SELECT COMMITTEE ON FOREIGN AFFAIRS AND TRADE díospóireacht -
Wednesday, 16 May 2012

Vote 28 - Foreign Affairs and Trade (Revised)

Chairman

I welcome the Tánaiste and Minister for Foreign Affairs and Trade, Deputy Eamon Gilmore, the Minister of State, Deputy Joe Costello, who has responsibility for trade and development, the Secretary General, Mr. David Cooney and the delegation of high powered officials.

The purpose of the meeting is to consider the Revised Estimates for public services for the year ending 31 December 2012. The Revised Estimates were referred to the Select Committee by the Dáil earlier this year. The role of the committee under Standing Orders is to consider the Estimates and then to report that we have done so by way of a message to the Dáil. The Estimates are presented in a new format, which was explained to members in private session. This is a significant step in the transition to a more transparent and joined up approach to the management and oversight of public expenditure. More importantly it enhances the role of the Oireachtas committees in scrutinising the Government's expenditure plans.

I propose that we take the opening presentations from the Tánaiste and the Minister of State and that we structure the subsequent discussion by considering each of the five programmes. Is that agreed? Agreed.

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore)

I thank the Chairman and members.

It is slightly less than a year since I presented the 2011 Estimates for my Department to this committee. I am very pleased with the good working relationship we have developed in the intervening period. We each have our particular roles to play and I am grateful for the support of the committee as we all go about the job of restoring and enhancing Ireland's place in international affairs.

Today I thank the committee for giving me the opportunity to present the Estimates of my Department for 2012. As we have two Votes to consider, I propose, with your agreement, to focus on Vote 28, which mainly funds the operation of the Department of Foreign Affairs and Trade. My colleague, Deputy Costello will present the budget under Vote 27, which covers the bulk of Ireland's official development assistance programme and is managed by Irish Aid in my Department.

The committee will have noticed a technical change in the numbering of Votes for this year, with Vote 29 becoming Vote 27. More substantively, the Government has introduced extensive reforms to our budgeting system. The aim is to make the budgetary process more meaningful, to link budgets to performance and to enable citizens and taxpayers to see how the resources of Departments and offices are spent. In summary, the Estimates now include more information on what we are trying to achieve and they set out specific targets against which our performance is measured. In addition, particular spending programmes are grouped together on a thematic basis.

The mission of my Department is "to promote and protect abroad the values, interests and economic well being of Ireland and its people". A new statement of strategy to deliver this mission has been drawn up for my Department this year. This document sets out what we want to achieve over the next three years. It places the promotion of Ireland's economic interests in Europe and internationally at the centre of our work. It structures the Department's priorities under five high level goals. In the Estimates before the committee today, members can see that these goals are expressly reflected in the four programmes in Vote 28 as well as the single programme that comprises Vote 27. This alignment is not just about spending and staffing levels. It also sets out in fairly explicit terms what we aim to achieve in the current year, the indicators that show how we are performing and also some other information that provides a context for our activities.

This approach will bring greater clarity to how government works. I do not propose to go through each item in detail but would like to give a short overview of how the data has been compiled as it illustrates a relevant point about our foreign service. In previous years the spending elements of the Estimates were effectively divided in two - programme expenditure and administrative expenditure. It was generally possible to discern where programme expenditure went but all administrative expenditure was lumped together. In a Department such as Foreign Affairs and Trade, which relies heavily on its staff for pursuing its objectives and delivering services, it was not evident to the reader how resources were allocated between different policy objectives. Now with performance budgeting we can see more clearly where we are distributing our inputs and what we are seeking to achieve in return.

