Disaster and Emergencies Preparedness Programme

Lord Collins of Highbury Excerpts

Monday 18th December 2017 Lords Chamber

[Lord Bates]

The noble Baroness is right: UNICEF and the World Food Programme have identified that every £1 spent in preparedness can save £2 in humanitarian assistance. It is absolutely right that we are spending approximately £175 million this year on resilience and prevention programmes. We looked at the specific DEPP programme she mentions. It was very complex in how it delivered. The overheads were quite high at about 25%. We have said that we would like to take a good look at it again to see whether we can deliver a more effective programme, but our commitment to preparedness and humanitarian intervention remains absolutely the same.

[Lord Collins of Highbury (Lab)]

My Lords, the key feature is that the World Humanitarian Summit said that this a priority area. Irrespective of the outcomes of the specific programme, how will DfID approach this subject in its priorities? Will it comply with the World Humanitarian Summit and develop programmes? Tell us exactly how we will continue to make the savings that he described.

[Lord Bates]

We will certainly do that and comply with the Grand Bargain—we were a driving force behind it. That is why we have set out that preparedness and resilience ought to be a key part of the UN’s mission. We have said that and withheld a proportion of its core funding to ensure that it lives up to it. That is also why we are the largest contributor to the UN Office for the Coordination of Humanitarian Affairs and the central emergency relief fund. We recognise the importance of that and will continue to live up to our obligations.

Sanctions and Anti-Money Laundering Bill [HL]

Lord Collins of Highbury Excerpts

Committee: 3rd sitting (Hansard): House of Lords
Wednesday 6th December 2017 Lords Chamber

[Baroness Kramer]

My Lords, everything that can be said has been said brilliantly. I hope that we will get an update from the Government which convinces us that this issue is back on track.

[Lord Collins of Highbury (Lab)]

My Lords, I note that the Minister was about to stand up but I cannot allow him to jump in so soon.

I congratulate the noble Lord, Lord Hodgson, on moving this amendment. I was disappointed that the noble Lord, Lord Faulks, was not present but he has done a grand job and a very persuasive one. Like my noble friend, I congratulate the former Prime Minister, David Cameron, on initiating consideration of this issue. We are talking not just about government policy but about a government commitment. The noble Lord, Lord Hodgson, is absolutely right—there is no better place than this Bill for this commitment to be delivered. That is why we wholeheartedly support this amendment.

I am glad that the noble Lord, Lord Bates, will respond to the amendment because he knows only too well the cost arising from this money flooding into London. We talk about the impact on London property prices and about corruption but we know that the poorest countries lose an estimated trillion pounds a year through tax evasion and corruption. The poorest in our world suffer as a result. That is why we must see the Government deliver on this solid commitment. My noble friend gave clear examples of what is happening and we have received briefs from Transparency International, but you have only to look down the river from the Terrace here to see St George Tower, a fantastic round tower. Two-thirds of it is in foreign ownership and a quarter is held through offshore companies based in tax havens. We only have to look there to see what is going on. This was a commitment of the former Prime Minister and it is an appropriate Bill. The commitment was that it would be introduced by April 2018.

We have heard how long it is since the consultation was concluded. The sad fact that the consultation has not been published is a bit of an indication about the timetable for any proposed legislation. We have an opportunity here and I hope the noble Lord, Lord Bates, will take it up. In previous Committee sittings we heard from the noble Lord, Lord Ahmad, about how he has been in listening mode and will take the opportunity to take this away. This is a perfect example of how we can deliver on a clear commitment made by the former Prime Minister.

Regarding commitments, at the Anti-Corruption Summit there was also a commitment to update the anti-corruption strategy by the end of 2016. That strategy is now long overdue. I hope the Minister will take the opportunity to say how the Government are committing to this general, overall strategy, because all these things are linked. I look forward with interest to hearing from the Minister how this commitment will be met.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, my noble friend Lord Hodgson began his remarks by welcoming me as a fresh face to this topic. That will probably turn out to be classic understatement, but I am delighted to be here on a very important topic.

I first pay tribute to all noble Lords—in particular to the noble Lord, Lord Hodgson, for standing in for the noble Lord, Lord Faulks, and for the energy and commitment they have both shown on this topic over some time. I guess noble Lords will want to hear about the current position so let me get straight to it.

This amendment would set down in legislation a commitment made at the 2016 Anti-Corruption Summit, which the UK convened, to establish a public register of company beneficial ownership information for foreign companies which already own or buy property in the UK, or which bid on UK central government contracts. This was a point referred to by the noble Lord, Lord Rooker.

The Government remain committed to this policy and our intention is to act in this space; that intention has not faltered since the noble Baroness, Lady Williams, gave a commitment earlier this year. My noble friend Lord Hodgson is right to table this amendment—just as my noble friend Lord Faulks and other noble Lords are right to support it—to remind the Government of this commitment. I welcome him doing so.

The UK is a world leader in promoting corporate transparency. We legislated in 2015 to establish a public register of company beneficial ownership—that was how we described it, and it was actually done. We remain the only country in the G20 to have established such a register. The noble Baroness, Lady Bowles, said that the eyes of the EU are on us. I hope they are because we are leading on this; we are not following. We have recently expanded the register to include other forms of legal entity established in the UK, and we remain committed to this agenda.

Earlier this year, the Department for Business, Energy and Industrial Strategy published a call for evidence on the design and implementation of the register of overseas companies that own UK property. As that call for evidence noted, this register will be the first of its type in the world, reflecting the Government’s continued commitment to being a world leader in this area.

The innovative nature of the register does, however, bring with it issues of legal complexity. The Department for Business, Energy and Industrial Strategy has identified that it will require complex amendments to the existing company law framework in the UK, with new functions being delegated to the Registrar of Companies, as well as the three land registries in England and Wales, Scotland and Northern Ireland. I will ensure that the comments about downloads are relayed to the Land Registry. Consideration will also need to be given to the acquisition, use and processing of information.

