Mr. Michael Gaffey:

Something in the region of €70 million of what counts as Irish overseas development aid is our contribution to or share of the European Union's development co-operation budget. We are fully engaged in the processes involving member states and the Commission and its external action service in how this money is spent and programmed. Furthermore, during our Presidency one of the big issues will be the budget for the coming six years under the multi-annual financial frameworks.

I gather this particular report - I have just printed it and I have not read it in full - refers in large part to the issue of budget support. This is a big issue discussed regularly in development co-operation. It is not so much budget support as general budget support which relates to channelling money directly into the treasury of a government to try to help make the greatest possible sustainable change in a country. There is a debate on the tracking of that money. As the Secretary General said, if a country puts money into the treasury of another, at a certain point when it is pooled it does not have a national dye or tag on it. Part of the debate in the European Union on the provision of general budget support refers to this. On the other hand it is universally acknowledged that we want to build institutions in a country and empower societies and countries to lead their own development and move towards a point where we can pull out of development assistance and have countries run their own development. The more we can work through Government systems, the better. If we are to achieve the millennium development goals then the more we can channel money through government systems, the better. A balance must be found in building up reliable, accountable government systems. The best way to do that is probably to build up reliable, accountable national institutions. However, there are some people who believe that the risk is too great and this is a constant challenge for us nationally. We only provide general budget support to two particular countries, Tanzania and Mozambique, but the European Union works through general budget support in a large number of countries. The constant challenge is to get the balance right between effectiveness and the accountability issue. That is what the report is about. It is an annual debate and discussion and one which will come up throughout Ireland's EU Presidency as well.