Zimbabwe

Stephen O'Brien Excerpts

Wednesday 8th December 2010 Commons Chamber

[The Parliamentary Under-Secretary of State for International Development (Mr Stephen O'Brien)]

I extend my thanks and congratulations to the Chairman of the Select Committee on International Development, my right hon. Friend the Member for Gordon (Malcolm Bruce), on arranging this debate, which allows the Committee’s excellent report on its important visit to Zimbabwe earlier this year to gain wider exposure in the House. The visit was extremely welcome, and was regarded as an important and excellently conducted process, not least by the Chairman. That was the feedback that we received from all those who came into contact with him and his Committee. It is unquestionably the case that he set the right tone, so ably and so sensitively, in leading this debate, on a country where we all want to see great improvements for the people, while also recognising that there are great sensitivities that we have to respect and therefore work our way around. It was absolutely right that the Committee should have gone to Zimbabwe, as my hon. Friend the Member for Banbury (Tony Baldry) said. Such visits count enormously in ensuring that we are well informed in this House and as part of the decision-making process.

I wish to place on record my admiration for those, from all parts of the House, who have made such thoughtful contributions to this debate, including those who sit on the International Development Committee, and in particular those who sat on it in advance of the general election. I am grateful both to the Committee, for the time and effort that it has put into reviewing my Department’s assistance to Zimbabwe, and, similarly, to the all-party Africa group, of which I was formerly a member, for its insightful and authoritative report on land in Zimbabwe earlier this year, which was debated in Westminster Hall. That debate was notably led by the hon. Member for York Central (Hugh Bayley), who spoke knowledgably, passionately and pragmatically.

I need to declare a sort of interest. Although I was born up the road from Zimbabwe, in Tanzania, and was raised there and in Kenya, my parents lived in Harare in Zimbabwe in the mid-1980s.

The Committee’s inquiry into the DFID programme came at an opportune time. It was published about 15 months after the inception of the global political agreement and nearly a year after the formation of the inclusive Government—the Government of national unity. The GPA created the necessary space, as it has rightly been defined, to allow that necessary, but admittedly not perfect, situation to arise. I welcome the report and thank the Committee for its understanding not only of the challenges that Zimbabwe unquestionably faces, but of the significant potential to rebuild the country. The Government, and my Department in particular, greatly appreciate the fact that the report roundly endorsed the UK’s work in Zimbabwe and commended many of our programmes.

I am also pleased that the Committee acknowledged that DFID spending—about $100 million—is effective and reaches the intended beneficiaries, and that we have therefore helped to reassure hon. Members and others who may have had questions about taxpayers’ money being well spent. DFID, along with its donor partners, is effective in Zimbabwe at reaching the poorest and most vulnerable people. UK support saves lives, builds livelihoods, helps to restore the foundations for future growth and provides basic services. As has been mentioned, it is equally important to recognise that private sector development activity, both internally and through foreign investment, can help towards achieving the critical aim of generating the necessary conditions for confidence. I should add that the report has been helpful in informing the ongoing bilateral aid review that my Department is undertaking. All the spending plans for each country, including Zimbabwe, are under active consideration, and as the ministerial team member covering Africa, I can testify that this has been an incredibly time-consuming, intense, detailed and rigorous process, but also a very rewarding one.

Since the formation of the inclusive Government, our programme has shifted from one primarily focused on humanitarian support to one focused on the provision of basic services, especially in health, education, water supply and livelihoods, as my hon. Friend the Member for Mid Derbyshire (Pauline Latham) pointed out. This evolution towards longer-term programmes that tackle the underlying causes of poverty and vulnerability was endorsed by the International Development Committee.

DFID has a high-quality, professional team on the ground, led by the DFID head of office, Dave Fish, and I pay a very warm and respectful tribute to him and his team. I note with genuine respect and gratitude the Committee’s conclusion that the DFID team has played an important leadership role in creating opportunities for joint efforts by like-minded donors. I am also pleased to note how the various parts of Her Majesty’s Government are working extremely well together in Zimbabwe, co-ordinating, collaborating and complementing each other. Tributes have already been paid to Her Majesty’s ambassador in Zimbabwe, Mark Canning, who continues to play an absolutely critical role.

