business case that will show how further investment will continue to achieve value for money, have a clear development impact for the poorest, and deliver in the UK’s national interests. Furthermore, it is worth noting that because CDC investments generate a return, any additional money we give to the CDC is not spent once and then lost; it contributes to the CDC’s capital, which is continually reinvested now and in future years. Importantly, therefore, it remains an asset that ultimately belongs to the UK taxpayer.
This Bill is fundamentally about people: improving life prospects by helping individuals to find work and earn money, so that they can feed their families, send their children to school and put clothes on their backs; empowering girls and women to determine their own future; and giving people in the poorest and most marginalised places hope, so that they do not feel the pressures to migrate or turn to some of the extreme causes that we see around the world. The CDC is just one part—a relatively small part in the context of overall development spending—of our crucial investment in developing countries. We will continue to invest in our life-saving, life-changing health, education and sanitation programmes, meeting our manifesto commitments. Ultimately, though, this is about jobs, growth and enterprise that will defeat poverty for good. It is right that Britain leads the world to tackle poverty across the world given that we still have more than 1 billion people living on less than a dollar a day. The UK Government are playing a leading role in building a more prosperous world. This Bill is the right thing to do for the poorest people in the world and for British taxpayers, and I commend it to the House.
Oral Answers to Questions
Priti Patel Excerpts(7 years, 6 months ago)
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Jeremy Lefroy (Stafford) (Con)
The Secretary of State for International Development (Priti Patel)
This year we have significantly increased our support, providing a further £80 million of humanitarian aid to support more than 9 million people affected across the region. I can assure my hon. Friend that we are working to tackle poverty and the crisis in the region at source, rather than waiting for the consequences to reach us domestically.
Jeremy Lefroy
There are more than 2.6 million displaced people in the area, 6.4 million people are facing food insecurity, and a public health emergency has been declared in four countries, together with the Central African Republic, in response to a polio outbreak, yet United Nations appeals are only one third funded or less. What more can the UK Government do to bring this crisis to the world’s attention?
Priti Patel
My hon. Friend is right to draw attention to an appalling situation facing the region, and more must be done to meet the humanitarian needs. The UN needs that help to increase its capacity and develop. As to what more can be done, we encourage Governments across the world in the donor community to step up their contributions, just as we have, because the humanitarian response required must be funded now. With my hon. Friend and with the UK Government, we are challenging everyone to step up and do more.
Kate Osamor (Edmonton) (Lab/Co-op)
I welcome the Government’s additional £80 million committed at the UN General Assembly for the humanitarian crisis. This goes some way towards addressing the imbalance between development assistance and humanitarian aid. However, relief agencies are unable to reach up to 2 million people in north-east Nigeria. Can the Secretary of State provide an update on how her Department is leading an effective, strong UN-led response while also ensuring that DFID funding goes to a range of actors, including by channelling more funding bilaterally through non-Government organisations?
Priti Patel
I thank the hon. Lady for raising the issue. She is right. In addition to addressing the emergency humanitarian needs, DFID is investing in partnership working—yes, at a bilateral level, but also through the multilateral organisations that we are working with. Long-term resilience, support and capacity building are required. Our humanitarian programme is laying the foundations for these long-term outcomes through, for example, social transfers and access to health services, and importantly, focusing on the right interventions that can both help in the long term and provide the emergency relief required now.
Dame Caroline Spelman (Meriden) (Con)
The UK has excellent links through the Anglican Communion to the Churches in Nigeria. Would the Secretary of State welcome the willingness of the Churches to help with the humanitarian situation to address some of the underlying causes, particularly corruption?
Priti Patel
My right hon. Friend is right about the power and the support of the Anglican community and Churches in Nigeria in particular. We have to work with grassroots organisations and religious organisations as well. We welcome the support and the focus on capacity building in particular, and the awareness-raising that is required on many of these challenging issues.
James Duddridge (Rochford and Southend East) (Con)
Aid without security in northern Nigeria is meaningless. I welcome the deployment of British troops to support the Nigerians in the north-east. Will the Secretary of State review official development assistance rules to make sure that that type of deployment is ODA-eligible for the people of northern Nigeria?
