Dáil debates

Tuesday, 16 November 2004

Council of Europe Development Bank Bill 2004: Second Stage (Resumed).

 

5:00 pm

Tom Parlon (Laois-Offaly, Progressive Democrats)

I thank Deputies for their wide-ranging and interesting comments on the Bill. Members of this House have shown a consistent and genuine concern in the affairs of less well-off countries of the world and that is acknowledged by me on behalf of the Government. Deputies, in their various contributions, emphasised the need to focus development efforts on the poorest countries and noted the benefits the Irish experience of development and social change could contribute to the wider world.

Deputy Bruton noted the valuable contribution made to the economic and social development of Ireland by international development institutions, including the European Investment Bank. I agree we should give our thanks for that past support and that, as we become wealthier, we must support other states in their development and in grappling with their problems. I welcome also his proper reference to the careful way past Governments and agencies have used funds given and lent to us by others. It is one thing to get concessional loans or grants and another to use them properly and wisely.

Deputy Bruton referred to debt cancellation, as did Deputy Healy. We have no debts to cancel. Ireland supports debt cancellation and I agree that wealthy countries need to do more to assist the highly indebted countries. This is an issue we have raised in many fora and while support is growing, money for debt cancellation is hard to find from the larger and most developed states. While we will certainly play our part, others are more reluctant. I also agree that the Irish experience has much to offer others in eastern Europe and elsewhere. We have learned some hard learned lessons, which might help others avoid blind alleys.

Deputy Burton noted the time it has taken to get the Bill discussed in this House — it has awaited Dáil time since February last. It came close to discussion on several days but other urgent legislation pushed it backwards. The Deputy mentioned also the useful work this bank can do in assisting the Roma community in the countries where those communities are established.

Deputy Burton also mentioned the need for good governance, particularly in Africa, where progress in meeting the millennium development goals is painfully slow. Ireland's priority for aid is heavily geared toward countries in Africa, and we also see the need for more assistance and reform in Africa.

Deputy Howlin referred to the fact that we are late in joining the bank. That is true. Our slowness to join the bank was not due to any reluctance as to the importance of the bank, but we were short of funds. He also pointed out the problem of corruption and the hard choices that must be made. On the one hand, some of the poorest people live in countries that have high levels of corruption. Doubly cursed by poverty and rapacious officials, we must ensure that aid and assistance is not stolen or diverted. This House supports aid. It does not support aid being diverted to pay for presidential palaces, backhanders or otherwise.

Deputy Harkin mentioned the high rates of growth Ireland has seen in recent years. It is our intent to use some of this growth to the benefit of others, particularly in support of the millennium development goals.

Almost all Deputies spoke about ODA, and I welcome their support for development aid. Our contribution is new and additional.

Deputy Boyle mentioned the Kyoto Protocol. As he is aware, recent decisions by Russia make ratification likely. No doubt he will not wish to see the developing world repeat the errors that we in the developed world made in regard to energy use. The problems of conservation and sensible development can be regarded as worldwide ones.

Deputy Ó Caoláin reminded us that, in general, Europe has progressed more since 1956 than many other parts of the world. This is due in no small measure to the strong institutions Europe has created — the Council of Europe, the European Union and banks such as the EIB. Europe is not a closed off place. Ten new countries just joined the EU and more are waiting in the wings.

Deputy Hogan mentioned the critical role of employment as an engine of development. We are now fortunate enough to have good employment prospects for our people, but much of eastern Europe faces daunting problems. The Deputy mentioned also the benefit we got from EU transfers and the need for those to be used wisely. This is something we fully support.

Deputy Twomey and others reminded us that while we have a long experience of outward migration, our experience of inward migration is more recent. I hope our support for this bank will help raise development in countries such as Bulgaria so that their citizens have greater choice regarding employment in that region.

The role of education in development is vital. In Africa and eastern Europe, primary education is not available to all, particularly girls.

Deputy Michael Higgins mentioned the problem of debt created in some cases by inappropriate policies, conflict or ill luck. In the case of Africa, significant debts need to be cancelled but some are in countries that have repudiated participation in the programmes and policies of the Bretton Woods institutions for long periods. The Deputy suggests the neo-liberal economic model has failed. In praising Keynes he may have forgotten that Keynes was one of the principal participants in the Bretton Woods conference that established the IMF and World Bank more than 60 years ago.

Deputy Cowley mentioned the need for balanced regional development. In many places in Europe the drift from the land remains a great problem. The bank supports this objective and tries to ensure that rural infrastructure is upgraded to keep people and jobs in the regions of Europe. Deputy Connaughton also gave welcome support to this Bill, for which I thank him. As representatives of rural communities, Deputies Cowley, Connaughton and I know the people we represent support measures to help rural development in poorer countries, as is the case in the Bill.

Deputy Stanton asked whether the Government would use the bank's facilities for programmes for refugees or social housing. It is not envisaged that Ireland will borrow from the bank. Our participation in it is aimed at supporting the needs of others. As regards other countries, national or local governments or others seeking to borrow may approach the bank and the bank will make decisions within overall policy. Governments do not decide or make allocations. While it is not a requirement of membership of the European Union to be a member of the bank — we joined the EU in 1973 while not a member — it helps to prepare candidate countries for membership.

Deputy Finian McGrath correctly reminds us that Europe has helped create the problems affecting some parts of the world. I welcome his support for Irish people who serve or have served overseas for humanitarian purposes. I welcome his efforts to focus on AIDS, which with malaria and water borne diseases, kill far too many people in the developing world.

Deputy Coveney mentioned the role of the bank in helping countries prepare for EU accession and noted that we spend little on military affairs. I welcome his concern with governance issues.

Deputy Crawford reminded us of problems in the agricultural sector and of our experience of famine. In recent times, people in the Balkans faced hunger and war and reconstruction aid is still required in the region.

I do not have the details Deputy Stanton requested regarding the bank's development plan but I will revert to him on the matters he raised at a later date.

I thank Deputies for their contributions and support for the Bill. Unfortunately time does not allow for further comments in regard to all the points raised. I am, however, heartened that all sides of the House are committed to the expression of solidarity and social inclusion in the wider Europe, which is the core mission of the Council of Europe Development Bank.

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