PARLIAMENTARY DEBATE
DFID-FCO Merger - 18 June 2020 (Commons/Commons Chamber)
Debate Detail
This move is about placing our world-class aid programme at the beating heart of our foreign policy decision making. We will integrate the development expertise and know-how that DFID does so well with the diplomatic reach and clout of the Foreign Office, ensuring that our impact abroad is bigger than the sum of its parts. Far from diminishing our ambitions, it will elevate them. As the Prime Minister set out on Tuesday, we retain our commitment to spending 0.7% of our gross national income on development, but through closer integration, we will maximise the impact of our aid budget in helping the very poorest in the world, while making sure we get the very best value for taxpayers’ money.
For too long, we have indulged an artificial line, dividing the goals that our aid budget and foreign policy serve. This coronavirus crisis has confirmed just how artificial that line is. Across Whitehall, I have chaired the international ministerial group, bringing all relevant Departments together to support the most vulnerable countries exposed to covid-19; to energise our pursuit of a vaccine, working with our international partners; to return stranded British citizens from abroad; and to keep vital international supply chains open. In every one of these areas, we have been compelled to align our development, trade, security and wider foreign policy objectives. As in many a crisis, necessity has proven the mother of innovation. For example, at the GAVI vaccine summit, which the Prime Minister recently hosted, we smashed the target for vaccine funding, with $8.8 billion raised. That was a major success, where our development and foreign policy objectives had to be integrated to serve our dual aim of securing a vaccine for the British people, while making it accessible for the most vulnerable people, right across the world. Likewise we are working to bolster the health systems and institutional resilience of the most vulnerable countries, doing so not only out of a sense of moral responsibility, but to safeguard the UK from a potential second wave of the virus. I am afraid those demarcating a boundary between our national interests and our moral responsibilities in the world are mistaken. Covid has reinforced just how inextricably interwoven they are, just how much they reinforce each other and why we need to integrate them in our foreign policy decision making. It is to boost our impact and influence in the world, and that is exactly what we are doing.
We have to question why this merger is happening now, in the middle of the coronavirus crisis, when our aid is needed most. Why is this happening prior to the integrated review? The Prime Minister insisted that massive consultation had taken place. Which non-governmental organisations were consulted? To my knowledge, none was. Can the Foreign Secretary confirm that DFID employees only heard the news on social media? Were unions consulted? Can the Foreign Secretary commit to retaining all jobs, including the 200 EU nationals who work for DFID and those in East Kilbride? What assessment have the Government made of how much this will all cost?
Is the Secretary of State for International Development happy with this change? It is striking that she has as yet made no statement on the matter. It is almost as though the merger has taken place overnight. Will international development retain a Cabinet Minister and a seat on the National Security Council, so that humanitarian concerns are heard at the very top of government? The Government have committed to 0.7% of GNI on aid spending, but can the Foreign Secretary confirm that this will be overseen by the Independent Commission for Aid Impact? If not, how will the Foreign Office—poorly rated for official development assistance transparency—be held to account? Can the Government commit to maintaining the International Development Committee?
Can the Foreign Secretary guarantee that this will not open the door to tied aid? Do the Government have any intention to repeal or amend any legislation about international development, and if so, in what way? Do the Government intend to continue to use the Development Assistance Committee definition of aid, and if not, what definition will they use? Will the Government ensure that poverty reduction is central to our approach, and how is this consistent with the Prime Minister’s ambitions to take aid away from Zambia and give it to Ukraine?
Finally, what will happen to all new DFID projects, which reportedly have been paused, and will the Foreign Secretary have a say? How will this decision impact on current recipients of DFID’s spending? Will it impact on the UK’s Gavi commitments referenced by the Prime Minister, and will the Government commit to equitable access to covid-19 technologies?
I have explained and set out in my answer to her question exactly why we are doing this now. Covid-19—the crisis, the challenge—has forced us to align and integrate more closely than we have done before, and that was a positive step, but it has also shown how much further we can go if we integrate the formal decision-making structures. The discussions about and consideration of this have been going on for several weeks and months, but it has been under debate for considerably longer.
The hon. Lady asked about the financial repercussions of the merger. Of course, there are opportunities to save administrative costs, but as we have made clear, there will be no compulsory redundancies or anything like that. We are committed to the 0.7% of GNI commitment, which is something she asked. I can give her reassurance about that. We want the aid budget and the development know-how and expertise that we have in DFID—it has done a fantastic job, including under respective Development Secretaries—at the beating heart of our international decision-making processes.
The hon. Lady asked about the Select Committee. It is ultimately, I believe, a matter for the House, but certainly the Government’s view is that normally the Select Committees would mirror Government Departments. However, as I say, that is a decision for the usual channels and, ultimately, for the House.
The hon. Lady then asked about the National Security Council. Ultimately, the Prime Minister leads the foreign policy of the day. He does that, in practical terms, through his chairmanship of the National Security Council. The role of Secretary of State for the new Department will be to make sure, in an integrated and aligned way, that aid is right at the heart, not just of the Foreign Office, but of Cabinet discussions and NSC discussions.
The hon. Lady also mentioned the Gavi summit. The Gavi summit is an exceptional example of why it makes sense to integrate our decision-making processes in this way, because it links our development means and goals with our wider foreign policy goals. We want a vaccine for the people of this country, but we also know, as a matter of moral responsibility but also good sensible foreign policy, that we must do more to uphold the most vulnerable countries and help them weather the crisis, so that we do not get a second wave of this crisis.
My right hon. Friend the Minister for the Middle East and North Africa has just come back from a virtual meeting on Yemen. Yemen is another exceptionally good example of where our foreign policy interests in bringing an end to that terrible conflict align with our development and aid goals—with trying to alleviate the humanitarian plight. I would hope that is something that Members in all parts of the House could get behind.
