Foreign Aid Expenditure

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Monday 13th June 2016

(7 years, 11 months ago)

Westminster Hall
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Steve Double Portrait Steve Double
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I thank the hon. Gentleman for that intervention. [Interruption.] I will give way to my right hon. Friend the Minister.

Desmond Swayne Portrait The Minister of State, Department for International Development (Sir Desmond Swayne)
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Of course we fund the Palestinian Authority. Our funds are paid to named civil servants and pensioners from an audited and scrutinised list for the delivery of public services. British taxpayers’ money does not fund terrorism.

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Joan Ryan Portrait Joan Ryan (Enfield North) (Lab)
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Three weeks after Labour won the 1997 general election, we pledged that Britain would meet the UN target to spend 0.7% of our gross national income on international development. That is one of the acts of which I am most proud from our time in office. I do not deny the important role that the Liberal Democrats and the Conservatives have played in ensuring that it has become a cross-party national commitment—one that only a handful of countries in the world have met.

However, none of us who support international aid believes we are writing the Department for International Development a blank cheque. We must always ensure that aid meets three tests: it must be effective and transparent, and it must reflect our country’s values. In the case of the aid we give to the Palestinian Authority, we are failing those three tests. Let me give one example: the issue of the PA’s payments to convicted Palestinian terrorists, including, we must assume, Taleb Mehamara, the uncle of the Sarona market murderers, a member of a terror cell that in 2002 targeted Israelis, killing four in a shooting attack. We are not talking about, as one DFID Minister claimed in 2012,

“social assistance programmes to provide welfare payments”.

Instead, by operating a perverse sliding scale where people receive more money the longer their sentence—in some cases as much as five times the average monthly wage in Ramallah—the payments actually incentivise people to commit the most terrible acts of violence. I simply do not see how that advances the cause of a two-state solution. What are the Government doing about it?

Last month, Palestinian Media Watch showed how the PA sought to deceive international donors by shutting the Ministry of Prisoners’ Affairs and claiming that the Palestine Liberation Organisation would assume responsibility for those payments, but that was merely financial sleight of hand.

Desmond Swayne Portrait Sir Desmond Swayne
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I have had discussions with the Prime Minister and the Finance Minister of the Palestinian Authority and other officials, and I continually make the point that the right hon. Lady rightly makes: if these are welfare payments, they must be made like welfare payments. The reality is that we do not pay them. Our taxpayers’ money goes to build the Palestinian Authority so it is able to morph into the Government of a Palestinian state when that opportunity arises. We pay named civil servants to provide public services.

Joan Ryan Portrait Joan Ryan
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I think the Minister understands the point I am making and wilfully will not look at this. In fact, the payments we make enable the Palestinian Authority to make its payments to prisoners.

In 2015, the PA raised its annual transfer to the PLO via the Palestinian National Fund to 481 million shekels—the amount it needed to fund the newly created PLO Commission of Prisoners’ Affairs. That amount was virtually identical to the budget of the old PA Ministry of Prisoners’ Affairs—the point I am making to the Minister. I wrote to Ministers last month demanding that direct aid to the PA be suspended while these serious allegations are investigated. In response, I was told by Ministers that the Palestinian Ministry of Finance has confirmed to DFID—we have heard this again today—that

“prisoner payments are fully administered”

by the PLO. With respect, I urge Ministers to dig a little deeper. They should be asking questions about the source of the money, not who is doling it out.

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Andrew Percy Portrait Andrew Percy
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I am conscious of time, and I will perhaps give way to the Minister in a moment. The hon. Gentleman is entirely right in a lot of what he says. The Overseas Development Institute stated that our aid money to the Palestinian Authority had failed to promote peace and a peaceful attitude. There is more to be done.

I mentioned a terrorist who confessed that he had engaged in his behaviour to obtain payments. I also want to mention NGO funding, particularly the Ibda’a cultural centre, which will receive £5,602 from DFID this year. Last year, it hosted an exhibition to honour martyrs, including Mohanad Al Halabi, who killed one and injured 11. We must be careful about where our money is going and always be prepared to review.

Andrew Percy Portrait Andrew Percy
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I will give way to the Minister out of respect.

Desmond Swayne Portrait Sir Desmond Swayne
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Let me say that we take the issue of incitement very seriously indeed. With respect to the hon. Gentleman’s point about The Jewish Chronicle, I assure him that both I and my right hon. Friend the Secretary of State keep that matter under review continually, precisely because it is so controversial. With respect to the matters raised in relation to integration and so on, I understand that I am receiving a delegation from the hon. Member for Dudley North (Ian Austin) to discuss that on Wednesday.

