Draft Inter-American Investment Corporation (Further Payments to Capital Stock) (Amendment) Order 2026

Wendy Morton Excerpts

Tuesday 1st September 2026 General Committees

[Wendy Morton (Aldridge-Brownhills) (Con)]

It is a pleasure to serve under your chairmanship, Dr Murrison. Let me start by welcoming the new Minister to her position.

The Inter-American Development Bank Group is an important source of development finance across Latin America and the Caribbean, and its private sector arm has an important role to play in mobilising investment and supporting private sector-led growth. The draft order, however, authorises a further $25 million of UK taxpayers’ money, taking the UK’s total investment in the Inter-American Investment Corporation to approximately $131 million. It would increase the UK’s shareholding from 0.22% to 1.83%. For the benefit of the Committee, can the Minister confirm to which financial year this relates? Given the pressures on the aid budget, it is right that Parliament seeks clarity about what additional influence and outcomes the investment will secure.

My first question is about the decision to provide this additional funding. Can the Minister set out precisely what the additional $25 million will be used for and whether any conditions have been attached to it? What assessment has the Foreign, Commonwealth and Development Office made of the additional development impact this investment will deliver compared with alternative uses of that funding?

Secondly, what has the UK sought to achieve through the corporation’s new strategy and capital increase? The Government say the increased shareholding will strengthen UK influence and representation at board level. It would be helpful to understand more about that. Can the Minister set out what priorities the UK has pressed for, how far those priorities have been reflected in the corporation’s plans and how the Government intend to use that greater influence?

The corporation is implementing a substantial programme of reform, including its new originate-to-share model, which is intended to mobilise significantly greater levels of private capital. We welcome the efforts by multilateral development banks to use their balance sheets more effectively and to crowd in private investment, rather than continually relying on additional taxpayer funding. Can the Minister update the Committee on the progress of those reforms? In particular, what improvements do the Government still believe are required on efficiency, accountability and value for money? What assurances have they received that the increase in the corporation’s capital will genuinely leverage additional private finance, rather than simply expanding the institution itself?

Finally, there must be clear accountability for results. The explanatory memorandum refers to a new impact framework and institutional scorecard alongside FCDO annual reviews. What specific measures will the Government use to judge whether that additional investment has been successful, and how will Parliament be able to scrutinise those results? If the corporation falls short of its targets, what mechanisms does the UK have to press for change?

His Majesty’s official Opposition recognise the importance of mobilising private investment to support growth and development in Latin America and the Caribbean, but additional contributions to multilateral institutions must demonstrate clear value for money, measurable outcomes and alignment with the UK’s strategic interests. We will oppose this delegated legislation today, but the Government must provide clear answers to the questions I have raised, and they must justify and explain further the reason for this contribution. I look forward to the Minister’s response.