Peter Power (Limerick East, Fianna Fail)

It is important, therefore, to have this debate in the context of the highly positive standing which our aid programme currently enjoys and of which every Irish citizen can be justly proud. I returned last night from the six-monthly meeting of the EU Development Council in Brussels, where the main subject of discussion was the effect of the global economic crisis on the countries of the developing world. The debate among Ministers from the 27 member states threw into sharp focus the complex series of challenges and tensions which must be addressed now if we in the developed world are to sustain the momentum in our work for international development.

We are committed, through the millennium development goals, to halving the levels of world poverty and hunger by 2015. Important progress has been made since 2000. However, we face a global economic crisis, which originated in the financial markets of the developed world but which is being experienced with increasing severity across the developing world. The advances achieved in Africa and elsewhere are under threat. At the same time, we have set ourselves ambitious targets - more ambitious than other countries - which are expressed in terms of the proportion of GNP devoted to overseas development assistance. Therefore, overall aid volumes are set to decrease just as they are needed most. Although percentages rise, aid volumes may well drop. This is a paradox which we must confront.

It was clear to me from my discussions over recent days with EU colleagues that aid budgets everywhere are under serious pressure as Governments move to underpin the economies and the public finances on which they are based. We in Ireland are facing these challenges perhaps more openly and more directly than other countries and therefore the debate on the subject has been particularly intense here. I strongly welcome this debate. It is essential that the Irish people and their democratic representatives consider openly and with a sense of realism the vital issues at stake.

In Europe, Africa, the US and across the world governments are addressing urgently and directly the need to make aid more effective to ensure every euro and dollar counted as ODA has the maximum effect in saving lives and creating the conditions for future growth. Ireland has a major role to play in this effort. This was recognised very clearly in the important international report published this month by the development assistance committee of the OECD following its peer review of the Government's aid programme.

Peer reviews conducted by the development assistance committee of the OECD are the most important independent assessment any donor country undergoes. They are the key international benchmark of the quality and effectiveness of the overseas development programmes of member states. The review involves rigorous research and analysis of Irish aid policies and programmes over the past five years and an intensive series of meetings with Government and non-governmental organisations in Ireland, together with a visit to our programme country, Uganda.

In short, and without in any way minimising the scale of the challenges we face at home and abroad, the people can be very proud of the report's enormously positive conclusions. By any measure, the report is a strong vindication of the policies we have pursued, notwithstanding the comments made by Senators Cummins and Buttimer.

It addresses openly the issue of aid targets and calls clearly on the Government to continue to work towards meeting our stated goal of spending 0.7% of GNP in 2012, three years before the overall EU target date. I can confirm to the House that we are continuing to work towards our target even though clearly it will be more difficult to achieve in current circumstances.

The OECD also states that "Irish Aid is a strong, cutting edge development programme", that "Ireland is a champion in making aid more effective" and that "poverty reduction is the overarching goal of Irish Aid and its programme is well concentrated on a limited number of very poor African countries".

It praises Ireland for working in a genuine partnership with the developing countries and it focuses on and calls on us to work with other donors to share the lessons of our successes in making our aid so effective where it counts - among the poorest communities in the poorest countries in Africa.

Naturally, I welcome this strong international endorsement of the approach we have taken in our policies and actions towards the developing world. We welcome the recognition that our development assistance policies are an integral part of our foreign policy and we welcome the advice that we increase our work in communicating development results to the public in order to maintain support for overseas development.

This is crucial. The people have always been generous donors in a private capacity and they have, I believe, strongly supported the huge expansion of the Government's aid programme over the past ten years. A visit to the very successful Africa Day in Limerick last Sunday or in Dublin next Sunday would confirm the enthusiasm and support of thousands of Irish people for the work of development.

However, I accept that we and the NGOs and missionaries with whom we work in partnership need to redouble our efforts, not just to achieve clear results from our funding for aid, but to demonstrate that Irish taxpayers' generosity and money are saving countless lives each year. We want to maximise the contribution people make through their own donations and through their taxes to fighting global poverty and hunger.

The OECD review was finalised just as the Government faced a series of very difficult decisions across all Departments. I repeat to the House that I, like many Senators, very much regret the need to reduce the budget for 2009. However, I emphasise that decision was taken by the Government with the sole intention of stabilising our public finances and establishing a platform from which Ireland can return to economic growth.

We learned the lessons of failing to establish the basis for sustainable growth in the 1980s. We learned what happens when one avoids difficult decisions. I believe firmly that our overseas aid programme cannot grow to the ambitious levels to which we aspire without a strong and vibrant Irish economy.

