I hope that we will not witness the situation that occurred in Cancún, where the entire talks virtually collapsed.
Ireland's experience of EU membership has shown that both consumers and businesses can benefit from liberalisation. Therefore, Ireland supports the maintenance of a strong rules-based multilateral trading system. Without the WTO, the interests of large countries would dominate small ones and regional or bilateral arrangements would replace stable international rules.
We must not forget that 2005 has been an outstanding year for development. We have seen welcome progress on the key issues of debt and of increased aid volumes. It is worth pointing out that the EU is one of the great leaders in the area of development. A total of 70% of the increases that have occurred and will fall into the coffers of developing countries' budgets in the years ahead come from the EU. We should be conscious of this when examining issues concerning trade and agriculture.
The focus now is turning to trade and to the forthcoming WTO ministerial meeting in Hong Kong. It is hoped that this conference will provide a final push leading to a successful conclusion to the current round of trade talks. Agriculture is the focus of considerable attention but is not the only issue under discussion. In our approach to the EU discussions on agriculture, Ireland has sought to achieve a careful balance between preserving the rural economy on one hand and contributing to further agricultural liberalisation on the other.
My priority in the trade talks, as it is in the aid programme, is to assist the world's poorest countries. To put it simply, my priority is to assist those in greatest need of assistance. Not all developing countries are the same. Brazil does not have the same needs as Zambia. Argentina does not have the same needs as Ethiopia. The EU is by far the most open market for the world's poorest countries. Under the Everything But Arms initiative, the EU grants duty free access for all imports except arms from the least developed countries. The three temporary exceptions — bananas, rice and sugar — will be phased out by 2009.
Everything But Arms is a radical step forward by the EU and it challenges others to do likewise. I do not say this lightly as, if the non-EU G8 countries were to make a similar contribution to the development agenda, they would adopt an initiative such as this, which would allow free and unfettered access for the world's least developed countries to its richest markets, namely, those in Europe. In Hong Kong, we should aim to deliver concrete results for developing countries, in particular the least developed, by pursuing four key deliverables.
The first key deliverable should be a concrete commitment by all developed countries to grant access to the products of all least developed countries, LDCs, free of all duties and quotas. As the second key outcome from Hong Kong, LDCs should not be asked to open their markets in the current negotiations. As put by Mr. Pascal Lamy, former EC Trade Commissioner and now Director General of the WTO, the Doha development agenda should be a round for free for the least developed countries. The third deliverable from Hong Kong should be to identify and sign off on a group of proposals relating to special and differential treatmentfor LDCs. In practice, this means the obligations on these countries will be lower and the implementation period for the obligations they enter into can be longer. This is a reflection of their state of development and of their vulnerability.
Each proposal should have a significant beneficial effect on the least developed countries. Of course, market access alone cannot provide the answer to the trading problems of these countries. The least developed countries also need assistance in operating in an increasingly complex international trading environment. I am reminded of a figure quoted by Commissioner Mandelson in his recent address to Ministers with responsibility for overseas development in Leeds. He stated that 70% of all tariffs are levied by developing countries on developing countries. That figure is often ignored in the obsession and concerns about the subsidies attached to European agriculture.
Already, Ireland provides considerable assistance to developing countries to increase their negotiating capacity. This year alone, more than €1 million has been provided by Ireland in such assistance through a range of international funds. In Hong Kong, I hope we will see the definition of "aid for trade"widened beyond this technical assistance to include measures to mitigate and compensate for the negative effects of reforms. This is the fourth key deliverable that can be achieved in Hong Kong. This assistance should complement real progress on the development agenda. It is not an alternative to that progress.
The share of least developed countries in global exports has fallen steadily, from 3% in the 1950s to a current figure of approximately0.5%. Reversing this trend will take more than trade liberalisation and perhaps more than can be delivered in Hong Kong. It requires a sustained approach which addresses the existing difficulties in a systematic and comprehensive way. Addressing the causes of poverty, improving social services, providing education and tackling infrastructure deficits are all essential. There is no simple solution. Ireland is working in these and other areas to make real and sustainable gains possible for the poorest countries and the people of the developing world. The successful integration of the least developed countries into the world economy is essential for their future well-being.