In addition, a robust enforcement mechanism will be essential, and the Government propose to implement this via the land registration system. Careful consideration will be needed as to how this will be applied to new and existing landowners, while ensuring appropriate protection for third parties. It will also require consideration of the appropriate penalty regime to be applied to persons who fail to comply with the obligation to include the necessary details on the register. These and other issues relating to the operation of the register were raised by respondents to the Government’s call for evidence earlier this year. We have been considering these so as to inform the design of the register.

I make it clear that the Government remain committed to establishing this register and to fulfilling our commitment at the 2016 Anti-Corruption Summit. My noble friend Lady Williams reiterated this commitment yesterday, speaking at the inaugural Global Forum on Asset Recovery in Washington DC. The Department for Business, Energy and Industrial Strategy expects to respond formally to the call for evidence early in the new year. That response will focus, as did the call for evidence, on how the register will be established and not on whether it will be established.

So as to fully take account of the extensive work that the Government, private sector and civil society have already conducted, and continue to conduct, on the design of this register, it is right that we allow the Department for Business, Energy and Industrial Strategy to conclude the process that is already well advanced and to publish its response to the call for evidence early in the new year. This will ensure that the register is well designed, takes full account of the representations received and provides a legally robust mechanism for registering the beneficial owners of overseas companies that own UK property. So as to further inform the response from the Department for Business, Energy and Industrial Strategy, I will ensure that it is fully aware of the points made by noble Lords today in support of establishing the register.

I should add that earlier my noble friend Lord Ahmad gave a commitment to meet my noble friends Lord Hodgson and Lord Freeman and other noble Lords who are interested in this area to update them on matters and to get further information on what they would like to see.

I hope that I have given the Committee some reassurance on our intention to act and on the next steps that we have planned, and that noble Lords can have confidence that no provision is required in this Bill to secure the progress that my noble friends Lord Faulks and Lord Hodgson seek. Therefore, I ask my noble friend to withdraw the amendment.

--- Later in debate ---

[Lord Naseby]

My Lords, I declare an interest as vice-chairman of the All-Party Parliamentary Group for the Cayman Islands. In addition, a member of my family lives in the Cayman Islands. I very much support what the noble Earl, Lord Kinnoull, has just said.

We have come a long way in the best part of 18 months from a situation in which there was no statutory methodology whereby United Kingdom law enforcement agencies could get information from any of the overseas territories in a reasonable length of time and know that it had been properly produced. Speaking only from my knowledge of the Cayman Islands, that information is now available 24 hours a day, 365 days a year. That is rather better than Her Majesty’s Companies House is capable of doing. I think that is a great advance.

I deeply regret what the noble Baroness, Lady Kramer, said: namely, that when Cayman Islands representatives went over to Brussels recently, they were protected by Her Majesty’s Government. They went on their own, put their material before the authorities there, and, quite rightly, the authorities listened properly and recognised the progress that had been made. That is why the Cayman Islands are not on the blacklist. Of course, the volume of financial operations in Bermuda and the Cayman Islands is extensive—so, understandably, anybody who is concerned about financial transactions will keep a watch on what is happening. That is absolutely right and justified.

The noble Earl, Lord Kinnoull, rightly referred to Luxembourg. Top four—not the bottom four. What about other parts of the world? The USA is probably in the clear, as I am sure that the central government of the USA is in the clear. However, it is totally incapable of controlling Delaware, Nevada and half a dozen other states. We are supposed to have a special relationship with the United States. That is not much good if we accept an amendment such as this and find that all the people in our overseas territories are thrown out of business as their legitimate business is undercut totally by Delaware and Nevada—particularly Delaware.

Therefore, I say to your Lordships, “Tread carefully. Recognise that huge progress has been made in the last 18 months and that we now have a situation where our authorities can get concrete evidence when it is required”. We are not getting that out of the present system of control in the United Kingdom. We can go out of this Chamber tonight, go through the smart parts of central London and see how many of those houses are unlit. Do none of us wonder who owns those houses? Do we think the British own them? We all know in our heart of hearts that they are not owned by British people, and almost certainly not by continentals. That money has come from somewhere. It seems to me pretty likely that it is hot money. So I ask noble Lords to think long and hard before they start to destroy these overseas territories.

I was sorry that the noble Baroness who introduced this amendment brought in human rights. I have had the privilege of working and living in Pakistan, India and Sri Lanka and I know that part of the world extremely well. Legitimate British companies working there are not exploiting people. They have brought employment there, better living conditions and all the rest. The noble Baroness is quite wrong to suggest that every company operating there—or the vast majority—is exploiting these poorer countries. I ask the noble Baroness and others to find some real, concrete examples rather than generic ones. That is why I will resist the idea of a public register until such time as we have given the existing one time to work, and until such time as the EU and the United Kingdom persuade the United States to join in with producing uniform reporting. I say to my noble friend on the Front Bench that I hope Her Majesty’s Government will tread carefully and recognise the work that has been achieved so far in a pretty short measure of time.

[Lord Collins of Highbury]

My Lords, I thank all noble Lords who have contributed to this debate. I very much appreciate the comments that the noble Baroness, Lady Stern, made in moving this amendment. She is probing at this stage. We want to find out exactly what has happened—because, unlike the noble Lord, Lord Naseby, I do not think that progress has been made quickly. We have been making demands on these issues since 2013.

When we are talking about cost, it is not just criminal activity that we are talking about but tax evasion. Sometimes it is called tax avoidance but the cost of tax evasion to developing countries runs to billions of pounds. Again, I come back to the vital point that those who can least afford it are suffering the most from the activities of territories that hide people’s activity. We should not be racing to the bottom. Transparency is about good business and doing good business. That is what this amendment is about. It is not about trying to punish territories or communities that have been trying to develop or extend their economy.

--- Later in debate ---

[The Earl of Kinnoull]

Before the noble Lord sits down, could he give some comment on the Sewel convention-type points that I made? I was making a constitutional point and it would be very helpful to understand the Opposition’s view.

[Lord Collins of Highbury]

The Opposition’s view, in terms of global economic theft, for want of a better word—the noble Baroness, Lady Kramer, raised this point—is that we are not talking about domestic industries or domestic activities. We are talking about transactions that are going global in terms of what I would call international crime. Not only the Panama papers but also the Paradise papers are showing that these activities are causing far more damage.

