Global Health (Research and Development)

Jeremy Lefroy Excerpts

Tuesday 8th July 2014 Westminster Hall

[Jeremy Lefroy (Stafford) (Con)]

It is a privilege to serve under your chairmanship, Mr Streeter. I thank my hon. Friend the Member for St Ives (Andrew George) for securing this important debate.

It is extremely important for the UK, and indeed the whole world, to take seriously the question of research and development for global health. I want to outline why it is also important for it to play, as it does, a major role in the work of the Department for International Development. I believe that to be so for five reasons, the first of which is that the aims in question are global public goods. The right hon. Member for Holborn and St Pancras (Frank Dobson) talked about institutions that grew out of a desire to give treatment, including the London School of Hygiene and Tropical Medicine, which I believe was for seamen. The Seamen’s hospital was at the royal docks, and seamen from all over the world who had contracted diseases went there. The hospital that eventually became the London School of Hygiene and Tropical Medicine was set up to help them. The Liverpool School of Tropical Medicine was founded by a ship owner who saw that if he and his colleagues in Liverpool were to engage in trade around the world, there was a need for treatment for diseases that might prevent their trade from continuing. If half of a crew who had been sent overseas succumbed to deadly diseases, it would not be possible to continue to trade. Thus the school came from a compassionate interest in people’s lives, and a commercial interest linked to compassion.

Secondly, the work in question is a matter of global public goods; the diseases are not diseases of far away people in far away lands. My right hon. Friends the Member for Arundel and South Downs (Nick Herbert) and for Eddisbury (Mr O'Brien) have already said that they are the diseases of the poorest people on earth. I declare an interest as chairman of the all-party group on malaria and neglected tropical diseases. Those diseases—some 17 of them—affect well over 1 billion people a year who are among the poorest on earth. Malaria is similar, although like TB it can affect anyone. Those of us who travel to countries where it is endemic catch it, as I have on several occasions. When we invest in global research and development for global health we invest in tackling poverty and helping economic growth and prosperity. When people are sick they cannot engage in economic activity.

Thirdly, there is a need for long-term funding. That is why the role of DFID, development organisations and private foundations is so important. We are not talking about a budget for one, two, three or four years, but about long-term commitment. That is why I applaud schemes set up with the influence of, or sometimes by, the previous Government, such as the International Finance Facility for Immunisation, which I believe committed UK funds for up to 20 years, to develop vaccines. It is not possible to develop them over the short term. The Government have committed up to £500 million a year to tackling malaria. That is not just for research. As my hon. Friend the Member for South Derbyshire (Heather Wheeler) mentioned, diagnostics are key. The money will go on diagnostics research and delivery, as well as bed nets and drugs, but a substantial part of that £500 million a year will go towards research. So will part of the £40 million a year that the Government have rightly committed to tackling neglected tropical diseases.

Fourthly, there is a question of partnership and leverage. We must work with others. As so many right hon. and hon. Members have said, the task is not one that can be carried out by the commercial sector alone, although it has an important role to play; by Government alone, because Governments do not really do research; or by the foundations and NGOs alone. I have found from my work on malaria and neglected tropical diseases, as I am sure colleagues have, that it produces some of the finest examples of people working together—the commercial and private sectors, NGOs and Government —to tackle a common global problem.

The final reason I want to outline is one that was eloquently pointed out by the right hon. Member for Neath (Mr Hain), and my right hon. Friend the Member for Arundel and South Downs: resistance. We sometimes think that the problems are solved. They are not. I know far less about TB than the right hon. Gentleman and my right hon. Friend, but they pointed out the problems of increasing resistance to TB drugs. The same is being experienced with malaria, although the problem is perhaps not so advanced. Already the artemisinin combination therapies that have been a life saver for malaria around the world are facing resistance in places such as Myanmar. That is of course where resistance to chloroquine started, before it spread across Africa, resulting in the drug’s becoming almost useless. We must take the situation seriously, and I welcome DFID’s work in Myanmar to help to counter the spread of artemisinin resistance there.

Resistance develops not only against drugs, but against the insecticides with which bed nets are treated. Increasingly the mosquito is becoming resistant to some of them. That is why we must begin to use combinations of insecticides, or develop new ones. There is no doubt that insecticide-treated bed nets in the past 10 to 15 years have dramatically reduced malaria incidence and the death rate.

The debate is incredibly important because investment in research and development for global health is not an option but a necessity. I am proud that the UK takes a lead in research and in development. As the right hon. Member for Holborn and St Pancras has said, there is much of that concentrated in the UK. Also, NGOs and foundations in this country take a lead, and a huge amount of work is done by DFID. I welcome what has been done, but the problem is a long-term one and we need long-term commitment. So far we have had that from DFID, and I urge the Minister to say that the issue remains at the heart of DFID’s work and will do for years to come.

Job Creation: Developing Countries

Jeremy Lefroy Excerpts

Tuesday 24th June 2014 Westminster Hall

[Mr Philip Hollobone (in the Chair)]

Before we start, let me make it clear to all those assembled here that I am not late; I am the emergency replacement in the Chair. It is an honour to be here this afternoon for the debate in the name of Mr Jeremy Lefroy.

[Jeremy Lefroy (Stafford) (Con)]

Thank you, Mr Hollobone. It is an honour to serve under your chairmanship. I would like to draw attention to my various entries in the Register of Members’ Financial Interests. The debate is about supporting job creation in developing countries and much of my working life has been spent in that area, so it is inevitable that I have some interests to declare.

Last week, the Select Committee on International Development visited Sierra Leone and Liberia. In both countries, we had the honour of meeting the President. Both, without prompting, listed unemployment, particularly among young people, as something they needed to tackle, and tackle quickly. They see the need particularly clearly because of their recent experience of terrible civil wars that were fuelled by the resentment of people who had no real income, felt divorced from any development taking place in the country and saw an elite disconnected from the needs of the population. As a result, they are both determined to do whatever they can to avoid that situation arising again. As the UN says in another context: create more jobs or risk unrest.

[Fiona Bruce (Congleton) (Con)]

I commend my hon. Friend and colleague on the International Development Committee for his dedication to this subject and for bringing forward this debate. Does he agree that in Rwanda we now see a genuine example of job creation, growth and stability, which has come out of a very traumatic period for that country, proving that that can indeed happen?

[Jeremy Lefroy]

I am most grateful to my hon. Friend for that intervention. She is absolutely right. Of course, in Rwanda people would say that they have much further to go. They want to concentrate on developing the skills of their population, and in particular young people. They are looking at, for instance, the IT sector, because Rwanda is a landlocked country without large natural resources, apart from its own people and the beauty of its landscape. As I said, my hon. Friend is absolutely right.

High levels of unemployment or underemployment, especially among young people, are a problem in most countries in the world. When we ourselves have a youth unemployment rate approaching 20%, we recognise that this is a shared problem and there may well be—in fact, there should be—shared solutions. It is estimated that 1 billion additional jobs will be needed in the next decade for those who are currently out of work and those who will be coming into work over that time. Throughout my remarks, I shall use the word “job” to include self-employment and work in the informal sector, particularly in agriculture.

[David Simpson (Upper Bann) (DUP)]

I congratulate the hon. Gentleman on obtaining the debate. Does he agree that although it is vital that jobs are created—that is what this debate is all about—in order to achieve that for small and large businesses, it is important that the infrastructure of those countries needs to be improved dramatically? Would it be an idea for moneys donated from the United Kingdom to these countries to be focused on certain areas to help to create jobs for young people?

[Jeremy Lefroy]

I am most grateful to the hon. Gentleman for his wise intervention. Later I shall come to the issue of infrastructure—he is absolutely right about that—and give one or two examples of where it has made a huge difference.

To return to the point about the word “jobs” including the informal sector and self-employment, we have to remember that if we define “jobs” too narrowly as those where people enter into paid employment, we will be missing the point. That is a fairly small percentage of the total amount of work available in the world at the moment.

[Alok Sharma (Reading West) (Con)]

I, too, commend my hon. Friend for the enormous amount of work he does, not only on the Select Committee but elsewhere. Of course, he has huge knowledge of this subject and many developing countries. He talks about jobs in a wider sense. Does he agree that another key issue for many of these economies is access to finance? Of course, access to finance for businesses is a big issue in this country, but it is a particular issue in this context, too. Perhaps he will talk later in his speech about some of the issues—or some of the solutions that have been found—with improving access to finance for individuals who want to start businesses.

[Jeremy Lefroy]

My hon. Friend and the hon. Member for Upper Bann (David Simpson) have obviously read my notes in advance—either that or they are most prophetic—because I will come on to that subject in a moment.

Jobs, in the widest possible sense, will need to bring in more than merely an income on which people can barely survive. The World Bank has set two goals for 2030: to eliminate absolute poverty, which is vital, and to promote inclusive growth by concentrating on the lowest-income 40% in each country. I commend the World Bank president, Dr Jim Yong Kim, on his relentless focus on that. He sees that we must not only eliminate absolute poverty, vital though that is, but raise the living standards of everybody, particularly those at the lowest end of the income scale.

