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Dáil Éireann debate -
Wednesday, 18 Oct 2000

Vol. 524 No. 3

Written Answers. - EU Development Assistance.

Pat Rabbitte

Question:

51 Mr. Rabbitte asked the Minister for Foreign Affairs if he will make a statement on the crisis of disbursement of voted funds in relation to development at European Union level; his views on whether the situation to which such disbursement has fallen constitutes a scandal at a time of great human need; and the action he has taken and proposes to take. [22341/00]

I share many of the concerns expressed by the Deputy in relation to the effectiveness of EU development assistance. Ireland, together with a number of other like minded member states, has been pressing for early action by the Commission to make the EC's aid programme more effective. We have been particularly critical of delays in the delivery of EU Aid. Minister of State, Deputy O'Donnell, wrote to Commissioner Nielson earlier this year criticising the EU's inability to react rapidly to the food crisis in Ethiopia.

A series of detailed independent evaluations of the effectiveness of EU aid have concluded that EU development assistance was carried out without any clear over-arching statement of EU development aid policy. The lack of a clear over all policy resulted in fragmentation and inconsistency in the implementation of aid.
In addition to policy weaknesses, the evaluations also uncovered serious flaws in the implementation of EU development aid. These are most starkly evident in the huge unspent balances, now almost 20 billion euros, which have accumulated over the last decade. The EU aid programme is also characterised by excessive internal bureaucracy resulting in lengthy delays in decision making. The administrative structures in the EU, whereby responsibility for the management of he aid programme is divided between three Commissioners has resulted in overlap and internal co-ordination difficulties.
At its meeting in May 2000, the Development Council decided to issue a council policy declaration which will provide a coherent policy basis for EC Aid. The statement will be based on a Commission Communication – EC Development Policy – issued in May 2000. Work in the Council framework has now begun on the drafting of this overall policy statement which is expected to be adopted by the Council at its meeting on 10 November 2000. The policy statement will make poverty alleviation the focus of all community aid programmes and it will also propose streamlining the programme and focusing EU aid in areas where action at the community level has a comparative advantage.
In relation to institutional weaknesses, the Commission has responded to the need for reform with a detailed communication on the reform of the management of external assistance which is a key part of the overall Commission reform exercise initiated by Commission President Prodi. The commission communication is a frank admission of the current weaknesses and sets out ambitious proposals for the reform of aid. Under the proposal bureaucracy will be reduced, decision making decentralised, additional staff will be allocated to deal with the backlog of unspent balances and responsibility for the identification and implementation of all aid programmes is to be located in a single Commission office.
The Commission has also proposed major reforms to the financial regulation which governs the management of the Community budget. The envisaged reforms would permit greater flexibility in the allocation of funds and are designed to prevent the build up of unspent allocations in the aid budget.
The General Affairs Council considered the effectiveness of the EU's external assistance at its meetings in September and October. As part of the Council's conclusions the Commission has been asked to prepare a report on the progress of the reform of the aid programme which will be discussed by the Council in January.
Ireland strongly welcomes the Commission proposals for the reform of EC Aid. We have been actively contributing in the Council framework in the preparation of the EU Development Policy. We also welcome the Commission pro posals for the reform of the management of development assistance. We have pressed for specific deadlines to be set for implementing the reform package. While much work remains to be done, I believe that the package of Commission reforms should put in place the necessary framework to disburse the backlog of funds, and to make EU development assistance more effective.
Question No. 52 taken with Question No. 9.
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