I believe that the overseas territories have an obligation to comply with international agreements, certainly regarding our UN obligations on sanctions. If we sanction a country for corrupt activities, the overseas territories have to comply. If it is good enough for sanctions, it is important that we consider it important enough for some of the crimes we have heard described this afternoon.

[Lord Ahmad of Wimbledon]

My Lords, I thank all noble Lords who have taken part in this debate. In particular I thank the noble Baroness, Lady Stern, for tabling this amendment. It would require the Secretary of State to provide all reasonable assistance to the Governments of certain of the British Overseas Territories with significant financial centres to enable each of those named overseas territories to establish a public register of company beneficial ownership. It further provides that if, by 1 January 2019, such overseas territories have not established such a register, the Secretary of State should take all reasonable steps to ensure that the Privy Council legislates to require each relevant overseas territory to do so. With your Lordships’ indulgence, I shall refer to the overseas territories as the OTs to save a degree of time.

I also appreciate that, as the noble Baroness articulated in moving the amendment, it was a probing amendment. That allows me to outline what steps have been taken. The OTs, as you know, are separate jurisdictions with their own democratically elected governments. They are not represented in this Parliament and so it has only been in exceptional circumstances that we have legislated for the OTs without their consent.

Financial services are the domestic responsibility of territory Governments. This creates an entirely different relationship from examples where we have had to legislate. For example, we have acted over international human rights obligations and, indeed, on decriminalising homosexuality. On the governance structures in which these territories work, as the noble Earl and my noble friend Lord Naseby have indicated, and as the territories and the House will recognise, legislating for the OTs without their consent would effectively disfranchise their own elected representatives. It would create considerable ill-feeling, which the Government do not wish to do.

Legislating to require certain OTs to establish public registers of company beneficial ownership when they do not wish to do so of their own volition would also mean that the territories would be less keen to maintain their current level of co-operation. This would jeopardise the progress—which I shall come to in a moment—that has already been made in this area and the spirit of working in partnership that we have fostered with them. The noble Lord, Lord Collins, said that I was running off to the joint ministerial council—I think I ran from it. We covered this subject; indeed, it was also covered by my right honourable friend the Prime Minister in her meeting with the overseas territories. Jeopardising progress in this respect is not something any of us want to do. Given the necessary lead-in period for establishing any new register of beneficial ownership, this would set back UK law enforcement’s ability to access information relating to the beneficial ownership of companies in the OTs.

Let me assure noble Lords that this does not mean we are content for no action to be taken in this space. It simply means that we wish to take action within the existing framework of friendly co-operation, building on the progress already made. The noble Baroness, Lady Stern, made the point that I am the Minister for Overseas Territories. I have been dealing quite extensively with them, as noble Lords will understand, particularly certain territories, because of the tragic hurricanes that struck. We raised these issues directly, and we have seen good progress.

As noble Lords will know, the UK is a global leader in the cause of corporate transparency. We are the only country among the G20 to have a fully established public register of company beneficial ownership, and we continue to push for this to become a global standard. The international standards set by the Financial Action Task Force do not require it, however, reflecting the lack of international consensus in this area. These standards require only that:

“Countries should ensure that there is adequate, accurate and timely information on the beneficial ownership and control of legal persons that can be obtained or accessed in a timely fashion by competent authorities”.


Nevertheless, should public registers become the global standard, we would expect the OTs to meet it. The UK is far ahead of other countries in this area. The current EU framework does not require all member states to establish public registers of company beneficial ownership, so many have chosen not to do so. There is already progress in this area and we need to build on it within the existing framework of friendly co-operation, to which I have alluded. Under the arrangements that we concluded with the OTs in 2016, overseas territories with significant financial centres committed to hold beneficial ownership information in central registers or similarly effective systems, and to provide UK law enforcement authorities with automatic access to such information within 24 hours of a request being made, or within one hour in urgent cases.

These arrangements—also known as the “exchange of notes”—came into effect on 30 June this year and are in the process of being fully implemented by the OTs. An important point is that effective implementation of these arrangements will put the OTs ahead of many G20 members and many individual states of the United States—a point made well by my noble friend Lord Naseby.

I am pleased to report that Bermuda, the British Virgin Islands, the Cayman Islands and Gibraltar have central registers of beneficial ownership information or similarly effective systems in place, and they are taking forward population of their systems with beneficial ownership data.

We are also providing support to the Government of Anguilla to establish an electronic search platform providing access to beneficial ownership information, as well as support in drafting underpinning legislation. We are now working with Anguilla to finalise a memorandum of understanding on the terms for provision of our support, and we expect its beneficial ownership system to be established in the spring of 2018, notwithstanding the current rebuilding challenges it is facing following the hurricane. Work on establishing a central register in the Turks and Caicos Islands has been delayed owing to the impact of Hurricane Irma, but we expect this to be in place soon.

We did not seek a bilateral arrangement with Montserrat, as we had with the other OTs with financial centres, because Montserrat had already committed in November 2015 to include beneficial ownership information in its existing public companies register. A Bill requiring the inclusion of beneficial ownership information in the existing register will be introduced to Montserrat’s Legislative Assembly this month. The target date for the addition of that information to the register is 1 April 2018.

Having heard that detail, I hope your Lordships will agree that it demonstrates what can be achieved by working consensually with the OTs. It is right, therefore, that we focus on the implementation of the existing arrangements and that future work in this area be carried out within the existing framework of friendly co-operation, rather than generating ill will by imposing upon the OTs without their consent.

We are committed to following up on these arrangements to ensure that they deliver in practice, are implemented effectively and meet our law enforcement objectives. There is explicit provision in the exchange of notes for the operation of the arrangements to be reviewed six months after they came into force—that is, at the end of this year—and subsequently on an annual basis. These formal review processes are in addition to ongoing monitoring of the practical application of the exchange of notes by the UK and each relevant OT.

