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Wednesday Volume 529 8 June 2011 No. 165 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Wednesday 8 June 2011 £5·00 © Parliamentary Copyright House of Commons 2011 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through The National Archives website at www.nationalarchives.gov.uk/information-management/our-services/parliamentary-licence-information.htm Enquiries to The National Archives, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 141 8 JUNE 2011 142 Mr Mitchell: My right hon. Friend is absolutely right House of Commons that there are greater risks when operating in conflict states, but in such states the very poorest in the world Wednesday 8 June 2011 lose out twice over, once because they are poor and again because they are living in frightening and conflicted The House met at half-past Eleven o’clock circumstances. PRAYERS Mr Peter Lilley (Hitchin and Harpenden) (Con): I welcome my right hon. Friend’s commitment to a zero- tolerance attitude to fraud. Will he encourage the World [MR SPEAKER in the Chair] Bank to continue to have its regular survey of 32,000 small businesses across different developing countries, which BUSINESS BEFORE QUESTIONS shows that although fraud is a problem, it by no means absorbs all the aid entering those countries, as bar-room NEW WRIT gossip would have it, and that it is more prevalent in Ordered, south Asia than in Africa? That the Speaker do issue his Warrant to the Clerk of the Crown to make out a new Writ for the electing of a Member to Mr Mitchell: My right hon. Friend’s analysis is absolutely serve in this present Parliament for the County constituency of Inverclyde in the room of David Cairns, deceased.—(Ms Winterton.) right. He will have seen the world development report, produced by the World Bank, on working in conflict states, which focuses on security and development. It is a very good report, produced at Britain’s request, which Oral Answers to Questions focuses specifically on the points he has made. Bilateral and Multilateral Aid INTERNATIONAL DEVELOPMENT The Secretary of State was asked— 2. Jake Berry (Rossendale and Darwen) (Con): What steps he is taking to improve the transparency of bilateral and multilateral aid. [57737] Fraudulent Use of Aid 1. John Cryer (Leyton and Wanstead) (Lab): By what The Minister of State, Department for International means he plans to assess levels of fraudulent use of aid Development (Mr Alan Duncan): We have introduced the UK aid transparency guarantee, under which we in fragile and conflict-affected states. [57736] have published greater and more detailed information The Secretary of State for International Development on the Department for International Development’s aid (Mr Andrew Mitchell): The Government are committed expenditure than ever before, and we have actively to spending 30% of UK aid on conflict-affected and encouraged our multilateral and other partners to follow fragile states where the millennium development goals our lead. I welcome the launch today of the Make Aid are most off track. We have a zero-tolerance approach Transparent website, which is supported by a coalition to fraud and other abuse and all our programmes of more than 50 civil society groups from more than include safeguards to ensure that taxpayers’ money is 20 countries. spent properly. Jake Berry: I thank the Minister for his answer. Just John Cryer: A very high proportion of that taxpayers’ as the Prime Minister has called on others in the G8 to money flows through the EU. Is the Secretary of State live up to their promises on their aid budgets, will the satisfied that that EU money is being properly used and Minister assure me that the Government are calling on accounted for? others to increase the transparency of their spending and will he update the House on the international aid Mr Mitchell: About a third of that money goes to the transparency initiative? European development fund, which scored highly in the multilateral aid review, and that suits Britain’s interests because around 40% of it goes to Commonwealth Mr Duncan: My hon. Friend is absolutely right that countries and we contribute only 17%. The money the Prime Minister secured agreement in Deauville that spent through the budget is £800 million, over which we the G8 should begin to lead rather than follow on aid have much less control, and we are seeking to ensure transparency. DFID also leads the international aid that it is better deployed. transparency initiative, an alliance of 19 major donors. Under our leadership, a new aid transparency standard Malcolm Bruce (Gordon) (LD): The Secretary of was agreed in February and is already being implemented State will of course acknowledge that the Government by DFID, the World Bank and the Hewlett Foundation, have committed