I would now like to turn to some of the key questions and issues raised in the committee's report and in its discussions on 20 September. I emphasise to members of the committee that we cannot afford to fail these people, who are among the poorest in the world. For all of its faults and small compromises and changes achieved over a long period of time, the multilateral system can deliver economic growth and opportunity for people who do not have them.
Ireland will reach by 2012 the UN target of 0.7% of GNP spent on official development assistance. The Government has set a number of benchmarks against which our progress towards achieving that target can be measured. Next year we will reach 0.47% of GNP; in 2007, we will reach 0.5%; in 2010, we will reach 0.6%. We will reach the UN target three years ahead of the EU target date of 2015. That target date set by the 15 traditional members of the EU was not entered into lightly. By the year 2010 it will bring €20 billion into the development coffers. Europe is making an enormous financial commitment, and 70% of all increases that developing countries will receive during the next few years will be delivered by the Europeans. In 2012, our official development assistance spending is expected to be of the order of €1.5 billion, placing Ireland in the front rank of donors worldwide. The increased resources will allow us to both expand and deepen our development co-operation.
Speaking in New York, the Taoiseach outlined four key areas of action for the expanding programme. We will double our funding for efforts to combat HIV-AIDS and other communicable diseases to €100 million. In a separate announcement made recently, the Taoiseach stated that 20% of that funding will be devoted to paediatric services and AIDS orphans across the continent of Africa, in line with an appeal made by UNICEF and a number of world donors, including the UK and the United States. That is a real commitment and we are the first country in the world to make such a commitment to children, who to date have been largely neglected as anti-retroviral treatments have been slowly rolled out across Africa.
Our programme for HIV-AIDS already provides significant support in the areas of prevention, treatment and care. With the new resources, we will provide increased support, including in research. I want to draw upon the medical and scientific expertise available here in Ireland. To this end, I plan to convene an expert group to help advise on the provision of support in these areas. I do not do this lightly but because of Ireland's financial success we know we have a large well of expertise and successful medical experts who are acknowledged as world leaders in their fields. We must use their obvious brain power and abilities to help us as we develop and expand our overseas aid programme. We will also expand our support for the fight against TB and malaria. The remarkable success of the campaign to eradicate polio shows clearly what can be achieved through concerted international action. We must replicate this success in the fight against these other diseases. Extra resources to combat famine and hunger will also be provided.
Events in Niger during the summer period served to remind us of the importance of preventing crises and tackling their causes instead of responding to them. The extra resources will allow humanitarian agencies to respond to emergencies more quickly and comprehensively. We intend to deepen our partnership with some of the domestic NGOs which are at the forefront of fighting famine in emergencies such as in Niger and Pakistan or in the aftermath of the tsunami. In general terms, there is a need to look at the capacity of the international community to respond to sudden emergencies, as the continuing crisis in Pakistan underlines for all of us.
In October I signalled Ireland's willingness to support the proposed enhanced central emergency response fund, CERF. I have pledged a figure of €10 million, which will be made available when Ireland, with other donors, is satisfied with the practical arrangements for the operation of the fund. The objectives of the CERF are simple: earlier response, faster response, more lives saved.
The third area highlighted by the Taoiseach was the role of the private sector. We already have in place the private sector forum which promotes co-operation between the private sector in Ireland and the private sector in our programme countries. Its work is bearing fruit in Uganda. We have achieved real and substantial progress in a short timeframe, but more can be done. It is my intention that the forum should become a formalised structure in which contact between the aid programme and the private sector can be formalised and built on. The forum will continue to be at the centre of our efforts at encouraging private sector companies, firms and individuals to become involved in our programme countries and the developing world generally.
It is stated in the committee's report that almost 100% of Irish aid is untied. I confirm this to the committee and that this will continue to be the case. Notwithstanding our efforts to promote private sector involvement in our programme countries, the Government does not intend to change the relationship that has brought great credit to Ireland and its aid programme by interfering with, changing or diluting the untied nature of Irish overseas aid.