The UK led the establishment of the educational transition fund, managed by UNICEF, which will provide a set of core textbooks to every state primary school student in Zimbabwe this year. The UK also led the negotiations leading to the creation of a multi-donor trust fund that will provide funding to meet critical infrastructure needs, which partly answers the point raised by the hon. Member for Edinburgh North and Leith (Mark Lazarowicz). UK aid to Zimbabwe has achieved substantial results and brought real benefits to Zimbabwe’s people, particularly some of its poorest and most vulnerable and the hardest to reach. It operates without political prejudice, with beneficiaries selected solely on the ground of need, not of political affiliation. One point that came out of the debate was how we need to respond to the demand that is coming up from the people of Zimbabwe, rather than looking at the matter from the top down. The hon. Member for East Londonderry (Mr Campbell) rightly pointed out that the needs of those people are monumental.

In order to update the House and the Committee on progress, I shall give a few examples of the impact we have had. In 12 months, the UK, focusing very much on results and outcomes, has helped to provide essential medicines to 1,300 primary care clinics and rural hospitals. My hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter) made some important points about that. We have also distributed 43 million condoms and delivered 41,000 antiretroviral treatments. About two thirds of ARVs go to female beneficiaries, and about one third to men. The important work in this area was also mentioned by the hon. Member for East Londonderry.

The UK has refurbished infrastructure in six key public hospitals in cities and large towns across the country: Harare, Mpilo, Bulawayo, Mutare, Gweru and Masvingo. We have supported 256,000 smallholder farmer households, covering about 1 million people, with seeds and fertilisers in a flagship livelihoods programme, and helped 20 urban councils to provide their residents with access to clean water, reducing the impact of cholera and other water-borne diseases. We have also supported the Ministry of Finance to produce a cash budget for 2010—the first credible budget in years. It is vital to recognise that the health element is a key lever in what we are trying to achieve, along with livelihood programmes in the rural areas.

As all this suggests, the UK has played a leading role in restoring essential health and other services to the people of Zimbabwe, which had collapsed almost completely by late 2008. DFID’s support is provided through the most effective mechanisms available in any given sector, and our work with UNICEF and others played a major role in addressing the cholera outbreak in 2008-09.

Phase 2 of the protracted relief programme was mentioned; the PRP is now reaching about 2 million people. It is effective, and we hope that, with gradual economic recovery, PRP beneficiaries will start to be able to meet their own needs and graduate from donor support. We have a series of refreshed and innovative monitoring and evaluation processes in Zimbabwe. We recognise the concerns of some non-governmental organisations about the scale of the PRP, and we have met them regularly, including through issuing open invitations to quarterly meetings with the head of the DFID office. The vast majority of PRP funds go to the recipients on the ground, and to help to keep local NGOs running and operational.

Following the establishment of our coalition Government here in the UK, the Secretary of State initiated a thorough review of all bilateral aid programmes. As this process is not yet complete, it would be inappropriate for me to pre-empt it by anticipating the final conclusion. However, for as long as the UK is able to achieve results and value for money in Zimbabwe, I would anticipate continuing to provide it with substantial support, given the scale of ongoing need and growing demand. This is in line with the conclusions of the International Development Committee inquiry across a number of its recommendations.

For example, the IDC has tasked DFID with doing even more on maternal and child health—a point raised by my hon. Friend the Member for Central Suffolk and North Ipswich—and I am pleased to say that this chimes well with the development priorities of the coalition Government. I simply ask the House to be a bit patient and await the outcome of the review; we can aim for more precision at the end of that process.

Although the revenue of the Government of Zimbabwe is increasing, little money is available for recurrent or development activities once the public service wage bill has been met. The finance Minister there is conscious of the need to maximise Government revenue, particularly from mining. Clearly, all the people of Zimbabwe, not just a corrupt few, should benefit from rich resources.

