Mr. Tony Cotter:

I should mention in that context that under the tenth EDF, Ireland's contribution key was 0.91% and under the 11th EDF it is 0.94% as there is a wish to move the percentages closer to what we pay under the EU budget. As our percentage for the EU budget is 1.14%, the general feeling is that the 0.94% agreed for the EDF in financial terms was a very good result for Ireland.

On the issue of trade, one very strong principle of Ireland's approach to development is that all our development aid is untied. That is a strong and central principle of Irish Aid and will be maintained in the future. It is a principle that is respected and acknowledged by the African countries where we have bilateral programmes. Other countries do not follow that principle. That is not to say that trade does not have a role where development is concerned. The whole development context has changed in the past 15 years.

In 2000 when the millennium development goals, MDGs, were introduced the largest development spend by far was overseas development aid, ODA. In the 15 years since, there has been a significant change in the sense that ODA is no longer the largest element of development funding. It is important funding for least-developed and fragile countries because, in many instances, those countries cannot attract funding otherwise. In the past 15 years there has been a change in the sense that countries such as China, India and Brazil have come on to the field. There has been a huge increase in domestic income. African countries have significantly and exponentially increased their domestic income. Huge charitable organisations such as the Clinton Foundation and the Gates Foundation, have entered the playing field so that there is a totally different environment now so far as development is concerned. Certainly there is a role for private sector involvement and foreign direct investment provided rules, principles and ethics are followed by companies going into the developing countries. That is very important.

There was a reference to taxation and capital flight from developing countries. As I have mentioned, domestic revenue is increasingly important and it is increasingly recognised that countries themselves have a responsibility for their own development and, in that respect, must maximise to the greatest extent possible their domestic income. Irish Aid, for its part, provides assistance for capacity building of revenue systems in developing countries. An example is our own Revenue Commissioners who have gone into Rwanda to help the revenue authorities in that country to improve its capacity.

Capital flights from developing countries remains a major obstacle. However, there is increased international co-operation to try to combat that particular activity. At G20 and other levels there is a recognition that other measures must be taken to combat capital flight from developing countries. In that respect Ireland has a good record, in the sense that under the Irish Presidency, we were instrumental in negotiating the EU accounting and transparency directive so as to require multinational companies, based in Europe, to report on the payments they make to developing countries for access to oil, gas and minerals. It is important that those payments are open and transparent and that the populations in the developing countries are aware these payments are being made. Other efforts are being made to complement co-operation between member states to promote better exchange of information on taxation issues and so on.

There was a reference to China. I can speak about China in relation to my experience in Zambia. It was very involved in Zambia and is very involved in Africa generally. It is involved in a very strategic way and in a long-sighted way from its own perspective. One attraction for Zambia is raw material, particularly copper. I mentioned that Zambia's exports leave the country through Mozambique, Namibia or South Africa.

From any of those countries, the boat in most instances is headed towards China. I read recently that China currently has a 25 year store of copper.
The other major area in which China is involved is land. Again, Zambia is a particular attraction for China because its agricultural potential is immense. Zambia is approximately ten times the size of Ireland and has a population of 13.5 million. Some 65% of Zambian land is arable, but only 14% is being cultivated. Irrigation multiplies the productivity of land by a factor of nine or ten. Less than 1% of arable land in Zambia is irrigated, despite the fact Zambia has the fifth highest source of fresh water in the world. Agricultural potential in Zambia is huge and China has recognised that and is beginning to purchase land there because it does not have sufficient arable land of its own to feed its growing population. The Chair will be interested to know that the chief executive of the biggest agricultural processing business in Zambia, the first indigenous company to launch on the London stock exchange, is a constituent of his and lives in Ogonnelloe. It is incredible the number of Irish people one meets when one travels through Africa. China's engagement is very strategic and I have outlined that.
A question was asked regarding employment and the EDF. I already mentioned the EDF spend on roads and road infrastructure. This funding by its nature creates local employment. Expenditure on major infrastructure projects such as roads, transport, bridges, customs facilities and so on creates employment opportunities locally. There is, therefore, an opportunity for Irish companies to engage in this. The amount spent under the EDF is significant. All of these contracts are published in the Official Journal of the European Union andit is open to businesses to tender for them and Irish companies can do so successfully. From my time in Zambia, I am aware that the Sisk group was very successful there and in Zimbabwe, South Africa and a number of other countries. There is a precedent whereby Irish companies have done this. What we wish to do is to raise awareness of this potential among the Irish business community. Obviously there are challenges in this. It is not simply a case of walking in, submitting a tender and getting a contract. One must become familiar with the local situation on the ground, but despite the challenges, there is potential. We want to make the Irish business community aware of the potential so that Irish companies will be successful in tendering for EDF contracts in the future.
Reference was made to the school in UCC. There is always a role and potential for schools and colleges to make a contribution in the developing world. Irish Aid has a scheme in place to foster partnerships between educational entities here and in the developing world and these can have a pragmatic and practical influence. Similarly, the Royal College of Surgeons in Ireland has a programme in place in sub-Saharan Africa, which provides training to surgeons in these African countries. This important programme ensures surgeons in these countries can get appropriate training in siturather than having to leave their country and come to a developed country for their training and becoming part of a brain drain. There is potential in the area of educational facilities, which have a role to play in developing countries.