Written answers

Wednesday, 23 September 2009

Department of Foreign Affairs

Overseas Development Aid

9:00 am

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 17: To ask the Minister for Foreign Affairs the impact of the budget cuts on overseas development aid; and if he will make a statement on the matter. [31386/09]

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 22: To ask the Minister for Foreign Affairs if his attention has been drawn to the fact that the overseas development aid budget has been cut by close on one quarter during the past year, a percentage higher than cuts made in other areas of Government spending; his views on whether such cuts will have adverse consequences for the poorest of the poor globally; and if he will make a statement on the matter. [31733/09]

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 23: To ask the Minister for Foreign Affairs if the decision to devote 0.7% of gross national product to overseas development aid by 2012 remains his policy; if he will confirm his ongoing commitment to the issue; if the policy has changed; if he will inform the Houses of the Oireachtas of the new date chosen for reaching the 0.7% target; and if he will make a statement on the matter. [31768/09]

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 34: To ask the Minister for Foreign Affairs the adjustments in spending in overseas development aid which are to be made in Budget 2010; if he will ensure that Ireland keeps its promises and its financial commitments to the poorest of the poor; and if he will make a statement on the matter. [31732/09]

Photo of Michael D HigginsMichael D Higgins (Galway West, Labour)
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Question 39: To ask the Minister for Foreign Affairs the estimated figure for overall overseas development aid spending for the coming years on a yearly basis; if the target of 0.7% by 2012 remains credible; and if he will make a statement on the matter. [31734/09]

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 54: To ask the Minister for Foreign Affairs if his attention has been drawn to the steps taken by the Swedish Government to increase its overseas development aid commitments despite the economic crisis; his views on whether Ireland should do likewise; and if he will make a statement on the matter. [31731/09]

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 58: To ask the Minister for Foreign Affairs the level of cuts all other EU member states have made in their overseas development budgets. [31760/09]

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Question 65: To ask the Minister for Foreign Affairs if he remains committed to spending 0.7 percent of gross domestic profit on overseas aid development by 2012; his views on the recommendation in the Special Group on Public Service Numbers and Expenditure Programmes to push back this target by three years; and if he will make a statement on the matter. [31693/09]

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 75: To ask the Minister for Foreign Affairs if the percentage cut in overseas development aid over the past year has been the largest percentage cut of any EU member state. [31765/09]

Photo of Peter PowerPeter Power (Limerick East, Fianna Fail)
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I propose to take Questions Nos. 17, 22, 23, 34, 39, 54, 58, 65 and 75 together.

In 2008, Ireland spent €920 million on Official Development Assistance (ODA). This represented approximately 0.59% of our Gross National Product (GNP).

For 2009 the total budget for ODA is expected to reach €696 million. Based on current projections this will represent at least 0.48% of Gross National Product (GNP). This means that Ireland will remain one of the most generous donors in the world on a per capita basis. This is an enormous achievement in the context of the current economic circumstances and one of which I believe we should all be justifiably proud.

I have stated, on many occasions, that the Government very much regrets having to make the decision to reduce the 2009 development assistance budget. However, it must be recognised that this necessary decision was taken in the context of the economic situation facing the country. Its sole objective is to assist in stabilising the public finances. We are all agreed this is a fundamental prerequisite for the resumption of economic growth, which is the only sustainable way Ireland can meet its future ODA commitments.

The Government recognises that the reduction in the ODA allocation for 2009 was significant. However it follows a period of unprecedented growth. The figures speak for themselves. At the start of this decade, Ireland's ODA stood at €254 million - by last year it had reached €920 million, more than trebling in volume. In the same period, our percentage share of GNP spent on development assistance increased from 0.30 % to 0.59% - effectively doubling.

As the House is aware, our international commitment to development assistance is measured as a percentage of GNP. This is also the basis for comparison and ranking within the OECD Development Assistance Committee (DAC) donor group. The only sustainable way we can have continued growth in our development assistance programme, and maintain our international ranking, is through returning to a path of economic growth.

We recognise it will now be more difficult to achieve the target of spending 0.7% of GNP on ODA by 2012. Nonetheless we will continue to work towards that target, and will make a full assessment of our capacity to achieve it in the context of the preparation of the 2010 budget.

As Deputies will appreciate, budget allocations for 2010 are a matter for the Minister for Finance. In the current difficult fiscal environment there are many competing demands for scarce resources. However, as stated in my previous reply, I can assure the House that I and my colleague, the Minister for Foreign Affairs, will make the best possible case to protect the aid budget.

It is important to note that Ireland is significantly ahead of all but a few EU member states in making progress towards achieving the broad EU 0.7% target in 2015. Definitive figures on 2009 ODA flows are not yet available for the OECD DAC. However as the global economic downturn has affected all EU member states, other donors are likely to face, to greater or lesser degrees, similar fiscal constraints as Ireland. Given that ODA expenditure is measured in terms of a percentage of GNP, it is likely that many other donors will reduce their ODA volume allocations. I am aware of the excellent record of Sweden, which currently holds the EU Presidency, in regard to ODA. It is currently ranked in first place within the OECD DAC donors and spends almost 1% of its GNP on development assistance.

While I am very much aware of the implications of the recent budgetary cuts for our own aid programme, increasing volumes is not the sole measure of a successful development assistance programme. Spending aid effectively, while meeting the needs of the world's poorest, is an essential characteristic of a quality programme. The OECD DAC peer review, has described Ireland as "champion in making aid more effective" and states that "Irish Aid is a strong cutting edge development programme". I will ensure that these high standards are maintained.

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