Oral Answers to Questions

Debate between Priti Patel and James Duddridge

Wednesday 29th March 2017 Commons Chamber

[Priti Patel]

I thank the hon. Gentleman for raising that point. We must always challenge the system, but also challenge Governments and authorities. As he will know, there are issues in Somaliland specifically, because it is very challenging and difficult terrain. I will always press, be vocal about and call out those who are preventing aid access, so I will absolutely look into the point he has made.

[James Duddridge (Rochford and Southend East) (Con)]

Yesterday, I met the Ethiopian ambassador, who made the point that money is needed desperately, but at the same time let us not stereotype east Africa. It is a place of prosperity, where Louis Vuitton handbags and some of the finest gloves are made, as well as a place that requires help in the north.

[Priti Patel]

My hon. Friend is absolutely right. I saw that for myself when I went to Ethiopia; I went to one of the industrial parks. I think—this comes back to the point about economic development—that Ethiopia is now a great success story in moving from famine and poverty to prosperity and the development agenda. In effect, we want to see more of that.

Commonwealth Development Corporation Bill

Debate between Priti Patel and James Duddridge

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons
Tuesday 29th November 2016 Commons Chamber

[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.

[James Duddridge (Rochford and Southend East) (Con)]

rose—

[Stephen Doughty]

rose—

--- Later in debate ---

[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

Debate between Priti Patel and James Duddridge

Wednesday 16th November 2016 Commons Chamber

[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.