The fourth area identified by the Taoiseach at the summit in New York was governance. This is timely, given the earlier discussion about Ethiopia. It is an issue that has been raised frequently at this committee and many times at the nine or ten public meetings held on the White Paper. Corruption and poor governance in its other forms can undermine efforts to deliver assistance effectively. They can also undermine support for development assistance at home. The public wants to be sure its money is reaching the intended target. I intend to build in-house capacity within Development Co-operation Ireland to address governance issues as part of my efforts to build management capacity. This is not all to do with new projects and initiatives. We must continue with those projects which have earned Ireland its international reputation for following and sometimes leading international best practice. The key challenge is to develop the programme while maintaining the highest standards and continuing to make a real difference to the lives of the world's poorest people.
The expansion of the aid programme has significant staffing implications which Deputy O'Donnell raised at the committee meeting on 20 September. The Deputy is aware of the work done by my officials and that they are often stretched to meet the demands of managing a programme of this scale. To maintain existing high standards as the programme continues to expand rapidly, it is essential that we have sufficient human resources with appropriate skills available to plan, manage, monitor and evaluate the programme. I am confident that progress will be made on this issue in the near future, following my discussions with the Minister for Finance and judging from discussions with the Taoiseach and members of the Government.
Another major challenge is that of ensuring adequate public awareness and ownership of the aid programme. Throughout the recent series of White Paper public meetings, it became increasingly clear that, by and large, people were not aware of the scale and nature of our overseas aid programme. This must be corrected. The programme only makes the news when there is a political disagreement here or a major humanitarian emergency to which we must respond. We must examine how we can get our message across directly to the public and create a strong sense of public ownership of the programme.
The message is a simple one, namely, that the aid programme involves public money that is well spent and makes a real difference to the lives of those in greatest need. Visibility is a real issue for the programme and I hope I can count on the joint committee's support as I work to address this aspect. I do not intend to do so with a view to increasing visibility for its own sake. On the contrary, the OECD peer group review recommended that it would be appropriate for a programme of the size of Ireland's to spend a significantly larger amount on delivering wider public ownership and understanding of development issues.
Related to this matter is the issue of information for and dialogue with Members of the Oireachtas, in particular members of the joint committee. I am aware that a number of members visited several of our programme countries in recent years. I will be more than happy to facilitate further visits in the future. I want the joint committee to have first-hand knowledge of our work in programme countries and elsewhere and to understand the diverse nature of the activities the programme supports. There is no substitute for witnessing development work on the ground and engaging with our Irish and local staff and, most importantly, those we are helping through our work. I hope the joint committee will carve out a role for itself in the context of the developing overseas aid programme because parliamentary oversight will be a key part of our efforts to create better public understanding of development matters.
In the course of the joint committee's meeting on 20 September a substantial discussion took place on support for volunteers and missionary organisations. The overseas aid programme already provides considerable funding for volunteers. In 2004 it funded more than 1,200 volunteers, lay and missionary, working in 84 countries. We must and can do more. Last month I launched a guide for those wishing to volunteer which provides details of more than 100 development organisations offering placements for volunteers. The document is available on-line at www.volunteeringoptions.org. Next year we will open a one-stop-shop to provide a single contact point for all those in Ireland who wish to volunteer for overseas development work. I want these premises to be visible and accessible to the public.
In many ways, the official aid programme can be seen as following in the footsteps of many Irish missionaries who worked in Africa and other parts of the world long before the State had the capacity to do so. Since the establishment of the bilateral aid programme, the Government has supported the work of Irish missionaries. In line with the recommendation of the 2002 Ireland Aid review, we have significantly increased funding to missionaries in recent years. The allocation in 2005 was €12 million, the highest in the history of the programme.
I hope I have addressed in broad terms some of the issues which arise. I will be pleased to answer any questions members may have on the programme and matters arising from the forthcoming world trade talks in Hong Kong. I thank members for their commitment to development issues and their timely questions. In a private capacity, notwithstanding the intensity of the criticism I received from members of the joint committee and others in the early part of my brief in September 2004, this criticism was welcome in the sense that the contributions, commitments and criticisms made during that period have resulted in a much enhanced aid programme in the past year. We now have a commitment and timeframe for reaching our aid target and a significant financial package to provide for the developing world. This is due in no small part to the commitment of members.