Andrew Percy Portrait Andrew Percy
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I thank the Minister and I hope that he will look at the Ibda’a cultural centre grant that I mentioned.

In my last minute or so, I want to talk about some of the co-existence projects. We had a wonderful meeting last year in Jerusalem with a group of Palestinian and Jewish young people from MEET—the Middle East Entrepreneurs of Tomorrow. It was a really inspiring meeting. Those Palestinian youth and Jewish youth were being educated together. Both were very open about what they thought about each other beforehand and how that project had helped to bring them together. We should be supporting projects such as that, as we should—in these last 46 and a half seconds—be supporting Save a Child’s Heart, which I am proud to serve as a UK patron of. It is a wonderful charity. I was very moved when we visited it last year, particularly when we were meeting and talking with the young Gazan children who receive treatment through it. That organisation supports heart surgery not just for Palestinian children—it is mainly Palestinian children, with Israeli doctors—but for Tanzanian children and Iraqi children. It trains doctors and nurses and is a project that has a reach beyond just Israel and the Palestinian territories. I hope that that is one of the projects we can look at funding in the future.

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Patrick Grady Portrait Patrick Grady (Glasgow North) (SNP)
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It is a pleasure to serve under your chairmanship, Mr Gapes. I pay tribute to you and to the previous occupant of the Chair for having been able to call so many Members—admittedly, though, not everyone who wanted to get in has been called. I am aware that a number of Members came along to show solidarity with the debate without any intention of speaking or expectation of being able to do so, but that emphasises the point rightly made by the right hon. Member for Sutton Coldfield (Mr Mitchell) that this is the kind of issue that thoroughly deserves a full day’s debate on the Floor of the House. I am happy to back that call.

I refer to my entry in the Register of Members’ Financial Interests. Before the election, I worked for the Scottish Catholic International Aid Fund and was the vice-chair of the Network of International Development Organisations in Scotland.

One message that comes through loud and clear from the debate is that aid works. No one is disputing that aid from the United Kingdom Government, and indeed from the Scottish Government, has saved and changed millions of lives around the world over the years. There is a consensus about that and there does not, fortunately, seem to be any suggestion that aid should stop altogether. The substance of the debate seems to have been the effectiveness of aid and the appropriate amounts of spending and, to a certain extent, questions of public support for aid. I think that there is public support.

The debate was triggered by a petition—these Monday debates are becoming something of a highlight of the parliamentary week, which is to be welcomed—but there is a difference between a petition that people voluntarily sign and broader indications of public support. Repeated opinion polls show that a majority of people in the United Kingdom, and indeed across OECD countries, support the principle of aid. The point about public understanding was made relatively early in the debate. Interestingly, in 2011 a Chatham House-YouGov survey showed that the average estimate of UK aid spending was £79 billion, when in that year the actual spend was £8.5 billion. Polling across OECD countries consistently shows that people believe their Governments spend between 10% and 20% of their gross national income on aid and think it should be between 1% and 5%. In fact, the public think that more should be spent than is.

In my own constituency, the sum total of 95 people signed the petition, and only 5% of the signatories came from Scotland, which is far less than Scotland’s proportionate share. Mention was made by my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) of how our hon. Friend the Member for Glasgow North East (Anne McLaughlin) had primary schoolchildren who signed up to the Send my Friend to School campaign, and I have met primary schoolchildren from the Glasgow Academy who want to send the message to the Prime Minister loud and clear that children’s education must be an important aspect of our international development spend.

Three key points have been touched on in the debate, the first of which is the principle of aid itself and the importance of the target. The second is the impact aid makes and why it is in our enlightened self-interest to spend money on it, and the third is how we go beyond aid and the role of the sustainable development goals. I will try to touch on all three points and still leave plenty of time for other Front-Bench colleagues.

As I have said, there is a consensus that there is a need for aid. I join other Members in giving credit to Labour for the creation of the Department for International Development as a stand-alone Department, and to the Conservatives and Liberal Democrats, first for maintaining DFID and secondly for passing the legislation that was in all the party manifestos. I hope that the commitment remains in those manifestos, for which people voted and which they, and Members in this Chamber, have endorsed.

The need for aid is clear, as we have heard in the many statistics, stories and anecdotes we have heard. As the right hon. Member for Tottenham (Mr Lammy) said, 124 million children are out of school—63 million of them girls—and some 650 million people are living without clean water. That is why continuing to provide aid is incredibly important, and it is something to which the Scottish National party has given its long-standing support. Indeed, the White Paper on independence for Scotland suggested that an independent Scotland would want to go beyond the 0.7% target to about 1%.

