Joe Costello (Dublin Central, Labour) | Oireachtas source

Yes, it is a great company. We should publicise the fact that a State company is able to compete with the largest country in the world. The quality of its business, engineering and expertise make for a good story and one we should all tell. Incidentally, I will also sign a double taxation agreement with Botswana. My visit to Africa will have other elements of a trade mission, both in Botswana and South Africa.

Deputy Brendan Smith asked whether there is a danger of duplication with some of the work being done in overseas development aid. We are keenly aware of this possibility. As Deputy Eric Byrne noted, there is a natural overlap between the focus of the European Development Fund money and funding for overseas development aid. Almost 92% of EDF moneys will be allocated to Africa, primarily sub-Saharan Africa where Irish Aid is focused.

The EDF mirrors our eight partner countries. We can consider projects in which we are engaged in those countries and at the same time consider greater infrastructural projects for which we could not provide funding but which would complement our work. I gave the examples of Ethiopia, Tanzania and Malawi where we do complementary work. We tie in with disbursement of those funds and can ensure, through our people who are represented on the committee dealing with the disbursement of the EDF funds, that there is no overlap with Irish funding but complementary spending. The multilateral funding is in many ways an extension of what Ireland is doing.

The Chairman was at Busan. This ties in with the Paris and Busan accord and the conference on global partnership for effective development that I attended two months ago in Mexico in focusing on the effectiveness of funding, joint programming, blending and using funding to optimum benefit, which is very important. We are keenly aware of this and in a perfect position, perhaps more than any other country, for our ODA funding to benefit from the complementary nature of EDF funding. There is parliamentary oversight through the accountability process and will be more after Cotonou.

All states do contribute. It is an assessed contribution. We do quite well. Our contribution is 1.14%. Our assessed contribution for EDF is 0.94%. Our contribution is less than our national contribution to the EU. We contribute €286.8 million to the 11th EDF, while Germany will contribute €6.2 billion; France over €5.4 billion; Luxembourg, €77.8 billion; Portugal, €365 million; and Greece, €460 million.

In response to Deputy O’Sullivan’s questions about accountability and good governance, there is a very strong accountability process for the EDF funds. The European Court of Auditors checks the funds. The EU has a results-oriented monitoring system, based on regular on-site assessments by independent and external private companies on the various projects and programmes, where the efficiency, effectiveness, impact and sustainability are assessed. Moreover, the EU’s evaluation unit reports its findings on the evaluation of the EU co-operation and development programmes to the external relations commissioners, to take action on conclusions and recommendations. The European Parliament discharges its annual accounts and the annual report of the European Court of Auditors includes the EDF. Ireland is engaged with other EU member states on the management committee of the EDF. The evaluation and audit division within the Department of Foreign Affairs and Trade further scrutinises our bilateral development partners. Our embassies and partners abroad keep an eye on matters too.

As an example of the EDF's response to developing situations, in Uganda it has decided to withhold approval of funding for the Ugandan national programme for the time being because it is concerned about bad governance arising out of the fraud there and the anti-homosexuality legislation. The EDF committee of member states made that decision this month. We have been very close to what is happening in Uganda. I visited there recently and yesterday replied to a parliamentary question tabled by Deputy O’Sullivan on the Ugandan situation. We have decided not to penalise the ordinary people of Uganda by withdrawing our funding and continue to make funding available to the areas in greatest need. We did this on the advice of the Civil Society Coalition on Human Rights and Constitutional Law in Uganda despite the anti-homosexuality legislation and the fraud perpetrated on Ireland, which amounted to €4 billion, all of which was recouped, plus interest. Deputy Smith also tabled a question on that subject. I assure the Deputies that we have consulted widely on this issue and did not take our decision lightly. We are monitoring the situation because we are unhappy with developments there and feel that we have a responsibility in that respect. We continue to make funding available for the time being but totally avoid any government mechanism for that funding.

Deputy Crowe asked about untied aid. We have articulated very strongly in our programme, One World, One Future, that we are not imposing any conditions on our international development aid. Our decision on where to spend funding will be determined by certain criteria. The overriding criteria are areas of greatest need and that we do not make conditions. Other countries such as China, Britain and Germany do have conditions linking their aid to contractual matters. We have decided not to do that. We have a good relationship, particularly in sub-Saharan Africa, which has been built up through centuries of work by Irish missionaries and our shared post-colonial experience. We have a strong, friendly environment there to offer to our business and private sector. We do not offer contracts or grants or anything of that nature. That allows us to maintain untied aid so that we go to places of greatest need and do not have another agenda. That will continue to be the situation as long as I am in charge, however long that may be, given present circumstances.

We will always have to address the exploitation of natural and mineral resources. We sought to do that when we had the Presidency of the EU and we got through a directive on natural resources, providing for accountability and transparency in multinational companies engaged in African and Third World countries.

Those based in the European Union would be obliged under the directive to reveal their financial engagement with the various countries where they are involved in exploration or in the exploitation of minerals. This is currently being finalised and I would like to see it transposed into law here as quickly as possible.