In addition, noble Lords will recall that Section 9 of the Criminal Finances Act 2017 amended Part 11 of the Proceeds of Crime Act 2002 to establish a statutory review process for the implementation of the exchange of notes. This report must be prepared before 1 July 2019 and relate to the implementation of the exchange of notes from 1 July 2017 to the end of December 2018. Once prepared, it will be published and laid before Parliament. The Government are clear that OTs with significant financial centres must fully implement the exchange of notes to which they have each agreed. The noble Baroness, among others, asked whether this matter had been raised. I have already said that it was raised at the JMC, and the Prime Minister reiterated this at her meeting with the leaders of the OTs last week. These arrangements have been made and must be honoured.

A key feature of the Government’s approach has been to maintain a level playing field between the OTs with financial centres and the Crown dependencies. As I am sure noble Lords reflecting on my contribution will see, we have robust review processes for the implementation of these arrangements, both on an ongoing basis with the Crown dependencies and the OTs and through the Criminal Finances Act. If these review processes demonstrated that full implementation of the exchange of notes was not taking place in any individual jurisdiction, it would be right for us to consider the issue further.

My noble friend Lord Patten, who I see in his place, raised the EU blacklist. Perhaps I may, first, give some factual information. I will check Hansard but I believe that he mentioned that Bermuda was on the blacklist. Bermuda is not on it; nor are the Cayman Islands or the Crown dependencies. Bermuda, the Cayman Islands and the Crown dependencies are on a separate list—I am quoting here—of co-operative jurisdictions which have been assessed by the EU as being unsuitable for the blacklist. They have also further committed to address any remaining concerns by the end of 2018. I can be quite specific in saying that this is not a grey list; on the contrary, it is a demonstration of the progress and positive commitments that have been made and are being achieved.

HIV: Global Response and Young People

Lord Collins of Highbury Excerpts

Thursday 30th November 2017 Lords Chamber

Asked by

[Lord Collins of Highbury]

To ask Her Majesty’s Government how they will support young people as partners, leaders, and advocates within the global response to HIV.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, ending AIDS as a public health threat by 2030 is a UK priority. We are the second-largest international funder of HIV prevention, treatment and care. Much progress has been made, but AIDS remains a leading killer of adolescents globally. To change this, we must work together with young people to help them take informed choices to protect themselves from infection.

[Lord Collins of Highbury (Lab)]

My Lords, I welcome the Government’s commitment, but one thing that concerns me is that no mention is made of HIV in DfID’s youth agenda, which was published in 2015 and promotes youth as being the agents for change in the heart of development. HIV affects young people disproportionately. Does the Minister accept that, by including it in the agenda and recognising HIV as a youth issue, young people could be supported to lead HIV programming and to be effective advocates in stopping the spread of HIV? One thing that DfID could do would be to include a young delegate in the delegation to the international AIDS conference in Amsterdam next July, but certainly prioritising it among young people is key.

[Lord Bates]

That seems a very good suggestion. I am happy to take it away and look at the possibility of sending a young delegate to the AIDS conference next year. I think that we could do more in this area. Above the youth strategy, we have the HIV/AIDS strategy, which cuts across all these issues. The noble Lord is absolutely right to remind us about the effects of AIDS. It is the biggest killer of young girls in sub-Saharan Africa and 80% of all new infections among adolescents occur in young girls. Education, the involvement of peer groups, overcoming stigma and making sure that people have access to the right sexual and reproductive health advice are all very important, and I am very happy to take away the noble Lord’s suggestion and look at it again.

DfID Economic Development Strategy

Lord Collins of Highbury Excerpts

Monday 27th November 2017 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I too thank the noble Baroness, Lady Nicholson, for securing today’s debate. I also place on record my appreciation of the efforts of the Minister, who also helped secure this debate. It has been important for the Government to recognise the need for parliamentary debate and scrutiny of this issue and I welcome his efforts.

I am totally with the noble Lord, Lord Bruce, in his analysis of the debate that we face. Language is quite important. We say, “development assistance” and “the Department for International Development” and then we suddenly switch to “aid”, which fuels some of the negative comments from the likes of the Daily Mail. It is “development”. We have a responsibility. Like the noble Lord, Lord McInnes, I welcome the fact that we have a party-political consensus on the 0.7% for ODA. But we have to recognise that despite that consensus, we have not necessarily gone far enough to persuade many of the public. We should and must make the case every day we can. When a budget as important as this is ring-fenced, there is a fiscal responsibility and a moral duty to ensure that the money we invest makes as much change as possible.

We also need to make the argument that development is also in Britain’s interests—better off, growing and trading within a strong global economy, with a sustainable climate, supported governance and secure borders. All those things that we have heard in the debate are potential risks to the United Kingdom can be addressed through our commitment to the 0.7%.

I agree with the noble Lord, Lord Bruce, that we need to encourage the private sector to do more. We need the private sector to be engaged. When Priti Patel was Secretary of State, she argued that the private sector needed to play an even greater role by integrating the aims of the SDGs into its business practices—absolutely right; I could not agree more. Of course, developing countries currently face an annual investment gap of $2.5 trillion to achieve the SDGs by 2030. Current investment levels are less than half that. Over the next decade, 1 billion more young people will enter the job market, mainly in Asia and sub-Saharan Africa. Africa’s population is set to double by 2050 and its urban population is set to triple. As many as 18 million extra jobs a year will be needed. This challenge can be addressed only by working with the private sector, including organisations such as the CDC. The SDGs and the Addis Ababa Action Agenda produced an international consensus that the private sector must play a vital role in achieving sustainable development.

Again, I very much welcome DfID’s strategy, which sets out how the UK will invest to support inclusive economic growth in the poorest regions by building the potential for developing countries to trade more, as well as entering into technical partnerships with partner Governments to tackle the constraints—policy, legal and regulatory—that have been identified in today’s debate, which deter investors and prevent business growth. CDC, wholly owned by DfID, has a central part to play in delivering that strategy, particularly in developing local financial sectors, deepening links with the City of London and pioneering investments in businesses to create jobs and catalyse private sector investment—to pump-prime and get things started in those difficult areas.