Matching expenditure to objectives is relatively straightforward in regard to particular programmes such as the Emigrant Support Programme. Allocation of mission expenditure, however, is more complex. This is the point I wish to make. With very few exceptions, our embassies are multi-functional organisations. In view of their comparatively small staff size, most of the diplomats working in them are also multitasking. In many missions, the officer discussing CAP reform with the Ministry of Agriculture in the morning is likely to be the same person who in the afternoon assists an Irish company looking to develop exports and may even be the same person who answers the phone in the evening to an Irish citizen who has lost his or her passport. This makes it difficult to accurately assign in advance the costs associated with the mission network to each of the programmes in the Estimates. We have taken a very straightforward approach to the task. Last summer, we simply asked each mission to review its operations and to make their best estimate of the distribution of work across each of the Department's high level goals. The outcome is reflected in the Estimates along with the corresponding headquarters cost. These are bundled together under administrative costs for each programme.

Gross total expenditure on Vote 28 is estimated at €226 million compared with €216 million last year. However this sum includes an allocation of just under €15 million to cover both our chairmanship of the OSCE and the planning costs for our EU Presidency in 2013. On a like-for-like basis, therefore, the contraction of budgets in the Department is continuing. Discounting these temporary obligations, and mandatory contributions to the UN and other international organisations which are externally determined, the reduction in annual Vote 28 spending since 2008 amounts to almost €52 million or 24%. Members will recall from a previous discussion with this committee that the continued squeeze on budgets and on staff resources has regrettably necessitated the closure of three missions this year. We must prioritise our resource allocation, however, and both the chairmanship of the OSCE and the EU Presidency are major priorities for Ireland.

The committee is fully aware of the responsibilities Ireland has taken on in relation to the OSCE and I would like to acknowledge the important contribution made by the Irish members of the OSCE Parliamentary Assembly, which makes an important contribution to facilitating inter-parliamentary dialogue. Its key role in election monitoring is widely recognised and I know that many Members of the Oireachtas, past and present, have served on OSCE election monitoring missions.

As chairperson, I bear overall responsibility for the executive action of the OSCE in the current year. With 56 participating States and a population of over 1 billion, the OSCE is the world's largest inter-governmental regional security organisation. It is a great honour and challenge to lead this organisation.

Playing an active role on the world stage in this capacity confers many benefits on Ireland. It significantly raises our international profile and is enhancing our reputation for diplomacy, crisis management and expanding our conflict resolution and human rights expertise, all key features of our foreign policy. It also helps to reassure international opinion that Ireland is "open for business" and importantly, earns goodwill from major economic partner countries.

Similarly, when we assume the Presidency of the Council of the European Union, ironically the day after we relinquish our responsibilities for the OSCE, we will take on a major whole of government responsibility to conduct the business of the EU. While the implementation of the Lisbon treaty has made adjustments to how we handle classic foreign policy issues, Ireland will have the opportunity to show once again that we are a capable and constructive partner and a collegiate Presidency in those areas where we will be representing the Union externally. The overall estimated cost of the OSCE chairmanship is €7 million and the budget for the new Presidency is approximately €60 million exclusive of security costs over two years and across all Departments. This includes a temporary near doubling in size of the permanent representation in Brussels and the hosting of approximately 170 events in Ireland. Compared to other Presidencies and even our previous Presidency in 2004, when direct expenditure amounted to €93 million, the budgeted amount represents a very cost-effective approach to fulfilling our role. I assure the committee every measure is being taken to ensure the necessary expenditure on these tasks is managed as economically as possible.

Not all our work is carried out overseas. I recall that last summer we shared some concerns about the processing time for passport applications. I am happy to report the situation this year is much better and significant progress is being made in enhancing the efficiency of the service. Record numbers of passports are being issued, application processing times have been shortened and the average cost of producing a passport has been significantly reduced. I am pleased to say that with the assistance of the Department of Public Expenditure and Reform and the co-operation of the staff unions, the delays that occurred in the passport service over the past two years have been avoided. In addition, in 2011 the passport service made a small operating surplus and expects to do the same again this year. This should help offset the significant capital technology renewal costs the service now faces.

I would be happy to outline our priorities under each of our programmes but being conscious that time is tight, I suggest it might be better to respond to priority areas the committee wishes to raise and I will be happy to answer any questions committee members may have after the Minister of State, Deputy Joe Costello, introduces Vote 27.