Priti Patel
My hon. Friend will be clear about ODA rules from his previous role in the Foreign Office. He highlights the importance of a united and strategic approach, which can be seen in the UK’s work to support the Nigerian Government in their overall undertaking. The cross-Government work that is taking place is the right approach to tackle the severe issues that Nigeria is trying to cope with.
Mr Nigel Evans (Ribble Valley) (Con)
Looking at the immunisation of children in northern Nigeria, it appears that the coverage is very thin. In the past, some of the figures for coverage have been shown to be completely false. Can the Department work with the Government of Nigeria to ensure that there is total transparency, and work more with NGOs to ensure that more children are immunised throughout northern Nigeria?
Priti Patel
My hon. Friend is right about the importance of immunising children. I recognise the outstanding work that the agencies undertake in very difficult conditions as they try to reach communities to immunise children. More data and more transparency are needed, and we are driving much of that data transparency requirement through the support that we provide to organisations on the ground delivering those vital immunisations.
Kate Osamor (Edmonton) (Lab/Co-op)
When the Secretary of State appeared before the International Development Committee in September, she said she was working across Government on the implementation of sustainable development goals, but she was unable to give any details. Can she now provide an update on how her Department is leading the way to ensure that that important international framework is being fully implemented through DFID’s development work and here in the UK?
The Secretary of State for International Development (Priti Patel)
I have, indeed, as I mentioned at my last appearance at the IDC, been working across Government —I am working with the Cabinet Office as well—to ensure that all Government Departments, via their single departmental plans, will be meeting all of the SDGs. There will be an update forthcoming; I cannot give a date, but it will be quite soon, and I am sure it will be of interest to the hon. Lady when we publish it.
John Glen (Salisbury) (Con)
The Secretary of State for International Development (Priti Patel)
The UK is at the forefront of efforts to tackle Daesh and has led the way in supporting the Government of Iraq with humanitarian and stabilisation work as part of the response in Mosul. It is not enough simply to defeat Daesh on the battlefield; we have to ensure that we support the victims of barbarous regimes to get access to humanitarian support as events unfold in Mosul.
John Glen
In such a complex and sensitive environment, how will DFID use its leadership role to ensure that other aid providers work together and take a united approach, to maximise the effectiveness and value for money that we can achieve from investment in this critical area?
Priti Patel
My hon. Friend is right to highlight the issue not only of Mosul and stabilisation, but of the humanitarian response. DFID and the British Government are leading the way and working through our membership of the humanitarian country teams. We are working closely with the UN, donors, NGOs and, of course, the Iraqi and Kurdish Governments, to deliver a co-ordinated, targeted and effective response.
Craig Williams
I welcome my right hon. Friend’s response to the urgent humanitarian needs. What are the UK Government doing to support the Government of Iraq in preparing for securing the peace and stabilising the city of Mosul once we get it back?
Priti Patel
Stabilising newly liberated areas and helping people to return to their homes in a safe and secure environment is a central priority of the Government of Iraq. We are working alongside them and the UN coalition. Britain’s support for the stabilisation efforts is helping the UN to clear lethal explosives, repair water supplies, restore power networks and reopen schools. Those stabilisation efforts have already helped more than 700,000 people to return home across Iraq.
Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)
There is concern across the House about Daesh’s brutal treatment of minorities, including Yazidis and Christians. What approach will DFID take on that question, and will the Secretary of State speak to the Home Secretary about the potential for a medical evacuation or resettlement programme for Iraqi minorities, similar to that which we have for Syria?
Priti Patel
The hon. Gentleman is right to raise the persecution of minorities by brutal regimes such as Daesh. He is also right to highlight the cross-Government approach that we have taken. I absolutely acknowledge his points. I will reflect on them and work with my colleagues across Government to pick up on them.
Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)
Does the Secretary of State agree that women have a key role to play, and that we need to do whatever we can to support them? Women have been doing so much to help protect civil infrastructure in Syria. If the Government do not have a plan, will they kindly consider putting in place a women-specific plan?
Priti Patel
The hon. Lady is right to highlight the role of women. Not enough attention is given to the role that they play in peacekeeping and stabilisation. We hear much about the consequences of conflict for women, but they can play a significant role and that will be part of our ongoing dialogue with the Government of Iraq.
Imran Hussain (Bradford East) (Lab)
As winter creeps in across Iraq, thousands are expected to be exposed to temperatures close to zero as they flee for their life from Mosul. This is the worst time for the UNHCR to experience a funding shortfall in its winter assistance plan. What steps is the Secretary of State taking to guarantee that the UK and others meet their humanitarian obligations and address that shortfall?
Priti Patel
The hon. Gentleman is absolutely right to raise not only the humanitarian issue, but the contributions required. The UK’s efforts are meeting in full our commitments to Iraq. The hon. Gentleman will recall that, at the UN General Assembly, we were the first, in terms of our pledges and commitment, for preparedness before the operation in Mosul. On the question of what more can be done, I and other colleagues in the donor community need to step up. I constantly engage with the donor community, pressing for a greater sense of urgency in getting funds, preparing for winter and, importantly, ensuring that shelter, food and emergency equipment are put in place sooner rather than later.
John Mann (Bassetlaw) (Lab)
Andrew Bridgen (North West Leicestershire) (Con)
The Secretary of State for International Development (Priti Patel)
Last month in Kenya, I saw the life-saving impact of UK aid on the ground when it comes to combating drought, hunger and disease. I also saw how innovation can not only result in UK aid reaching more people, but help people to look at the long-term economic opportunities to tackle poverty and bring economic growth.
Andrew Bridgen
Does my right hon. Friend agree that working in partnership with Governments, businesses and investors around the world to transform economies and trading relationships, particularly in developing countries, should be a vital part of our UK diplomatic effort and our long-term prosperity strategy, especially as we approach Brexit?
Priti Patel
My hon. Friend is absolutely right. No country can defeat poverty without economic growth. Jobs, trade and investment are central to that, and the United Kingdom will be at the forefront of championing economic development and helping the poorest in the world to work their way out of poverty.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Priti Patel
I am delighted that the hon. Lady raises these important sectors. She is right to do so, because of the youth dividend across Africa and the enormous potential for those sectors. DFID is leading the way when it comes to agri-development and investing through CDC and other organisations. British firms are playing a strategic role here, too. This comes back to the point that no country can defeat poverty without economic growth, and these are the core sectors that are crucial to the delivery of prosperity and jobs across Africa.
Pauline Latham (Mid Derbyshire) (Con)
Priti Patel
My hon. Friend raises a very important and controversial issue. The protection of wildlife in Africa is a priority for the Government, and we have a strategy to address it. Tourism is of course important across Africa. I have visited not just Kenya, but Sierra Leone, another country that needs to get back to investing in tourism, and that is something we can help with in the long run.
Mr Gregory Campbell (East Londonderry) (DUP)
What steps is the Secretary of State taking to ensure that UK taxpayers are reassured about the way in which our money is spent, and that accountability mechanisms are in place to ensure proper value for money?
Priti Patel
The hon. Gentleman is right to raise the whole issue of value for money, which we in DFID will champion on behalf of British taxpayers. It is right that money goes to the right countries and the right people, because every pound that is not spent in the right way means that people do not get access to life-saving treatment or poverty reduction. Our mission in the Department is to ensure that we can eradicate poverty, but also to make sure that the money goes exactly where it needs to go.
Amanda Milling (Cannock Chase) (Con)
The Secretary of State for International Development (Priti Patel)
No country can defeat poverty without sustained economic growth. Later today, the Government will introduce the Commonwealth Development Corporation Bill, which will raise the limit on the level of financial support that the Government can provide to the CDC. By doing so, we will be able to help to create more jobs and to boost economic growth in Africa and south Asia, so that people can lift themselves out of poverty and leave aid dependency behind. I will write to colleagues with further information.
