Michael Kitt (Fianna Fail)

I welcome the Minister of State. This debate is very important and, as the Minister of State knows, we have it every few years. It is very interesting to note what has been said about the extra money that will be made available because of this Bill. It is obviously very welcome.

I have raised on a number of occasions an issue pertaining to the IDA and the associated Bretton Woods agreement. There seems to be an emphasis on loans, regardless of whether they are long-term, short-term or have a 0% interest rate. As the Minister of State indicated and as stated in the explanatory memorandum to the Bill, the IDA helps the world's poorest countries to reduce poverty by providing credits, which are 0% interest loans with a ten year grace period.

I was more happy with the Minister of State's reference to two major changes to the agreement for the 13th replenishment of the International Development Association, namely the replacement of loans by grants and the establishment of performance standards. At a time when there is much querying of governance, particularly that in Africa, and queries about public administration and corrupt regimes, we must be very careful when providing assistance. Let us be blunt about the matter. Mr. John O'Shea has raised the issue of corruption in some African countries in particular. I would like to think we will have an opportunity, particularly through the Committee on Foreign Affairs, to examine governance in some of these countries, particularly those with problems such as HIV-AIDS.

Some weeks ago, the Minister of State, Deputy Noel Ahern, and I were in Sao Paulo at a meeting of the United Nations Conference on Trade and Development. We were very privileged to see the work the Holy Ghost Fathers are doing in that city to provide water schemes, crèches and computer courses, particularly for young people. They are also renovating buildings to provide small classrooms. It is a good example of where people are in for the long haul. In many cases, however, crisis management is like fire brigade action in that one of our NGOs enters a particular country and tries to rectify problems very quickly before it is forced to leave, with the result that the approach is not as good as that of getting involved in education and health issues. It contrasts with the excellent project of the Holy Ghost Fathers.

Today the Committee on Foreign Affairs discussed and approved a draft programme for Uganda. It particularly examined page 21 of the relevant report, which specified what the World Bank had provided for Uganda over the past four years. In 2001-02 the provision increased to US$300 million from a previous figure of US$100 million. The following year it dropped by 50% to US$150 million and this was also the provision for 2003-04. This is a case of where the World Bank is reducing its support for a country. Having said that, the African Development Bank has been increasing its funding. Ireland has given €12 million consistently for the past three years. There was a drop in the contributions from the United Kingdom and the Netherlands, which I found surprising.

I am making the point that there are more factors involved than the World Bank, which is the most significant contributor in the case of Uganda. We see many headlines on poor governance and administration and alleged corruption and we all know of the claim that €35 million was spent on an aeroplane in one African country after it had declared that it needed significant aid contributions. We must monitor this issue. I am very happy that the DCI contribution is increasing and I hope we will reach the target of spending 0.7% of GDP on overseas aid by 2007. I hope this Bill will help us to make investments over the longer period. Such investments have been very successful in the sub-Saharan countries.

The Minister of State's figures indicate the challenge that lies ahead. For example, he stated that at current rates of increase, the population of sub-Saharan Africa is expected to grow to over one billion by 2020. I hope the work of the Minister and the Department of Foreign Affairs in the DCI area will ensure that we can make the necessary investment. Countries with a per capita income of less than US$875 need our help.