European Communities (Definition of Treaties) (Agreement amending the Cotonou Agreement) Order 2007

My Lords, I am grateful for the support of those on both Benches opposite for these important orders. It is very good news that all around the House we support the general aim of poverty reduction and that we all acknowledge that poverty reduction measures have to be coupled with good governance. A number of important points have been raised. It is clear that Europe is playing, and will continue to play, a major role in helping developing countries, particularly in Africa, to meet the challenges that they face. The noble Lord, Lord Dykes, cited the fact that the EU was a major player when it came to aid and development. The EC was the world’s third largest distributor of OD aid to developing countries in 2005, behind the US and Japan. Too often the EC receives too little acknowledgement of the work that it undertakes in developing countries. The noble Lord, Lord Astor, asked about monitoring the aid to ensure that it gets to where itis meant to be and is not subverted because of corruption. The creation of Europe Aid has led to better aid management and decentralisation to more able and active EC delegations. As the noble Lord, Lord Dykes, said, it is important to have the technical expertise on the ground. Strengthening the EC delegations so that people on the ground work with the people who are disbursing the aid is the best way to ensure that the opportunities for corruption are limited. There is more to do to ensure that the systems are still reformed so that we can address the capacity reinforcement that is still necessary. We want an integrated approach to development co-operation, where policy and funding go hand in hand and good governance is the key to all these issues. What does the EC do to ensure that its funds are not wasted? The annual accounts and resource management are overseen by its external auditor, the European Court of Auditors. The court’s main task is to provide the Council and the European Parliament with an external independent audit of the European Community’s annual accounts, including those of the development co-operation programme. If we are worried about certain situations, we raise them in management committees and in the Council. We follow everything up very closely. The noble Lord asked to which countries funds were going to be given in the 10th replenishment. Discussions about the poverty reduction strategies of the individual ACP countries are under way; it is too early to say to which countries we will allocate money. However, it is clear that poverty is the key focus for low-income countries and Africa. More than 90 per cent of funding in the 10th replenishment fund will go to Africa and to low-income countries, which is in line with the United Kingdom’s own development and aid ethos. The division between bilateral and multilateral is, again, still under discussion. I should think that a high proportion goes in bilateral aid, but if I am wrong I will inform noble Lords. In response to the question about how DfID is helping to make EU aid more effective, we support the Commission in decentralising much of its programme. In 2002, when reforms were just beginning, only 24 per cent of the value of the European Development Fund portfolio was managed by delegations, but in 2006 that number had risen to 82 per cent. We support the Commission in all these reforms. The noble Lord, Lord Dykes, asked about the millennium development goals and whether the EDF would assist in enabling countries to reach them. As I have stated, the main focus of the EDF is poverty reduction. We believe that lifting a country out of poverty is the best way to enable it to reach the millennium development goals. One focus of EDF money is on things such as access to clean water and education—things that will enable countries to prosper and reach the millennium development goals. I agree that the EU-Africa summit is a very important occasion for discussions with Africa to improve our relationship and what is happening on the ground. I was asked whether the World Trade Organisation and other global organisations should be modernised to ensure that they can meet the difficult trade challenges in today’s world. The Government are continually seeking to modernise institutions such as the UN and WTO to ensure that they are in better shape and can meet the challenges of the 21st century. The noble Lord, Lord Teverson, asked whether the Government believe that the ACP is still an effective way of channelling aid and whether aid is distributed in the most appropriate way. It is very important to maintain the relationships with the countries in the ACP but not every ACP country receives the same proportion of aid. The countries that are the most needy and deserving receive the most money. It is not a ““one size fits all”” tool but an organisation in which we provide targeted aid so that we reach the parts that need to be reached. I do not think that the European Investment Bank is an innovation. It has certainly been involved since the Cotonou agreement was made five years ago. Whether it was used under Lomé, I am not sure, but I will inform noble Lord. The EIB is a useful tool, although I take on board the noble Lord’s comments that perhaps other EU entities might be more appropriate. In conclusion, the Government believe that Europe has a key role to play in the international community’s efforts to eradicate poverty. The amended Cotonou agreement and the 10th EDF provide a valuable framework for Europe’s co-operation with the ACP states. I commend the order to the House. On Question, Motion agreed to.