[Fiona Bruce]

My hon. Friend is being generous in giving way so much. Does he agree that one way to raise the living standards of the poorest is to ensure that women in some of the poorest communities in Africa have the opportunity to develop businesses and access finance, even if only small amounts of finance? All the evidence shows that when women are given such an opportunity, the benefits of their businesses are returned to their local communities and are exponential.

[Jeremy Lefroy]

My hon. Friend is absolutely right, and I will say a little more about that. It is vital that those benefits are spread throughout the community. Let us not forget that since the International Development (Gender Equality) Bill, which was introduced by my hon. Friend the Member for Stone (Sir William Cash), received Royal Assent a couple of months ago, Britain’s international development work must now show equality towards men and women, boys and girls.

Work at subsistence level may take someone out of destitution, but it will not bring inclusive growth. That is not to say that subsistence work is pointless, but we must aim higher. As the head of the International Monetary Fund, Madame Christine Lagarde, has said, in far too many countries the benefits of growth are being enjoyed by far too few people. There are ways in which we can help to counteract that, and the Department for International Development does so. One way is to promote fair trade, which began in agriculture but has spread through a number of industries, most recently the garment industry. DFID has done some excellent work in Bangladesh on labour standards among garment workers, together with the British companies that those companies supply. As my hon. Friend the Member for Congleton (Fiona Bruce) has said, it is vital that such work extends throughout the community, particularly to women. As she rightly says, they will probably reinvest the most back into their communities, because they see that as the best safeguard for their children and families.

Let me set out briefly how I believe we can support developing countries to create the jobs that they and we need—our economies are increasingly interrelated. The UK continues to run a large trade deficit, and one of our best hopes for dealing with that lies in trading with developing countries as they grow. I will start by setting out something that I take for granted: a stable and secure state and an economy that is relatively open to the private sector are essential, given that 90% of jobs in the developing world are created in the private sector. Work to improve security and economic governance helps to develop an environment in which jobs can be created. DFID is doing a tremendous amount of work in that area, and I commend it on that. However, I will not dwell on that, because it is the subject of another debate.

A large number of the 1 billion jobs that are needed will, at least initially, be in the informal and agricultural sectors. In 2018, 63% of jobs in developing countries are forecast to be in agriculture still, which will represent a fall of only 8% since 2000. Industry will account for 10% and services for 27%. That is why I believe that one of the most important ways of supporting job creation in developing countries is to teach business skills at school. If most students will be earning their living in some form of self-employment, whether in agriculture or informal sector services, it makes sense to give them the right tools.

Last week in Liberia I met graduates and teachers of the Be the Change academy from Paynesville. Along with David Woollcombe, one of the founders of the organisation, I met Zuo Taylor, who runs the academy’s operation in Liberia, and some young British volunteers who were there as mentors and supporters on the programme, which was exclusively for young business women. I met two young women who had just finished the course, Manjee Williams and Mattee Freeman, who both had businesses already, one as a hairdresser and the other as a caterer. Both said not only that the training and support they had received would help them to organise and run their businesses in a more professional way, but that it had enabled them to consider giving work to others. The caterer already employed several other people—six, I believe—and planned to employ many more.

I believe it is vital to teach self-employment skills not only in schools in the developing world, but right here in the UK. That is done, and it is often done well, but it is supplementary to the curriculum rather than an integral part of it.

[Fiona Bruce]

My hon. Friend and I have experience of teaching business skills, in Rwanda and Burundi. Does he agree that there is an enormous hunger on the part of those who are in business or starting up a business in Africa to learn such skills? Does he also agree that there is a real opportunity, which we need to highlight, for those who have been in business in this country to help to mentor and support growing businesses in Africa, whether by travelling there or by using electronic communication? We must focus on that and encourage it much more.

[Jeremy Lefroy]

My hon. Friend is absolutely right, and it has been a great privilege and pleasure to share that work with her over the past few years. I reiterate that I believe such work to be essential for the UK as well. It is not simply a matter for developing countries. As I have said, we must learn from some of the work going on elsewhere in the world, and I believe we must integrate that sort of business education into our schools. We are not talking about sophisticated business education; we are talking about basic skills that are relevant to the self-employed or those in the informal sector. Many of our young people who are at school will end up being self-employed or working in the informal sector; that is true more than ever in the modern economy. We need to give them those skills, not just through excellent programmes such as Young Enterprise—I am proud to support that programme in my constituency, and I have no doubt that several colleagues do likewise—but as a core part of our curriculum.

One might argue that such training has little relevance to someone involved in small-scale agriculture, but I absolutely disagree. I have seen many examples of how farmers who have just a small amount of land can, using business acumen, create vibrant businesses that are based on agriculture, but go beyond it into activities such as food processing, retail and feed manufacture.

[Alok Sharma]

My hon. Friend has a huge amount of experience of working in Africa, and in some ways the continent is an untapped resource for business links. I will be speaking at the Afro Business Expo, which is taking place in the Thames valley in a few weeks and which I believe UK Trade and Investment is supporting. Does he agree that, as individual Members of Parliament, one of the things we can do is to encourage such events that enable businesses from African countries to come and meet businesses here? Such events will provide an opportunity for creating jobs not only in the UK but in developing nations.

[Jeremy Lefroy]

I absolutely agree with my hon. Friend. Such events are vital. The more connection we have with markets in the developing world, the more we can trade and invest—both ways, these days—and the closer our relationship, the better. That is why I welcome DFID’s focus on livelihoods and on bringing in British business. My right hon. Friend the Secretary of State took British businesses to Tanzania to help with development work in that country through enterprise. That is absolutely vital.

My hon. Friend the Member for Reading West (Alok Sharma) has already mentioned finance. Once someone wishes to start a business, or take a business on to the next stage, they soon find that the next obstacle is finance. Banks provide very little credit to businesses other than those that are well established and fairly large. One might think that that is a familiar refrain even in this country, but what is true of this country is far truer of developing countries, where it is almost impossible for anyone other than a fairly well established, medium to large-sized business to obtain much credit from banks. There are various reasons for that. Bank overheads are high, which means that minimum loans are often far greater than the loan required by a business because the banks need to generate enough income from the loan to sustain their overheads. Bank salaries in some developing countries are not far short of bank salaries in this country, certainly at branch level.

In my experience, banks are also reluctant to lend without substantial security, which is often worth far more than the value of the loan—perhaps 200% of its value. Indeed, central bank rules in some countries may make that compulsory, so any business that does not have a lot of additional security to offer against a particular loan is almost shut out of the market.

Additionally, in countries where the Government run a substantial deficit and dominate bank borrowing, it is often safest and simplest for banks to buy Government bonds. As we learned last week, until recently that was the case in Sierra Leone, where Government bonds were offering something like 30%, well above the rate of depreciation, so it was easiest and simplest for the banks to sit back, buy Government bonds and watch the money come in. There was no need to take the risk of lending to small or even medium-sized businesses.

Of course, there are many good initiatives that assist the provision of finance to businesses in developing countries, although at the moment those initiatives provide just a fraction of what is necessary. Microfinance has been around for some time; although people tend to think of it as more about lending for consumption, microfinance has increasingly been involved in lending to micro and small enterprises—MSEs—as well as for personal consumption, which I am glad to see. This morning I was speaking to the chief executive of a microfinance bank based in Botswana that has operations all over sub-Saharan Africa and is now entering the MSE market.

[Fiona Bruce]

My hon. Friend may remember that we visited the Women’s Initiative for Self Empowerment, the establishment for microfinance in Bujumbura. The initiative informed us that, because of the personal relationship between the women who borrow small amounts of money and the administrators of the lending, the default rate is very low. Should that not encourage us to look further at such microfinance organisations, and perhaps to encourage them through DFID?

[Jeremy Lefroy]

My hon. Friend is absolutely right. The default rate is often lower in such organisations, which rely on a substantial element of trust, as well as on prudent lending and investigation of borrowers. We have seen that default rates of less than 5%, considerably lower than some banks take, are common. Default rates are sometimes as low as 2% in such organisations.

There is also internet-based lending, which is increasing substantially. We see that in this country with peer-to-peer lending, but there are also organisations such as Kiva and Lend with Care, which is run by the charity CARE International. Such lenders typically provide very small loans in which donors from across the world can invest as little as £20 or £30 in loans to MSEs. Such is the power of technology these days that they are able to run such schemes without extremely large overheads.

Furthermore, there are initiatives such as DFID’s programme in Pakistan in which local banks, as we saw, were given a guarantee by DFID so that they could lend to businesses. That means that DFID does not have to do the lending itself, but, as the risk is taken out of the lending, a local bank is able to lend to businesses to which it would not otherwise have lent.

In this case, I believe the guarantee of some £10 million, if I remember rightly, was not drawn on at all, which shows it was an excellent example of lending at no cost to the British taxpayer, with the British taxpayer giving a guarantee. Banks will still carry out the same degree of due diligence, but the guarantee gives them a bit of extra confidence to go and lend to businesses to which they would not otherwise have lent. The key in all those areas is to find cost-effective ways of reducing risk so that financial institutions are prepared to lend, or investors are prepared to commit equity, to a project.