If the principle is established that there should be aid, the question is how much and why. The 0.7% target was agreed 40 years ago. It is not just a target for the United Kingdom, as many Members have recognised; it is the target for developed countries around the world. It was calculated that it represented the amount of money that would need to be generated to end poverty and bring people up to an equitable standard of living comparative to that which we enjoy. If the UK had been meeting the 0.7% target ever since it was agreed in 1970, an additional £87.5 billion would have been made available for aid spending and perhaps some of that would have lessened the need for aid today.

Desmond Swayne Portrait Sir Desmond Swayne
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Will the hon. Gentleman reflect on the fact that, if all the rich countries of the world had met that commitment when they made it, we might be dealing with very different problems now?

Patrick Grady Portrait Patrick Grady
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That is exactly my point. I did not necessarily mean what I said to be a criticism; I am trying to offer a bit of context about why the target is so important.

As the hon. Member for Aldridge-Brownhills (Wendy Morton) said, it is a proportionate target, so it will go up, or indeed down, depending on the strength of the economy. The hon. Member for Foyle (Mark Durkan) made an important point about how the target, and that predictability, allows people to plan and provide the step change—the gear shift—that is needed to really make an impact. Speaking of the need for and the importance of impact, the hon. Member for Plymouth, Sutton and Devonport (Oliver Colvile) was absolutely right to address the hunger crisis in southern Africa. Predictable aid flows allow agencies to put measures in place that mean that when disasters strike, the resources are there to be mobilised immediately, rather than our sitting back, as the petition seems to suggest, and waiting for something to happen before scrabbling around and figuring out how much aid we can spend.

Aid does work. We have heard the statistics. My hon. Friend the Member for Rutherglen and Hamilton West (Margaret Ferrier) said that every two minutes immunisation sponsored by a United Kingdom aid programme saves a child’s life. At the same time, no one is disputing that everything is not perfect, but my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East made the valid point that not everything is perfect in the NUS, or rather the NHS. Not everything is perfect in the National Union of Students either—[Laughter.] I do not see many petitions calling for the national health service to be shut down, although there probably are elements of the right-wing press that would support doing that.

It is right that questions have been raised about the use of funding in Palestine, and it is also right that the Minister has had the opportunity to respond. That is why we have structures of scrutiny in this Parliament. DFID is one of the most highly scrutinised Departments of Government but it is important to recognise the work that is done. Of course, DFID funds organisations by funding specific projects. It does not fund global headquarters for organisations. If an organisation wants to build a global headquarters, it has to get the funding from somewhere else and justify the spend to those funding sources. DFID gives money for specific projects that are fully accountable back here, and that is why we have this kind of debate.

A point that has so explicitly been made by many today is that this is not just a moral argument. Aid is in our enlightened self-interest. Some members clearly want to prevent migrant flows, displacement and the spread of tropical diseases, and investment through our international development funding is absolutely crucial to that. However, as has also been said, not least by the chair of the International Development Committee, the hon. Member for Liverpool, West Derby (Stephen Twigg), aid is only one part of the development process. We have to look at how we go beyond aid, and ultimately get to the stage at which it is not as necessary because countries are able to stand on their own two feet. There is a need for fair trade arrangements, support for civil society and good governance, the development of national infrastructure, fairer tax treaties—mentioned by the right hon. Member for Orkney and Shetland (Mr Carmichael) —and fair and effective implementation of the sustainable development goals. A coherent policy approach across the whole of Government is something that the Scottish Government are keen to take forward, and I hope that the UK Government will do so too.

It would be useful to hear from the Minister when DFID expects to publish its bilateral and multilateral aid reviews. It would be interesting to hear any further reflection he can offer on double-counting towards the NATO and Overseas Development Institute targets, and to know how DFID plans to drive forward the sustainable development goals across Government.

I am a big fan of my tartan ties, and the one I am wearing is the Zambia-Scotland tie. As with many tartans, it is an expression of solidarity, and solidarity ought to be, as I said in my maiden speech, the basis of human relationships.

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Desmond Swayne Portrait The Minister of State, Department for International Development (Sir Desmond Swayne)
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It is a privilege to follow the hon. Member for Hackney North and Stoke Newington (Ms Abbott). She is very well informed, and she speaks on the subject with passion. If I may, I would like to take the speech of the hon. Member for Glasgow North (Patrick Grady) as my own; it was excellent.

