Maureen O'Sullivan (Dublin Central, Independent)
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Question 229: To ask the Minister for Foreign Affairs the reason the budget for overseas aid has been cut by 21.8%; if there is a link between aid and national income; if so, the reason there has to be a cut and if it is proportionate. [36029/09]

Peter Power (Limerick East, Fianna Fail)
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In 2008, Ireland spent €920 million on Official Development Assistance (ODA). This represented approximately 0.59 % of our Gross National Product (GNP) and maintains Ireland's position as one of the most generous donors in the world on a per capita basis. For 2009, the total budget for ODA is expected to reach at least €696 million. Based on current projections this will represent at least 0.48% of GNP. The Government fully recognises that the reduction in the 2009 ODA budget was significant. However it follows a period of unprecedented growth. At the start of this decade, Ireland's ODA stood at €254 million - by 2008 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.

The reduction in the 2009 ODA budget was a necessary but regrettable decision that was made solely in the context of the exceptional economic situation currently facing the country. Its core objective is to assist in stabilising the public finances in order to establish a solid platform for renewed economic growth. The Government is firmly of the view that this is the only secure and sustainable way for Ireland to meet its commitments to ODA. The Government has a target of spending 0.7% of GNP on ODA by 2012. This percentage is a UN established target and is the internationally recognised measure of a country's commitment to ODA. Ireland is significantly ahead of most EU donor countries in achieving this percentage – Ireland was ranked sixth in 2008. This ranking is likely to be maintained in 2009.

Nevertheless the Government is fully aware that achieving the target by 2012 will be a challenge in the current difficult economic circumstances. During the estimates process for 2010 which is currently under way, the Government will make a comprehensive assessment of our capacity to achieve this target. Finally, I would point out that Ireland's aid programme is recognised internationally as one of the best in the world. Our peers in the OECD have described it as "cutting edge". I can assure the Deputy that this quality will be maintained while we continue to ensure maximum value for taxpayers' money in our aid programme.