Department for International Development

Stephen Twigg Excerpts

Monday 1st July 2019 Commons Chamber

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

It is a great pleasure to follow the hon. Member for Tewkesbury (Mr Robertson). I congratulate him on securing this opportunity to scrutinise in the main Chamber DFID and its work. I agreed with every single word that he said. His speech demonstrated that there is strong cross-party support for this commitment.

It is opportune that we debate the Department’s estimates this year because we are in the 50th anniversary year of the Pearson commission, which was under- taken by the World Bank and which first suggested a commitment of 0.7% of gross national income for countries to follow. The United Kingdom met that target in 2013. As the hon. Gentleman rightly reminded us, we are alone among the major economies in the world in achieving that target and one of just eight countries to have done so.

The cross-party commitment is incredibly important. I agree with what the hon. Gentleman said about the importance of the 0.7% commitment and the importance of DFID as a stand-alone Department—a voice for development in the British Cabinet, but also a strong British voice in international institutions. DFID has earned, rightly, enormous praise in international institutions as a strong leader on development. I also agree with him that those of us who support the 0.7% target and DFID have an added responsibility to demonstrate value for money, to call to task when there is not value for money, and to ensure that every penny of taxpayers’ money that goes to international development is spent wisely and efficiently.

Another point that we should make, although it is not a focus for today, is that if we are to achieve the sustainable development goals—the ambitious Agenda 2030 programme to which the world is committed—aid alone will not get us there. Aid will be a fraction of the resources required to achieve those goals around the world, but especially in the poorest countries. Mobilising other forms of capital, including private sector investment, will be vital. I strongly agree with the hon. Gentleman that it is vital that we assist those countries to develop strong tax collection systems so that they can collect taxes from domestic taxpayers and international companies operating there.

[Jeremy Lefroy (Stafford) (Con)]

The hon. Gentleman makes an extremely important point. Does he agree—this has been brought up by the International Development Committee, which he so ably chairs—that what the UK needs in addition to DFID, or perhaps inside or alongside DFID, is a development bank, which so many other major economies have but we do not?

[Stephen Twigg]

I am delighted to take that intervention from my friend the hon. Member for Stafford (Jeremy Lefroy), whom we miss on the Committee. He is an extremely eloquent and powerful voice for international development in this House and beyond, not least through his role in the World Bank parliamentary network. I am very sympathetic to his point about having our own development bank. I have just come from an event with the Commonwealth Development Corporation, which performs some of those functions, but I know that he argues for a distinctive UK development bank, and I hope that he will have an opportunity to elaborate on that later in the debate.

I will comment briefly on five areas, all of which were covered by the hon. Member for Tewkesbury: humanitarian versus development; multilateral versus bilateral; localisation and small organisations; scrutiny; and addressing some of the issues with non-DFID official development assistance.

We know that the world is facing some huge crises. Some of them are global, such as climate change, and some are a consequence of natural disasters, but many of them are man-made—person-made—and often a consequence of conflict. We look at Syria, Yemen, the Democratic Republic of the Congo, South Sudan and the crisis affecting the Rohingya people of Burma, most of whom now live in neighbouring Bangladesh. In that context, the distinction between what is a response to a humanitarian situation and what is development is increasingly irrelevant. People are escaping conflict and living as refugees or internally displaced people for large parts of their lives. Children are spending their entire childhoods displaced. They need humanitarian assistance, but they and their communities also need development support.

That is why the International Development Committee has focused so much on the importance of investing in global education. As the Minister well knows, we have consistently called on the Government to devote a larger part of the UK’s development assistance to education. I welcome the commitment that she made recently—at the last but one DFID Question Time—to the UK increasing our commitment to Education Cannot Wait, the multilateral fund aimed at supporting children and young people in emergency situations. I encourage her to put today, or quite soon, a figure on that commitment—and for it to be a high figure—because the earlier we make a pledge on Education Cannot Wait, the more likely other donors are to follow so that we can ensure that that excellent fund can play its part to support education in emergencies.

That brings me on to the broader issues around multilaterals and bilaterals that the hon. Member for Tewkesbury set out fully. First, let me strongly echo my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty): we hugely welcome the commitment that was made on the Global Fund over the weekend. It is really excellent news that the Government have made that commitment to replenishment, and have made it early, which has lessons for replenishments in other areas and again demonstrates strong leadership in this field. The last-but-one Secretary of State—I think we are on the fourth Secretary of State since I took over the Chair of the Committee four years ago—oversaw the multilateral development review. That was a very thorough piece of work by the Department looking at the relative strengths of different multilateral institutions and showing that some of those working in the health field, notably the Global Fund, came out very strongly.