As we have heard in the debate, poverty and bad governance are still holding too many countries and their people back. Many women and disabled people and too many minorities are discriminated against and denied access to their fair share of goods, services and opportunity. Economic growth has the potential to be the engine to drive change. But growth without jobs, inclusion, healthcare, education or human rights—growth without power—will not deliver for the many. DfID’s strategy assumes that growth means poverty reduction. As my noble friend Lord Judd said, that is not necessarily the case. Rising inequality in high-growth countries has been a manifest problem. If we are serious about leaving no one behind, we need to address that. Perhaps the Minister can tell us how the strategy will deliver on inclusion and identify the most marginalised.

Decent jobs are a vital part of goal 8 of the SDGs. I know I have said this before but it really bugs me that the SDGs can be described in a review, yet no mention is made of trade unions and how people are to be empowered. Trade unions are vital to making change. By supporting trade unions, women’s groups and other civil society groups, we can give them a voice in mounting their own advocacy in defence of human rights, including workers’ rights. That is how we make change happen on the ground.

DfID and the CDC need to consider the growth diagnostics when measuring economic development. It is not sufficient to have markers that measure only the quantity of jobs created; job quality also needs to be measured. These measurements should of course be in line with the standards set by the ILO. I hope the Minister can tell us just how trade unions will be involved in the dialogue on the quality of jobs created as part of the strategy.

I want to turn to one other aspect of inclusion. I declare an interest as an officer of the APPG for Global Lesbian, Gay, Bisexual, and Transgender Rights. There are still 13 countries where being gay is punishable by death and 75 where same-sex contact remains a criminal offence. That covers 2.9 billion people—some 40% of the world’s population. LGBT rights, like women’s rights, are workers’ rights, too. That is what we need to address. The trade unions have long argued the benefits that flow when equality flourishes. On LGBT rights there is a business case to make, too, and this is where DfID’s strategy and the CDC have a role to play. I recently raised this issue with the officers of the CDC and I hope that the Minister will also take this up.

The positive case for equality has recently been made in the five standards of conduct, published by the office of the United Nations High Commissioner for Human Rights, to support the business community in tackling discrimination against LGBT people. I have met with the United Nations officials who were responsible. We can often say that investment is leverage but I am not one of those people who think that we should stop support or development assistance because a country makes same-sex contact illegal or criminalises homosexuals. I believe there is a case for engagement: engagement by making the case that inclusion, equality and empowerment deliver better growth, better jobs and better workers. We need to make that case strongly, so what steps have DfID and the CDC taken to work with the United Nations and the European Union on this issue? It is vital that we have that sort of response.

We have now seen the CDC investment plan and the strategic framework for the next five years. During the passage of what became the Commonwealth Development Corporation Act 2017, I think we all made the case that we wanted Parliament to have the fullest possible engagement with that five-year plan.

I am pleased that the strategy focuses on Africa and south Asia, where 80% of the world’s poorest people live. I am pleased that capital is being mobilised towards the UN SDGs. If we are to measure our success, the tools that we have are the SDGs—they are what we must always be focused on. I certainly welcome the CDC’s commitment to increase its transparency and improve accountability. It is not being critical of the CDC’s actions to say that, in the past, there has not perhaps been as much transparency as we ought to have. But with our investment strategy, we can say that a much more robust approach needs to be taken to measuring development impact. As I said before, it is simply not enough to say we have created X amount of jobs. What sort of jobs, and of what quality? What training and opportunities are there for young people? There is not enough in the strategy about the needs of young people.

Another way to increase transparency is to allow the Independent Commission for Aid Impact to play a much bigger role; for example, by carrying out a regular assessment of CDC investments. I would like Parliament to debate the CDC’s annual report. Bearing in mind how much money is now being funnelled through this important arm of government, why can we not have a yearly debate rather than having to wait for gaps in government business? Although I welcome this gap, I would like greater parliamentary involvement.

We have heard examples of the CDC’s positive impact, particularly on health. I will not repeat them all, but one thing that is worth repeating is its role when such incidents happen. For example, when Sierra Leone was hit with Ebola, the CDC’s engagement with Standard Chartered helped many businesses survive that terrible period. We talked about other incidents where the economic viability of a country can be affected, but the CDC’s work with the private sector to ensure that businesses could continue was vital, and we should say more about it.

When we are faced with negative publicity in the Daily Mail, we should not be defensive about it. I know the Minister has been very strong on this issue, but we need to talk more about how it is in our interests to support a sustainable global economy. Whatever threats Brexit will bring—and whether we are in or out of the European Union—the fact is that we need better and sustainable development. I welcome this debate and very much hope we will have more in the coming months.

I end on a point that I have made before. This generation—this Government and Opposition—has the opportunity to eliminate aid dependency for good by empowering the powerless. That is our vision and that is what we will press the Government to do.

Kashmir

Lord Collins of Highbury Excerpts

Tuesday 21st November 2017 Lords Chamber

[Lord Bates]

Both Pakistan and India are close friends of the United Kingdom and we want to maintain that strong relationship. Of course, we wish for a peaceful outcome to negotiations. We welcome the fact that the Government of India have recently appointed an interlocutor but we feel that, as in all conflicts, the countries themselves—the parties to the conflict—must be the parties to the peace.

[Lord Collins of Highbury (Lab)]

Could the Minister outline what practical steps the Government are taking to ensure that all parties are brought together and that we build peace and reconciliation? In the previous question, the noble Lord raised freedom of speech. One of the biggest concerns we have on these Benches is that limitations on freedom of speech will harm and hinder that process of reconciliation.

[Lord Bates]

The practical situation is that the British high commission in New Delhi monitors human rights in the country and in Kashmir as a whole, or certainly in the Indian-administered portion of Kashmir. We look at that fairly closely. However, we have to recognise that the situation is extraordinarily sensitive and that our words and actions, even in this House, can contribute to instability in that area. It is in everybody’s interests that an open dialogue is maintained. We do not want to do anything that would detract from that.

