Lucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context

Question 1: To ask the Minister for Foreign Affairs the areas of the overseas aid budget that will be reduced as a result of the cuts of €255 million in funding announced over the past nine months; the amount of the reduction in each of the affected areas of the budget; when those in the affected areas will be informed of the nature of the reductions in their areas; and if he will make a statement on the matter. [15995/09]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The total official development assistance budget for 2009 will be €696 million. It is anticipated the aid budget will amount to 0.48% of GNP. This will mean that Ireland will most likely remain the sixth largest aid donor in the world as a percentage of GNP. This remains an enormous achievement in the current economic circumstances. The reduction in the aid budget will necessitate modification in planned expenditures across the programme. I want to ensure to the maximum extent possible that projects and programmes which are focused on the most vulnerable and those which are daily saving lives, such as emergency feeding, will be maintained.

In practical terms, the revised aid budget will mean slower disbursement of funding in regard to longer-term development programmes. However, this will not affect the final outputs, such as the number of schools built or teachers trained. We are in continuous contact with our partners on all aspects of programming, including budgets. Adjustments amounting to approximately €118 million will need to be made across the bilateral co-operation element of the aid programme. Support to programme countries and civil society will amount to €313 million, which is about €45 million less than anticipated. This will necessitate the lengthening of timeframes for programme completion. In 2009, Irish Aid will provide well over €100 million to NGOs and civil society.

Our programmes of strategic co-operation with key larger UN development agencies will be maintained, but with lengthened timelines and some reductions in 2009 allocations. We also remain ready to assist in sudden natural disasters and emergencies. Funding of €56 million has been set aside for humanitarian activities, which represents an adjustment of €24 million. Our pre-positioned emergency supplies remain in place and will be replenished as necessary.

In respect to the quality of our aid programme, we have just been reviewed by the OECD development assistance committee. I am extremely pleased to note that the report refers to Ireland as a "champion in making aid more effective" and to Irish Aid's "strong cutting edge programme". We can be pleased to hear these views from an independent, objective and critical international aid organisation.

Our aid programme reflects our core values and commitment to supporting the world's poorest. The decisions we are taking in order to adjust the aid programme are framed in the context of this commitment and our determination that, once the Irish economy has returned to a pattern of sustainable growth, we will resume the expansion of our aid programme.

Lucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context

It is somewhat misleading to state that a cut of €255 million in the aid budget over a period of 12 months reflects the core values of this country. It does not in any way reflect our core values. We have a commitment under the millennium development goals, as the Minister is aware, of achieving a 0.7% of GDP target by 2012. Our GDP has fallen by 8% in the past year but our aid budget has been slashed by 20%. There is a disproportionate and swinging affect on our overseas development aid budget in terms of how it is being cut and targeted, and treated as a soft option.

My concern is that overseas development aid may be considered by some in Government as an optional luxury, which it most certainly is not - it is a fundamental core of this country's foreign policy. The Minister appears to be rolling back on this, from what I can understand. A 20% cut is totally disproportionate-----

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

Does the Deputy have a question?

Lucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context

A question is coming. This is a very easy target and one that does not have electoral implications for the Government because it does not directly hit voters. That is an obvious point.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

Is there a question?

Lucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context

I want to ask the Minister a specific question. We still do not have clarity and all the aid agencies are completely confused as to how their budgets will be affected and what specific programmes will be affected. They need clarity because they cannot plan. We have a targeted and professional system in how our agencies give assistance through various programmes and they cannot plan or operate on this basis.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The Deputy rightly points out that we have had a significant reduction in GNP in 2008 and 2009. While I do not want to go down that road, we are dealing with a net reduction of €80 million from a very substantial budget if we factor in the 2008 reduction and the expected 8% reduction in GNP in 2009. That is the context. We were aiming for 0.54% in 2009. Owing to the reduction in GNP we actually achieved 0.58% in 2008, which puts us fifth in Europe and sixth per capita across the globe. Even though we are going back to 0.48% for 2009, we will probably still be the sixth largest in 2009.

We do not take any pleasure from this. We did not want to be in this position. Across the board there have been significant cutbacks in all programmes. There has also been a very significant drop in revenues resulting in a very tough series of budgetary decisions which affects everyone in our society and unfortunately has affected the aid programme also.

However, the underlying objective is to create a sustainable pathway for our public finances which ultimately is the best guarantee of being able to achieve our target of 0.7%. That was an Irish target. The EU target was to achieve 0.7% by 2015.

Lucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context

While we can argue over the figures, the reality is that there has been a 20% cut, which does not reflect the drop in GNP. The NGOs, including Trócaire and GOAL are all reeling in confusion. They cannot plan because they do not know which programmes will be cut. If the Minister could clarify that, it would be very beneficial for them.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The NGOs will know very soon and we will be communicating with them directly. I point out that we have one of the best records of any donor countries in assisting NGOs and missionaries in that approximately 20% of our aid programme is delivered via civil society organisations with more than €200 million being provided in 2008. No other donor allocates such a high proportion of its aid programme in that manner through civil society.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

Question 2: To ask the Minister for Foreign Affairs the way the cuts of €100 million on top of the 17% cut previously made will impact on the projects funded by his Department in general and in the bilateral countries in particular. [15994/09]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

In my reply to the previous question I set out in some detail the important issues the Government is facing in implementing the adjustments to the aid programme which are now required. As I pointed out, with an overall allocation of €696 million in 2009, Ireland will again be the sixth most generous aid donor internationally in per capita terms. We will deliver on our commitment to resume the expansion of the programme once we have got our economy back into a pattern of sustainable growth. In the past six years alone Ireland has contributed in excess of €4 billion in ODA. By any standard this is a very significant achievement and one of which we should acknowledge and for which we should take some credit.

