Vol. 529 No. 1
90 Ms Shortall asked the Minister for Foreign Affairs the conclusions reached at the recent meeting between the Minister of State and the EU Commissioner for Development and Humanitarian Aid; if she received assurances that EU programmes will be reformed to ensure the backlog of funds is applied urgently to relieve hunger and distress; and if he will make a statement on the matter. [2251/01]
109 Mr. Howlin asked the Minister for Foreign Affairs if he will make a statement on a recent report from the EU Court of Auditors concerning the management and disbursal of EU foreign aid; and if he has satisfied himself that sufficient reforms are in place to tackle the backlog of 20 billion worth of aid which has been allocated but not spent. [2241/01]
I propose to take Questions Nos. 90 and 109 together.
The unspent backlog of EU funds, amounting to almost 20 billion across all EC funded programmes, is a matter of great concern to Ireland. I had an opportunity to raise this question directly with Commissioner Nielson, who has responsibility for development and humanitarian matters, when he visited Dublin last November. At our meeting, I told the Commissioner that this backlog is unjustifiable at a time of great hunger and poverty in the world. Commissioner Nielson, who has been very committed personally to addressing this problem, briefed me on the reform of the EC aid programme, which is one of his main priorities. The Commissioner also subsequently met the Oireachtas Committee on Foreign Affairs.
The recent Court of Auditor's Annual Report sets out clearly the current situation with regard to the EU's development assistance programme. It identifies a number of weaknesses, including slow implementation of the programmes under the European Development Fund, considerable funds remaining unused and delays in programmable aid. However, the report also notes that many of the weaknesses, which the Commission reform process addresses, are points which the court had identified in its reports over the years, including the need for reform of the management of external aid programmes. The report urges the Commission to proceed with the implementation of its proposals for reform as quickly as possible.
While I remain concerned at the level of the backlog of unspent EU funds, there have been a number of welcome developments recently, which are intended to address the issues identified in the Court of Auditor's report. The Council of Development Ministers adopted an overall Statement of EU Development Policy last November. This provides, for the first time, a clear mission statement of the EU's objectives in the development field and brings EU policy into line with the international objective of poverty eradication. The development council also considered the first draft of an action plan which will help the EU to give effect to the principles in the policy statement.
The Commission is also implementing a comprehensive process of reforming the management of external aid, and its own internal structures.
Additional Information.Europe Aid, the new office with overall responsibility for Community aid, was established on 1 January. The complete programme cycle, from identification to evaluation of projects, has been placed under the responsibility of Europe Aid. This will help reduce inconsistency and overlap in the programming and delivery of aid. The Commission has also made progress in devolving responsibility from Brussels to its offices in the field. A list of 23 delegations to be included in this programme in 2001 has been identified, and the remaining delegations will be progressively included in 2002 and 2003. This will help reduce delays caused by over-centralisation. The procedures of the management committees of members states in Brussels have also been streamlined. These measures should help reduce bureaucracy and improve the overall efficiency of EU assistance.
There has also been progress on improving the financial management of EU assistance. The Commission has proposed reforms of the financial regulation, and the use of more flexible methods of allocating budgets to ensure funds are spent as quickly as possible. Work has also begun on clearing the backlog of old commitments. Additional staff have been allocated to deal with this problem. According to the Commission, as of 1 December 2000, the amount relating to commitments unspent five years after their allocation has been reduced by 30%. The Commission has now started a second phase of this process and hopes to further reduce these amounts. The clearance of old and dormant commitment has proceeded more quickly than the Commission anticipated, and the reform procedures should help prevent the build up of a similar backlog in future.
The seriousness with which Foreign Ministers view this matter is indicated by the fact that they reviewed progress on enhancing the effectiveness of EU external assistance at the first General Affairs Council of the Swedish Presidency, held on 22 January. Ministers received a series of reports on various aspects of the reform process, including a report from Commissioner Patten on progress to date and orientations for future action. They agreed there had already been considerable progress in improving the financial management of EU aid and in reducing the backlog of unspent balances. However, they urged the Commission to make further progress, partic ularly in the context of the preparation of the 2002 budget. While much has been achieved already, we will continue to urge the Commission to accelerate its efforts to ensure that aid is delivered to the poor and needy as swiftly and effectively as possible.
I am sure the Minister of State will agree that there is something peculiarly obscene about 20 billion being undistributed while, as she wrote last November, 12 million children under the age of five die every year and two-thirds of the earth's population, 4.5 billion people, have a life expectancy of 40 years. Following her meeting with the Commissioner responsible, does she agree that reform of the process of disbursing money that has been allocated indicates a very low priority to this issue within the European Union generally? Is she in a position to publish a report on what progress, if any, has been made on the reform of this scandal whereby 20 billion worth of aid remains undistributed by people who have aspirations of being a superpower?
Does the Minister of State accept this 20 billion worth of unspent European funding is one of the great scandals of our time when we have a world of want and hunger, and that it is made worse by the fact that this amount has built up over a ten year period? Does she agree that at European level – I emphasise I am not pointing my finger at the Minister of State – heads should roll by way of reaction to this scandal and that it should not be glossed over because of the additional misery this maladministration has brought to the Third World?
I agree that the accumulation of such funds not drawn down by the Commission, even though committed by member states, is a scandal. It has been recognised as such by the new Commission and it is a very high priority of the new Commission. The Swedish Presidency has put it very high on its priority list for the next Development Council meeting. When GATT met in January a review of external assistance was on its agenda. These are not moneys lying in bank accounts but moneys that have not been drawn down by the Commission, even though committed by member states. Nonetheless, the fact that such bureaucracy and bureaucratic difficulty has prevented the disbursements of such funds is a cause of great concern for Parliaments, particularly in the European Union. I am satisfied that sincere and effective moves are being made to relieve this backlog and to put in place better financial regulations. The Europe Aid office has been established to co-ordinate all the European development assistance programmes.
Written Answers follow Adjournment Debate.