Brexit: Least Developed Countries

Lord Collins of Highbury Excerpts

Thursday 16th November 2017 Grand Committee

[Lord Collins of Highbury (Lab)]

My Lords, I too thank the noble Earl for initiating the debate. Over the weeks and months ahead we will have plenty of opportunity to debate even further. We will have more time.

A cliff-edge Brexit will have catastrophic consequences. As we heard yesterday in your Lordships’ EU Financial Affairs Sub-Committee, JP Morgan’s contingency plans include beefing up its operations in Ireland, Germany and Luxembourg in preparation for a hard Brexit. We see from reports this afternoon that that seems quite possible. There is no doubt that many in the development community fear the consequences of a cliff edge and face the need to make contingency plans. What discussions have DfID had with NGOs to address such fears? What will be the position of INGOs receiving funds from DfID on funding from DfID and the EU post Brexit? Will British NGOs have to register elsewhere, such as in Scandinavian countries, to secure and obtain EU funding?

According to the Minister, in Hansard vol. 783,

“the UK contributed £935 million in overseas development assistance to the EU budget in 2015 through core funding. In addition, DfID contributed £392 million to the European Development Fund”.—[Official Report, 4/7/17; col. 783.]

That is significant, and in DfID’s multilateral development review the EDF was deemed among the most effective of any multilateral organisations. The noble Lord argued that decisions on whether we want to contribute or stay out of the EDF will be made as part of the process of exiting the EU, asserting,

“at least we have a choice”.—[Official Report, 4/7/17; col. 783.]

Does that mean a choice not to support the most effective programmes—a choice not to augment our priorities through partnership in the EU?

I welcome the Government’s approach to trade policy towards developing countries, released by DfID, but it is not as generous as it may appear. As we have heard, the strategy addresses everything but arms agreements, which allows for the UK to negotiate agreements unilaterally, but it does not address the economic partnership agreements which are vital to many developing countries in terms of trade going into the UK and the EU. How are the Government going to address this issue in negotiating Brexit? Are we meant to be satisfied by the assertion that they will continue until Brexit? What about the requirement for planning, the longer term commitments, the 10-year plans? All we hear from the Government is that the details will be handled as part of the exiting EU strategy. We are told the UK strategy is a cross-government, cross-Whitehall approach about where our priorities should be. Is DfID there when crucial decisions are being made?

Under EU law, it is required that trade policy promotes sustainable development. Liam Fox commented that the Government are committed to helping developing countries grow their economies and reduce poverty through trade. However, the recently published Trade Bill has been described as a missed opportunity by the Fairtrade Foundation for the Government to place poverty reduction at the heart of future trade deals and to ensure open and democratic scrutiny of future trade negotiations.

We are told that the UK is committed to ensuring that when companies source from developing countries they do so in a way that protects the human rights of workers and their health and safety—we heard this in the debate from the noble Viscount—but I would like to hear from the Minister what steps the Government are taking to ensure that forthcoming deals being negotiated by his colleagues in the Cabinet are properly assessed to avoid unintended knock-on damage to poverty reduction and human rights.

--- Later in debate ---

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, I join with others in paying tribute to the noble Earl for securing this debate and for the way he has set the scene. I particularly thank him for his good wishes to the new Secretary of State, Penny Mordaunt. She has already addressed staff at DfID stressing her priorities, one of which will resonate with many in this Room—disability. She was Minister for Disabilities at DWP, an area I know well and on which we are already doing a great deal of work. We can look for that to be enhanced in the future.

The focus of this debate is on the implications of exiting the European Union; our trading relationships with developing countries; our future development partnership with the EU; and annual UK development assistance. On the sums referred to by the noble Lord, Lord Collins, this morning we had the timely publication of Statistics on International Development 2017, which gives the latest figures for 2016. These show that the annual development assistance channelled through the EU was £1.5 billion in 2016. This comprises 15% of the EU development funding and consists of contributions to EU Budget Heading IV instruments of £1.031 billion and to the European Development Fund of £473 million.

The noble Lord, Lord Collins, asked what arrangements there might be going forward. We will continue to work closely and in parallel with the EU in many areas. I will come on to these later and particularly touch on the Sahel. However, there are structural changes that the EU will need to make. For example, the European Development Fund would not allow a non-member state to be a member. Although I accept that it is a well-performing fund, it would need to be opened up and made available to non-members if the UK was to continue to be part of it.

The EU’s development priorities are closely aligned with the UK’s—indeed, they have to a considerable extent been shaped by the UK during our EU membership. However, where the EU currently provides development assistance to more than 140 countries, UK aid is focused on 32 priority countries—the noble Earl referred to this, saying that where aid is needed most is in the difficult areas, in the tough areas. My noble friend Lord Eccles referred to the mission of CDC as being to work in the most difficult and challenging areas. That is where we focus our effort.

I join the noble Lord, Lord Jay, in paying tribute to the work done by British NGOs around the world. One of the most shocking statistics we see is that for the deaths of humanitarian workers. Sadly, in many conflicts humanitarian workers are targeted for delivering humanitarian aid. We should honour the sacrifice that so many of those NGOs make. I was asked by the noble Lord, Lord Collins, whether I had met the NGOs. I had a round table recently with the major NGOs that work with DfID, including Bond, where we discussed this very issue. I have relayed its concerns and we are working with the Department for Exiting the European Union to ensure that our world-class NGOs are not disadvantaged by any changes.

The question of how much will be reallocated to DfID is subject to agreement with the Treasury. DfID has a tried-and-tested resource allocation process that has enabled us to deliver the Government’s target of 0.7% of GNI for five consecutive years. I am confident that we would be able to absorb any additional funds allocated to us. Of course, it would be premature to announce detailed spending plans, not least because there are significant areas of uncertainty, such as the point at which the UK will stop making contributions to the EU—the noble Lord mentioned that many such contracts are long-term engagements. That needs to be fully clarified. Another area is how the EU will respond once UK funding ceases; specifically, whether member states will increase their ODA contributions to compensate for a 15% reduction in the EU’s development budgets. Finally, it is uncertain what the UK’s ODA budget will be in future years, as it is linked by law to gross national income, which by its nature fluctuates.

