International Development (Official Development Assistance Target) Bill

Lord Lipsey Excerpts

Friday 27th February 2015 Lords Chamber

Moved by

[Lord Lipsey]

2: Clause 1, page 1, line 5, leave out from “Kingdom” to end of line and insert “over the period 2015/16 to 2019/20 and each subsequent five year period”

[Lord Lipsey (Lab)]

My Lords, I very much regret that I was not able to be here to move this amendment in Committee, but I am delighted to say that the noble Lord, Lord Forsyth—as I would have expected—did that job much better than I could have done. I certainly do not intend to detain the House for longer than I need, as it would be a better use of its time to read his magnificent speech.

The amendment is designed to increase the flexibility of the one-year programme so as to avert the danger that the money will be rushed out to hit the target in one year and that there will not be enough to hit the target so easily the year after. It is intended to avoid waste, to provide ministerial flexibility and to help in the management of our national budgets.

As I said, I do not intend to expand on that theme for long but I want to deal with one argument which was put very powerfully this morning by my noble friend Lord McConnell and which appeared very much in the debate at Second Reading. The argument is that the Bill will set the quantity of aid, enabling us then to focus on the quality. I will not address the second half of that—the quality, which comes up in other amendments. I just caution the House against thinking that the Bill will in practice set the quantity, and I do so by reference to Ireland. A report states that at the millennium summit in 2000, the Taoiseach announced a framework for reaching the UN target. It was to be attained by the end of 2007. In 2005, the target was adjusted to 2012. According to a subsequent OECD peer review, that deadline was extended again to 2015, but this has also been missed. Now, according to that authoritative source, the 2015 target is also going to be missed.

In other words, you can set these targets, and you can even enshrine them, as the Bill does, in legislation. You can insist that each year the Secretary of State gives an explanation to the House if the target has not been met; nevertheless, the targets do not easily hold, and if economic imperatives dictate otherwise then we will find that they do not hold. I would be pretty willing to have a fair bet with anyone in this House that within the next 10 years there will be one or more such occasions when they do not hold. The debate over quantity will inevitably persist while there is pressure on public expenditure and there are competing programmes.

I am realistic enough to know that this amendment is unlikely to be accepted today. However, it would be comforting and would help to bring the House together if the Minister could indicate that the Government are not without sympathy on the point about flexibility. It would help if they could indicate that, within the terms of the legislation, they will be prepared to look at this flexibly and will not allow something stupid such as a last-minute rushing out of the money through the door—as I am afraid happened last year, according to the independent National Audit Office reports—and that they will manage the Bill so as to minimise any possible ill side-effects from what is generally agreed to be a desirable thing; namely, effective overseas aid.

[Lord Lamont of Lerwick]

My Lords, I support the amendments in this group, which give effect to the target being achieved over a five-year rather than an annual period. I do so because I believe that that would give much needed flexibility in meeting the target. If there were flexibility, that would lessen what some of us perceive as the perverse incentive of the target—rushing projects towards the end of a year in order to meet the target within a year. It is much more likely that the money will be more effectively spent if that happens over a period of years.

The noble Lord, Lord McConnell, has already rather anticipated these arguments. He said that—this was his reason for voting as he did on the previous amendment —he felt that the target of 0.7% of GDP gave greater certainty. That was, to some extent, supported by the arguments of my noble friend the Minister. However, I am deeply puzzled by the argument that having a target of 0.7% creates certainty or will give greater confidence about how the money will be spent. Meeting the target of GNI or GDP will not be that easy. It would be easy if we were certain what GNI and GDP were going to be. However, as everybody knows, economic data are subject to constant revisions. There is uncertainty about the future during the year when you are trying to determine what your target is a percentage of and you have to rely on economic forecasts. However, there is not just uncertainty about the future; there is uncertainty about the present and—dare I say it?—about the past. These statistics are constantly being revised. Noble Lords will recall our famous double-dip recession—there was great excitement on that side of the House that it was occurring. A few months later it had been revised out of existence by the statisticians.

--- Later in debate ---

[Lord Purvis of Tweed]

I was going to come back and clear up that point. However, I will finish this element first. The Bill provides for the very form of independent evaluation that can take into consideration external factors that may have been at play if the target has not been met. That independent evaluation then reports to Parliament.

I am glad that the noble Viscount intervened because he pre-empted exactly how I was going to conclude. Ultimately, the framework provided by the Bill allows for Parliament to have the powers to do its job and hold the Government to account when they make a promise. I hope that that would be sufficient not only for those people in the Black Bull but for Parliament. There is important evaluation and monitoring of these programmes. I hope that the explanation from the Permanent Secretary of DfID showing the deficiency of moving to the programme that the noble Lord, Lord Lipsey, has argued for is sufficient for the noble Lord to withdraw the amendment. I am not in a position to accept it.

[Lord Lipsey]

My Lords, I thank all noble Lords who participated in this debate. I am sure that the political history of the Brooke family will be required reading whenever experts assemble to discuss aid issues for many years to come.

This debate has established one thing, which is that there is no UN resolution requiring annual aid targets, and the fact that it happened to be mentioned in the Pearson report seems to me a very feeble response to that point. However, there is a second issue, which goes to the Minister’s reply, too. Yes, we have to report annually, but “report” is not the same as “attain”. Nearly all the reports coming to the OECD are from countries which have had to say that they have not attained the target. The target will, this year at least, be attained by the United Kingdom, but nearly every other country has failed to attain it. A reporting requirement should not be confused with a requirement to spend the money.

There is more business to get through. I will have to draw what comfort I can from the Minister’s favourable references to flexibility, for which I thank her. With that, we should leave this issue until the repeal Bill for this Bill is introduced, which I confidently predict it will be within the next few years. I beg leave to withdraw the amendment.

Amendment 2 withdrawn.

--- Later in debate ---

[Baroness Northover]

My Lords, the amendment of the noble Lord, Lord Butler, seeks to put in place a further hurdle before this legislation can come into force. I am afraid that we cannot support his amendment. It would take the commencement of the Bill out of the hands of this Parliament—he has made that clear, even though this Parliament has extensively debated and supported the Bill—and into the hands of Ministers in a future Government. In particular, if this amendment were carried, it would give power to a future Government to decide when to lay the necessary secondary legislation for consideration by Parliament.

This Bill has significant cross-party consensus and support. That has been evident during debate in both Houses and in the votes this morning in this House. The importance of the UK meeting its commitment to invest 0.7% of GNI and enshrining that commitment in law was in the manifestos of all the major parties which fought the 2010 election. None of the major parties has indicated that it would move away from that after the next election.

It would be entirely within the power of future Parliaments to bring forward legislation that sets out an alternative position towards the aid budget. However, this Parliament, in both Houses, has debated the Bill, supported it in the majority of votes at each stage so far, and will, I hope, ensure that the Bill passes through to Royal Assent. As noble Lords will know, to have the very act of commencement require an affirmative resolution is extremely unusual. I was going to ask my noble friend Lady Thomas whether she could think of any instances. This amendment is not in keeping with the Bill. I call on the noble Lord to withdraw it and—

[Lord Lipsey]

My Lords, I am slightly surprised by the “extremely unusual”. The House will recall that at the end of the Brown Government both Houses passed a Bill to make care of elderly people in their own homes free. Following discussion between both Houses, it was agreed that, given that the Bill was passed on the eve of the general election, it should require a resolution before it was put into effect. In normal circumstances, that sort of process would not make much sense because it would be the same Government. However, this would be a different Government. Last time this occurred, quite sensibly the Government of the day agreed to it.