additional funding to post-conflict states with many more set to follow later this year. because that is where the greatest poverty and the greatest risk of falling back into conflict lies. Nevertheless, Mr Tom Clarke (Coatbridge, Chryston and Bellshill) does he accept that, although we must do everything we (Lab): In view of the lobbying of the House tomorrow can to stamp out corruption, it is precisely in those by international development enthusiasts, will the Minister difficult climates that risks must be taken if achievements encourage as many people as possible to turn up, including in poverty reduction and conflict prevention are to be hon. Members, to make our contribution to international secured? development awareness? 143 Oral Answers8 JUNE 2011 Oral Answers 144 Mr Duncan: I fully share the right hon. Gentleman’s Mr James Gray (North Wiltshire) (Con): The Secretary enthusiasm for international development awareness, of State recently described Britain as an aid superstate. and when it comes to transparency there is already Can he tell us what an aid superstate is—and do we much praise for what the UK is doing. For instance, really want to be one? Publish What You Fund recently said: “As well as focusing on its own breadth and quality of publication, Mr Mitchell: My hon. Friend refers to a comment its”— that I made on Monday, when I said that just as DFID’s— America is a military superpower, so Britain is a “commitment to influencing others sets important precedents for development superpower. I was referring to the fact that aid transparency on a global level.” throughout the world brilliant work is being done with Britain in the lead on development, and we do so Mr Gary Streeter (South West Devon) (Con): Does because it is not only morally right but, as my hon. my right hon. Friend agree that the better we can Friend will understand, absolutely in our national interest. demonstrate the effectiveness of UK aid, and that it is not all siphoned off into Swiss bank accounts, the sooner we will get the people of this country behind our HIV/AIDS (Lesotho) excellent and worthy notion of spending 0.7% of GDP on overseas aid? 4. Mark Tami (Alyn and Deeside) (Lab): What steps he plans to take to reduce levels of HIV/AIDS in Mr Duncan: My hon. Friend is absolutely right, and Lesotho. [57740] that is exactly why we have set up the Independent Commission for Aid Impact, which can evaluate the The Parliamentary Under-Secretary of State for impact and value for money of UK aid. Transparency International Development (Mr Stephen O’Brien): The sheds light on all that is done and reduces the sort of DFID Lesotho programme has helped to reduce the corruption that my hon. Friend describes. prevalence of HIV in garment factories from 37% to Rushanara Ali (Bethnal Green and Bow) (Lab): Does 27%, and we continue to assist 40,000 factory workers. the Minister accept that the welcome continued emphasis We also provide support to HIV programmes in Lesotho on transparency in Government aid must also apply to through our contributions to the EU, the World Bank businesses? Given the OECD estimate that poor countries and the Global Fund. lose $120 billion each year to tax havens, three times more than the aid that they receive, what is he doing to Mark Tami: The Minister will be aware that almost require companies to publish what they pay to Governments 25% of the population of Lesotho has HIV, and one in developing countries? project that his Department funds is the Apparel Lesotho Alliance to Fight AIDS, which as he says targets almost Mr Duncan: That is exactly why we support the likes 40,000 people. Will that funding carry on? If not, who of the extractive industry transparency initiative, which will fund it? will ensure that companies contracting with countries fully reveal what exactly they make out of their contracts. Mr O’Brien: The hon. Gentleman is completely correct Official Development Assistance that one of the most successful programmes in Lesotho has been the ALAFA programme, which has enabled 3. Catherine McKinnell (Newcastle upon Tyne North) those 40,000 factory workers to obtain vital services to (Lab): When he plans to bring forward legislation help with HIV/AIDS. We have just announced that we enacting the commitment to spend at least 0.7% of will continue that programme up to the point when we gross national income on official development can secure long-term funding through either the EU or assistance. [57738] other donor agencies. The Secretary of State for International Development Simon Kirby (Brighton, Kemptown) (Con): Can the (Mr Andrew Mitchell): The coalition Government have Minister confirm that the prevention of HIV is as set out how we will meet our commitment to spend essential as the treatment of it? 0.7% of national income as overseas aid from 2013.