Minister of State at the Department of Foreign Affairs and Trade (Deputy Joe Costello)

I will focus now on the Estimates for Vote 27, International Co-operation, which covers the main elements of the Government's development assistance programme, managed by the development co-operation division of the Department of Foreign Affairs and Trade. For 2012, the Government has provided a total of €639 million for official development assistance, ODA, and of this €514 million will be administered under Vote 27. The remaining €125 million is accounted for through contributions to international development by other Departments and Ireland's share of the EU development co-operation budget.

Ireland's aid programme and our policy approach to international development are central to Ireland's foreign policy. The programme for Government contains a strong commitment to the aid programme, and to seeking to achieve the target of providing 0.7% of GNP as ODA by the international target date of 2015. In the current environment, it is clear to all that this will be difficult to achieve. However, it was clear to me when I attended the Council of EU Development Ministers in Brussels on Monday that Ireland has a very strong record, of which we can be proud, and on which we must continue to build. Following a number of difficult years, with Ireland's ODA reduced by approximately 30% between 2008 and 2010, last year we took an important decision to stabilise the development budget. In 2011 Ireland provided 0.53% of GNP for ODA, and on current projections the 2012 figure will be more than 0.5%. This is an important achievement in the current budgetary environment, at a time when aid budgets across the developed world are under pressure.

We have a world class aid programme, which is recognised universally for its clear focus on the fight against extreme poverty and hunger, its genuine partnership approach, and its concentration on some of the poorest countries and communities in sub-Saharan Africa. Based on the lessons we are learning from our work on the ground in Africa, and on our commitment to the provision of ODA, Ireland's voice is listened to in Brussels and internationally. In the first half of 2013, we will hold the Presidency of the European Union and we will use our influence to build the policy linkages on hunger, nutrition and climate change, focusing on the impact on the lives of poor communities in the developing world. We will work with our partners to strengthen the links between humanitarian relief efforts and long term development, building the resilience of local communities, and learning lessons from successful programmes on which Irish Aid has been a leader, such as the productive safety nets programme in Ethiopia, which I know committee members saw for themselves during their visit to Ethiopia earlier this year. I want to ensure that Ireland's EU Presidency makes a real contribution to the fulfilment of international commitments under the millennium development goals, and to the international process to set a new agreed framework for international development after the millennium development goals, post-2015.

I was appointed Minister of State with responsibility for trade and development just five months ago and have seen for myself in our programme countries the impact which the Irish people's aid programme is having on the lives of poor communities. In Malawi, for instance, the number of households with insufficient food has been reduced from one in four in 2006 to one in ten today. In Ethiopia, agricultural produce of grain more than doubled between 2004 and 2009.

Africa is a changing continent. Extreme poverty and hunger persist in some areas, and we have seen the devastating effects of the humanitarian emergencies in the Horn of Africa and in the Sahel. However, the reality of Africa is more complex and there is also remarkable economic growth. In the first years of the new millennium, despite the international financial crisis, annual economic growth in Africa was at almost 5%. With this growth and development come opportunities for trade, and for a stronger role for emerging economies internationally. The Africa strategy of the Department of Foreign Affairs, which was launched by the Tánaiste last September responds to this new context, and advances a new more coherent approach to Ireland's political and economical relations with Africa and in our partnerships for development. The aid programme remains at the heart of these relations, but aid is only one driver of development. As countries experience development, resources from increased trade, more efficient and fairer taxation, private sector investment, remittances and investments by emerging economies all have a significant impact on driving sustainable inclusive growth and reducing dependency on aid.

A clear strength of Ireland's aid programme is the cross-party support it receives in the Oireachtas, and its connection to the values of the Irish people. I welcome the recent opinion poll finding that 88% of our people are proud of Ireland's overseas aid programme. However, that same poll showed that only 39% of people believe aid has made a considerable difference to the lives of people in developing countries and only 49% believe Africa is better off now than it was ten years ago. I look forward to working with the committee to ensure the Irish people have the clearest possible information on our programme and to communicate more effectively the impact of the programme in a complex, changing environment.