Amanda Milling
Will my right hon. Friend outline what humanitarian relief the Government are providing to support those affected by the conflict in Yemen?
Priti Patel
My hon. Friend is absolutely right to raise the appalling scenarios we are seeing in Yemen right now. There is a deteriorating situation and a humanitarian crisis, with an increasing number of Yemenis facing food shortages and suffering malnutrition. There has been a recent outbreak of cholera as well. The UK is the fourth largest donor, and has committed to spending £109 million in Yemen, helping more than 1.3 million Yemenis—[Interruption.]
Mr Speaker
Order. There are far too many very noisy private conversations taking place while we are discussing the fate of some of the most vulnerable people on the planet. The message is quite clear: hush or, alternatively, leave the Chamber.
Priti Patel
Last year, we helped more than 1.3 million Yemenis to get access to food, medical supplies and water. My hon. Friend will know that we have recently helped to raise over £100 million, via the UN, to strengthen humanitarian support for people in Yemen.
Richard Arkless (Dumfries and Galloway) (SNP)
Priti Patel
I have recently spent much time with civil society organisations, non-governmental organisations and the great organisations doing life-saving work on the ground. We have recently published the “DFID Research Review” and the “Civil Society Partnership Review”. With regards to the development aid reviews—the multilateral and bilateral aid reviews—I can tell the hon. Gentleman that they will be coming by the end of the month.
Mrs Theresa Villiers (Chipping Barnet) (Con)
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
Priti Patel
As I have mentioned, we have published the “Civil Society Partnership Review”, on which I spent time speaking to many of the great organisations involved in the delivery of aid and humanitarian work around the world. We make sure that British aid—UK taxpayers’ money—goes to the right causes via the right organisations, and DFID will continue to pursue that. We are championing taxpayer value, while delivering poverty reduction and humanitarian support and assistance.
Tim Loughton (East Worthing and Shoreham) (Con)
Priti Patel
My hon. Friend raises an important point about the destruction of cultural and heritage sites around the world. I have been clear that, in funding international organisations, we wish to see reform in the system to make sure that money is spent in the right way. We will continue to deliver value for money. DFID will publish the reviews that reflect on UNESCO towards the end of the month and he will see the approach we are taking.
Tommy Sheppard (Edinburgh East) (SNP)
IBRD Loan to the Government of Iraq
Priti Patel Excerpts(7 years, 6 months ago)
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The Secretary of State for International Development (Priti Patel)
I have today laid a departmental minute outlining details of a contingent liability of the US dollar equivalent of £360 million which DFID has undertaken, in respect of the World Bank Group.
The twin shocks of the Daesh insurgency and the 40% decline in Government revenue following the fall in oil prices since 2014 have threatened Iraq’s stability. At the G7 in May, the IMF, World Bank and G7 partners pledged to provide a $12 billion package of assistance to the Government of Iraq. The World Bank’s share of the package comprises three $1 billion development policy loans from the International Bank for Reconstruction and Development (IBRD) arm of the World Bank, with the first to be disbursed this year. Provision of the IBRD loans will be conditional on Iraq committing to, and implementing, reforms in the areas of public expenditure, energy efficiency, and transparency of state-owned enterprises. These reforms complement the package of reforms already agreed between the Government of Iraq and the IMF in July of this year, and will support Iraq’s economic development.
The IBRD’s internal rules on loan exposure to any one country constrain the extent to which it can increase its lending to Iraq. This proposed UK guarantee will allow the IBRD to increase the size of its 2016 loan by the US dollar equivalent of £300 million. This will support fiscal stability in Iraq, and will underline the UK’s commitment to supporting a key ally in the fight against Daesh.
DFID’s contingent liability under this agreement is expected to be the US dollar equivalent of £360 million, covering the equivalent of £300 million of loan principal, plus the equivalent of around £60 million of interest payments. The agreement would be in place for the expected 15 year life of the IBRD loan. France and Canada are also currently considering using the same guarantee instrument to guarantee further additional IBRD lending to Iraq.