I will mention one particular fund because I have personal experience of being an investor in a company that took advantage of it some years ago. The Africa Enterprise Challenge Fund was set up under the previous Government, with substantial funding from DFID—I believe that DFID currently funds more than 50% of the entire fund. The fund focuses on investments of which the primary beneficiaries are people earning less than $2 a day. Those people may be suppliers to a business or consumers who now have access to a reliable source of seeds or fertiliser, for instance. The fund matches the entrepreneur’s investment up to a certain amount. In Sierra Leone, we visited a chicken farm that is expanding production through support from the AECF. One of the new investments was a modern feed mill that will not only improve the quality of feed, and hence chickens, which have hitherto been imported, but provide a regular customer for many small farmers from whom maize and other crops are purchased.

The AECF effectively acts as a catalyst, and its various funds now total more than $200 million. I have said in the past in the House that I believe that the AECF should provide less in the form of outright grants and more as returnable capital, loans or equity, which can be reused to help other businesses. I am glad to see in the latest figures that just over half the funds advanced by the AECF have been loans, and I encourage it further to increase that proportion because the more it does, the more that can be recycled in to other businesses. If a business is successful, it is right that those who have helped it—in this case, the British taxpayer and taxpayers from other countries that contribute to the fund—should share in that success.

I now come to the point well made by the hon. Member for Upper Bann. Without adequate infrastructure, it is almost impossible for businesses to grow and reach their potential. I recall visiting a road project in the Democratic Republic of Congo near Bukavu with the International Development Committee. The project was substantially funded by DFID, and the road was connecting Bukavu with a town several hundred kilometres away that had been cut off from the rest of the world for some 20 years. That town is not small, and people travelled from there to Bukavu, one of the major population centres of the Democratic Republic of Congo, with great difficulty.

We travelled on the first 60 km to be completed, and people told us that it now takes just two hours for people, generally women, to bring their produce to market in Bukavu, whereas previously it had been a five-day walk carrying produce, in which time a lot of the produce probably would have gone off and become unsalable. The road project is a clear example of rural infrastructure that directly benefits farmers and the rural poor and creates jobs in the widest possible sense. There are many other examples, but that is the clearest example I have seen in which so much difference has been made in such a short space of time.

We heard that Sierra Leone and Liberia have some of the highest electricity prices in the world. That is extraordinary in countries where income is so low. Capacity is another issue. There are many countries in which the entire generating capacity is a fraction of the 900 MW output of Rugeley power station in my county of Staffordshire. As far as I know, Rwanda has less than 500 MW of output, and we were told that Sierra Leone has less than 100 MW of output, although it is currently building more capacity. Those substantial countries have electricity supplies on which a medium-sized town in the UK would not be able to survive. Without electricity, business clearly cannot flourish, and jobs cannot be created. Of course people can buy generators, but as anyone who has ever run a generator will know, the cost is prohibitive and adds enormously to the cost of doing business.

One final infrastructure issue is ports, which are a hindrance in many countries instead of an asset. We can see how, for countries that have invested in ports and run excellent ones, they become an entire competitive advantage in themselves; I think of Singapore, which has become a hub of trade in the far east and globally. Almost anything going in that direction transits through Singapore. I think of one or two ports in the middle east that have been developed into enormous entrepôts. Earlier still, the classic example in Europe is Rotterdam, through which effectively everything transited. We lost a lot of trade to Rotterdam because we were not fast enough in developing our own ports here in the UK, although that has been reversed to some extent since.

There are a number of problems with ports, not least corruption. I have personally experienced the problems with theft and corruption in ports, but it is clear that many ports are simply too small: they need more quays and they need dredging. The difference that better ports can make to job creation and business is enormous, particularly for landlocked countries. Many countries in sub-Saharan Africa are landlocked. In order to give them access to markets, the countries that house ports have a business opportunity, but also a responsibility, to make those ports as efficient as possible. It is estimated that sub-Saharan Africa needs a minimum of $100 billion a year for its infrastructure, and that the whole of Asia needs perhaps $1 trillion. Given that total overseas development assistance is less than $150 billion a year, it is clear that such investment can be done only through Government and private financing.

That is where initiatives such as the Private Infrastructure Development Group come in. Today I checked the results of that initiative, which was set up by the previous Government and continues under this one. The 2012 report stated that 39 projects were operational at the time, employing about 200,000 men and women in their construction and operation and providing services to 97.6 million people. Every $1 contributed by members through the PIDG facility—I am proud to say that the UK is by far the biggest donor—mobilises $39 in finance from other sources for projects. That is a tremendously effective use of money. Even if we take some of the figures with a little scepticism, as I always do, we would have to be extremely sceptical not to acknowledge that that is good value for taxpayers’ money in terms of the return created and the jobs generated.

I will come to the end of my remarks fairly shortly, but I will touch on a few areas that I believe are extremely important to supporting job creation in developing countries. The first is agriculture. We have already heard how many people are employed in agriculture in developing countries, but what must we do to make it work for them so that it is much more than just a subsistence livelihood? We need to help them invest in productivity. I have spoken about productivity before, as have others in other debates, so I will not go into it in great detail, but the issue is about processing, both on-farm—much is lost through poor processing—and post-farm, when raw food is made into finished products that can be sold. Post-farm processing creates a tremendous number of jobs. When we were in Afghanistan, we noted that many raw products from Afghanistan were going to Pakistan for processing and then coming back to Afghanistan in processed form, so we encouraged Afghanistan to invest in its food processing facilities.

Marketing is also important, as are land rights, which come up time and again. Land rights are essential to developing an economy. We have mentioned on a number of occasions the excellent DFID programme in Rwanda in which some 10 million plots of land were given titles, meaning that people have security over their land and can invest in it. They are therefore able not only to borrow against it but to gain additional productivity from it.

Green jobs are also relevant, and not only to the UK and developed countries; they are important in developing countries, because they link sustainability and growth. I was pleased to see that one of the more recent infrastructure projects funded through PIDG was a solar farm in Rwanda. Sometimes one wonders whether solar farms built in the UK are of much use, although I am glad to say that, over the weekend, I was able to have a couple of baths from the hot water solar panel on the roof of my house, even in Staffordshire. However, in countries such as Rwanda that have the benefit of the sun, it is great to see projects such as solar farms being developed to provide low-cost electricity for tens of thousands of homes.

Another way of encouraging job creation that might seem slightly difficult, particularly to those of us on this side of the House, is tax creation. You might share with me, Mr Hollobone, a scepticism about whether collecting taxes can create jobs, but I believe that it does, as long as it is done fairly and rationally. There are a number of reasons why. First, it creates a level playing field. Many countries that I have seen have an arbitrary way of collecting taxes. For various reasons that I will not discuss, some businesses are let off paying the whole amount and others are penalised, perhaps because they are more honest. A proper tax collection system should be neutral. It should enable everybody to flourish in the right way, paying what one would hope is a fairly low rate of tax while contributing to the benefit of everybody.

Secondly, taxes fund security and good governance. As we said at the beginning of this debate, without good governance and good security, business cannot be conducted. Finally, taxes fund public services. To refer again to the remarks made at the beginning, education is absolutely critical to the success of business, as is a health system in which people are looked after so they do not get sick with malaria every other week and go missing from work or, if they are self-employed, end up destitute because they simply cannot get out into the fields.

I have not attempted to do more than provide a brief overview of what I see as the most important areas in which job creation in developing countries can be supported. I have spent most of my working life trying to support it; I remember that when I first went to Tanzania, the business that employed me had about 20 employees. My ambition was that it should have 100 employees after four years, and we succeeded. We had some ups and downs afterwards, but by and large, that was my biggest source of satisfaction: not necessarily the bottom line, but the fact that more and more people—hundreds and hundreds—could get a livelihood from the kind of work in which we were involved.

The stakes could not be higher. If we solve this, we will solve so much else in terms of peace, security, development, the elimination of poverty, and shared prosperity for both developing countries and, as I have said, for ourselves. It is not beyond us, with committed and visionary leadership.

[Mr Philip Hollobone (in the Chair)]

If the House was not aware previously of how much the hon. Gentleman knows about international aid, it will certainly be now.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for International Development (Lynne Featherstone)]

What a pleasure it is to serve under your unexpected chairmanship this afternoon, Mr Hollobone. You are a very welcome replacement. Thank you for enabling us to continue with the debate.

I thank my hon. Friend the Member for Stafford (Jeremy Lefroy) for securing such an important debate. In his opening remarks, he said he had just returned from Liberia and Sierra Leone, which listed unemployment as their biggest challenge, and DFID also believes that is the case. Jobs are at the core of international development, and I very much welcome the opportunity to discuss the issue. I am aware of my hon. Friend’s vast experience and great knowledge in this field—it is much greater than my own—which comes from his personal experience of living in Africa and being involved in business for many years.

I hope many of the points in my speech will address some of the issues that have been raised. If we have time, I will try to address some of the more specific points that have been raised. When we ask people in the UK or in a developing country what they want, the desire for a good job is normally one of the top things on their list—that is not rocket science. A job will allow them to work their way out of poverty, to provide opportunities for their families and to build for a better future. I always think that having something to do and somewhere to go every day is also good for keeping a person whole in mind and body.

Since I became a DFID Minister, there is something that has struck me about virtually all the African countries I have visited—and I have been to Africa perhaps 20 times now. Driving up the road—if there is one—at certain times of day, one can see that many young men are sitting at the roadside without anything to do. That is a reminder of something that has already been raised in the debate: how important and necessary work is and how much work is missing.