The noble Lord, Lord Hughes, touched on power supply, which is a crucial element. Just as with economic development in this country the maxim is that investment follows infrastructure, so it is true everywhere else. Where there is investment in infrastructure, it acts as a catalyst for investment. As my noble friend Lord Eccles mentioned, it is a prime reason why we are increasing the resource available to CDC. In some of the areas I work on, I am struck by how many incredible solutions—in education, for example—can come through use of tablets and computers, yet the absence of electricity makes them a non-starter. In economic development, mobile payment technology is liberating parts of east Africa through the TradeMark East Africa project, but some people are missing out simply because they do not have electricity. Therefore, the advance of solar power, particularly small-scale solar power, is revolutionising what we can do in those areas.

I remind noble Lords of our recent commitment to remain the largest donor to the International Development Association, which in its next cycle will double the resources going to fragile states, as well as of our decision significantly to scale up our contribution to CDC to support its job-creating investment activities. Together with our multilateral reform efforts, this will deliver a higher volume and quality of resources to the least developed countries.

We have incredible expertise here, including former Permanent Secretaries—I think that the noble Lord, Lord Jay, was at the Foreign Office at the time of the incredible Gleneagles agreement, which was certainly a landmark under the previous Labour Government. Our longest-serving Overseas Development Minister, my noble friend Lady Chalker, talked about close working between the FCO and DfID—a number of noble Lords, including the noble Viscount, Lord Craigavon, mentioned this as well. For the first time, we now have joint Ministers between departments in Rory Stewart and Alistair Burt. We have new cross-Whitehall funds: the Conflict, Stability and Security Fund; the prosperity fund; and the empowerment fund. They are distributing aid and, together, forcing that effort of co-ordination. I would like to be able to say, hand on heart, that the Addis Ababa experience will not be repeated, but I think the chances are reduced, especially now that when you visit a lot of these missions, we are co-located with the Foreign Office in buildings. That seems a very sensible way forward.

Turning to the future, it is in the UK’s interest that the EU remains a strong development partner after we have left, and that we work coherently on helping the world’s most vulnerable. On 12 September we published the future partnership paper referred to by the noble Viscount, Lord Craigavon, and the noble Lord, Lord Collins. In it, we expressed our desire for future co-operation with the EU that goes beyond existing third country arrangements, building on our shared interests and values. We look forward to formal discussions in phase 2 of the negotiations. In the meantime, as a member state, we are engaged in discussions with the European Commission and other member states on a successor to the Cotonou agreement. Through those discussions, we are pushing for more flexible EU development instruments after 2020 to allow greater co-operation with non-member states.

I turn now to a point made by my noble friend Lady Chalker and the noble Lords, Lord Jay and Lord Jones—the situation in the Sahel. The UK is one of the largest donors to humanitarian relief in the Sahel. Between 2015 and 2018, the UK will provide nearly £190 million of humanitarian assistance to support over 2.3 million people affected by conflict. To the noble Lords and the noble Baroness who spoke on this, perhaps the most encouraging part of this update is that, given the ongoing development of the humanitarian political challenges faced by the region, it is significant that the UK will have a new, permanent office in Chad before the end of the year, comprising a DfID/FCO joint mission. I hope noble Lords will be encouraged by that.

I want to make one point to the noble Lord, Lord Jones, on overseas territories. Of the £62 million that we provided immediately for those who suffered Hurricanes Irma and Maria, only £5 million was ODA-eligible, but that did not stop us—quite rightly, as the noble Lord urged—from recognising our responsibilities under law and under the UN charter to care for and protect those important citizens in the overseas territories. The UK Government share a responsibility with overseas Governments to ensure the security and prosperity of British citizens living in those territories. Part of the UK’s support to overseas territories is provided through the EU. The European Commission has already assured our overseas territories that they will receive their full allocation from the EDF.

I am conscious that time is running out, but I know this issue is of great concern. Perhaps I can close with some good news that I have heard through the usual channels: an additional debate in the name of my noble friend Lady Nicholson on the economic development strategy of the Department for International Development has been secured next week; on Wednesday, I think.

[Lord Collins of Highbury]

It might be on Monday the following week.

[Lord Bates]

The usual channels are working in their wonderful way. It may indeed be on Monday the following week—yes, the usual channels have just informed me that it will be on the 27th. I hope that will be another opportunity to follow up on this, but I thank the noble Earl again for an informed, interesting and helpful debate.

Yemen

Lord Collins of Highbury Excerpts

Tuesday 7th November 2017 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I welcome the repeat of the Statement. Everyone would agree that the Houthi missile strike was totally unacceptable, but we also now face a blockade affecting hundreds of thousands of people. Some 800,000 people now suffer from cholera in Yemen. It is the biggest humanitarian crisis we face. Does the Minister agree that the blockade is unlawful and that it is some form of collective punishment against innocent people? In these circumstances, will the Government reconsider their position of arms sales to the Saudis until this matter is brought to a peaceful conclusion?

[Lord Bates]

I thank the noble Lord for his questions. He is right about the situation on the ground in Yemen. It is horrendous. The cholera outbreak he referred to is the worst on record. It is appalling. Nearly 6.8 million people face extreme food shortages. Some 400,000 children aged under five suffer severe acute malnutrition and may die without treatment. This is a man-made catastrophe and it requires a man-made solution.

On working towards a solution, as I said in the Statement, we hold the pen on this at the UN Security Council. There is a quad meeting made up of the US, the UK, the Kingdom of Saudi Arabia and the United Arab Emirates. They met under the chairmanship of my right honourable friend Alistair Burt in New York and a couple of weeks ago in London. We believe that that pursuit of a peaceful settlement is the best solution.

The UK Government take their arms export licensing responsibilities very seriously and operate one of the most robust arms export control regimes in the world. All export licences are assessed on a case-by-case basis against a consolidated EU and national arms export licensing criterion. That said, we recognise that we need a solution. We need talks to recommence between the parties because, as in all conflicts, the parties to the conflict need to be the parties to the peace.

