Dominic Hannigan (Labour)

I wish to speak on the proposed development co-operation Bill and the economic partnership agreements which were raised earlier. In 2005, my party proposed the development co-operation Bill to enable the annual commitment of 0.7% of gross domestic product to development aid. The UN millennium development goals which rely on development aid would have seen action in areas such as the eradication of extreme poverty and hunger, better educational systems, the reduction of child and maternal mortality, the combatting of HIV-AIDS and support for environmental sustainability. These goals are far from being realised, because of the 192 members of the UN who signed up to the promise to provide 0.7% of GDP, only five states to date have reached or surpassed that target. Those states are, Denmark, Luxembourg, the Netherlands, Norway and Sweden, with Sweden giving 1.03% of GDP to development aid, a sum which is 50% higher per capita compared with Ireland's contribution. There is a long way to go and our level of contribution must be increased.

It is almost eight years since the Taoiseach made the solemn commitment to reach the figure of 0.7% of GDP. He pledged it would be achieved by this year, not by 2012, but this pledge seems to have been long abandoned. The way things are going it may be some time before this figure is reached and it may not be by 2012 but at a later date. We do not know whether the economic situation will be used as an excuse to delay the commitment further.

The proposed Labour Party Bill would have established a legally binding contribution of 0.7% of GDP with the money being deposited in a development fund quarterly, thus removing the Department of Finance from the equation and ensuring the money was used for development aid. However, our Bill was voted down by the Government.

The State must honour its commitment and work with local partners on the ground in developing countries to make sure the aid provided reaches the people who need it most. The Government must work closely with the Council of Ministers to ensure transparency in how the aid is spent. Senators Norris and Buttimer and other Senators on the Government benches referred to a lack of transparency. It must be ensured improvements in human rights are secured in return, as Senator O'Malley stated. We need to stand firmly for the establishment of a UN rapid response unit to tackle natural and human disasters.

I refer to economic partnership agreements. It must be ensured what is given in development aid on the one hand is not taken away because of the requirements made of developing countries on the other. The European Union has responsibility for maintaining trade with 78 former colonies, of which 42 African, Caribbean and Pacific nations are in the developing world. In 2001 Ireland asked that these colonies remove 80% of their trade restrictions with Europe. One of the impacts of that change was a worsening of their economic positions. For instance, water privatisation has led to local hardship in a number of these countries. It is vital that while, on the one hand, Ireland provides development aid, it does not, on the other, restrict the ability of those countries to expand their economies by imposing restrictions on the way they trade. Trade agreements must favour developing nations and nothing the Government does on trade agreements should undermine development aid. Ireland has been always known as a generous nation and it is important that the State honours its 0.7% of GDP commitment for development aid. I urge the Government to meet this sooner rather than later.