I want to highlight the scale of the challenge in developing countries. Most of the 600 million new jobs needed globally by 2020 for the growing working-age population are needed in developing countries, but at the moment only 15% of people in low-income countries in Africa have what we would call a proper job. There are 900 million people in developing countries who are working but who, as my hon. Friend the Member for Stafford said, are doing vulnerable self-employed work and living in poverty. They engage in subsistence farming and so on. Most people in developing countries have a job of some sort, but it is mostly in unproductive subsistence work that may even be unsafe.

To address those issues in the terms in which DFID thinks about jobs, we need modern, formal sectors to grow and to create better jobs. We need people who work in subsistence agriculture or unproductive household businesses to be able to earn a better living. I have visited some impressive projects to intensify and maximise the produce of small agricultural plots. Avoiding the loss of produce in getting it to market is one way to do that, but I also remember a market in Zambia where we had arranged for people selling seeds and market produce to meet small subsistence farmers to exchange knowledge of the best seeds and how to plant. There was a product to make cows grow, so that people could get them to market in two and a half years instead of seven. I did not ask what was in it; nevertheless, someone with one cow could triple their income with that product. Many of these people are in marginalised rural areas or cities, poorly connected to markets for their labour. They lack the right mix of skills, finance, land and information to enable them to find a job. My hon. Friend the Member for Stafford also talked about getting goods to market, the skills needed to get a job, access to finance, surety of land tenure and information about how to maximise produce.

We also need to address serious inequality in who gets job opportunities. Women are less likely to participate in the labour force and are more likely to be in unpaid or vulnerable work. Young people—and there are many in developing countries—also fare badly, which often poses a risk to social cohesion. That is not just unfair and dangerous; it is inefficient and represents a huge potential loss to developing economies. Changing this jobs picture requires economic development and transformation, much of which will be led by the private sector. People need the opportunity to earn more. For many, that will mean getting better incomes in agriculture, but over time—indeed, already and increasingly— the bulk of new jobs will come from higher-income opportunities in services and manufacturing, as has happened in every country that has successfully developed.

DFID’s work on economic development and jobs involves, first, getting the international system right; secondly, getting private sector growth going; and, thirdly—an absolute priority for me—ensuring that growth is broad-based and inclusive, in particular for girls and women. One example is the recent trade facilitation agreement reached in Bali, which will be instrumental in reducing the barriers to trade, helping to integrate developing countries into global trade flows and promoting jobs and investment. We are also pushing for productive jobs to feature prominently in the goals and targets of the post-2015 agenda, which is essential if we are to reach zero poverty by 2030. Our multilateral partners are also well placed to deliver on the jobs agenda and are upping their game. The UK-backed International Finance Corporation global SME finance initiative aims to provide at least 1 million new jobs and financing to 200,000 small and medium-sized enterprises. Access to finance is crucial, and I have just been in Mozambique, where I launched access to finance for women in SMEs. It is a crucial stage.

The World Bank Group has put job creation and economic development at the centre of its plans to achieve its goal of increasing shared prosperity and the income that accrues to the poorest 40% in each country. We are engaging closely with the bank on that. Across Government, the UK is also working to improve economic and trade relations. Our recently launched high-level partnerships for prosperity will improve trade between the UK and Angola, Côte d’Ivoire, Ghana, Mozambique and Tanzania—indeed, my hon. Friend the Member for Stafford mentioned the recent trip there by the Secretary of State.

Driving economic development and jobs is not only the most effective way to reduce poverty in developing countries; it is also in the interest of the UK. The hon. Member for Wirral South (Alison McGovern) raised the question of tied aid, and I assure her that there is no question of that. It is against the law and not appropriate. However, when we let contracts in open competition, a UK business will often win. That, however, can only be a compliment to British business and its ability to make the successful bid. There is no favouritism: the process happens on the open market and such contracts are always let competitively.

It is in the interest of the UK to build our future trading partners. Africa has a growth rate that we in the UK can only envy and there is phenomenal wealth lying beneath its ground. The challenge with extractive industries is to spread the benefits widely, as my hon. Friend the Member for Stafford said. One reason for the work we do on value chains and supply chains in extractives, and in the surrounding geographical area, is to try to link the economic benefit to the country. We also give technical support and assistance with the original contract negotiations, so that the country benefits from its own wealth, rather than other countries or the elites of that country.

Improving job prospects in developing countries, particularly for young people, reduces the chance of conflict. The recent awful case of the abduction of girls in northern Nigeria seems to have gone from the media pages, but it has not stopped being on our mind at DFID or the Foreign and Commonwealth Office. Part of the issue in the area where Boko Haram flourishes is that young men have nothing to do. I am looking at programmes to develop skills and jobs in that area, as possible diversionary tactics, which would also be very beneficial.

Many businesses in the UK are looking to Africa and Asia and seeing the markets of the future. Businesses see value in engaging with DFID and the rest of Government and they in turn have much to offer the countries that they choose to invest in. Interestingly enough, the business advisers to DFID’s advisory board have strongly called for exactly what my hon. Friend the Member for Stafford was talking about: the development of appropriate skills and education. There is a willingness to invest in countries and create jobs where the climate is stable enough, but there is also a need for skills, so that businesses do not have to import their own staff. A company that wants to open in many parts of a country needs to be able to use staff from the country in question to run branches, co-ordinate things and see to the logistics.

Our spending programmes create jobs in developing countries in a number of ways. The Commonwealth Development Corporation, the UK’s development finance institution, is having a huge impact on job creation in Africa and Asia. It is remarkable. In 2013, CDC’s 1,300 investee companies directly employed over 1 million people. That is a hugely successful rate.

[Jeremy Lefroy]

The Minister is absolutely right to point that out. I would further like to congratulate CDC; I understand that last year saw the highest level of investment by CDC in its history. That is a welcome sign of the success of the Government’s opening of CDC’s mandate, to include direct investment in businesses again, as well as investment in funds, and concentrating on low-income countries rather than spreading out through middle-income countries.

[Lynne Featherstone]

My hon. Friend makes an excellent intervention. CDC has gone from strength to strength. Not that long ago there were some question marks over it, but it has moved well away from that. As he says, because it works in the most fragile, conflict-affected and poorest of countries, its success is all the more remarkable. It has created more than 68,000 new jobs.

--- Later in debate ---

[Lynne Featherstone]

The hon. Gentleman is obviously right. We work in that direction and we are working as fast as we can to enable job creation to happen. I have covered a number of things, but part of what DFID does is on the enabling environment for investment and therefore job creation, whether that means cutting the time it takes to get goods across a border from four weeks to one day, or help with filling in forms or how long it takes to start a business—all the things that are very off-putting to investors. We are working on all fronts.

I do not know whether those hon. Members present have ever eaten in Nando’s, for example, but I was in Mozambique, where Nando’s exclusively grows its peri-peri peppers. It is a labour-intensive process, with massive work for smallholdings, done to a very high standard—because the standards, both of the product and how people work, are very important to DFID and the British Government—which means huge job creation. It is a win-win for the country, the company and the individuals who are being taught and looked after while they grow peri-peri peppers—and I can highly recommend peri-peri chicken.

DFID currently supports more than 60 programmes with specific targets to provide economic assets to girls and women in developing countries. We have set ourselves a target of helping 18 million women to access financial services and 4.5 million women to strengthen their property rights by 2015. Both will have a fundamental impact on the job prospects of the women involved by improving their control over assets and finance.

For some women in work, the conditions remain unacceptable. The UK is supporting the International Trade Centre to work with Governments and customs authorities in east Africa to improve conditions for female informal traders, who face harassment and extortion at borders—the example often given is someone who starts with 12 eggs and, by the time they pay off all the people who have to be paid off, has about three eggs left to sell. That is a common, everyday kind of factor.

The Department is also scaling up its work on education and skills—an important point that my hon. Friend the Member for Stafford raised—to make sure that skills are relevant to people’s changing opportunities and that the private sector is involved in designing, delivering and financing them. We are also increasing our work on infrastructure—my hon. Friend talked about power and transport—and thinking afresh about urbanisation, in order to create more and more productive jobs.

[Jeremy Lefroy]

My hon. Friend is making some extremely important points. One issue that I did not refer to directly in my speech—but which relates specifically to skills—is the great need for additional skills in, for instance, the health and education sectors, which are themselves financed through the development of the economy, the payment of taxes and so on. The hon. Member for Wirral South, who speaks for the Opposition, and I were both keen to see the International Development Committee look into health system strengthening. I am glad to see that that inquiry has now taken place. One of the things that I think will emerge from it is the enormous number of job opportunities for people at all skill levels in the health and education sectors, but of course those sectors have to be financed and the finance comes from the growth of the private sector.

[Lynne Featherstone]

That is absolutely the case. There are some benign circles that we need to get going in, for example, higher education in developing countries, because skills in health and education need to be supplied locally. We need to up the quality of teaching and professionals in the health service. Indeed, that is how we are moving forward, and I believe I will be giving evidence to the IDC on health system strengthening. The need is great, because the numbers are enormous and those jobs must be filled by training individuals within countries and not “borrowing” them, as has happened in the past.