The review of the 2006 White Paper on Irish Aid is an important element in this effort. We have concluded a series of very successful public consultations under the review. Four national meetings were held and focused sessions were also held with the Oireachtas, other Departments, NGOs, the private sector, and new communities in Ireland. We also consulted closely with the Irish Aid partner countries and I attended a regional consultation in Malawi, bringing together representatives from all of our priority countries. More than 1,000 people attended these consultations, and 150 written submissions have been received. Our aim now is to finalise the review by October, with a report which will guide Irish Aid in its priorities for the years ahead, focusing on areas where Ireland can have the greatest impact on poverty and hunger, where we can demonstrate clear development results, and where we can work in a spirit of transparency and accountability to the Irish people and to our partners in the developing world.

I am confident that despite the challenges Ireland can continue to make a strong international contribution to the fight against poverty and hunger and that this is in our interests as a small nation in an increasingly interconnected world. The eradication of hunger will remain a key pillar in our work. Ireland is now regarded as a leader on global hunger and food and nutrition security. We have built on the 2008 recommendations of the hunger task force, and the Tánaiste's engagement with the US Secretary of State at high level events in Tanzania and New York has strengthened this role, particularly within the UN system. Ireland has been at the forefront of the scaling up nutrition movement which is aligning donor support and strategies led by developing countries themselves to tackle nutrition for mothers and babies.

Earlier today, the Tánaiste and I joined Tom Arnold and his colleagues in Concern Worldwide to launch a major advocacy campaign the highlight the importance of adequate nutrition in the crucial 1,000 days between pregnancy and a child's second birthday. We were able to announce we have now met one of the key recommendations of the hunger task force, and that Irish Aid is now directing, at a minimum, 20% of its budget towards actions and programmes to reduce hunger.

I believe this represents an important milestone in our programme and adds to our credibility in helping to shape key policies on international development and on aid effectiveness as we prepare for our Presidency of the EU and for crucial international discussions and negotiations on the future framework for sustainable development focused on sustainable reductions in poverty and hunger in our world.

I look forward to working closely with the committee in this work and would be happy to respond to questions on any aspects of the aid programme and expenditure under Vote 27.

Chairman

I thank the Minister of State. I will comment briefly before calling members to put questions. Vote 28, programme B relates to consular, passport and Irish abroad services. I commend the Tánaiste and the Department on the performance of the passport office this year. We have had no complaints. It has reduced costs and enhanced the efficiency of the service. I commend the Tánaiste and this committee. While it was not our first trip abroad, the committee's first trip last year was to visit the passport office in north Dublin. Members showed a great interest in that visit. Perhaps out visit to the passport office also had an effect and I thank the members for that. It is good to have an efficient service in the passport office despite having a record number of applications. It is good to see the good work of the officials working in the Department and the passport service. We went through many problems last year. I thank those people working in the passport offices in Cork, Balbriggan and Molesworth Street.

Vote 27 deals with bilateral co-operation. The African strategy is very important and we look forward to seeing its outcome in coming years. We will certainly work closely with the Minister of State, Deputy Costello, in that regard.

The Votes for consideration include Vote 28, which is to promote Ireland's economic and trade interests in Europe and internationally. Vote 28.B relates to consular, passport and Irish abroad services on which I commented. Vote 28.C relates to reconciliation and co-operation on this island. Vote 28.D relates to international peace, security and human rights. Vote 27 deals with the work on poverty and hunger reduction. I call Deputy Kitt, a former Minister of State, to make his contribution. He is substituting for Deputy Ó Fearghaíl, who cannot be here this afternoon.

