On behalf of the advisory board of Irish Aid, I welcome this opportunity to meet the Joint Committee on Foreign Affairs' sub-committee on development co-operation. Together with my colleagues on the board, Mr. David Begg, Mr. Gerry O'Connor and Ms Maura Quinn, I look forward to an interesting dialogue and exchange of views with the members of the sub-committee. We are accompanied this morning by our principal development specialist, Ms Mary Sutton.
The last time I addressed this sub-committee as chairman of the advisory board, in November 2004, I set out the background to the establishment of the advisory board, the nature of its mandate and the principal activities undertaken by the board up to that point. The first advisory board reached the end of its term during 2005 and a new board was appointed with effect from 1 November 2005 for a three-year term. I would like to update the sub-committee on the work of the advisory board in 2005 as outlined in the annual report which we have circulated to the members.
As the committee is aware, the advisory board's mission is to oversee the expanding development co-operation programme, provide strategic direction and work closely with Irish Aid to maximise quality, effectiveness and accountability. More specifically, the board has responsibilities in five areas. It is charged with providing general oversight and advice to the Minister and senior management on the strategic direction of the programme, enhancing the independence of the evaluation and audit arrangements, commissioning research of the highest international standards, keeping the overall standards of the programme under review and organising the development forum to take place once or twice a year. That brings together NGOs and missionary organisations with the Minister of State and senior officials for dialogue on strategic issues.
The advisory board has met 23 times to date, with sub-groups on research and strategic planning meeting as required. With regard to general oversight and advice at meetings, the advisory board offers its views to the Minister of State and the director general, with other senior officials of Irish Aid on a range of strategic issues. Principal among those in 2005 were the reframed 0.7% ODA target, decentralisation of Irish Aid and the White Paper on Development Co-operation currently in preparation.
On the overseas development aid target, the advisory board had taken the view that the original target date of 2007 lacked credibility given the outturns in the previous years and that it was in the best interests of the programme to reframe the commitment. The board proposed year-on-year increases equivalent to 0.05% of gross national income such that the UN target of 0.7% of gross national income would be reached in 2010.
The announcement of the new target date of 2012, with an interim target of 0.05% in 2007 and with clear budgetary commitments for 2005 to 2007, inclusive, was welcomed by the board.
The central issues now relate to programme quality. The new target date implies extremely large year-on-year increases, with major implications for programme planning and staffing. Central to the issue of programme quality is the proposed decentralisation of Irish Aid to Limerick.
The advisory board has repeatedly expressed serious concern about the possible negative impact of decentralisation on programme quality on two counts. It undermines a key recommendation of the Irish Aid Review, which favoured a development co-operation division within the Ministry of Foreign Affairs in the interests of policy coherence. The relocation of Irish Aid may make it a less attractive option for diplomatic staff as well as bringing about the possibility of losing specialist development staff.
The advisory board made a submission on the White Paper in June 2005. It noted very positive features of the Irish programme in that it is given entirely in the form of grants, 100% untied, and focused on the poorest countries, in particular sub-Saharan Africa. It argued that, subject to the resolution of the aid target issue, there was a very strong platform on which to build the "distinctive and world class" programme envisaged in Ireland Aid Review in 2002.
However, with regard to decentralisation, the advisory board reiterated its extreme concern. It noted:
Development Cooperation is part of the core business of the Department of Foreign Affairs, yet it is being physically removed from the remainder of the Department. In a context where the development cooperation agenda is becoming increasingly complex and where the interconnections between the political and development agendas have never been greater, this will render more difficult the close interaction that is essential. The budget of the Division is many times that of the rest of the Department of Foreign Affairs and is due to grow rapidly over the years ahead, necessitating the best planning, staffing and management practice. The decentralisation [...] inevitably reopens the debate about the relative merits of a Division within the Department of Foreign Affairs or an independent agency. The arguments adduced in the Ireland Aid Review and accepted by the Government in 2002 in favour of location within the Department [...] were strong but risk being overtaken by the logic of the physical relocation of Irish Aid.
The advisory board also views the potential loss of specialist development expertise to the programme as a cause of serious concern. The board is very concerned at the shortfall in applications to the central applications facility from specialist development staff and senior diplomatic staff with development co-operation experience.
These concerns have been discussed with the Minister and senior officials on many occasions during 2005. It is the board's view that even at this late stage, the decision to decentralise Irish Aid should be reviewed in light of the manifold risks attendant on it. We argue in our White Paper submission that the advisory board would be remiss in its duty if it did not point out once again its grave fears of regression in programme quality consequent to decentralisation. Apart from the recommendation in regard to decentralisation, the advisory board submission contained a further 20 recommendations related to programme quality. These are set out in the annual report.
