G20

Rushanara Ali Excerpts

Monday 17th November 2014 Commons Chamber

[The Prime Minister]

We made some very clear promises in our manifesto that we would lift our aid budget to reach the long-term target of 0.7% of gross national income. We made that promise, and I think that breaking our promise to the poorest people in the world would not be the right thing to do. When I think about some of the problems we face here in our country—whether it be the pressure of asylum seekers or the pressure of immigration —I realise that our aid budget is, if not the answer, part of the answer. If we can solve some of the underlying problems of instability in some of these countries—sometimes instability can be caused by the effects of climate change, making it harder for some countries to feed their people—I think we are doing the right thing.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

The Save Remittance Giving Campaign, which is supported by MPs, 120,000 British people and Olympic gold medallist Mo Farah, called for a reduction in remittance costs. I very much welcome the G20 commitment to reduce it from 10% to 5% because remittance makes a big contribution to development, including economic development. Can the Prime Minister update us on when the money transfer service scheme will be implemented because countries such as Somalia are suffering, as there are no banking systems and no effective ways of getting money in if banks stop facilities as has happened, so we need urgent action?

[The Prime Minister]

The hon. Lady is absolutely right that remittances are a critical source of income for poor people in the poorest countries and they really do help with the reduction of poverty. Action by the G20 has been a success, resulting in the decrease of the G20 average cost from around 10% to 7.5%, but more needs to be done. Of course the problem she highlights, where remittances are particularly difficult for some countries such as Somalia, relates to the issues I dealt with in the previous question about the need to build capacity in these countries, including through honest banks and honest Governments, so that people can get the remittances they deserve.