We owe it to the people and to the people and governments of the developing world to ensure our development assistance programme is sustainable. We practice sustainable development in Africa and we need to do so at home. We need to show it is based on the reality of a sound national economy. It would be in nobody's interests to focus solely on GNP percentage targets if that GNP is in steep decline and we were to face the prospect of borrowing internationally to fund assistance to the poorest countries. That is simply unsustainable. This is a clear, if somewhat uncomfortable, reality to face. Those who sometimes make pejorative commentary must also face that reality and in doing so, they must accept the Government bona fides in this regard.

Despite the difficulties, however, it is right we recognise that with a budget of just under €700 million for this year, Ireland remains the fifth most generous aid donor in the EU and the sixth most generous in the world in per capita terms. I hope people commenting on this area respect that. Even in enormously challenging times that represents a very solid achievement.

As the OECD states, our spending on development remains at historically high levels and is among the most effective in the world. It expanded almost five fold over the ten years to 2008. We should also note that it grew at a disproportionately faster rate than our national economy. The Government allocated €4 billion in overseas aid over the past six years alone.

Our programme will be reduced this year but we will work with our partners to ensure it is even more effective. I assure Senators that I will lead a relentless focus on efficiency and effectiveness of our programme in all of its formats and delivery mechanisms.

Ireland's official development assistance and the individual contributions of the people are saving lives every day. The Government has given a clear commitment, which I repeat, that we will resume the expansion of the aid programme as soon as economic conditions permit and we have re-established a pattern of sustainable economic growth.

I recognise the strength of the views being expressed in the House on the subject of the aid programme and I accept the passion with which these views are often expressed. We are talking about saving the lives of the poorest and weakest people. This is a subject on which I, too, am passionate but I do not believe it serves the interests of anyone if we fail to recognise the scale of the contribution Ireland continues to make. The scale of the challenge is such that we need to avoid any temptation to indulge in a competitive, negative or acrimonious political debate that can only serve to undermine public opinion at a time when it is needed most.

I welcome views on how we can make our aid more effective in the current climate and actively invite suggestions from Senators. As a contribution to this debate, I would like to highlight in concrete terms how Irish Aid is making a difference in the fight against poverty, as outlined by the OECD. The examples are by no means exhaustive but they serve to illustrate the tangible progress in areas that are critical to the world's poorest and most vulnerable communities. First, Ireland is praised as leading the way in the fight against HIV and AIDS. We have the highest proportionate spend on HIV and AIDS within the European Union. Beyond funding, Ireland is recognised for its innovative partnerships, including with the Clinton Foundation in Mozambique and Lesotho, and for spearheading single national programmes in fighting the epidemic.

Second, Irish Aid is acknowledged for intellectual leadership and achievements in the area of gender equality. Our work in highlighting and seeking to prevent gender-based violence is regularly singled out for mention by our international partners. Third, the OECD emphasises that Irish Aid is notable for its capacity to respond quickly and flexibly to local needs and local priorities in the developing countries with which we work. We could cite many more examples. Our work on hunger in Malawi, on education in Tanzania, to which Senator Daly referred, and on the safety net programme in Ethiopia are all highly regarded internationally.

Fourth, the OECD praises the strategic approach we take to supporting the excellent work of our non-governmental partners. Ireland works more closely in partnership with NGOs than any other OECD member state. We value our partnership with NGOs because it reflects the values of the people and their commitment to making a difference to those less fortunate than ourselves even when we are facing our own economic difficulties and families at home are under pressure.

Our commitment is reflected in our policy dialogue with the NGOs and in our funding. The Government channelled €800 million in development funding through the NGOs over the past five years covering long-term development work and response to emergencies and humanitarian disasters.

I accept the need to reduce our contribution to NGOs by 20% or so will have an effect on their work as will the increased pressure on private funding. However, our funding to the NGO sector will still be higher than for any other member state of the EU or the OECD. It reflects the quality of the work and their ability to work in niche areas. The Government provided about €200 million to aid agencies last year, including very significant funding to Concern, Trócaire and Goal and many others. In 2007, funding for the agencies represented about one quarter of our total development funding, a figure which the OECD describes as "very high". It represents the highest percentage among all OECD member countries. In my discussions with the aid agencies in recent weeks, we agreed on the need to strengthen our partnerships. The funding relationship is crucial and it is inevitably affected by the economic climate, but the challenge now for Government and for non-governmental organisations must be on improving aid effectiveness and ensuring that their approaches remain in line with best international practice. In this regard in my ongoing discussions with other OECD aid donors, we are very cognisant of the need to work more closely together. This will ensure that our combined aid is more effective and gives better value. By working together as countries, we naturally can reduce duplication and plan more effectively. We also reduce the burden on poor countries having to deal separately with so many donors. The result is more lives saved and more effective aid. This important aspect of international aid and development was discussed at our informal session of development Ministers held recently.