For the guarantee to be triggered, the Government of Iraq would have to be in arrears with the IBRD for over 180 days. The risk of Iraq defaulting, and the UK guarantee being called upon, is the same as the risk of Iraq defaulting on other IBRD lending. There is a strong incentive for Iraq avoiding a default, as this would prevent the IBRD from providing any further funding to Iraq. But in the event that the Government of Iraq do default on a loan repayment to the IBRD, and the liability is called, the UK will provide a payment to the World Bank, in proportion to the UK’s guaranteed share of the overall IBRD loan. The payment will prevent the loss on the loan from impacting on the World Bank’s other lending activities. If the liability is called, provision for any payment will be sought through the normal Supply procedure.
If the Government of Iraq subsequently provide a payment to reduce its arrears, the World Bank will transfer the UK’s share of the payment into a UK-controlled trust fund held at the Bank, to be used towards other World Bank activity as the UK sees fit.
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The Global Fund to Fight AIDS, Tuberculosis and Malaria
Priti Patel Excerpts(7 years, 7 months ago)
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The Secretary of State for International Development (Priti Patel)
I would like to update the House on my attendance at the fifth replenishment conference of the global fund.
The fifth replenishment conference took place on 15 and 16 September in Montreal, Canada. The conference was hosted by Prime Minister Justin Trudeau and brought together participants from Governments, the private sector, civil society and non-governmental organisations to raise funds for the fight against the three diseases— HIV/AIDS, tuberculosis and malaria—up to 2020.
At the conference, I announced that the UK would make £1.1 billion available to tackle these three diseases. Our investment will help the global fund to save eight million lives, avert 300 million infections, and help build resilient and sustainable systems for health.
To support the fight against malaria, I structured our investment to increase contributions from the private sector by agreeing to double private sector contributions to the global fund for malaria up to a maximum of £200 million.
I also made it clear that the UK, as an engaged, outward-looking nation, has a duty both to the people we are trying to help and to the UK taxpayer to ensure the aid system is as effective as possible. I therefore announced that, starting with the global fund, I will be rolling out performance agreements with all major organisations in order to challenge, change and reform the global development system so that it properly serves the poorest people in the world. We will therefore use our investment to secure a step change in the global fund’s performance to ensure every penny of UK taxpayers’ money is achieving the maximum possible impact. As a result, I have agreed a new £90 million performance agreement with the global fund, which is based on delivery in 10 key areas of improvement, including increasing the impact of our investment by ensuring the most vulnerable and hardest to reach parts of society receive the support they need, by rooting out corruption and inefficiency and by focusing resources on countries with the least ability to pay.
By helping to free developing countries from the burden of the three diseases, we are not only saving lives; we are boosting economies and helping countries leave aid dependency behind to become trading partners of the future. But ending the three diseases as epidemics by 2030 is an enormous challenge. Britain has a proud record as a global leader in development and following the referendum result, we now have the opportunity to further build on our place in the world. UK support to the global fund over the next three years will:
Fund 40 million bed nets to tackle malaria;
Provide enough lifesaving anti-retroviral therapy for 1.3 million people with HIV;
Support the treatment of 800,000 people with tuberculosis.
Overall, the replenishment conference was a success, raising pledges worth US $12.9 billion, which will go towards tackling the epidemics of AIDS, tuberculosis and malaria for the period 2017-19. The conference raised nearly $1 billion more than the previous replenishment conference in 2013.
The UK will hold the global fund and key donors to their commitments to ensure the UK’s investment achieves the maximum possible impact, while rolling out this new approach to performance agreements for future aid spending.
I am aware of the significant degree of interest in this issue from Members across the House, whose advice and support on this issue has been invaluable for the Government. For the convenience of Members, I am depositing a copy of the performance agreement in the Libraries of both Houses.
Attachments can be viewed online at: http://www.parliament. uk/business/publications/written-questions-answers-statements/written-statement/Commons/2016-10-20/HCWS205/
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