International Development (Official Development Assistance Target) Bill

John Bercow Excerpts

Friday 5th December 2014 Commons Chamber

[Mr Christopher Chope (Christchurch) (Con)]

On a point of order, Mr Speaker. Is it possible to move that the Bill be referred back to Committee?

[Mr Speaker]

The hon. Gentleman is seeking to move to recommit the Bill. Under Standing Order No. 32 I have the power to select or not select such a motion. In the circumstances, I decline to select the motion.

New Clause 1

The Independent Commission for Aid Impact

“(1) The Independent Commission for Aid Impact (ICAI) shall have responsibility to carry out independent evaluation of the relevance, impact, value-for-money, efficiency and effectiveness of the ODA in accordance with the provisions of this Act.

(2) The Schedule [The Independent Commission for Aid Impact] makes further provisions about the ICAI.”—(Mr Nuttall.)

Brought up, and read the First time.

[Mr David Nuttall (Bury North) (Con)]

I beg to move, That the clause be read a Second time.

[Mr Speaker]

With this it will be convenient to discuss the following:

New clause 2—Reduction of Cabinet members’ salaries if 0.7% target not met—

“If an annual report laid before Parliament in 2016 or any subsequent calendar year shows that the 0.7% target has not been met in the report year, salaries provided for under Section 1 and Part 1 of Schedule 1 to the Ministerial and Other Salaries Act 1975 shall each be reduced by £1000 in the following financial year.”

New clause 3—Annual reporting: relevant period—

“(1) The International Development (Reporting and Transparency) Act 2006 shall be amended by leaving out section 1(2) and inserting—

“(2) In this Act, “relevant period” means a period of 12 months ending with 31 March in the case of information which is normally produced by reference to financial years.”’

New clause 4—Independent International Development Office—

“(1) There shall be established an independent body known as the Independent International Development Office (referred to in this Act as “the IIDO”).

(2) The Schedule [The Independent International Development Office] makes provision about the IIDO.”

New clause 5—Calculation of ODA for the purposes of section 1—

“An amount equivalent to the following annual payments, or estimates thereof, shall be included in the calculation of annual UK ODA for the purposes of section 1—

(a) the amount payable by the United Kingdom to the European Union.

(b) Welfare benefits paid to foreign nationals.

(c) Welfare benefits paid to UK nationals living abroad.

(d) The administrative costs of the Department for International Development and its agencies and associated public bodies.”

New clause 6—Calculation of Gross National Income for the purposes of section 1—

“Adjustments to the figure provided to Parliament as the UK’s gross national income as at the end of the financial year shall not change or invalidate the UK’s performance against the target under section 1.”

New clause 7—Applicability and expiry of the provisions of this Act—

“(1) This Act shall come into force on such a day appointed by the Secretary of State by an order contained in a statutory instrument.

(2) An order under subsection (1) shall not be made unless a referendum has taken place in the United Kingdom and more than 50% of those casting a vote do so in favour of meeting the target.

(3) This Act shall only have effect in those years where the United Kingdom records a budget surplus.

(4) The Secretary of State may vary the target mentioned in section 1 by an order contained in a statutory instrument in response to the UK leaving or joining a multilateral organisation which itself disburses ODA.

(5) This Act shall expire on the anniversary of its coming into force in the fifth year of its being so in force.”

Amendment 16, in clause 1, page 1, line 4, leave out “gross national income” and insert

“final gross national income of the preceding year.”

Amendment 20, page 1, line , leave out “met” and insert “progressed toward”.

Amendment 18, page 1, line 5, leave out “calendar” and insert “financial”.

Amendment 5, page 1, line 5, at end insert

“when the central government net cash requirement is in surplus.”

Amendment 21, page 1, line 6, leave out “the 0.7% and insert “a 0.35%”.

Amendment 6, page 1, line 7, leave out from “by” to end of line 9 and insert

“the Office for Budget Responsibility.”

Amendment 19, page 1, line 13, at end insert

““financial year”, for the purposes of this Act, includes a period which begins with the day on which this Act comes into force and ends on the following 31 March.”

