Commonwealth Development Corporation Bill — House of Commons, 2017-01-10
Topic: International Affairs
Thomas Sheppard (Scottish National Party, Centre-left): I do not want to have a big discussion about the project, but I will respond by saying that we should do both. Of course we should also try to put money into formal education, but the importance of that project was that it understood that digital communication was a much more effective way of reaching young people in Ethiopia than the bricks and mortar of a formal educational establishment. It also understood that music and lyrics can sometimes be better than formal texts at getting through to people, educating them and inspiring them with big ideas. That is true in this country as well. Those things have contributed to the social education of young women in Ethiopia. As I said, the Department for International Development itself said that the project was worth supporting The important point in all these debates is that we can win public support for foreign aid and rally the public behind the 0.7% contribution, provided that we are transparent about what we are doing, and that we demonstrate at every turn that the people who are getting the money are those who really need it. It is therefore important that those criteria are demonstrated through the work of CDC Group and others, and that evidence is produced I am not sure which amendments and new clauses will be pressed to a Division, but I will vote for whichever ones are, because they would all strengthen the Bill. In my 20 months in this Chamber, this is the first time that I have seen a Bill come back on Report without a single Government amendment. I find that surprising. I know that the Bill is concise and brief, but given the concerns that were expressed on Second Reading about the work of CDC Group, I would have thought that the Bill could have been tightened up a little. I hope that the Government will consider supporting some of the new clauses and amendments because they would make the Bill more efficacious in achieving its objectives New clause 6 states that before CDC Group gets a major uplift in funding, the case will have to be made that it is meeting the sustainable development goals and tackling poverty and inequality in the country in which the money is deployed. Let me put it another way. If a project was not tackling poverty or combating inequality, and not contributing to achieving the sustainable development goals, why on earth should we fund it? When it comes to prioritising when money is tight, we have to make sure that it is spent on what it is supposed to be spent on On Second Reading we discussed some of the—shall we say?—past mistakes in a number of CDC’s decisions. We talked about the shopping malls, luxury hotels and other inappropriate projects in which CDC Group invested, and we were assured—by the Minister of State, I think—that those things were in the past, that we had learned from them and that they would not be repeated in the future. Well, if that is the case, what is the difficulty in building such a provision into the Bill so that when CDC gets a budget uplift, it will have an obligation to demonstrate that what that uplift is spent on will contribute to meeting these goals and fulfilling these criteria? That is self-evidently a way of ensuring that we do not rely on hope by instead writing down what, as a matter of policy, we want Amendments 3 and 4, to which I have put my name, would link an uplift in CDC Group’s funds to the overall ODA budget. It is important to look at doing that; the formula that has been suggested is not onerous and is perfectly achievable. There is an idea abroad that what might be happening is the outsourcing or privatisation of our foreign aid activity, and that pre-eminence is given to a market approach. We will have problems if that impression is not countered, because the truth of the matter is that there is a role for spending public money to try to support the creation of a small business sector in developing countries, to invest in such sectors and to create jobs, but let us not kid ourselves. The vast bulk of our priority aid should be directed at people who need it in order to combat the malnutrition, illiteracy, poverty and starvation that are present throughout such countries. That cannot be done by setting up a small business; it needs to be done through direct state and NGO intervention. That is why we should make it clear that the vast bulk of our foreign aid effort will remain in that sphere Although CDC Group and the market have a contribution to make, particularly in countries that are some stages along the process of development, that will not be the primary way in which we do things. I commend amendments 3 and 4 to the House because if we were to agree to them, we would strengthen the Bill and demonstrate to people what our intentions really are: to ensure that the hard-earned taxes that they pay—people politically agree that a small slice should be deployed for foreign aid—are spent doing the things that they want to be done. Those things are combating poverty and inequality in the developing world, and making sure that we get to a more equal world society, which of course is in our long-term interest, too.