Interestingly, other institutions that came out very strongly—the right hon. Member for Witham (Priti Patel) oversaw the review—were the European ones, including the European Commission. I have been encouraged by the responses that we have had from Ministers about the issues that we will face in the event of Brexit and about ensuring that the excellent programmes that are provided through European institutions, like the European development fund, do not suffer as a result of Brexit. What we should have uppermost in our minds is the needs of those who are benefiting from those programmes. I urge the Minister, and the Government more generally, in deciding whether to continue to work closely with and fund European development programmes after Brexit, to follow the best evidence as to what is good for the beneficiaries. I hope that whoever the Prime Minister is, the Government will not be guided by an ideology that says, “We can’t work with European institutions.”

[The Minister of State, Department for International Development (Harriett Baldwin)]

The hon. Gentleman is making an important point. Would he also urge those on the EU side of the debate to leave their ideology aside and, where there are fantastic non-governmental organisations from the UK that could deliver some of these programmes, to ensure that they can continue to do so?

--- Later in debate ---

[Stephen Twigg]

I absolutely agree with the Minister on that. It is very important that, if we are no longer in the European Union, British NGOs are still able to apply for these sorts of programmes. If they are best suited to deliver them, it is absolutely right that they should have that opportunity.

[Mr Mitchell]

The hon. Gentleman is making an excellent speech. Further to the point that the Minister made, are we not in a very strong position, when we leave the European Union, to decide for ourselves—in the same way that the multilateral aid review takes place—which of the programmes that the European Union is delivering are worthy of our support, and support them? Then, where there are programmes that we perhaps do not choose to support, we can use our money in a different way, giving us the flexibility always to go where the money is best spent.

[Stephen Twigg]

I agree. I am keen to emphasise that the Government’s own reviews suggest that most of these European-run programmes are good, so there is a strong likelihood that we would, if given the opportunity, volunteer to remain part of them, but the right hon. Gentleman is absolutely right that we would have more flexibility in terms of any programme that we might not want to support, and that would free up some money.

[Stephen Doughty]

I very much hope that, whatever happens on Brexit, we will be contributing to those European programmes that have been so well regarded.

Does my hon. Friend agree that one of the crucial things about having DFID as a separate Department with a Cabinet-rank Secretary of State has been our ability to influence and shape global institutions? Having a Secretary of State going to World Bank board meetings, attending sessions of the Global Fund and attending crucial UN meetings has given us greater influence, not just through our money but through political investment. That is why we need to ensure that we have a strong, separate Department with a Cabinet-rank Secretary of State.

[Stephen Twigg]

I absolutely agree. When DFID was created in 1997, the UK governorship of the World Bank shifted from the Chancellor of the Exchequer to the Secretary of State for International Development. That was absolutely the right thing to do. It has given us a strong voice in these multilateral organisations, including the World Bank.

Let me comment briefly on the three other areas that I identified—first, localisation. The hon. Member for Banbury (Victoria Prentis) made this point earlier, and it is very important. We frequently take evidence from organisations that say that it can be hard for a smaller company or smaller non-governmental organisation to get access to some of DFID’s contracts and programmes. That applies whether those companies and NGOs are in this country or in other countries. Greater opportunity for those smaller organisations to access programmes is important.

Alongside that, it is important that we see more autonomy for DFID’s country offices. I was interested to listen to the Secretary of State when he came to the Committee last week, because he was proposing something quite radical in terms of greater autonomy for the country offices. He made an important point—it is something we said in one of our reports—about the concern that, in recent years, DFID has lost some of its in-house expertise in certain areas and made itself much more reliant on contracting for that expertise. Indeed, many of the people now getting the contracts used to be the in-house experts. The Secretary of State contrasted how much DFID spends on specialist country advisers on education or climate change with some of the other donors who spend a lot more. I welcomed him saying to us that he would look at that again, and all power to his elbow.

[Mr Sheerman]

My hon. Friend knows that I have boundless admiration for him as Chair of the Select Committee. He mentioned localism and smaller groups. There are a lot of fashions. Something less fashionable but none the less effective is cutting road deaths. In the developing world, the loss of a breadwinner or the breadwinner becoming injured or an invalid for life is a sure path to poverty. I have lobbied him to look at road deaths and casualties. Rather than the bigger, more glamorous issues, will he look again at something like that, which is very effective?