The issue of diamonds was raised by the hon. Member for Vauxhall (Kate Hoey) and others, not least the right hon. Member for Gordon. Zimbabwe will not be able to export diamonds legally from Murange under the Kimberley process. We and our EU partners have put measures in place to prevent non-Kimberley-process-compliant diamonds from entering our markets, but we call on Zimbabwe to maintain a firm commitment to the process and to continue to take action to bring all operations into compliance with it. That would facilitate contributions to Zimbabwe’s economic development. We note with disappointment that the Zimbabwe Minister for mines, Mpofu, declined to attend the Brussels meeting on 23 November. The Brussels working group on the Kimberley process permits exports from compliant mines—Mbada and Canadile—and ensures that exports from mines that are not compliant do not enter EU markets.

Zimbabwe’s inclusive Government, which took office in February 2009, have made considerable progress since they started stabilising the economy. The economy is growing for the first time since 1997—by 7% in 2010 and by an anticipated 8% in 2011. Inflation is low and basic education and health services have been pulled back from the brink of collapse. It is fragile and complex, however; it is certainly not quick and easy.

Returnees—whether they be from South Africa or, indeed, as my hon. Friend the Member for Banbury urged, from the United Kingdom—are an important potential source of the consolidation of the economic reforms. I point out to my hon. Friend that the international health partnerships provide a significant opportunity and that those Zimbabweans without legal status in the UK who decide to return to Zimbabwe voluntarily are already entitled to a package of financial assistance from the Home Office. I hope that provides him with some encouragement. Clearly, the skills are necessary to ensure the economic underpinning.

The same applies to workers who were driven off farms. Another important aspect of our debate has been the importance of underpinning the economic confidence that we require and hope to see develop, which comes from the sensitive complexities of the land reform process.

I was asked what we are doing, above all, to help UK or other businesses to invest in Zimbabwe. Confidence is all, given the real difficulties that exist, not least in the agriculture sector. My hon. Friend the Member for Stafford (Jeremy Lefroy) raised that issue and he was supported by my hon. Friend the Member for Congleton (Fiona Bruce). Confidence about land tenure is important, and can be achieved either through licensing or by ensuring access to infrastructural developments, whether they relate to irrigation, storage or distribution through transport networks. The fund that we discussed earlier is important and we need to give a cautious welcome to the inclusive Government’s decision to review the indigenisation process. It at least sends out a signal in respect of businesses with a 51% so-called indigenous ownership. That is now being reviewed, which we welcome, and it is an important part of the context of the points raised in debate.

Nothing will move in Zimbabwe without recognition of the political context. Progress in stabilising the economy still leaves power in the hands of hard-liners, whether in the military, the police or the intelligence services. With an unequal power-sharing agreement, things are difficult. Many Members were right to raise the issue of how neighbouring states, and especially South Africa and the Southern African Development Community, have a genuine opportunity and responsibility to lead engagement with Zimbabwe, hopefully resulting in the brokering of an agreement, which we anticipate will benefit the greatest possible number of people in Zimbabwe. That was the main point made by the hon. Member for York Central. As guarantors of the global political agreement, South Africa and SADC are in an important position, which we wish to support. We stand ready to do what we can to support that process.

I will write to my hon. Friend the Member for Newton Abbot (Anne Marie Morris) about the pensions issue. I must declare an interest, as my father is in a similar position, having been denied much of his pension from his overseas civil service career.

To give time to the Chairman of the Select Committee to reply to the debate, I will finish my remarks by reminding Members of the House that Zimbabwe was brought to its knees in 2008, as a result of years of economic mismanagement and a complete disregard for the rule of law and the well-being of the majority of the people. However, the potential for the country to bounce back quickly is significant. The economic prospects, notably in agriculture, minerals and tourism, are such that if the business climate improved, there should be no shortage of investors. The country’s natural assets, combined with the outstanding human capital, even after millions have left the country in recent years, still set Zimbabwe apart from much of Africa. In my belief, the creation of such organically driven conditions is in Zimbabwe’s DNA, and its potential can be unlocked once again. As a landlocked country, however, Zimbabwe and its neighbours are interdependent. In that regard, my hon. Friend the Member for Stafford drew on the Tanzanian example, which is extremely important.

So much hinges on the politics and on putting in place a system of governance and accountability that allows the economy and people to thrive. I confirm that the UK is committed to continuing to be involved in a partnership in supporting Zimbabwe and its people to recover and grow. My Department stands ready to continue to play its leading role, as part of a cross-Government approach, in helping to bring that about.