International Development (Official Development Assistance Target) Bill — House of Lords, 2015-02-27
Topic: International Affairs
Lindsay Granshaw (Liberal Democrats, Centre to centre-left): I can inform my noble friend that the DAC measures this on an annual basis. That is why the UK needs to report its ODA spend to the OECD in that way. Making this amendment to the Bill would have no bearing on our international reporting requirement, and it is crucial for clarity, consistency and transparency that we continue to report to the OECD in this way Secondly, regardless of this amendment, DfID will still have an annual budget, allocated by the Treasury, as we discussed in much detail in the last amendment, which it will plan to spend according to agreed forecasts. DfID will continue to seek funding from the Treasury that would enable the UK to meet the 0.7% ODA target from year to year. This amendment would serve only to risk reducing somewhat the predictability and consistency of the size of the annual budget, again something we addressed in the last amendment. I can assure the House that annual limits and measurements do not prevent long-term planning, which is what I think noble Lords are seeking to do in their amendments. As I said in response to the last amendment, delivering 0.7% GNI as ODA annually provides the United Kingdom with a relatively steady ODA budget each year. This allows for better long-term planning and more effective use of resources over multi-year periods, providing greater certainty over funding levels than would happen if this same target were measured over a five-year period DfID has a flexible portfolio of programmes and all of DfID’s spend is subject to a rigorous value-for-money assessment. Due to the dynamic nature of DfID’s portfolio, it is reasonable for programmes to be accelerated and decelerated to accommodate emerging priorities such as the crisis within Syria, for example. In its reporting on managing delivery of the 2013 ODA target, the National Audit Office found no evidence that DfID had failed to deliver value for money in the programmes contributing to the delivery of the ODA target My noble friend Lord Lamont expressed concern about measuring the ODA:GNI ratio. There is a clear and agreed statistical process which is overseen by the Office for National Statistics for reporting the ODA:GNI ratio. This enables a final figure to be reported in the year following the year in question. Of course, GNI estimates can and do vary. However, estimates are updated on a quarterly basis during the year in question and the method for assessing 0.7% allows for a reasonable level of statistical rounding to accommodate modest last-minute changes The noble Lord, Lord Lipsey, and my noble friend Lord Lamont were also concerned about a potential rush to spend at the end of the calendar year. This is something that we addressed both at Second Reading and in Committee. I would like to reassure noble Lords once more that this is not the case and that there are mechanisms which the department uses to ensure that it spends its money in a strategic and long-term way. As noble Lords will be aware, the spending around the end of the calendar year 2013 was in part because there are some bills which always come in during December. Our bill for the EC attribution always comes in in December. Deposits of promissory notes for the Global Fund to Fight AIDS, Tuberculosis and Malaria and the World Bank are concentrated at the end of the year. I would dispute the suggestion that contributions to the global fund would be a less effective use of resources. I am sure that my noble friend Lord Fowler would certainly dispute that. Reaching the poorest through an organisation like that is often the best use of such funding. The NAO and the OECD DAC have recognised this good practice and have given their assurance that the Government have robust processes and mechanisms in place to manage those budgets My noble friend Lord Howell mentioned ways of making sure that we are contributing to development other than through grants. He will be well aware, for example, of the CDC and the contribution that DfID can make through that organisation. The Government are able to invest in a wide range of activities of which I am sure he would be supportive. They lead to wider development and can also contribute in terms of ODA. I will be very happy to give my noble friend all the details of what DfID does in that regard. As I said in response to the last amendment, giving 0.7% of GNI as ODA annually provides a steady budget I was extremely glad to hear about the family background of my noble friend Lord Brooke, which rather differs from my own. However, that said, I hope that noble Lords will be prepared not to press these amendments. I understand what they are arguing for, but I would like to reassure them that there is a strategic long-term plan, and adopting 0.7% enables us to deliver it more effectively. We report on it on an annual basis, but that does not mean to say that it is simply an annual budget. It is a longer-term, strategic approach to what we wish to achieve through development. On the basis of that, I hope that the noble Lord will withdraw his amendment, but if he decides that he wishes to test the opinion of the House, I should make it very clear that we will oppose it.