There is now an opportunity for our NGO community to look at the possibility of working more closely together, including in joint planning and perhaps joint programming, where they would work in the same country in similar sectors. By pooling funds and their undoubted expertise, it will be possible to do more and be more effective. The possibility of joint appeals could also be explored. This would reduce the cost of necessary fundraising. I know this will represent a challenge to the NGO sector but the opportunity exists to refocus on ensuring that our aid is as effective as we can possibly make it and I look forward to discussing these proposals with the NGO sector over the coming months. I am determined that Irish Aid will lead the way in this respect.

The Government is determined that Ireland will play a strong role in shaping the EU's response and that of the wider international community to the needs of the developing countries as they face the global economic crisis. In Brussels yesterday we discussed how the European Commission can respond more flexibly to the immediate and the long-term effects of the crisis on the most vulnerable countries. We also discussed how the EU and the US can co-operate more effectively and there was strong recognition of the role Ireland is playing in highlighting the need to strengthen the international response to the scandal of global hunger.

In response to the report of the Government's hunger task force, I have made the fight against hunger a cornerstone of the Irish Aid programme. The reality today is that almost 1 billion people are at risk from hunger, one in every seven people on the planet. Their lives are in danger because they do not have enough to eat. We can sometimes lose sight of this critically important fact that it is simply not possible to achieve any of the millennium development goals targets if the people of this world do not have enough food to eat. With the benefit of the hunger task force and with the support we have received throughout the country, from these Houses and from the NGO community, I have been able to raise the hunger issue at the highest level in the international community and to ensure that it receives the priority it deserves at European Union level. I assure Senators that I will continue to do so.

Large sections of the urban poor in developing countries do not have regular access to food and in many cases price reductions in recent months have not reached rural areas. A significant proportion of small-holder farmers, a majority of whom are women, cannot grow enough food to meet their own needs. A key focus of the Irish Aid programme in future will be on support to small-holder and women farmers, the targeting of infant and maternal malnutrition and the improvement of farm productivity and agricultural research. All our programmes delivered through the aid agencies or through the national and bilateral programmes will in future be looked at through the prism of hunger, even the health, education and agricultural and research programmes, to see how they can contribute to the fight against hunger.

It is important that the Irish people know that the Government's aid programme - the people's aid programme - is innovative, accountable and focused on results. The international endorsement from the OECD is welcome. Most important, however, are the recommendations from the OECD on how we can improve our contribution. There can be no question of complacency on our part. I take on board the comments made by Senator Buttimer about the decentralisation to Limerick of Irish Aid. The Senator accepted that the OECD was not critical of the decentralisation process but it observed that it should be monitored to ensure that institutional memory is not lost. The Senator's comments were fair in that respect but not in respect of criticising decentralisation per se, upon which the OECD did not comment. I assure the House and Senator Buttimer that we are putting systems in place, including the recruitment of new development specialists and including collaborating with local educational institutions to ensure that the training and ongoing education of all our staff is at the highest level. This can be discussed at a future time. It is true that Ireland is making a greater contribution per capita than any of the larger EU member states. This fact is sometimes forgotten in this debate, that the Irish Aid contribution is bigger in per capita terms than that of Britain, France, Germany, Spain and Italy, notwithstanding the economic challenges we face. We will now take the recommendations of the OECD peer review, as we did with the last report in 2003, and work to protect and develop the strengths of our programme.

I welcome the strong support across the House for the aid programme. We are managing the programme in difficult times and we are doing so on the basis of our central strategic objective which is to ensure we make decisions which are sustainable for the programme in the long run. Our aid targets are expressed over many long periods of time. They were expressed initially in the year 2000. It is over a period of 12 to 15 years and this sometimes means that we have to make decisions along the course of those long-term targets to ensure that we create the conditions and the platform of concrete rather than sand to ensure that when we reach our aid targets, expressed as a percentage of our gross national product, this will be a real and meaningful contribution in real aid volume terms to those who need it most. To do otherwise would be a real disservice to the people whom we aspire to help. We aim to contribute to the reduction of global poverty and hunger in the poorest countries in the world, with a particular focus on sub-Saharan Africa. It is our firm intention that Irish Aid will continue to develop as a world-class, knowledge-based programme with an unrelenting focus on results, hunger and poverty and on saving and improving the lives and the prospects of the poorest and the most vulnerable people in the world.