Amendment 22, in clause 2, page 1, line 16, leave out “the 0.7% and insert “a 0.35%”.

Amendment 7, page 1, line 17, leave out

“as soon as reasonably practicable”

and insert

“, no more than 10 days during which both Houses of Parliament are sitting,”.

Amendment 8, page 1, line 18, leave out from “statement” to end of line 19.

Amendment 23, page 2, line 2, leave out “the 0.7% and insert “a 0.35%”.

Amendment 24, page 2, line 5, leave out “the 0.7% and insert “a 0.35%”.

Amendment 9, page 2, line 7, leave out from “State,” to end of line 8 and insert

“need take no action on the basis of such a revision.”

Amendment 10, page 2, line 8, leave out from “statement” to end of line 9.

Amendment 11, page 2, line 10, leave out subsections (3) and (4).

Amendment 25, page 2, line 10, leave out “the 0.7% and insert “a 0.35%”.

Amendment 26, page 2, line 19, leave out “the 0.7% and insert “a 0.35%”.

Amendment 1,  page 2, line 25, leave out clause 3.

Amendment 15, page 2, line 36, leave out clause 5.

Amendment 2, in clause 5, page 2, line 39, at end insert

“and is relevant, sustainable and capable of having a measurable impact.”

Amendment 37, in clause 6, page 3, line 4, leave out subsection (2).

Amendment 3, page 3, line 4, leave out “1 June 2015” and insert “1 January 2016”

New schedule 1—The Independent Commission For Aid Impact—

“Accountability and Reporting

1 (1) It will be the responsibility of the Secretary of State for International Developent to lay responses to reports of the ICAI before Parliament.

(2) The ICAI shall carry out all other duties as established.

Finance

2 (1) The budget of the ICAI for the purpose of section ( ) will be agreed by the Secretary of State for International Development.

(2) The Department for International Development may make to the ICAI such payments out of money provided by Parliament as the Department for International Development considers appropriate for the purposes of enabling the ICAI to meet its expenses arising under this Act.

(3) Payment are to be made at such times, and subject to any such conditions, as the Department for International Development considers appropriate.”

New schedule 2—The independent International Development Office—

“Membership—

1 The IIDO is to consist of a member to chair it and six other members, appointed by the Secretary of State for International Development following apre-appointment hearing by, and with the consent of, the International Development Committee of the House of Commons.

Employees

2 (1) The IIDO may employ staff.

(2) Staff are to be employed on such terms as to remuneration and other matters as the IIDO may, with the approval of the Minister for the Civil Service, determine.

(3) Service as a member of staff of the IIDO is employment in the civil service of the State.

(4) The IIDO must pay to the Minister for the Civil Service, at such times as the Minister may direct, such sums as the Minister may determine in respect of the increase in the sums payable out of money provided by Parliament that is attributable to the provision of pensions, allowances or gratuities under section 1 of the Superannuation Act 1972 payable to or in respect of persons who are or have been members of staff of the IIDO.

Duties

3 (1) The IIDO will have the responsibility to carry out independent evaluation of the relevance, impact, value-for-money and sustainability of ODA.

(2) The IIDO will develop systems to verify the extent to which ODA is spent efficiently and effectively.

Annual report

4 (1) The IIDO must prepare a report of the performance of its functions in each financial year.

(2) The report relating to a financial year must be prepared as soon as possible after the end of the financial year.

(3) The report must be sent to the Department for International Development.

(4) The Department for International Development must lay the report before Parliament.

(5) “Financial year” means—

(a) the period which begins with the day on which this Schedule comes into force and ends with the following 31 March;

(b) each successive period of 12 months.

Accountability and Reporting

5 (1) It will be the responsibility of the Secretary of State for International Development to lay responses to reports of the IIDO before Parliament.

(2) The International Development Committee of the House of Commons may provide parliamentary oversight of the work of the IIDO and report annually on its current and future work programme.

Finance

6 (1) The budget of the IIDO will be agreed by the Secretary of State for International Development.