[Stephen Twigg]

I thank my hon. Friend. He is tireless. He has lobbied me privately to do that and I do not blame him for lobbying me publicly. There are other members of the Committee here who can bear witness, so we will consider that. We have been looking at the global goals, which make reference to cutting road deaths, and we have the voluntary national review later this month. I can give an undertaking that my good friend, the hon. Member for Mid Derbyshire (Mrs Latham), the hon. Member for Dundee West (Chris Law) and my hon. Friend the Member for Brighton, Kemptown (Lloyd Russell-Moyle) and I will raise that when we are in New York later this month—Whips permitting—to attend the voluntary national review.

As the hon. Member for Tewkesbury said, aid spending is quite widely and deeply scrutinised, and rightly so. It is scrutinised in the media and by the public. Like all other areas of Government spending, it is scrutinised by the National Audit Office. We also have the Independent Commission for Aid Impact, established when the right hon. Member for Sutton Coldfield (Mr Mitchell) was Secretary of State, which is a very powerful lever for improvement in our system.

Alongside that scrutiny—this is something we are focusing on more as a Committee—we need to get better at hearing the voices of those who are beneficiaries of aid and those who are working in the field. That was brought into sharp focus by the issues around sexual exploitation and abuse that arose last year. I pay tribute to the hon. Member for Mid Derbyshire, who has been raising that issue for years, well before The Times coverage began last February. It brought to light the failure of the aid sector, including those of us who scrutinise it, to hear and to create opportunities for those who live in some of the poorest countries in the world to have their voices heard about the impact of aid—hopefully when it is positive, but also, in this extreme case, when it is negative.

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

I thank the hon. Gentleman for giving way; this is the second speech I have heard by him today, having been at his CDC speech. On that issue, and particularly sexual exploitation, we are clearly out of touch—having served twice on the Committee, I include myself in this—with what is going on on the frontline. I understand that Voluntary Service Overseas, which I associate more with students and what are now called gap years, offers opportunities for more mature people. Instead of going on a typical Committee visit where everyone goes to one place, would it be possible to starburst out and use an organisation such as VSO to be in the ditches, in the huts and at the delivery units and warehouses, keeping our ear to the ground—not with any fixed purpose, but genuinely to listen and engage? As we all know from our constituency visits, that is sometimes when we get the most powerful evidence.

[Stephen Twigg]

I thank the hon. Gentleman, who served with distinction on the Committee until relatively recently. This is always a challenge when we undertake visits, because we are there to scrutinise how the money is being spent, so we are often somewhat in the hands of DFID about where we go, but there is a case to separate ourselves from that sometimes to get to hear those voices and to work with organisations such as VSO, so I thank him for that suggestion.

The final thing I want to address is what the hon. Member for Tewkesbury focused on, which is the fact that roughly 25% of official development assistance now goes not through DFID, but through other Government Departments. He made the case well. He asked whether it is too high or too low. I think the test is not so much whether it is too high or too low. For me, the test is whether it is as effective as the money spent through DFID. The current DFID permanent secretary, Matthew Rycroft, when he was before us a few months ago, said he felt that the DFID share should not go below 75%. That sounds about right to me and I think that is about where it is at the moment.

DFID has an important role to play as a driver of all the spending, and we have said as a Select Committee that DFID should sign off all ODA spending, including what goes through other Government Departments. We were supported in that in a recent report by the TaxPayers Alliance, which recognises that DFID has a stronger record than the other Government Departments. For me, it comes down to this. When we look at the Newton Fund, which the hon. Gentleman referred to; the prosperity fund; the conflict, stabilisation and security fund; or individual programmes by other Government Departments, are they absolutely focused on poverty reduction and, in particular, on creating jobs and livelihoods in the poorest parts of the world? Those programmes are perfectly capable of delivering that, and some of them do, but I do not think that is yet in the DNA of those other Government Departments in the way that it is in the DNA of DFID. By putting DFID in the driving seat, we can ensure that that is the case.

I am really pleased to have had the opportunity to speak in this debate. I congratulate the hon. Gentleman again. I finish by mentioning again the sustainable development goals and the voluntary national review that we will undertake this month. There is an opportunity here for us to ensure that we take these important issues out there and engage and re-engage with the Great British public. I think there is a huge generosity in the British public—that is seen in the charitable donations when there are appeals during emergencies—but there is a scepticism about whether we are really getting value for money in aid spending. I believe, based on the evidence, that in most cases we are, but we have an opportunity as parliamentarians, on a cross-party basis, to get out there and persuade our constituents and the wider public that some fantastic things really are being done in their name.