“The effectiveness with which DFID is able to deliver aid is because the Department has decades of honed experience in understanding the most effective and targeted ways of spending taxpayers’ money”—[Official Report, 10 June 2020; Vol. 677, c. 276.]
—not my words, but those of the Secretary of State for International Development, last week, who now appears to have simply been completely overruled.
Scrapping a Department that is crucial to global vaccine development provides health care and aids the world’s poorest in the middle of a global pandemic is irresponsible and counterproductive and wrong. The Government should be totally focused on steering our country through the challenges we face right now. We have had one of the highest death tolls from covid-19 in the world. Millions of children are out of school and face the worst unemployment crisis in a generation, which will hit young people and the lowest-paid the hardest; and these challenges are global, too.
Instead, the Prime Minister has decided to undertake a large-scale restructure, which will cost millions of pounds of public money, and he will abolish a Department that is the most transparent, the most effective and a global champion at delivering value for money for British taxpayers. Instead, UK aid will be spent through Departments, which, TaxPayers Alliance found,
“neither”
contribute
“to poverty reduction or the national interest.”
So can the Foreign Secretary tell me: when did the Prime Minister decide this matter? Why did he not wait for the conclusion of the integrated review? Did the decision go through the National Security Council? Which civil society and development partners were consulted? How much will the reorganisation cost and what legislative changes are planned? Will the DFID budget be ring-fenced in the new Department?
The Foreign Secretary also mentioned trade envoys. What role now for the Department for International Trade? Multiple former Prime Ministers, from both sides of the House, have criticised the decision. A former Conservative Secretary of State for International Development said:
“Most British diplomats lack the experience and skills to manage 100 million pound development programs…Trying to pretend these two very different organisations are”
the same
“damages both.”
Laurie Lee, the chief executive of Care International, said,
“this is the worst decision on aid since the Pergau dam scandal”
and
“In the middle of a national crisis, the Prime Minister has chosen to spend time, focus and effort on fixing a problem which does not exist…it’s not too late…to think again.”
This is not global Britain. This retreat from the global stage is a mistake, and we firmly oppose this attempt to abolish the Department. It will not only have a life-threatening impact on the world’s poorest and most vulnerable people, but it will reduce our ability to make the world safer, fairer and better for all.
The hon. Gentleman asked when the Prime Minister made the final decision. Obviously, he spent weeks considering it, but he announced the change on Tuesday, swiftly after the conclusions had been resolved. The hon. Gentleman asked whether the aid budget will be protected, and we are committed to the figure of 0.7% of gross national income—I think that reassures those who are concerned that somehow the aid budget will be cut as a result of this change, which is not true.
The hon. Gentleman asked about DIT and trade, and as the Prime Minister made clear on Tuesday, we will ensure that our trade envoys are responsible for formally reporting to ambassadors and high commissioners in their respective countries. More broadly, the International Trade Secretary, who answered questions in the House a few moments ago, is doing an exceptional job in striking those free trade deals, which are a great opportunity for businesses and consumers in this country. That will continue. The hon. Gentleman also mentioned third party support. There has been widespread agreement on this from the Chair of the Select Committee, from my predecessor as Foreign Secretary and from the HALO Trust, which is a charity that deals with landmines and welcomes this move.
I will leave the hon. Gentleman with one thought: of OECD developed countries, only one has a separate Ministry of Development. Indeed, the tide has been in the direction of integrating foreign policy with aid and development, as that is the progressive thing to do. I understand why the Labour party, which set up DFID, feels proprietorial about it, but what matters is the effectiveness of foreign policy. What we have learned during coronavirus is that this merger will ensure that we can be as effective as possible, and deliver more efficient value for taxpayers’ money.
How will aid spending be scrutinised in the new Department? Will the UK continue to follow the Development Assistance Committee definition of official development assistance, or will the Government try to redefine aid on their own terms? Finally, today we learned that one of the UK Government’s recent Secretaries of State would like the HMS Royal Yacht Britannia to be funded on the back of the poorest, most vulnerable and marginalised people in the world. Is the royal family even aware of that? Is it not the case that such a move is led not by a vision of global Britain, but by the myopic Prime Minister of “let them eat cake” Britain?
The hon. Gentleman asked about third-party support. The former Foreign Secretary, Sir Malcolm Rifkind, has welcomed it. My right hon. Friend the Member for South West Surrey (Jeremy Hunt) has welcomed it. The Chair of the Foreign Affairs Committee has welcomed it. He said that no NGOs did, but I can quote James Cowan, CEO of the HALO Trust, a landmine clearance charity, who said that he welcomes this decision because UK policy
“is very siloed… and needs to be broken down”
and brought together. We certainly endorse that. Aid policy and the aid budget will be at the centre—it will be the beating heart—of our international decision-making.
I have already answered the question about the Select Committee. Our view is that, in the normal course, it is right for Select Committees to mirror Government Departments, but ultimately that is a matter for the House. There is a huge opportunity in this process to leverage the very best of our aid—not just money but ethos, passion and commitment—with the muscle and clout that comes with our diplomatic network, and that is what we are committed to delivering.
“some giant cashpoint in the sky that arrives without any reference to UK interests”—[Official Report, 16 June 2020; Vol. 677, c. 670.]
That is how the Prime Minister describes aid to the poorest and most exploited nations and people in the globe. In a Spectator article, he previously mocked such aid as “politically correct”, with aid workers building toilets that people will end up living in and handing out condoms. In the same article, he said of British colonialism in Africa:
“The problem is not that we were once in charge, but that we are not in charge any more.”
Is it not the brutal truth that the Prime Minister is not interested in poverty reduction at home or abroad?
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