Aid Reviews

Denis MacShane Excerpts

Tuesday 1st March 2011 Commons Chamber

[Mr Mitchell]

I think I will take that as qualified support for the Government’s position.

The right hon. and learned Lady emphasises that it is morally right and in our national interests to stand by the very strong commitments that have been made by all parties in the House, which I welcome. We made it absolutely clear when we took office that in sorting out the dreadful economic inheritance we received from the Labour Government, we would not balance the books on the backs of the poorest people in the world, and we honour that promise today. On that point, let me make it clear to her that the legislation agreed before the election in support of the 0.7% pledge from 2013 will come before the House as soon as the parliamentary business managers can find a convenient time.

Let me make it clear that I have cut back the programmes in Russia and China that we inherited. The programme in Russia will be completed by the end of April, and the programme in China will be completed by the end of March, but the coalition Government have made the decision to rein back those programmes—we inherited a continuing programme.

I should make it clear to the right hon. and learned Lady that support came in equal proportions from a number of British Government Departments involved with the Pope’s visit, but that included DFID because, as she will be aware, the Catholic Church and its organisations deliver health care and education in some of the most difficult parts of the world, and DFID has a very strong relationship with the Church on that basis. However, let me put her mind at rest: my Department’s share of the cost of the visit did not come out of the 0.7% budget or the official development assistance budget.

The right hon. and learned Lady also asks whether other Departments are raiding the DFID budget. She should know, because we have made it absolutely clear, that we will stand by the OECD development assistance committee definition of what is and is not aid. We stand by that, and it governs what can and cannot be spent by the British taxpayer under the ODA budget.

The right hon. and learned Lady referred to the guarantee that has been so skilfully negotiated in the Turks and Caicos Islands by my right hon. Friend the Minister of State. The islands are a dependent territory, and we stand by our dependent territories—she will be aware that that is one of the first commitments in the International Development Act 2002. However, thanks to my right hon. Friend’s skill, we have negotiated a guarantee while they sort themselves out, rather than funding from the British taxpayer.

The right hon. and learned Lady asked whether we would reconsider our decision about the ILO. I emphasise to the House that the decision came from a recommendation in the multilateral aid review, which I strongly encourage her to look at, and in which the professional analysis reads:

“The ILO has a wide range of organisational weaknesses including weak cost control and results reporting”

and

“limited transparency”.

It continued:

“We will consider, on a case by case basis, funding the ILO in country on specific projects—provided it represents good value for money and is consistent with UK poverty reduction goals”.

That is a fair analysis. However, I invite hon. Members who do not agree with it to have a look at the multilateral aid review and reach their own conclusions. I want to emphasise that the four elements of a decent work agenda—employment, social protection, labour standards and social dialogue—form a core part of my Department’s work in this area, and will continue to do so.

[Mr Denis MacShane (Rotherham) (Lab)]

What about trade unions?

[Mr Mitchell]

The right hon. Gentleman mentions trade unions from a sedentary position. Let me make it clear that the trade unions, for the work they do, will be able to apply to the global poverty action fund, and I look forward to their doing so.

The right hon. and learned Lady made three other points. The first related to support for the new United Nations women’s agency. The Government strongly support the agency and argued for it to be set up. One of my noble Friends was there last week, and I saw Michelle Bachelet, the brilliant new head of UN Women, on—I think—her first day in office. We have offered her staff in order to assist in her tasks, and when she comes forward with a strategic plan in July, I have no doubt that we will be able to fund it. We will urge other countries to share the burden appropriately, but we will be very strong supporters of what she is doing.

The right hon. and learned Lady asked me about Niger and whether I would confirm that other donors were involved in the decision. We decided that it was not appropriate to keep a bilateral programme in Niger. Other donors were certainly involved in the decision. Much of the work that is being done in Niger, which she will know is an enormously food-insecure part of the world, is done on a multilateral basis. Last year, I agreed specific support on a humanitarian basis to feed 810,000 people, including 35,500 children suffering from acute malnutrition. Some 81,000 families received seeds, and we sent specific support for 15,000 livestock, which of course is very important to people continuing their lives. We are very much engaged in Niger on a humanitarian basis, but we look to other countries to share the burden, and we strongly support the multilateral architecture in addressing the situation in Niger.

The right hon. and learned Lady also asked about Burundi. We have completed our work on revenue capacity-building. We had a very small programme there, but we judged that it was right to close it. These are tough and difficult decisions, but we thought that we could spend the money better elsewhere. However, TradeMark East Africa, which we strongly support, will be based there as well. Wiring that into the regional infrastructure is extremely important, and work is ongoing on that.

Finally, a letter and a copy of the document “Changing lives, delivering results”, which sets out the results of the review, are available to all Members on the Board. Furthermore, the full multilateral aid review can be read on the internet by anyone who wishes to do so.

--- Later in debate ---

[Mr Mitchell]

My hon. Friend will be able to see that the figure for India is frozen at its current level for the next four years. If he looks at the results, which are available on the internet, he will see the different proportions of spending, but I can tell him that there will be less direct budget support under this Government’s programme than there was under the previous Government’s.

[Mr Denis MacShane (Rotherham) (Lab)]

The Prime Minister, both in Kuwait last week and yesterday, has held up freedom of association as something that Britain should support, so this attack on the International Labour Organisation will horrify every trade union worker around the world. Britain founded the ILO, and in the 1980s the ILO was central to getting rid of Soviet communism and apartheid in South Africa. I know that the Secretary of State has to represent Lazard and the banking community, but this attack on working people around the world is shameful.

[Mr Mitchell]

That may have been a little over the top. First, we are not withdrawing from the ILO. We have made it clear that we will not be making any voluntary contributions to it. We remain a member of the ILO, but the subscription is paid for by the Department for Work and Pensions. Where countries find that the ILO is able to provide a specific service that offers value for money and effectiveness, they will be able to take on its services.