On enhancing the independence of the audit and evaluation arrangements, my colleague, Fr. Gerry O'Connor, chairs the departmental audit committee which reports at each meeting of the board on the work of the committee. The board meets biannually with staff of Irish Aid's evaluation and audit unit to consider its work programme and the strategic issues with which it is faced. The advisory board regards the annual report of the audit committee as a critically important contribution to improving processes and procedures in Irish Aid. In particular, it endorses the need for the development of a systematic approach to the implementation of the recommendations of audits and evaluations and shares the concerns expressed by the audit committee in regard to staffing levels and believes that increasing the level of resources devoted to this area is an urgent priority. The risks associated with decentralisation, the loss of expertise in particular, are keenly felt by both structures.
The board and audit committee would like to see Irish Aid pioneering impact measurement ways of auditing and evaluating new aid modalities. At the request of the audit committee, the board is in the process of commissioning research that will examine approaches and best practice in measuring the impact of development assistance. On the board's research mandate generally, to date the board has commissioned seven research projects at a cost of €2.2 million involving approximately 90 researchers from 40 institutions in Ireland, the UK, France, Denmark, Sweden, Norway, Uganda, Tanzania, Ethiopia, Zambia, Malawi and Nicaragua. The research areas include policy coherence, civil society and global health and governance. The policy coherence and civil society studies, coupled with two of the four global health studies, are due to conclude this year. Details in relation to each of the studies are set out in pages 27 to 38 of the annual report.
With respect to its mandate regarding staffing and resources, in 2005 the advisory board commissioned a study entitled Assessment of Current Staffing Levels and Future Requirements at Development Co-operation Ireland Headquarters. This study, which was completed in April 2005, concluded that there are serious threats to the Irish Aid programme arising from a confluence of three factors, staff shortages, the potential negative impact of decentralisation on programme quality and the increase in the size and complexity of the programme. Specifically, the report argues that the staffing available to Irish Aid is inadequate, the size and complexity of the programme has increased considerably and the knowledge and experience of development co-operation vital to the efficient and effective operation of any aid programme could be lost on the current management side of the programme following the transfer of Irish Aid to Limerick unless urgent remedial action is taken.
The advisory board considered the report in detail and offered its views and recommendations thereon to the Minister. It regards as imperative that there be an increase in staffing to meet current needs and that staffing levels be reviewed annually to ascertain the impact of further budget increases. It cautioned either holding back from the increases in overseas development aid or adopting aid modalities specifically for the purpose of circumventing the problems of inadequate human resources and argued that the issue of appropriate institutional structure for Development Co-operation Ireland be revisited in the light of decentralisation.
On its fifth and final area of responsibility, namely, the organisation of the development forum, the advisory board has convened seven sessions to date. The forum brings together non-governmental organisations and missionary organisations with the Minister and senior Irish Aid officials for strategic dialogue. In 2005, the autumn session of the forum was expanded to incorporate a broad-ranging consultation on the White Paper. Participation in the forum exceeded 270 people. The forum was addressed by the Minister for Foreign Affairs, the Minister of State with responsibility for development co-operation and human rights and six eminent speakers from abroad. During the afternoon session, participants were invited to give their input on five themes prominent in the written submissions on the White Paper and in the public sessions held throughout the country. The five themes were: integrated and coherent Government policy for development; engaging the public in development co-operation; governance, poverty, focus and aid effectiveness; conflict; and human security and development.
Following the appointment of the new board in November 2005, a strategic plan was drawn up for 2006 to 2008. In the context of the very rapid and substantial increases already coming on stream it would be judicious to enhance the governance of Irish Aid to ensure a level of oversight and accountability appropriate to an undertaking of its size and importance. Undoubtedly, the oversight role of the Oireachtas will develop to meet the needs of the new context. The role of the board also needs to be developed. In that regard, the board is deliberating on its status, remit and priorities.
The board welcomes the opportunity to meet the sub-committee. During the lifetime of the first advisory board, Ireland's official development assistance programme grew from €420 million in 2002 to €546 million in 2005, an increase of 29% in nominal terms. It is anticipated that during the life of the current board from 2005 to 2008, the level of assistance will increase to €1.066 billion, an increase of 95% in nominal terms. By 2006, when the UN target is achieved, the programme will have grown to €1.6 billion. Irish Aid is moving into a new area and Ireland is moving to the league of mid-size donors. Managing a greatly expanded programme will present major challenges for all associated with Irish Aid. The advisory board, therefore, looks forward to strengthening its relationship with other structures, including the sub-committee, which is charged with responsibility for overseeing this welcome growth in official development assistance.