In reducing the aid budget for this year there will inevitably be an impact on funding across the programme. We are at present identifying the necessary changes, consistent with the central priority of our aid programme, which is the reduction of global poverty and hunger in the poorest countries in the world, especially in Africa.

Ireland provides assistance to more than 90 developing countries and we have a commitment to long-term strategic assistance in nine programme countries. Although funding adjustments will be required and the timeframes for the disbursement of some funding will need to be extended, we will maintain the overall commitments we have entered into with these countries.

As I have mentioned, an important report on Ireland's aid programme will be published shortly by the OECD development assistance committee. It states clearly that the concentration of Ireland's development assistance on a limited number of poor countries is one of its main strengths and that the programme's attention to local priorities is appreciated by developing country partners. It confirms that the proportion of bilateral spending devoted by Ireland to the poorest countries has been both high and remarkably constant over the years, and very significantly higher than the average for all major international aid donors.

This independent, international recognition of Ireland's record is well earned, not just by the official aid programme, but also by the consistent generosity shown over the years by the Irish people. The changes, which we must now make, will be implemented in a manner that sustains the Irish record in the developing world and our commitment to a disproportionate Irish contribution to the fight against global hunger and poverty.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

Arising from the Minister's replies to these two priority questions, how does he square what he has said with what the Taoiseach said in response to Pope Benedict's new year message? The Taoiseach said:

I welcome the commitments made in the Declaration that issued at the Doha Conference in December and note that, despite serious economic difficulties, Ireland remains on course to achieve the target of spending 0.7 per cent of GNP on Overseas Development Aid. In this time of global economic crisis, His Holiness' message is a timely reminder of the obligation that we in the developed world have to assist those in greater need.

This is the fourth cut in overseas development aid and three issues arise, which I want to put to the Minister. How can he justify the disproportionate cuts in overseas development aid? If one were to talk about a cut of 8%, which other Departments and sections suffered, €71 million would have been taken out. What was taken out was €195 million.

The second issue relates to the impact. When one considers for example the campaigns against AIDS and the health impact, while the NGOs have received an allocation of 70% of their budget, it is still unclear whether life-threatening programmes will be able to continue. Going back on solemn commitments given several times at the United Nations by previous Taoisigh, most recently by the present Taoiseach, does serious damage to Ireland's reputation. We never fell back and rationalised by comparing ourselves with the poorer performers. We always claimed a lead role and now that would appear to be sacrificed.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

I would not accept that we were always claiming a lead role. It was only in the recent past that we have been claiming a leading role.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

We had a consensus.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Back in 2000 we contributed approximately €220 million and we have made dramatic progress since then. Of course our GNP grew dramatically over the same period and the linkage of the amount of aid allocated with GNP was a significant factor in that and agreements we made in that regard. Now that the GNP has reduced very significantly, people are very reluctant to factor in that decline in GNP to any reduction in aid at all. They seem to be suggesting that we ignore that aspect of it and just take the totality of the figure without any connection to the reduction in GNP.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

So the target is set.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

I am simply saying that there clearly is a cut in the aid programme. Some relates to the reduction in GNP and some relates to additional amounts that have been cut.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

It is a disproportionate cut.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The key issue for us is to create a sustainable pattern of finances that will ensure continued sustainable allocations for aid into the future. We are borrowing very significant amounts of money this year to support this programme and other programmes across Government expenditure generally. We are very keen to maintain our relationships and fulfil our commitments to the nine programme countries. We have undertaken to spend €100 million a year on HIV-AIDS and other communicable diseases, and we will continue at this level.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

The OECD has given a favourable report on the Irish aid programme, which is welcome. However, one would find it strange that the only increase, an increase of 240%, in the allocations in Vote 29 is in value for money and policy reviews. When there is consensus about the value of the programme and when we have had to cut back good elements of it, why embark on value for money studies at this stage? One would have thought the Government would be seeking to sustain the programme in terms of where the impact of cuts might be most negative with regard to life-threatening issues. I welcome the cut of 61% for consultancy services. Following on from Question No. 1, the Minister needs to give an assurance with regard to funding. If the major NGOs have been given an indication they will receive 70% of what they had been receiving, they cannot be left without direction on the remaining 30% across their programmes if they are to plan effectively.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

We will get in touch quickly with the NGOs. The 70% was an up-front contribution allocation early on. It was acknowledged that it was important to make such a commitment in advance of the budget. I am surprised at the Deputy's comment on value for money. The programme has grown rapidly in a short space of time and any Government expenditure programme that increases so rapidly requires careful monitoring.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

That is not my argument.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

We need to be extremely vigilant in terms of value for money audits on all of the programmes. We are vigilant and work with the OECD in that regard.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

I think the rush to vigilance is a cover.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

No, I would be concerned if we did not do it. I am surprised the Deputy raised the matter because it is a relatively small amount. The Deputy quoted a percentage, but the base is quite small.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

I think the programme has been damaged by the unfounded allegations against it.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

We have had other examples of Government expenditure where we had to justify the necessity of carrying out some value for money assessments.