Dáil debates

Wednesday, 23 September 2009

Photo of Peter PowerPeter Power (Limerick East, Fianna Fail)

Ireland has an enviable and impressive record on funding overseas development assistance, ODA. Our progress up the league table of development donors has been realised through a combination of strong economic growth and our desire to move in a planned manner towards the UN target of spending 0.7% of GNP on ODA. This approach has served Ireland's development assistance programme well.

The aid figures clearly demonstrate just how successful our approach has been. In the past six years alone Ireland has contributed well in excess of €4 billion to ODA. The annual development aid budget more than trebled between 2000 and 2008. In the same period, we almost doubled our share of GNP spent on ODA from 0.3% to 0.59%. In 2008, Ireland's total spending on the development assistance programme was €920 million, or approximately 0.59% of GNP. This made Ireland the sixth most generous donor in the world on a per capita basis, an impressive achievement of which we can all be justifiably proud. The total budget for ODA in 2009 is expected to reach €696 million. Based on current projections, this will represent at least 0.48% of GNP. This means that Ireland will remain one of the most generous donors in the world on a per capita basis.

I fully recognise that the reduction in the 2009 ODA budget has been significant. However, this necessary but regrettable decision was made solely in the context of the exceptional economic situation the country currently faces. Our sole objective is to assist in stabilising the public finances to establish a solid platform for renewed economic growth. This is the only secure and sustainable way for Ireland to meet its commitments to ODA.

The Estimates process that will lead to the introduction of the budget in December is under way. No decisions have yet been made in respect of the aid budget for 2010. As the Deputy will be aware, these are difficult times and there are many competing and deserving demands for scarce resources. However, our aid programme must be protected to the maximum possible extent achievable in the current circumstances. I cannot provide an undertaking in respect of the exact figure for development assistance for 2010 in advance of the budget, which is the prerogative of the Minister for Finance and the Government. However, the Deputy may rest assured that the Minister for Foreign Affairs and I will make the strongest possible case for the aid programme as part of the Estimates process.

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