A number of my constituents have been driven into a state of apoplexy by stories of how their hard-earned tax money is shovelled out the door without scrutiny of any kind, particularly towards the year end. I am glad that I have been able to refer them to the dfid.gov.uk website, where they can find a point-by-point rebuttal of all the accusations.

I respect the petitioners, however, and I thank them for the opportunity that they have afforded us to debate this important issue. I am glad that a number of Members have used the opportunity to evangelise about international development aid, and I want the debate to go well beyond this Chamber. My ambition is to ensure that by the end of the Parliament, more people write to thank us for what we as a kingdom are doing on international aid than to complain about the level of it.

I have a duty to represent all my constituents—not only those who have written to me complaining about the level of international aid, but those who have been tweeting all day about how proud they are of our international aid. Equally, I must represent the views of the 99.99% of my constituents who have expressed no opinion whatever. I am glad that the right hon. Member for Tottenham (Mr Lammy) reminded us that we have a leadership role as Members of Parliament; our job is to bring our constituents information, to persuade them and, dare I say it, to bring enlightenment.

The UK aid strategy sits firmly in our security and defence strategy. The 0.7% spent on international aid and the 2% commitment to NATO are the 2.7% that we spend, in our international interests, on securing a safer, more stable and more prosperous world.

Desmond Swayne Portrait Sir Desmond Swayne
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I know what the hon. Gentleman will say, because we have had the argument before. We may secure our national interest through the ability to deploy lethal force, but I put it to the House that often, the deployment of soft power is a much more effective tool of policy. There is no doubt among any of us that it was in our national interest to spend hundreds of millions of pounds on securing an end to the Ebola epidemic. Without doubt, had it been allowed to spread, it would have come to us and caused terror and economic dislocation. Equally, our main effort has to be on economic development in the poorer parts of the world.

The reality is that in the end, everything is about jobs. In the next 10 years, the world needs 600 million new jobs if we are to avoid an army of underemployed young people who are frustrated and increasingly angry. We have to make investments. I am alive to the concerned expressed by my hon. Friend the Member for Stafford (Jeremy Lefroy) about development capital. We have to tackle the causes of poverty and injustice, because if we do not deal with those problems at source, we know where they are going: to our doorsteps and our shores. Aid is undoubtedly in our national interest.

Overseas aid is also undoubtedly controversial; it has to be. If I am spending British taxpayers’ money on helping the people of Bangladesh who live on the chars to deal with climate change and flooding, it is clearly not available to deal with flood defences in Durham, York or elsewhere. However, I put it this way: we have pledged to spend 0.7% of our national income on international development, which means that we have 99.3% to spend on ourselves. I do not know anyone who spends 99.3% of their income on themselves; I am not sure I want to know such a person, and I am not so sure that they would have any friends. That is equally true of a nation. What influence would we have in the world, and how could we carry our heads high, if that were the case, and we were to abandon this important pledge? It is important to focus what we spend, rigorously demanding value for money, and ensuring that we have the systems to secure that and to drive down costs, so that we get proper value.

I am sorry to see that my hon. Friend the Member for Newark (Robert Jenrick) is not in his place, because he referred to a low bar. I invite him to see me in DFID to explain to me and my officials what this low bar is, because I am the “low bar”. I am the one who has to be persuaded that the projects are value for money, so I shall be very interested to hear his explanation.

The reality is that over the past five years, we have delivered education for 11 million schoolchildren; 69 million people have received financial assistance and services to trade their way out of poverty; 29 million people have benefited from our nutrition programmes; 5 million people, as my hon. Friend the Member for St Austell and Newquay (Steve Double) said, have benefited from having healthcare professionals attend at birth; 63 million people have had access to clean water; 15 million people have been able to cope with climate change; 44 million children have been immunised; and we have delivered emergency care to 13 million people in the wake of 33 disasters. That is a measure of the importance of what we are doing.

The bit of the development picture that people get is humanitarian relief. They put their hand in their pocket to the tune of over £100 million after the Nepal earthquake. What we need to get over to them is that the people who appear suddenly to provide that relief and do the search and rescue have to have their core funds covered throughout the year when there is not an earthquake. The success of our intervention in the Nepal earthquake was built on years of investment in resilience beforehand; there was a blood bank in place and a logistics centre for the distribution of emergency aid, which saved seven weeks cumulatively. People rehearsed and rehearsed how to deal with the aftermath. This is what we spend the money on. I believe passionately that we have to get the democratic legitimacy from our people by persuading them. The moment we explain this to them, they get it. We need to hold their attention and get the opportunity to do that, and this debate gives us that opportunity, so let us build on it.