I am pleased to have the opportunity to discuss with the committee the levels and scope of Irish Aid's funding to Palestine and the Palestinian people. The gravity of the humanitarian situation in Palestine, and particularly in Gaza, is of deep concern to us all.
Palestine has the potential to be a prosperous state. However, its economy has been choked and its development stymied by the occupation and ongoing conflict. The poverty rate stands at 47%, while food insecurity affects 34% of the population. In Gaza, the statistics are even more shocking, with four fifths of the population dependent on aid for survival. The volatility of the humanitarian situation in Gaza has been all too tragically demonstrated in recent days. Following rocket attacks by Palestinian militants, Israel suspended fuel supplies to Gaza which in turn caused the shutdown of Gaza's power plant. As has happened all too often during the course of this immensely complex conflict, ordinary Palestinian civilians must bear the brunt of reprisals and counter reprisals. The demolition of barricades at the Rafah border crossing and the exodus into Egypt of as many as half of Gaza's population highlights the sheer desperation of a people who had effectively been shut off from the outside world.
It is clear that financial assistance alone cannot and will not form the basis for long-term development in Palestine. The roots of the suffering visited on the Palestinian people are fundamentally political and sustainable improvements in the humanitarian situation will ultimately require progress in political negotiations. We hope that the renewed political process launched in Annapolis last November will result in a successful outcome and a just and viable two-state solution. In the short term, an end to violence by all sides is imperative, as is the lifting of the restrictions on movement which have stifled the Palestinian economy and provoked unnecessary suffering and hardship among the Palestinian people.
As we monitor developments in the political sphere, Irish Aid will continue to provide financial support to meet the humanitarian and development needs of the Palestinian people. Our commitment is reflected in the considerable increases in Irish Aid funding to the Palestinian people over the past three years, from €4.39 million in 2005 to almost €7.5 million in 2007. This represents a total increase of 70% during that period. During the period 2005-07, Irish Aid's funding to Palestine was provided in the context of a comprehensive country strategy, the aims of which were to alleviate the material consequences of the conflict, to support the emergence of a prosperous and democratic Palestinian state by providing assistance for the delivery of basic services and to respond to the humanitarian consequences of the crisis. Concerns for peace, democracy and human rights underpinned the strategy, while a clear sectoral focus and multi-annual framework sought maximum possible impact for Irish Aid's assistance. Ireland's representative office in Ramallah, which was opened in 2000, has been centrally involved in the design, implementation and monitoring of all aspects of the programme.
Of the many victims of the Israeli-Palestinian conflict, the suffering of Palestinian refugee communities in Gaza, the West Bank, Syria, Lebanon and Jordan is most pronounced. In the absence of political agreement, their situation remains uncertain and the hardships they face increasingly severe. The United Nations Relief and Works Agency, UNRWA, is responsible for the provision of humanitarian assistance and basic services, including health and education, to more than 4.4 million Palestinian refugees. Ireland has been a long-term and active supporter of UNRWA. In early 2007, taking account of the increasingly challenging circumstances faced by the agency, it was decided to increase our funding for UNRWA's core activities to €3.8 million per year for the period 2007-09. Ireland's relationship with UNRWA was further consolidated during a visit to Dublin by the agency's commissioner general, Karen Koning AbuZayd, on 18 and 19 December 2007. The commissioner general's programme included consultations with the Minister for Foreign Affairs, Deputy Dermot Ahern, as well as the Minister of State, Deputy Tom Kitt, and members of this committee. During the visit, the contribution by Irish Aid of an additional €500,000 to the education sector in Gaza was announced.
Irish Aid has also contributed towards public service salaries in Palestine, including teachers' salaries. This amounted to €1 million last year and was channelled through a temporary mechanism managed by the European Commission. Given the fundamental importance of promoting human rights and democracy in the Israeli-Palestinian context, Irish Aid's country strategy has incorporated a human rights and democratisation programme. During the three year period of the strategy, we provided €1.325 million in support for both Israeli and Palestinian NGOs working in areas such as freedom of movement, rights of prisoners and women's rights.