As for monitoring and evaluating DFID’s work, we are scaling up efforts to monitor and evaluate the impact of our work on economic development. Some areas of this agenda, such as job creation, investment and trade, are quite complex to measure. The International Finance Corporation’s “Let’s Work” initiative, which DFID, CDC and the Private Infrastructure Development Group engage with, is working to develop an agreed approach to estimating the impact of private sector infrastructure interventions on job creation. DFID funded the IFC’s study in 2013 of the private sector and jobs, and a whole chapter is devoted to the difficult issue of measuring net additional job creation. Measuring it exactly is one of the challenges, but it is our ambition both to measure it and to ensure that the jobs being created are additional and would not have been created in any case.

Under the economic development scale-up, we are looking to increase the relevance of education and skills for the changing job market, as I have said. That goes for foundational skills and technical skills, so that skills taught in school and technical training institutes have to be right and join up what is needed for industry in the country with the skills that are available. New interventions for marginalised groups in rural and urban areas provide combinations of interventions, such as entrepreneurship skills and finance and innovative business models—we are trying to create another benign circle. I have visited some of the larger pilot entrepreneur skills awareness training projects, where an inspirational speaker talks to 700 or 800 young people at a time, who all seem absolutely fired up and up for going out and becoming entrepreneurs in their own right. It is very exciting work.

My hon. Friend the Member for Stafford mentioned power. The Public-Private Infrastructure Advisory Facility is delivering technical assistance to unlock private investment in developing countries and the EU is investing in the EU-Africa Infrastructure Trust Fund.

As for ports, in Mombasa in Kenya we are helping to tackle problems with port management to improve trade and regional integration. Most importantly, of course, as Mozambique’s ports develop, the corridors that will open up to neighbouring landlocked countries will be incredibly valuable, both to those countries and the ports themselves.

As for work, I hear what the hon. Member for Wirral South, my opposite number, was saying. I can assure her that I go to the International Labour Organisation every three months and I work closely with the unions. They have raised the issue of our stopping their funding many times with me. However, as I have explained, we work in different ways. We are working with them on a project on trafficking in Asia and we have given £4.8 million to an ILO programme to improve working conditions in the readymade garment sector in Bangladesh. That was launched in October to help to conduct safety inspections of the 1,500 factories that are not covered by existing initiatives and to help the victims of the disaster.

In a similar field, the trade and global value chains initiative encourages buyers, factories and workers to work together to improve productivity and working conditions. Our overarching message and narrative on working conditions—in all businesses and in all ways, and with Governments—is that they should be good and professional. It is no good a Department such as DFID not caring about standards; we care very much about standards and responsible business. We encourage companies to respect voluntary global standards, which improve labour standards and reduce harmful working practices. We provide funding and support that strengthens mechanisms that ensure that companies comply with their commitments on labour standards and working practices, such as the ethical trading initiative. We have also funded and supported the extension to the global fair trade system and are building evidence about its impact on wages and working conditions.

As for ensuring that poor people are not being excluded from any newly developed markets, which obviously is important, we support inclusive growth, benefiting women and girls in particular. That is an essential pillar of DFID’s economic development strategic framework. Although occasionally one sees “economic development” written in a report, it is always meant to read “inclusive economic development”. There is no point developing a country if the process is not inclusive, because if it leaves people behind, it will simply repeat the worst mistakes that have been made in other parts of the world. I am pleased that the overarching principle of the high-level panel report on the post-2015 agenda is exactly that. “Leave no one behind” is the most important message.

In conclusion, I thank my hon. Friend the Member for Stafford, who covered the issues and subjects in better detail, perhaps, even than myself. I think all hon. Members would say that we are all committed to the creation of useful employment and work and the improvement of subsistence work and agriculture. That is important, right across the developing world, because if we do not do it right, we will be guilty of leaving many people behind. Ultimately, it is in our own interests—in the country’s and everyone’s interests—that we get this right and support the developing world in the creation of the right sort of jobs, the right environment and the right economy.

Afghanistan

Jeremy Lefroy Excerpts

Wednesday 14th May 2014 Commons Chamber

[Justine Greening]

That is an important question. We have seen in other countries how mineral extraction has filled the pockets of the few and how the opportunity for shared prosperity has been missed. We do not want to see that happen in Afghanistan. The value of minerals in Afghanistan is estimated to range from $2 trillion to $3 trillion. There is a huge opportunity there. DFID has worked with the Afghan Ministry of Mines on the minerals law, which has, I think, now passed through Parliament. That should provide a legal framework for responsible investment. We will be doing further work to ensure that those concessions that the Government give are ones that ensure not only that companies profit from extracting minerals but that Afghanistan itself starts to reap the rewards of having those resources.

[Jeremy Lefroy (Stafford) (Con)]

In a recent debate in the House, Members raised the important correlation between inclusive economic growth and respect for all human rights, including freedom of thought and belief. What discussions have my right hon. Friend and her colleagues had with the Afghan Government about that important relationship in respect of economic development?

[Justine Greening]

We talked more broadly about the economic and social progress that Afghanistan needs to continue to make, which includes people’s human rights. Obviously, a constitution is in place now. Part of the Tokyo mutual accountability framework was all about ensuring that that constitution gets implemented and holds for individuals in their daily lives on the ground. It is good that, two years on from that Tokyo meeting, we are having a ministerial meeting to look at development. We need to see not only that donors are living up to the commitments that they made—the UK is—but that the Afghan Government are getting on with the process of reform, economic development and security improvements, not least of which is the final signing of the bilateral security agreement.

Oral Answers to Questions

Jeremy Lefroy Excerpts

Wednesday 9th April 2014 Commons Chamber

[Justine Greening]

We are supportive of universal health coverage, which is one of the key means that can improve health outcomes. The hon. Gentleman is quite right to raise the issue of maternal health. We look across the board at how we can do that, including in relation to family planning and what we are doing this summer to combat child and early marriage, which is one reason why maternal health is poor. We will continue to work really hard on that whole agenda.

[Jeremy Lefroy (Stafford) (Con)]

Great gains have been made under the millennium development goals in the areas of malaria, neglected tropical diseases, HIV/AIDS and tuberculosis. Can my right hon. Friend reassure me that the goals that we will push for post-2015 will ensure that those gains will be maintained and, indeed, enhanced?

[Justine Greening]

Yes, I can. In fact, we want HIV, TB and malaria to be incorporated under a health goal. My hon. Friend will be aware that the UK was one of the leading donors at the global fund replenishment at the end of last year, and will continue to support that important work.

Burma

Jeremy Lefroy Excerpts

Thursday 13th March 2014 Commons Chamber

[Sir Malcolm Bruce]

We recognise that Burma needs capacity right across the whole system. Frankly, its spending on health and education has been minimal and its capacity to do that at the moment is pretty limited. We have to work with the partners we can find, sometimes directly. Of course we want to build up capacity within the Government, provided that the partners within the Government will respond in the right way, but we did see very good co-operation and real evidence that we are making specific changes. So our view is that we can expand the development support and help build those institutions, but we also need to strengthen the political capacity. One particular step is to enable Parliament to raise the funds that will ultimately enable these developments to be taken forwards as the economy develops. That is crucial and it is something DFID does very well in many other countries.

[Jeremy Lefroy (Stafford) (Con)]

I thank my right hon. Friend for his statement. I am the chair of the all-party group on malaria and neglected tropical diseases. I and my colleagues on that committee are extremely concerned about the growth of resistance to artemisinin-based drugs, which are our main hope for tackling malaria in Burma and the surrounding area. Does my right hon. Friend think the international community is giving enough weight to this issue?

[Sir Malcolm Bruce]

I commend my hon. Friend for his assiduous work on the all-party committee, which is extremely important. The answer to his question is that it has not been possible to do enough because of the problems of conflict and lack of access. Indeed, that is the very reason why it has become an endemic threat to the whole world. We hope that, with a ceasefire in place and hopefully the beginnings of a peace process, the opportunity to engage will increase. That is why we have made a specific recommendation that greater priority within the health budget should be given to tackling that problem, and I am certain that my hon. Friend will ensure we focus on that.

Violence Against Women and Girls

Jeremy Lefroy Excerpts

Thursday 23rd January 2014 Westminster Hall

[Jeremy Lefroy (Stafford) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Brooke. I pay tribute to those who spoke before me, and I will comment particularly on the powerful message from my hon. Friend the Member for Mid Derbyshire (Pauline Latham) about the need to stand up against things happening in this country that must be exposed and not hidden away—female genital mutilation, and early and forced marriage.

I very much—perhaps “enjoyed” is the wrong word—appreciated being part of the inquiry by the International Development Committee. I confess that I had not given enough thought to this issue over the years, and the process opened my eyes to the extent of violence against women and girls, not only in the developing world but, as we have heard, in the developed world. I am pleased that the Government have made the issue a focus of their work, led by the Foreign Secretary and the Secretary of State for International Development, and by Ministers in the Department for International Development, including the former Minister, my right hon. Friend the Member for Eddisbury (Mr O’Brien), and the current Minister, my hon. Friend the Member for Hornsey and Wood Green (Lynne Featherstone), who has rightly championed the issue and made it a focus of her work.