Israel: DfID Secretary of State Meetings

Lord Collins of Highbury Excerpts

Tuesday 7th November 2017 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, this is fundamentally about transparency and accountability. The Foreign and Commonwealth Office only became aware of this visit a full day after it had taken place. Numerous meetings had taken place without the FCO being aware. More importantly, no officials from even her own department were aware or present. It appears that the only person who may have been present was a Member of your Lordships’ House. I think that requires proper investigation and a proper declaration of interest.

The noble Lord said that an apology had been made and accepted and that that was the end of the matter. I do not accept that. I hope he will agree that it would be extremely valuable if this matter were formally referred to the Cabinet Office for an investigation, so that lessons can be learned by all concerned. It is not good enough simply to apologise and say that the matter is at an end.

[Lord Bates]

On that point, the Secretary of State made clear the meetings that occurred. In her statement yesterday she said:

“In hindsight, I can see how my enthusiasm to engage in this way could be misread, and how meetings were set up and reported in a way which did not accord with the usual procedures. I am sorry for this and I apologise for it”.


But we need to recognise that the Secretary of State was having meetings in a country that is a major ally, a democracy, a major trading partner and a friend. During part of her trip—this was listed in the meetings that she set out in her statement yesterday—she visited a number of NGOs, including Save a Child’s Heart, which works with Palestinian and Israeli children, and Wheelchairs of Hope. One can see that the Secretary of State was, in her enthusiasm, as she says, carrying out her work passionately even during her vacation. That said, she recognises that the usual procedures were not followed in the way that they should have been. She has learned a lesson from it and the Prime Minister has accepted her apology. That is why we are moving on.

Overseas Development

Lord Collins of Highbury Excerpts

Wednesday 1st November 2017 Lords Chamber

Asked by

[Lord Collins of Highbury]

To ask Her Majesty’s Government, further to the answer by Lord Bates on 3 July (HL Deb, col 670), whether they have concluded their consultation on changing the rules relating to overseas development assistance; and if so, what conclusions they have reached.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, we have engaged widely with NGOs across government and with international partners on how to improve ODA rules. Based on that, the International Development Secretary set out a vision for ODA reform at the DAC high-level meeting on Monday and Tuesday of this week. This vision is based on four key principles: first, to improve the responses to natural disasters and support vulnerable countries; secondly, to build peace and security; thirdly, to review multilateral organisations; and, fourthly, to make aid more effective.

[Lord Collins of Highbury (Lab)]

I welcome the noble Lord’s comments. However, the problem I have is that the Conservative Party manifesto demanded change but did not set out what that change should be. The 2016 changes took on board most of those comments but representatives at the DAC meeting this week did not agree with the Government and asked for a proper assessment of the changes that had already been made. Will the Minister and the Government work with our partners at DAC to build a consensus rather than working unilaterally, as was threatened in their manifesto?

[Lord Bates]

If we had worked unilaterally, we would not have achieved the advances that we did yesterday. I should make clear what those advances were. By working together we managed to increase the coefficient for peacekeeping forces from 7% to 15%. The noble Lord asked about the difference between the position that pertained earlier in the year and now. The difference is that category five hurricanes have hit the Caribbean and caused extensive, catastrophic loss to some small island communities that lack the capacity to rebuild. We consider it important that the rules must be fit for purpose, and that they were lacking in that regard. That is the reason why the Secretary of State secured an important advance so that when an island falls back under the threshold for overseas development assistance as a result of a catastrophic loss, they can be readmitted to the list. That is a major advance. Small countries and small islands welcome it and I hope the noble Lord will too.

Sierra Leone: Ebola

Lord Collins of Highbury Excerpts

Monday 30th October 2017 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I, too, thank the noble Baroness, Lady Hayman, for initiating this debate today and for giving us the opportunity to focus on the key priorities and lessons from Ebola in Sierra Leone. As we have heard, these relate to the need for strengthening healthcare systems, growing primary healthcare staff and training, scientific capacity in diagnostics and public health labs, and of course public health messaging and outreach.

In DfID’s bilateral development review, strengthening health systems across the world was a clear priority. This, too, as we have heard, was emphasised by the Commons International Development Committee. It also stressed the importance of linking this to the SDG 3 by taking into account how they work as a whole and how accessible they are. Like the noble Baroness, Lady Hayman, I welcome the support given by DfID to the President of Sierra Leone who has for the past two years identified health as one of his priority sectors. The two top goals—to bring about a significant reduction in maternal and child deaths and to be able to respond effectively to future Ebola cases—have been backed by DfID.

As we heard from the noble Baroness, the Resilient Zero and Saving Lives programmes provide for early identification and prevention, investment in sanitation, health workers training and access to good-quality basic services for women and young children. Over five years, the goal is to save the lives of over 22,000 children and over 2,000 women, as well as providing family planning for more than 134,000 women and girls. How is DfID making these programmes more sustainable in the long term? We have seen programmes work well but then, when things are pulled back, they are not as sustainable as we thought.

My noble and learned friend Lord Falconer raised the issue of the private sector, which is crucial, and we have received reports of CDC programmes which have been supporting and trying to bring in other private sector finance. One of its programmes during the outbreak was to ensure the sustainability of businesses so that they did not go completely under. I would like to hear more about those CDC programmes from the Minister and again plug the need for a proper debate on the role of CDC in Africa and its five-year plan.

Before the outbreak, the Sierra Leone Government were spending more on tax incentives for big companies than on development priorities such as health. How is DfID working with the Sierra Leone Government to encourage them to adopt the recommendations in the report, Supporting the Development of More Effective Tax Systems, by the IMF, the OECD, the UN and the World Bank? More broadly, how is it working to help Sierra Leone claim more tax revenues?

One other clear lesson that we have heard in the debate on the outbreak has been the role of community engagement, which all too often has been regarded as a soft and relatively non-technical add-on to medical interventions. Can the Minister update us on all the programmes funded by DfID that achieved tangible behaviour change around issues such as safe burials, early treatment and social acceptance of Ebola survivors? We are aware that DfID has been supporting those programmes, but it is their sustainability that we are interested in today. Clearly, we need to ensure this continues and is extended to enable civil society organisations to work with all communities.