Deputy Michael Kitt

I welcome the Tánaiste, the Minister of State and their officials. The Tánaiste mentioned that our embassies are multitasking and have multiple functions. They always did that but since the Department became the Department of Foreign Affairs and Trade, it is on a more recognised footing. Some extra resources might be available for our embassies. The budget, particularly the development aid budget, is still very impressive even though it has reduced somewhat. Small amounts of money can go a long way in developing countries. It might be a minibus to bring people to a hospital, clinic or school. Those kinds of things should be looked at. Our ambassadors do everything they can. In the first week of April I attended an Inter-Parliamentary Union meeting in Uganda. The ambassador there, Ann Webster, was able to show us some of the projects in which Irish Aid had been involved. It is a great tribute to Uganda that approximately 4,000 delegates from 126 countries were able to meet and discuss various issues. The discussions were very open about issues such as HIV-AIDS and violence against women, an issue we sometimes do not hear discussed.

The Tánaiste mentioned the three missions that were closed. Now that Mr. Cooney is the accredited ambassador to the Vatican, what progress has been made in securing the shared used of the Villa Spada? The issue has been raised in the Dáil and should be brought to finality. I hope it can be resolved because many people are still raising concerns in that regard.

I agree with what the Chairman said about passport applications. Given the success of the Cork and Balbriggan offices and that the average cost of producing a passport has been reduced significantly I believe there is a case for a third office, perhaps in the west or north west. There is the issue of people in the North applying for Irish passports. I know the argument against this in the past - I even raised it when I was in the Department - was the cost and the technology involved. However, we might be able to resolve that. The issue always comes up when somebody finds it difficult to get a passport at short notice. This brings me on to the issue of the common travel area, particularly between Ireland and Britain and the various arrangements for different airlines, some of which require passports and others require only photograph identification of some type.

I compliment the Minister of State, Deputy Costello, on the work he has done in a short time. He has given us a good outline of where he has been and the work he is doing. I agree with what was said about the goodwill among Irish people for the ODA programme. I have visited many developing countries and the work of embassies there is unique. Of course they help people in the area, but Ireland's interest in fair trade issues and the efforts to help business and exports should be built upon. Despite the goodwill, it is disappointing that the amount of funding has reduced by 30% since 2008. However, owing to the country's financial situation we know it is difficult. I am always concerned when people talk about percentages of GNP. With the financial situation now, the GNP may be saving us - when one talks about 0.5%, the figures look a bit better.

It is important to get good value for the money. Money that is given to developing countries - as I saw in Uganda last month - goes a long way. It is being added to by the people in the embassies and those travelling there on voluntary services. I have met teachers, engineers and people from every walk of life who are giving of their time. We should also not forget the missionaries, who are doing outstanding work. When travelling home to Dublin, I met a missionary nun coming home for a funeral who was also a doctor working in a hospital there. In addition to all the work of the NGOs, the missionary effort has been tremendous.

The staff in the Department - whether in the main Department or in Irish Aid - have performed very well over the years. I wish to remember them and all the people who have worked there throughout the years.

Deputy Pádraig Mac Lochlainn

I thank the Tánaiste, the Minister of State and the officials present. I was in the audience this morning for the launch of Concern's 1,000 days initiative. It fits comfortably into the Government's excellent work in co-operation with US Government and the UN in the area of tackling hunger and encouraging nutrition for mothers and their babies.

What was reflected upon by the Minister and Minister of State is that despite the damage to Ireland's reputation as a result of this economic crisis, our legacy of investment per capita in overseas aid and our track record in human rights have stood to us extremely well. One can see that whenever one has the privilege of travelling to some of the countries that are working in partnership with us in these programmes. We have a tremendous Department and a tremendous team of ambassadors across the world, and we are very proud of the work they do. With regard to the challenges ahead, under the millennium development goals we have committed ourselves to the target of 0.7% of gross national income by 2015, and the Government has given a commitment in the programme for Government to reach that target. However, there must be a strategy for how we reach it. It was very encouraging to see the outcome of the recent opinion poll which was circulated by Dóchas. The overwhelming majority of the Irish people want us to continue this work even in these times of economic distress. Can the Minister outline a plan for reaching that target incrementally over the next three years?

