Oral Answers to Questions

Stephen O'Brien Excerpts

Wednesday 30th March 2011 Commons Chamber

[Roberta Blackman-Woods (City of Durham) (Lab)]

3. What estimate he has made of the likely change in the level of official development assistance to Lesotho following the closure of his Department’s bilateral aid programme in that country.

[The Parliamentary Under-Secretary of State for International Development (Mr Stephen O'Brien)]

The DFID bilateral programme in Lesotho has delivered impressive results in, for example, reducing HIV prevalence in Lesotho’s important garment factories from 37% to 27% in just three years. Notwithstanding the planned closure of our bilateral aid programme, we will continue to provide some £10 million in aid each year to Lesotho through multilateral channels. Our assessments indicate that official development assistance to Lesotho is likely to grow substantially in the years ahead.

[Roberta Blackman-Woods]

Churches in my constituency have a link with Lesotho that goes back many years. I recently met a delegation from Lesotho in Durham who told me of their grave concerns about the Government’s decision to stop bilateral aid. Would the Minister be willing to meet a delegation from Durham to discuss how Lesotho can continue to be supported by the international community?

[Mr O'Brien]

I am grateful to the hon. Lady for her question, because I know that the Durham-Lesotho link has been an important, effective and long-standing connection of support between the two Anglican dioceses. The bilateral programme is very small, and many multilateral channels will remain available. We believe that they will grow, and that is where the future of Lesotho’s better development will be derived. I would be more than happy to meet a delegation of her constituents to explore how this approach can be additive, rather than negative, which is what she is worried about.

[Tony Baldry (Banbury) (Con)]

The UK will soon be spending 0.7% of GDP on international development. Following the recent review all of DFID’s money is committed, so if people want more money spent somewhere in the international development framework, it behoves them to explain where they want that money taken from in the DFID budget. We cannot have continuous requests for more and more spending unless people are prepared to acknowledge where they want spending reduced.

[Mr O'Brien]

My hon. Friend makes an important point, particularly in relation to bilateral programmes. Of course, opportunities are provided through challenge funds, not least the global poverty action fund, and other funds that are available for those with an interest to continue to apply to. That will allow them not least to influence the way in which the multilaterals deploy their resources to which we contribute.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

4. What recent discussions he has had with the Secretary of State for Justice on the implications for development of his role as the UK’s international anti-corruption champion.

[The Parliamentary Under-Secretary of State for International Development (Mr Stephen O'Brien)]

My right hon. Friends have had many discussions, including in specific meetings on this important role—yet another meeting will be held on it shortly. We agree about the importance of a cross-government champion. To be credible when working with our developing country partners in tackling corruption, it is vital that we have strong systems in place in the UK.

[Catherine McKinnell]

I thank the Minister for that answer and welcome the news that the coalition is finally publishing guidance on the Bribery Act 2010, because delays to its publication have been very damaging to our reputation abroad. Given the devastating effects that corruption has on developing economies, can he confirm that the guidance has not been watered down to create loopholes for subsidiaries and joint ventures, and so the Act can be implemented, in the words of the Foreign Secretary, “rigorously, effectively and fairly”?

[Mr O'Brien]

I am delighted to stand here as the guidance is being published, something that has happened pretty rapidly under this Government after we waited for 13 years for something similar from the previous Government. Far from being diluted, the guidance has taken all the representations into serious consideration and it is now something on which we can work. We very much look forward to seeing it in place as the bedrock on which we can build.

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

Openness and transparency are vital in the fight against corruption and in tackling exploitation of developing countries by global companies. It is a travesty that where there is massive wealth, such as in oil or minerals, local people do not benefit from it. The Government have said that they will support new European Union regulation to make companies disclose exactly how much they pay to the developing country’s Government for the right to extract natural resources, but what is needed is action. Will the Government take the lead on driving through the EU transparency regulation, and will he ensure that companies listed on the London stock exchange report the payments they make?

[Mr O'Brien]

I am grateful to the right hon. and learned Lady for raising this issue. As she knows, it is being addressed through the extractive industries transparency initiative on which I attended a meeting in Paris recently and to which there is now increasing commitment. In addition, my right hon. Friend the Chancellor said on 20 February that we would work with our EU partners to look precisely at what we can do to examine the very obvious example that is coming from Dodd-Frank in America, but making sure that is done at an EU level.

[Helen Jones (Warrington North) (Lab)]

5. What recent representations he has received on the effects of corruption on the economies of developing countries.

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[Fiona Bruce (Congleton) (Con)]

9. How many organisations have (a) applied for and (b) been granted funds from his Department's global action poverty fund.

[The Parliamentary Under-Secretary of State for International Development (Mr Stephen O'Brien)]

In the first round, 366 eligible applications for funding were received for the impact and innovation windows of the global poverty action fund. Announcements on the first successful projects will be made next month.

[Fiona Bruce]

I thank the Minister for his reply. Many small charities make a tremendous difference in developing countries, often with limited funding. What can be done to publicise the excellent opportunities for them to apply to the global poverty action fund?

[Mr O'Brien]

My hon. Friend is absolutely right. This is an opportunity for many small UK-based organisations that often struggle to access DFID funding. The best thing to do is to go to the DFID website, but I would also would urge her and Members across the House to publicise through their constituency communications the fact that this is a real opportunity for their local charities to make a sensible application of that sort.

[Mr Speaker]

Order. There are far too many noisy private conversations in the Chamber. I remind colleagues that we are about to discuss humanitarian aid to the people of Libya.

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[Katy Clark (North Ayrshire and Arran) (Lab)]

14. What recent representations he has received on the effect on the economies of developing countries of the tax avoidance practices of UK companies.

[The Parliamentary Under-Secretary of State for International Development (Mr Stephen O'Brien)]

Ministers discuss taxation and development with various parties, with the Exchequer Secretary to the Treasury most recently meeting Christian Aid on 8 March. Discussions on protecting developing countries’ tax bases also take place in the OECD tax and development task force and the G20 development working group.

[Katy Clark]

The Minister will be aware that developing countries lose more through the tax avoidance of multinationals than they receive in aid each year. The Business Secretary has in the past supported country-by-country reporting of both profits and tax paid. Is that something the Minister would consider?

[Mr O'Brien]

I can certainly confirm that we expect all companies and individuals to pay the tax they owe in the countries where it falls due. There is a lot of work now going on, particularly with the G20 development action plan and the global forum on tax transparency, precisely to address the issues that the hon. Lady rightly highlights, and which we must all seek to find the most effective ways of tackling.

The Prime Minister was asked—