The issue was particularly brought home to me by three students who approached me from King Edward VI school in Stafford, in my constituency. Those three girls—Maya Lucey, Amy Mace and Chloe Taylor—wrote to me saying that they would like to speak with me about it. I had not spoken to them about it before, but what they had heard in the press and elsewhere had made them concerned about female genital mutilation in the UK. I had the pleasure of meeting and speaking to them last Friday, or rather of listening to what they had to say. I was profoundly impressed not only by the extent of their knowledge, but by their commitment to stopping FGM in this country. I pledged that I would do what I could to raise the matter in this debate and to supporting all the work that my hon. Friend the Member for Mid Derbyshire and others continue to do in Parliament. I pay tribute to the girls’ teacher, Mrs Jo Bentham, who ensured that they were supported in talking about an issue that is particularly difficult for some people of their age to raise.

Members have already discussed the statistics on FGM prevalence rates. They are as high as 98% in Somalia and 94% in Sierra Leone; I will mention Sierra Leone a bit later. An estimated 3.3 million girls a year globally are still at risk from the practice. A study conducted in 2007 by the London School of Hygiene and Tropical Medicine and the City university midwifery department, using modelled estimates, concluded that 66,000 women resident in England and Wales had undergone FGM, and that 23,000 girls under the age of 15 were at risk of it. This matter is of great importance not just in countries in the remit of the Department for International Development, but right here on our doorstep. I welcome the work being done by DFID. We understand that, in March 2013, it dedicated £35 million to ending FGM in one generation. Part of that money will fund social change, communications and research. The goal is ambitious and worthy, and I congratulate DFID on its commitment.

In the time remaining to me, I will concentrate on the vital matter of changing social norms. I well remember living in Tanzania and having a good friend from an area where FGM was the norm—everybody allowed their young daughters to be subjected to it. He was determined that that should not be the case for his daughters, and instead of taking a negative or critical approach, he stood up and said, “We’re not going to allow our daughters to go through this. We are setting an example.” That comes back to a point made by previous speakers: it is vital that we engage communities, not just lecture them. We must work with women’s groups, as my hon. Friend the Member for Mid Derbyshire said, and with men and boys, to say that FGM is completely unacceptable.

I want briefly to address the question of early marriage, and one problem that it brings and to which FGM contributes: fistulas. When I was in Sierra Leone at the end of last year, I visited the Aberdeen Women’s Centre in Freetown, which has been equipped through generous donations from Scotland, in particular, and from Ann Gloag. We saw women there, some of them very young, whose lives were being transformed by the repair of their fistulas, which had developed largely as a result of their being married and giving birth at an early age. It made an enormous difference to them. Without it, they would have been almost outcast and ashamed to be in society.

We have heard about the critical matter of water and sanitation. While I was living in Tanzania and my wife was running a public health programme there, one key thing that she wanted was for shallow wells to be drilled in every village to enable women and girls to get water locally, rather than having to travel 5 km, 6 km or 7 km for it. Such travelling not only meant that they could not receive education, but put them and their mothers at risk of violence. The project made a big difference, especially as the community was involved in not only raising the money for the wells and pumps in the first place, but maintaining them. One could see that when a community was committed to the well-being of the girls and women in their midst, it was quick to raise the necessary money.

I conclude by again commending the Government’s work in this area. We must ensure that it continues and is not a theme for only a year. It has to be a theme for this Government and many Governments—and for many generations. That is so obvious, yet it sometimes seems to escape our notice.

Global Food Security

Jeremy Lefroy Excerpts

Thursday 9th January 2014 Westminster Hall

[Jeremy Lefroy (Stafford) (Con)]

It is a pleasure to serve under your chairmanship, Ms Clark. It is also an honour to follow the hon. Member for Edinburgh North and Leith (Mark Lazarowicz) and the Chair of the Select Committee, the right hon. Member for Gordon (Sir Malcolm Bruce). I would like first to declare an interest: in Twin, of which I am a director, an organisation that has pioneered the promotion of fair trade in the UK, and in Equity for Africa, which makes social impact investments in businesses, largely in Tanzania, some of which are agricultural producers.

As the Chair of the Select Committee said, global food security concerns us all. It is not just about developing countries. It concerns us all because, as the Prime Minister has said, in a world of plenty,

“a billion people around the world do not get enough food, and undernutrition holds back the growth and development of millions of children.”

The issue also affects us right here. The right hon. Member for Gordon has already referred to what happened in 2000, when we were on the edge of a food supply crisis as a result of the fuel strike. Shortages on the other side of the world raise prices here too, and when families are living at the edge of their budgets, as many do, an increase in the price of food cannot be accommodated.

I welcome the renewed emphasis that the Government have placed on supporting agriculture throughout the developing world, including enlarging the remit of the Commonwealth Development Corporation—now called the CDC—to look again at direct investments in agriculture. The CDC was a pioneer in investing in agriculture after the second world war, and many of those investments are still very productive, employing a lot of people in developing counties. The CDC rather lost its way on the issue of agriculture 15 or 20 years ago, so I welcome the return to its roots, along with investment in infrastructure and many other areas in which it has recently become successful.

Food security must be taken more seriously by all Governments, not just those whose people live daily with the consequences of shortages. We recently saw an example, to which both previous speakers referred, of a lack of seriousness when the European Union failed to introduce a food-based biofuel cap of 5%, which I believe the Government support and that was recommended by the Select Committee. Using precious land to grow food that is then inefficiently converted into fuel costs a lot of money in subsidies and pushes up food prices globally. As the Government support the cap, I urge them to call on EU member states to do the same, and as rapidly as possible.

In 2008, the sharp rise in the price of food arising from shortages led to hunger, hardship and civil disturbances in many countries. At that time, the world managed to rouse itself from its complacency and slumber, and took some important steps. The G20 formed the agricultural market information system, which includes the G20 plus Spain and seven other major agricultural exporters and importers, and of which the UK Government are a very active supporter. It analyses data on production, consumption, prices, stocks and trade and uses that analysis to prepare short-term market forecasts, which have made a great deal of difference. It also has a rapid response force, which meets as often as is necessary—I read “annually”, but I hope it meets more often than that, as it is supposed to be a rapid response force —to discuss policy co-ordination, which is vital. Given that one reason for the food price spike in 2008 was misinformation about the level of stocks in China, the system is a significant step forward and has helped to lessen the impact of more recent crises. However, we need more than information and policy about food supplies; we need action to react to crises.

The 2011 decision by the G20 to remove export bans or special taxes for food purchased for the World Food Programme was welcome. As the report makes clear, however, the hasty imposition of export bans still happens and makes difficult situations worse. This goes slightly beyond what the report says, but I would recommend that, led by the G20 and the United Nations, the World Food Programme should put in place plans with every state in regions likely to be affected by shortages, so that if a neighbouring country faces a crisis, countries could allow food to go where it is needed—instead of closing their borders for exports—in the full and confident knowledge that the World Food Programme would immediately support them with additional stocks if necessary to avoid a crisis for their own people. Export bans are based on the fear that a country’s own people will face shortages. That fear would be unfounded if the World Food Programme had definite plans in place, together with Governments, immediately to replace those stocks.

That brings me to the contentious issue of stocks, an issue about which the international community retains its worrying complacency. Our report recognised that

“maintaining large-scale food stocks can sometimes be problematic and costly”,

but we said that we believe that

“there may be a case for judicious use of stocks to relieve the tightness of markets.”

We recommended that the Government conduct further research, in particular to consider

“under what circumstances it would be appropriate for a national government to pursue strategic stockholding for national food security purposes.”

That was a modest but important recommendation that was rejected by the Government, who perhaps misunderstood what the Committee was really suggesting. I sometimes think that Governments—I am not referring to the UK Government—should take some time to read the book of Genesis to see what Joseph did during the food crisis that affected Egypt for many years. He suggested that emergency stocks be built up, which saw the country through a long period of famine.

Our proposal was not to manage prices on a day-to-day basis, in a way that would lead to the failed grain mountains and wine lakes that the Government response implies we were suggesting; it was specifically aimed at emergencies and food security when prices rocket. Indeed, the Government’s response states:

“Evidence suggests that emergency food stocks, which do not attempt to manage prices but provide food to the most vulnerable at times of crisis, are a more effective way of improving food security outcomes in developing countries.”

That is precisely the point. I do not believe that there is such a marked dividing line between stocks for emergency purposes and stocks to relieve pressure on prices. In countries where the cost of food forms a major part of household expenditure, a sharp price rise is a food emergency, because it means that an ordinary person without much money cannot afford to buy food, which makes the situation almost like a famine, even though food is around. This is such an important matter that I ask the Government to look again at their response. Later in their response, they made a sensible reply to our recommendation about emergency food stocks. I ask the Government to combine the two responses and examine how we can improve the world’s view, and particularly the UK’s view, about the handling of food stocks.

There have been major improvements in how crises are handled locally. The World Food Programme’s purchase for progress scheme, which aims to procure much more food regionally and locally, rather than shipping it in, is eminently sensible. It supports local food producers and does not distort the market. It enables countries to continue their normal way of life while helping to tackle a local or regional problem. Cash-transfer and voucher-based schemes, such as those already referred to in Ethiopia and elsewhere, are also effective, and the Department for International Development is rightly regarded as a world leader in such schemes. I commend those who are developing and implementing those programmes.

