British Aid Payments (Hansard, 20 June 2000)

§ Baroness Amos
My Lords, we are obliged by EU treaty to contribute to the EC's development programmes. These are often of poor quality and we are addressing this We restricted the growth of the external assistance EC budget in March 1999, succeeding in holding down growth to 1 per cent for the years 2000–06—in stark contrast to the agreement at the 1992 Edinburgh Council for a 180 per cent increase for 1992–99.

§ Lord Willoughby de Broke
My Lords, I am grateful to the noble Baroness for that reply, but it really is not good enough. Is the noble Baroness aware that it takes an average of four and a half years to implement any EU aid programme, between the time it is agreed and the time that aid reaches the recipients? By then, the problem is probably over or the intended recipients are dead. Would it not be much better if British taxpayers' money was responsibly used by the Government rather than given to the treacle-waders in Brussels to dispose of in this incredibly inefficient way?

§ Baroness Amos
My Lords, we recognise the deficiencies in the EC aid programme. We published an 18-point strategy to improve the poverty focus and effectiveness of EC development assistance. We already have a large bilateral programme; however, we recognise that our leverage as a development and aid donor is much increased through our multilateral programmes. The EC is one of the largest multilateral donors in the world, and we see our commitment as being to improve the European Union so that poverty focus and effectiveness are increased.

§ Lord Shore of Stepney
My Lords, the Edinburgh Council agreement was obviously a great mistake. Will the Minister confirm that something like 30 per cent of our total aid programme is now siphoned through Brussels—in a programme that matches the CAP in incompetence if not corruption? Is it not time that the wishes of the Secretary of State to repatriate the programme and to bring it under British 148 administration and British priorities should now be carried through, in spite of whatever the treaties have said?

§ Baroness Amos
My Lords, my noble friend is entirely correct: 30 per cent of our development assistance programme goes through the European Union. That is why we have such a strong commitment to trying to improve the programme. We have published institutional strategy papers to cover the range of multilateral donors, including the European Union, the World Bank and UN system. We have made it clear that we want to see improvements in that system. As I said in my original Answer, we feel that the leverage that we are able to apply, both through the European Union process and working in concert with our European Union partners, means that it is important that we improve the effectiveness of the programme rather than withdrawing from it.

§ Lord Hylton
My Lords, would it not be a great mistake to pre-judge the effect of the reforms already identified by our commissioner, Mr Christopher Patten, and which I understand he has already begun to implement?

§ Baroness Amos
My Lords, I can confirm that there has been a commitment to reform of the EC programmes. We are much encouraged by that. However, we want to see more than just a commitment to reform. We want to see the reforms implemented, and we are pushing for that implementation. Both Commissioner Patten and Commissioner Nielson, who are now the two commissioners with responsibility for development assistance, have shown commitment to the reform.

§ Earl Russell
My Lords, is the Minister aware that the rhetorical panoply now deployed by certain English politicians against increasing co-operation between the countries of Europe was once deployed by English politicians against increasing co-operation between the countries that have come to make up Britain? Will the Minister agree that they were wrong once, and may well be wrong again?

§ Baroness Amos
My Lords, I have made the Government's position clear. We see our role as being part of the commitment to reforming the European Union programmes. We have published a strategy which makes it very clear what we expect to happen. Some of the reforms are already being taken on board. We want to see much clearer implementation, and an action plan associated with the development policy strategy that has now been developed. Yes, I agree with the noble Lord that it is important that we work with other countries on this matter rather than against them.

§ Lord Lamont of Lerwick
My Lords, if, as Commissioner Patten has said, EU aid is badly managed, less efficient and not in the interest of those who receive it, can the noble Baroness explain what is 149 the leverage that we get through disguising the fact that the aid has come from this country and channelling it through the EU? What is the benefit in that?

§ Baroness Amos
My Lords, the EU programme, of which 30 per cent of our budget forms part, is extremely large. One of the things that we want to see is greater emphasis on the elimination of poverty, which is the focus of our own development programme set out in the White Paper. If greater resources are channelled through the EU to lower income countries to assist in poverty eradication, as we began to see happening in the recent renegotiations on Lomé, for example, clearly that process will be speeded up.

Lord Bruce of Donington
My Lords, does my noble friend agree that the investigations carried out last year into the whole operation of these funds as administered by the Commission showed widespread fraud and irregularity? Does the Minister agree that for British taxpayers, who contribute £2.5 billion net to the Community, it would be far better for the programme to be repatriated so that we can direct the aid where we want it to go?

§ Baroness Amos
My Lords, I believe that I have already addressed the point. Perhaps I should repeat that member states are now working with the new Commission to stop fraud and strengthen controls. We have been leading that process. We want to ensure that EU funds are spent properly and effectively on development and other programmes. That is the agenda to which the Government have committed themselves, and I believe that it is a good one.