A further important element of the country strategy has been support for rural development. Each year for the past three years, Irish Aid has provided the United Nations Development Programme with €500,000 for an initiative in the Jenin region to assist local authorities and the Ministry of Local Government in the improvement of infrastructure and services. In the health sector, Irish Aid is a longstanding supporter of Bethlehem University and provided direct funding of €225,000 during the period 2005-06 for health diploma courses, including occupational therapy, physiotherapy and community midwifery. We are continuing to support the university through our funding to the Order of Malta, with which Bethlehem University has an important partnership.
Cognisant of the importance of monitoring and effective donor co-ordination in the delivery of aid, Irish Aid has supported the UN's Office for the Co-ordination of Humanitarian Affairs in Palestine to the amount of €100,000 per year. A micro-projects fund administered by Ireland's representative office in Ramallah focused on social regeneration and totalled €620,000 during the period 2005-07.
The country strategy as outlined forms the core of Irish Aid's support to Palestine. However, Irish Aid has also provided support for the Palestinian people via a variety of civil society funding mechanisms, including Christian Aid and Trocaire through the multi-annual programme scheme, and the Irish Missionary Resource Service and the Order of Malta through the civil society fund. In total, more than €1.5 million has been allocated to Palestine through these mechanisms since 2005.
As the future of Palestine and its people remains uncertain, Irish Aid stands ready to provide financial assistance for as long as it is required. This commitment was demonstrated by the Minister of State, Deputy Tom Kitt, at the Paris donor's conference for the Palestinian state on 17 December 2007, when he pledged an additional €40 million in assistance for Palestinian recovery, reconstruction and development, including an initial pledge of €3 million to the Palestinian Authority.
The precise timing and focus of this assistance will depend to a significant extent on political developments. Due to the continued volatility of the political situation, long-term planning in Palestine poses particular difficulties. During 2008, Irish Aid will undertake a technical assessment mission to Palestine to assess the impact and results of the 2005-07 country strategy and to consider our future approach. While our funding this year will continue to be based on the principles and overarching objectives of the previous country strategy, we must be sufficiently flexible to respond to changing circumstances.
In particular, Irish Aid will seek to strengthen its engagement with UNRWA. In the present extremely difficult circumstances in Gaza, where severe restrictions have been placed on the movement of people and goods, UNRWA is a lifeline to the poorest and most vulnerable sections of the population.
The increased level of funding I have previously indicated will allow Ireland to obtain a place on UNRWA's advisory commission in 2009, thus enabling us, along with other major donors, to advise on and assist with the design and implementation of UNRWA's programmes. We will also place considerable importance on funding to the Palestinian Authority. At the end of last year, the Palestinian Authority launched an impressive reform plan for the period 2008-10. The plan seeks to promote social and economic development and, ultimately, to create the institutional infrastructure of a Palestinian state. Education is the largest expenditure item in the reform plan, accounting for more than 30% of requested donor support for recurrent expenditure and approximately 20% of public investment. Importantly from a donor perspective, there is also a significant focus on governance and accountability. During an initial period at least, it is likely that Irish Aid's support to the Palestinian Authority will be channelled through a multi-donor trust fund mechanism.
I would like to draw the committee's attention to the significant level of funding being provided by the European Commission for Palestine. A total of €440 million has been pledged for 2008, of which €325 million will contribute to the implementation of the Palestinian reform and development plan and €115 million will be provided to UNRWA and humanitarian aid. Ultimately, the well-being of the Palestinian people depends on a successful outcome to political negotiations. Sustainable economic and social regeneration cannot be achieved without the lifting of restrictions on the movement of people and goods. Irish Aid will, therefore, continue to adopt a flexible approach to its funding, helping alleviate the immediate humanitarian consequences of the conflict, while preparing the ground for sustained development, and responding positively to the political progress which can make such development a reality.