Two decades ago, development agencies substantially withdrew from programmes supporting agriculture, particularly small-scale agriculture, and it was left to non-governmental organisations and national Governments. It was thought that agriculture was perhaps a business of the past, that the problems had been solved and that they could concentrate on other areas. That was a big mistake, so it is good to see DFID once again strongly supporting investment in agricultural research and productivity.

As the hon. Member for Edinburgh North and Leith mentioned, the fair trade movement has made a significant contribution. Although it has concentrated on the cash crops, starting with coffee, cocoa, sugar and others, it has supported smallholder agriculture throughout the world. Let us not forget that most of the production of those smallholders is usually for their own local consumption of food crops, in addition to the cash crops that they have grown. We can rightly be, if not proud, then satisfied that the UK is now the world leader in fair trade in terms of volume of sales. It has adopted a pragmatic approach to fair trade, which is not viewed as an ideological subject, but one that promotes good quality and the interests of producers. That is why supermarkets have taken it on board. In other countries, the fair trade movement has perhaps rather shunned supermarkets and has hence deprived the smallholders of extremely large outlets for their produce. I reiterate my call for the Government to put their full weight behind Fairtrade fortnight in a few weeks’ time, because it is important that we do not lose the initiative that has driven the movement for the past 20 years to the position it now holds in this country.

We also need to recognise, as was said earlier, that smallholders do not fit into one category. They can be farmers with an acre or two, or they could have 10 or 20 hectares—in fact, we have many examples in this country that might be regarded as smallholders in developing countries around the world. They are not uniform. As my right hon. Friend the Member for Gordon, the Chairman of the Select Committee, said, this is not just about farmers subsisting in the bush. Many of them are substantial businesswomen and businessmen in their own right; they just happen not to have large expanses of land. At the heart of the matter is the ability or confidence of farmers to know that they own their land and have the rights to it in law.

I welcome the Department’s work on land tenure and rights, which are often fragile or non-existent. In 2011, the Select Committee saw the programme in Rwanda, which has now documented almost the entire country as far as leases or freeholds are concerned. As a result, everyone owning land and the millions of small farmers—men, women and families—know that they own the land, can develop it and are not at risk of having it arbitrarily seized. In addition, if they need to develop the land and have a good business case, they can go to a local bank and secure borrowing on it to increase, we hope, their incomes. DFID has also supported such work in India, Nepal and Mozambique. I hope the Department will extend that support to other countries, because it is rapidly building up world-leading expertise in land registration for smallholders. Indeed, I would go so far as to say that this is one of the best possible uses of UK taxpayers’ money that I have seen in DFID.

There is also the question of water resources. Water is a huge problem, and helping to discover and make best use of water resources is one of the greatest gifts we can offer. I therefore welcome the work being done to help countries to identify their vast underground water resources and exploit them for the benefit of the poor. I welcome the Unlocking the Potential for Groundwater for the Poor research programme, which is supported by DFID.

Rural infrastructure—irrigation, storage and rural roads—improves both pre and post-harvest production. The International Development Committee saw that in the Congo, where a 400-km earth road financed at a relatively reasonable cost by DFID meant that a journey that used to take about five days now takes two hours. Agricultural production can therefore be brought to market in a city such as Bukavu. Previously, that would not have been possible, and produce would have rotted on the way. Infrastructure should of course largely be the responsibility of national Governments, so I am glad that the UK is now supporting the comprehensive Africa agriculture development programme. The work can be done locally, perhaps with technical support from the UK, so will the Minister update us on any progress made on that programme?

Ultimately, agriculture is a business and a livelihood—something that brings in an income for hundreds of millions of people around the world. It is perhaps the business or livelihood in which more people are employed around the world than any other. That is why—given that over the next decade, according to some figures, we will have to create 1 billion new jobs globally, both to tackle current unemployment and for the new entrants into the labour market—agriculture is vital, because agriculture creates jobs effectively. In terms of investment, it is one of the most productive means of job creation.

I welcome the new FoodTrade initiative announced last year, which boosts UK investment in African regional staple food markets. Again, that could play a significant role. Will the Minister update us on how that is going? It is important that such initiatives, once launched—sometimes with great publicity—are followed through and are not left on one side, as can be the case on occasion.

Time and time again, speakers in previous debates have brought up the question of world trade in food products, which must open up. It is a great disadvantage to developing countries that their products do not have proper access—certainly not duty-free access—to many of the world’s richest markets. That is simply not acceptable in the modern world. By opening up the markets, we would see developing countries, which have a huge competitive advantage in agriculture, able to exploit that competitive advantage much better than they can at present, creating jobs, wealth and incomes for their people.

Climate change was touched on in our report. We did not have the time, space or, indeed, remit to go further than to say not only that it impacts upon food security, but that agriculture can make a massive contribution. On the one hand, I have seen for myself the effect of climate change on crop production—changes in the types of crop that can be grown, sometimes to the detriment of crop volume and productivity. On the other hand, agro-forestry can make a huge contribution to the world, although we do not place quite enough emphasis on it at the moment. Many countries are beginning to look into it as a means of job creation, resisting and countering climate change, and encouraging carbon sequestration.

Compared with a decade ago, and certainly two decades ago, the seriousness with which DFID and others treat agriculture has increased remarkably. That is welcome, but it comes not a moment too soon. A couple of hundred years ago, Malthus was wrong in his predictions, because the world woke up to the importance of improving productivity, investing in research and cutting protectionism. We can still prove the Malthusians wrong again, but only by doing the same: by investing in research to improve productivity and by cutting protectionism. DFID is doing a lot, if not most of that. It is not doing all of it—I have pointed out areas where there must be improvement—but it is doing most of it. I urge the Minister to keep going in the right direction.

--- Later in debate ---

[Lynne Featherstone]

I am coming to that. I have a whole list of points to get through. My right hon. Friend the Member for Gordon (Sir Malcolm Bruce) asked why it was that only 14 countries are in the programmes when there are 29 DFID countries. I hope to get to that.

The Government believe that functioning markets are a better way to manage food stocks than Government interventions. The hon. Member for Stafford (Jeremy Lefroy) made a number of points that went above and beyond the recommendations made in the report. One idea he mentioned was the World Food Programme holding universal stocks to improve availability. He also mentioned involving neighbouring countries and so on. As he said, those ideas go beyond the report’s recommendations. The evidence we have is that universal stocks are not the most effective use of money.

I will not return to the cap as an example, because it is clear that Members did not favour that view, but Malawi, for example, has recently had food shortages. They hold stocks, but when push came to shove and they looked at their grain stock reserve, it was not as high as they thought. Much of it had disappeared. There are a number of issues outside of simply whether stocks are held for emergencies. We do not have the evidence to say that that proposal is an effective use of money, but my experience is that a whole range of unintended consequences come from stockholding.

[Jeremy Lefroy]

I fully understand what the Minister is saying and agree that this is not an easy area. We received evidence from the deputy director-general of the Food and Agriculture Organisation. He said:

“The experience of the price spike and the impact of that in various countries related in large measure, in India and China in particular, to the ability to cushion the impact on their population by providing access to food at a lower price because of their grain reserve policies. Certainly in the 2008–09 experience, the impact on poor consumers in India and China was much less than it was in countries in Africa, for example, without the same capacity to do that.”

That is the basis of what we were saying.

[Lynne Featherstone]

I understand that there are differing views, but DFID does not have sufficient evidence and the evidence that we do have shows that attempts by Governments to manage price levels through public stockholding have not been effective in achieving food security objectives. For the moment, we will have to differ on this issue.

The issue of targets for food waste was mentioned. Our experience shows that the voluntary approach is effective and has allowed businesses to reduce waste and become more efficient. The hon. Member for Wirral South asked at what level we would change that. The Department for Environment, Food and Rural Affairs has worked successfully with industry on a voluntary basis through the Courtauld commitment to reduce supply chain food and packaging waste by 7.4% over the past three years. Household waste is down by even more: 15% since 2007. Our approach is having an effect and there is not an ultimate target where we will suddenly change horses. We agree that waste is a big issue and we are working through these voluntary mechanisms, which appear to be working.

HIV and AIDS

Jeremy Lefroy Excerpts

Tuesday 10th December 2013 Westminster Hall

[Jeremy Lefroy (Stafford) (Con)]

It is a pleasure to serve under your chairmanship, Mr Dobbin. I congratulate the hon. Member for Airdrie and Shotts (Pamela Nash) on her excellent speech and her leadership in the all-party group on HIV and AIDS. I apologise that I will have to leave before the end of the debate, to attend a Select Committee hearing, but I will follow the Minister’s reply and that of the shadow Minister extremely carefully in Hansard.

I pay tribute to David Cairns, who did a huge amount of work in the House on the subject, and huge tribute to Nelson Mandela for his leadership in this area, as in so many others. It is vital that we continue the battle. I lived in Tanzania for 11 years and remember, as the hon. Lady mentioned, the stigma that attached to the disease in the late 1980s and throughout the ’90s, and the courage shown by many people who came forth and said, “Look, we have to tackle this.” For that reason, a couple of years ago when my hon. Friend the Member for Mid Derbyshire (Pauline Latham) and I visited Nile Breweries, which was conducting a programme of HIV testing and treatment for the employees, she and I decided that we would publicly take an HIV test to encourage the workers at the factory to do the same, because some remained reluctant to do so, given the stigma of even taking the test.