(2) The Department for International Development may make to the IIDO such payments out of money provided by Parliament as the Department for International Development considers appropriate for the purpose of enabling the IIDO to meet its expenses.

(3) Payments are to be made at such times, and subject to any such conditions, as the Department for International Development considers appropriate.

Accounts and audit

7 (1) The IIDO must—

(a) keep proper accounts and proper records in relation to its accounts, and

(b) pre pare in respect of each financial year a statement of accounts.

(2) Each statement of accounts must comply with any directions given by the International Development Committee as to—

(a) the information to be contained in it and the manner in which it is to be presented,

(b) t he methods and principles according to which the statement is to be prepared, and

(c) the additional information (if any) which is to be provided to Parliament.

(3) The IIDO must send a copy of each statement of accounts to—

(a) the Secretary of State for International Development, and

(b) the Comptroller and Auditor General, before the end of the month of June next following the financial year to which the statement relates.

(4) The Comptroller and Auditor General must—

(a) examine, certify and report on each statement of accounts, and

(b) send a copy of each report and certified statement to the Secretary of State for International Development.

(5) The Secretary of State for International Development must lay before Parliament a copy of each such report and certified statement.

(6) “Financial year” has the same meaning as in paragraph 4(5).

(7) The IIDO must keep under review whether its internal financial controls secure the proper conduct of its financial affairs.

References to International Development Committee

8 (1) Any reference in this Schedule to the International Development Committee of the House of Commons—

(a) (a) if the name of that Committee is changed, is to be treated as a reference to that Committee by its new name, and

(b) if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, is to be treated as a reference to the Committee by which those functions are exercisable.

(2) Any question arising under sub-paragraph (1) is to be determined by the Speaker of the House of Commons.”

Amendment (a), to new schedule 2, line 3, leave out “six” and insert “four”.

Amendment (b), line 4, leave out “for International Development”.

Amendment (c), line 5, leave out from “of,” to end of line 6 and insert

“a committee in the House of Commons and an equivalent committee in the House of Lords”.

Amendment (d), line 6 after “Commons” insert

“and equivalent committee in the House of Lords”.

Amendment (e), line 12 leave out sub-paragraph (3).

Amendment (f), line 19 at end insert—

“2A All costs associated with the IIDO shall count towards the target set out in section 1 of this Act.”

Amendment (g), line 38 leave out “for International Development”.

Amendment (h), line 72 leave out “for International Development”.

Amendment (i), line 78 leave out paragraph 8.

[Mr Nuttall]

As the House will have seen on the amendment paper this morning, there are seven new clauses, two new schedules and several amendments. I propose to divide the amendments into several sub-groups, although others may choose to deal with them in a different way. For the sake of clarity, it might be helpful if I draw together a number of different threads. I will start with new clause 1 and new schedule 1.

--- Later in debate ---

[Jacob Rees-Mogg]

On a point of order, Mr Speaker. The hon. Gentleman has misspoken in attributing an amendment to me. It is not my amendment, but that of my hon. Friend the Member for Shipley (Philip Davies). I am sure that the hon. Gentleman would like an opportunity to correct the record.

[Mr Speaker]

The hon. Member for Luton South (Gavin Shuker) has heard the point of order, to which he may wish to respond.

[Gavin Shuker]

I am delighted to correct the record, Mr Speaker. It is absolutely true that the hon. Member for North East Somerset attached his name to the amendment rather than moving it himself.

Several creative alternatives to the 0.7% figure were advanced in the 54 or so amendments tabled, including 0.35%—try as I might, I simply could not establish the correlation of this to 0.7%—and 0.67%. It is a bold move to try to renegotiate the terms of a 40-year international agreement to which we are signatories, which states that all developed countries should devote 0.7% of GNI to meet official development assistance commitments. Perhaps most entertainingly given the hon. Members’ apparent hostility towards the 0.7% figure, they advocate that all Ministers should be liable to a £1,000 drop in salary if it is not met, which presumably has made the Minister rather grumpy, as well as putting in place a rather perverse incentive indeed.