Peter Power (Limerick East, Fianna Fail)

Notwithstanding the decisions taken by Government yesterday, my Department will meet its target for spending on overseas development aid, ODA, this year, which is 0.54% of gross national product. We also remain committed to our 2012 target of 0.7% of GNP. Unlike other Departments, ODA spending is linked to GNP rather than year on year expenditure. Accordingly, the Government decisions taken yesterday reflect the realities of slower economic growth. This is the same for all countries that link ODA to GNP.

It is worth reiterating how great Ireland's contribution is to fighting world poverty. Ireland is the sixth largest donor in per capita terms. Even with the decisions yesterday, spending on ODA this year will amount to €900 million or more than €200 per citizen. This leaves us well ahead of most other European Union member states in terms of the proportion of our GNP allocated to this area. The measures announced yesterday are intended to restore the conditions for strong economic growth and to protect the future of the Irish Aid programme as with other areas of public spending, which is important. We were in a position to expand the programme almost fivefold over the past ten years because of our strong economic performance.

On the wider macro-economic issues, it is very much the duty of our generation of politicians, who were only in school the last time the economy was in free fall in the mid-1980s, not to repeat the mistakes of previous years. We should never return to borrowing to meet current expenditure. That would inevitably lead to borrowing to pay for borrowing to pay for interest on borrowing. Every penny paid in tax in the 1980s was used to service interest on our national debt. We can never go back to that and it is important to bear that in mind throughout this debate.

The spending priorities will remain as set out in the White Paper on Irish Aid. Assistance to sub-Saharan Africa will continue to be the top priority, as will measures to counter climate change and rising food prices, investment in education, health, the fight against HIV-AIDS, good governance and efforts to promote gender equality. These are issues that have the most impact on those least able to cope. Adjustments totalling €45 million will be made across the programme in such a way as to minimise the impact on any one area. The continuity of our programmes will be maintained, but funding timeframes in some cases will be extended and disbursement rates modified. I am particularly concerned that funding provided to Irish non-governmental organisations and our missionaries should be protected so that no reduction would be made in their allocations this year.

More taxpayers' money will continue to be channelled through the Irish Aid programme this year. This funding will allow us to continue to make a difference to the lives of people in developing countries. Within the last two weeks, I have seen how Ireland is considered a leader in the field. Our taxpayers' money is saving countless lives throughout the world. Two weeks ago I visited Malawi, a programme country where we have invested in increasing agricultural productivity among small holdings. More than 400 villages and tens of thousands of people have had their lives changed immeasurably by the money generously provided by Irish taxpayers. These real and tangible benefits have improved lives immeasurably. In terms of quality and quantity, the money provided by taxpayers is effective and is being used for its intended purpose. How much time is left?

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