I want to mention four areas in which we need to reinforce what we are doing and perhaps do more. The first is funding. The hon. Member for Airdrie and Shotts has mentioned the important work of the Global Fund to Fight AIDS, Tuberculosis and Malaria, which we cannot stress enough, and I am delighted that the Minister has decided to increase its funding substantially. The hon. Lady quoted the statistics on the 29% fall in AIDS-related deaths since 2005; it is no coincidence that that is roughly the time during which the Global Fund has been operating. We see the same in malaria; I do not know the statistics for TB, but I am sure the same is true. Certainly, the number of deaths from malaria has fallen by a similar percentage during the time when the Global Fund has been operating.

The Global Fund is a hugely important multilateral fund, which has received very good ratings, for example in the multilateral aid review of the UK Government in 2010 and 2011. It is vital that we continue to support it. Certain issues have been brought up in recent weeks, and last year, but the current chief executive, Mark Dybul, is excellent and is tackling them. He is visiting the House next week and I hope to have the honour of entertaining him. I encourage other Members and colleagues to meet him. We must continue with the emphasis on maintaining and increasing funding. The Global Fund has not yet reached its target of $15 billion for replenishment. We need to encourage our colleagues internationally, in particular in Europe—Germany, France and other countries—to step up to the plate and ensure that the UK and the US can fulfil their commitments, because part of our commitment was conditional on others making commitments.

Secondly, we need to concentrate on the strengthening of health systems—the shadow Minister and I have discussed this on a number of occasions. Only through proper health systems in developing countries will we achieve the universal access to diagnosis, treatment and indeed prevention that is so vital. I am delighted that one of DFID’s new priorities is to reduce new infections in women and girls, which is only possible if we have strong health systems throughout the world. I want to hear from the Minister what DFID intends in this particular area—the Select Committee on International Development certainly hopes to launch an inquiry in the coming year.

Thirdly, as the hon. Member for Airdrie and Shotts rightly mentioned, we have to work with local groups. I am proud to say that I am an honorary member of the Kilimanjaro women’s campaign to fight against AIDS, which was launched in the early ’90s and has achieved a huge amount locally in the Kilimanjaro region of northern Tanzania and beyond, often on limited resources. The group is led by women and it works in education in support of families and the education of AIDS orphans. It did work that many other, much more substantially funded organisations were not able to do, because its work was mainly run by very committed volunteers.

DFID has an important role to play in support of such groups, not necessarily with massive amounts of funding, because sometimes the effectiveness of such groups is in inverse proportion to the amount of funding that they get. I remember one particular official group, which was substantially funded, that collapsed six months after the funding stopped, simply because it had become so reliant on it and was not prepared to continue the work once the funding stopped. It is vital that we support those groups, but sensitively, so that they are led perhaps not by expatriates going in, but by local people, supported by DFID.

Finally, there is the link made by the hon. Lady between HIV/AIDS and domestic violence and the broader issue of human rights—such as the fact that homosexuality is criminalised in, I believe, 42 out of 52 Commonwealth countries. We have to tackle such matters. Whatever might be said about us in the UK, we must take a lead. I am glad to see that the Government are doing so.

I will conclude by putting on record how important I believe it is to continue the fight. There is the tendency, as we saw with malaria in the 1950s and ’60s, once a battle seems to be largely won, to stop and relax, but it can come back with a vengeance to bite us, as with malaria in the’70s, ’80s and ’90s. We cannot give up on this. We must maintain our support, and I congratulate the Government and the hon. Member for Airdrie and Shotts on doing so.

Oral Answers to Questions

Jeremy Lefroy Excerpts

Wednesday 4th December 2013 Commons Chamber

[Lynne Featherstone]

Yes, we are very keen to help the countries that have such a high burden. We are encouraging the global fund to change its remit to give more than 10% of the support to Nigeria. Interestingly, Nigeria pledged $1 billion to the global fund yesterday at the pledging conference. That is a tremendous move forward for that country.

[Jeremy Lefroy (Stafford) (Con)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for International Development (Justine Greening)]

Since the last oral question session in October, I have visited the Philippines, where I witnessed at first hand the impact of Typhoon Haiyan, and to Afghanistan, where I met President Karzai. Earlier this month, I took an 18-company delegation to Tanzania to showcase the opportunities for development-focused investment. On 13 November, I chaired the call to action on protecting women and girls in emergencies. Today, I have issued a written ministerial statement that announces tough new controls on the Department’s programme management. Finally, I returned from Washington this morning, where I saw the successful replenishment of the Global Fund to Fight AIDS, Tuberculosis and Malaria.

[Jeremy Lefroy]

I thank the Secretary of State for that.

In the light of the Secretary of State’s decision today to shut the TradeMark Southern Africa programme due to very poor performance, what action is she taking to ensure that all programmes either deliver or, if they do not, are swiftly remedied or closed?

[Justine Greening]

I have set out today in my written ministerial statement ways in which we have significantly strengthened DFID’s programme and financial management procedures. I am taking further significant steps to strengthen our approach to value for money, including on procurement and ministerial oversight of new business cases. As I inform the House in my statement, weak governance in TMSA resulted in payments amounting to £80,000 via ring-fenced accounts held by the Ministry of Agriculture in Zimbabwe from 2011. That money was used appropriately, but the payments were in contravention of Government policy, so my statement today sets out that I am expanding our internal audit capability and ensuring that when programmes fail to deliver we can spot them, take decisions on them and, if they fail to get better, stop them. [Interruption.]

Typhoon Haiyan

Jeremy Lefroy Excerpts

Thursday 28th November 2013 Commons Chamber

[Justine Greening]

Disappointingly, the right hon. Gentleman has shown that the tone of the relationship can be set by his side as well as by ours.

The right hon. Gentleman asked what we have delivered. The UK has delivered support to around 800,000 victims of Typhoon Haiyan, which has included 12 flights. Two RAF C-17s have landed in Cebu so far, with a third rotation planned. We have also delivered more than 17,000 shelter kits, 38,000 tarpaulins, 16,000 hygiene kits and 1,500 tents, as well as water and sanitary equipment, buckets, jerry cans, 4x4 vehicles and JCBs. We have provided heavy-lifting equipment at the request of the World Food Programme to help to load and unload aid at Cebu airport, and also debris and road-clearing equipment to unblock roads so that we can get aid through. As everyone is aware, we also sent over HMS Daring, which has now been relieved by HMS Illustrious, which enabled medics and supplies to get to isolated and devastated communities. We have also had an RAF C-130 plane in the region shuttling supplies between Cebu airport and the people who need them in Tacloban, for example.

The Government have carried out significant work on disaster preparedness. Through the UN, we are involved in the work of Political Champions for Disaster Resilience, which works with the Government in Haiti. I have invited the Philippines Government to become involved so that they can be better prepared for disasters and better able to respond to them.

The right hon. Gentleman asked what we were specifically doing in the Philippines. As I said in my statement, we have earmarked £5 million for four main cities in the Philippines that can benefit from better disaster preparedness. In 2010, the Philippines Government passed a law setting out a framework for them better to respond to disasters. As I am sure the House is aware, that part of the world is particularly prone to natural disasters. The challenge they faced was simply the scale of the typhoon, which was possibly the largest ever to make landfall. We will work to help them to improve their ability to withstand such disasters. Part of that will involve looking at how buildings are constructed and helping local government to improve its capacity to work with communities and evacuate people.

The right hon. Gentleman asked me about my assessment of the Philippines Government’s capacity to deliver the reconstruction effort that is needed. They are today and tomorrow looking at the initial needs assessment on infrastructure. I have spoken to the World Bank and the Asian Development Bank, which are likely to mobilise some of the financing that is needed for the reconstruction effort. There is a general willingness on the part of the Philippines Government to drive forward the work and on the part of the international community to support that effort over the coming months and years. Indeed, it is already projected that UN work will take place over the next 12 months as a minimum.

The Government have always made it clear that we want an international agreement on climate change—it is vital that that is tackled. The right hon. Gentleman should remember that it was the Conservative party in opposition that proposed a climate change Act and his Government ultimately took the idea on board. I assure him that we remain resolute in prioritising tackling climate change, as he will see over the coming months.

[Jeremy Lefroy (Stafford) (Con)]

We are increasingly seeing disasters occurring around the coast and in island states. We have also seen the enormous role that HMS Illustrious has played. Will my right hon. Friend consider whether, when Illustrious retires, we might convert it into Her Majesty’s relief ship, which could be based somewhere such as Gibraltar?

[Justine Greening]

That is an interesting suggestion. It might prove to be an expensive way of ensuring that we can reach people quickly, but we are always open to ideas. I should say that the medical team on Illustrious has already treated two children with infected wounds who unfortunately needed to have limbs amputated. That saved their lives, so we can see how our Royal Navy provides support to people who are in desperate need, and we should be proud of the work that it is doing.