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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Development Programme Aid Reductions.

Development aid reductions and commitments

Summary

The Minister said bilateral aid funding would fall from £2.8 million to £2.275 million, while existing work and commitments would be maintained and planned new works curtailed; total aid across channels was up 12%. Challenged over the UN target of 0.7% of GNP and effects on projects, he offered no timetable, saying the Government would pursue it only within available resources and citing budgetary constraints.

Jim O'Keeffe Mr. O'Keeffe Fine Gael

asked the Minister for Foreign Affairs if he will give an assessment of the effect of aid reduction on Irish development programmes in Lesotho, Zambia, Sudan and Tanzania.

Comment on this

The Deputy will be aware that the amount of the allocation proposed for the Bilateral Aid Programme administered by my Department is £2.275 million for the current year which is less than the allocation last year, £2.8 million. The grant-in-aid for the Agency for Personal Service Overseas (APSO) remains at the same level as last year, that is £600,000.

As I have already made clear in statements on the subject, the reduction in the amount of funds available for bilateral aid will entail that the emphasis in the programme, which is concentrated mainly in the four priority countries referred to by the Deputy, will be on the consolidation and evaluation of existing programmes rather than expansion this year. Thus, while it is my intention to maintain commitments carried over from previous years in respect of individual projects administered by my Department or on behalf of my Department, it is not envisaged that any new commitments be entered into in the current year. Furthermore my Department will keep all ongoing projects under close review to enable the maximum possible economies to be effected.

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

Does the Minister accept that the cut-backs referred to are in clear breach of earlier commitments to move this country towards the aim of attaining the .7 per cent GNP UN recommendation on the official development assistance?

Comment on this

We are going to curtail further development. There is no question of reneging on existing commitments. There will be a curtailment of further development.

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

Could I ask the Minister, without getting into definitions of "curtailment"——

Comment on this

On further development.

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

The Minister is talking about further developments in these four countries of concentration. I am talking about the commitment which was given to increase our official development assistance over a period of years, so that we would reach the UN recommendation of .7 per cent of GNP. Does the Minister not accept, first, that the step which has now been taken is a major reneging on that commitment and, secondly, that this is going to have a very serious effect on the development programmes already under way in these four countries referred to?

Comment on this

I am going to be quite candid with the Deputy and the House. This is a situation where we very properly and rightly are doing, as has been done in many other countries, cutting our cloth according to our measure.

Comment on this

Would the Minister agree that this latest step is totally consistent with the Government's policy against the poorer man?

Comment on this

Do I understand the Minister's reply to confirm and put officially on the record of this House that none of the projects currently in hand in Lesotho will be reduced or abandoned in the coming year? Is the Minister giving this House that categorical and non-hypothetical assurance?

Comment on this

I am not giving the House any assurance, other than that the existing work in progress and commitments in relation to existing work in progress will be maintained and to say that in regard to our total allocation covering all agencies, governmental agencies, bilateral aid and subscriptions channelled through the EEC by reason of our commitments under the Lomé Convention and our commitments under the UN, taking a total view of all our commitments, our expenditure is up by 12 per cent this year over last year.

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

Not the voluntary ones?

Comment on this

Would the Minister not agree that there were two options open to his Department, one was to maintain at the level of 1980 spending our commitment from last year and to reduce our on-going commitments via the EDF and the World Bank contributions and could he explain to the House why it was that he chose to reduce our commitments to the bilateral aid programme and not our commitments in relation to the EDF, where they have never fully taken up the allocation in any given year?

Comment on this

We are doing substantial work, particularly under Lomé 2, and have substantial commitments under the other agencies mentioned by the Deputy. Irish firms are benefiting from this investment by us through these agencies and our commitment to invest through these agencies in development aid is of very prime importance. That is why our level in that area should be maintained. In the overall level between aid, taking the two areas, mandatory and non-mandatory, obligatory and nonobligatory, the total aid percentage is up by 12 per cent this year.

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

Could I ask the Minister——

Comment on this

Could I ask one last question?

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

One at a time, please, Deputies. Deputy Quinn to finish.

Comment on this

I am not clear what the Minister means by the word "maintained". Could I ask him to clarify that and could he indicate to the House whether any existing projects currently on the ground in Lesotho will be curtailed or reduced in terms of their expenditure or their activities in 1980?

Comment on this

The existing work being done will be maintained. We are not going to proceed with works that had been planned to be done. That is the point.

Comment on this

With the indulgence of the Chair, could I ask the Minister——

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

We are pursuing this matter into argument.

Comment on this

There are a lot of people with less money than those in this country. Will the level of service actually be reduced, not abandoned?

Comment on this

I use the word "maintained" advisedly—maintained at the same level.

Comment on this

Very advisedly.

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

Could I ask the Minister one question to which I should like a clear, specific reply? Arising out of the Minister's reference to cutting our cloth according to our measure, would the Minister now indicate what is the Government commitment, if any, in regard to bridging the gap between the amount of official development assistance which we are giving and the UN recommendation of .7 per cent of GNP?

Comment on this

What we are doing this year in this area is in line with what every European country is doing at present, by reason of budgetary constraints. It is a fact of life that in this world, where we have been committing ourselves extensively to the Third World, this world is now under severe financial pressure caused by the oil producing countries, some of whom are in the Third World. This is a realistic fact of life facing every country in western Europe and north America.

Comment on this

The Arabs did not ask us to abandon the wealth tax.

Comment on this

Every country in western Europe, all our community partners, every country in north America——

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

The Dutch?

Comment on this

——are adopting the same attitude——

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

The Swedes?

Comment on this

——of constraint by reason of budgetary pressures this year. That is the really important matter as far as western Europe and north America are concerned. We should be of very little assistance to the Third World if we go under financially and economically.

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

With the permission of the Ceann Comhairle——

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

We cannot follow this matter up all day.

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

All I want is the Minister's reply to my question. I got his apology for the reduction this year. Could I ask the Minister is there now any Government commitment in regard to bridging the gap between the percentages?

Comment on this

There is. There is a commitment within the resources available to us.

Comment on this

When?

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

That is no commitment and the Minister knows it.

Comment on this

What sort of commitment is the Deputy asking an Irish Government to make?

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

That is no commitment. That is nothing. Did the Minister ever read what his predecessor had to say about this?

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

Question No. 26, please.

Comment on this