In Vote 27 there is a 124% increase in the allocation under the heading for consultancy services and value for money and policy reviews. That might well be necessary, particularly the value for money and policy reviews, but can the Minister elaborate on it? Clearly there is a concern that we might be cutting staff and paying consultants, in other words robbing from Peter to pay Paul. Perhaps I am misinterpreting it, but sometimes a figure stands out on a page. Perhaps the Minister will give an explanation as to why that was necessary. It is under the administration heading. Above that, the figure under programme expenditure has had to come down. Why is that the case?

With regard to the expenditure under the bilateral heading, what percentage of the overall bilateral budget has been allocated directly to governments? Is the Minister satisfied that there is parliamentary oversight? The European Parliamentarians for Africa, the AWEPA group - many of its members are here today - has pushed strongly for a stronger role of parliamentary oversight in both the donor country and the partner country and that this should be rigid and strong. One of the concerns one hears is whether the money went to those who need it most or did it go for a bridge, under some vague heading, for a Minister in a particular region. It has never been more important for us to demonstrate clear lines of accountability from where the money was allocated to where it was spent. In fairness, the Tánaiste might well be on top of that but I would like to be given an assurance about it.

Every member of this committee, regardless of party, wants more money to be allocated to the overseas development budget, particularly to meet the objectives of the millennium development goals. We saw the very exciting initiative launched today, which fits into the Government's strategy. The capacity we have to develop our reputation and our brand is very important. That reputation for working in the developing world gives us an opportunity to develop trade with the BRIC - Brazil, Russia, India and China - countries and the CIVETS - Colombia, Indonesia, Vietnam, Egypt, Thailand and Singapore - countries. Arguably, Turkey could be included too. Our reputation of helping developing countries could serve us well in developing trade with them as their economies grow. What are the Tánaiste's thoughts on that?

Deputy Maureen O’Sullivan

It is good to see the Minister again today. He has made himself readily available to the committee. This is a particularly good committee because it has a narrow focus on foreign affairs and trade. Colleagues on other committees have found the remits of those committees to be much wider. I believe that small committees are more effective.

I am pleased that part of the revised system is looking at transparency and parliamentary oversight, which is something we have been promoting in African countries, that is, the role of parliament as opposed to government. It is good to see it being introduced here as well. I note the point the Chairman made about Busan and parliamentary oversight. I did not get to either Balbriggan or Ethiopia but I have visited a number of African countries, both privately and with AWEPA. When one is there one realises the extent of Irish aid and the practical ways in which it looks at the need and addresses it in partnership with the country, the community or the NGO on site. I spent some time with GOAL in Nairobi. Many of the organisations are working with people in rural areas but GOAL had a particular response to the urban poor in a very large slum area in Nairobi.

People have given their views on the embassies. I do not like to see embassies closing. The Minister spoke about the multi-tasking and the great work they do. Economising in some of the countries where we have more than one embassy, for various reasons, might allow the others to stay open. We were given a presentation about the embassy in the Vatican but I am concerned about the one in Iran. There are human rights issues there but there is also increasing trade between Ireland and Iran so there is a need for an embassy.

I met somebody in Kenya recently who told me that if he was European and was on a pension he would take his pension and go to live in one of the African countries. It highlights the challenge for Irish Aid because there is economic growth in certain African countries, yet there is slow progress on some of the millennium development goals and massive human rights issues.

My first question is about Ireland's Presidency of the EU. Does the EU contribute to any of the cost for Ireland of holding the Presidency? The administrative budget is €32 million, which the Minister says is a 4% decrease and is relatively low by international standards. However, I do not know by whose standards €32 million could be considered low, when one considers what could be done with that sum. There is €2.4 million for partnership with Irish third level institutions. To what does that relate? What is the Anna Lindh Euro-Mediterranean Foundation? Does the Minister of State, Deputy Costello, have any plans for the report on the review of the White Paper? How he is launching it and what does he intend to do with it?

Finally, we have a very sound reputation internationally. We are doing tremendous work. However, we could be more proactive on human rights issues in some of the countries to which we give aid. Even an Irish embassy presence at some of the human rights trials in certain countries could be very beneficial. While I accept the need for diplomacy and working through diplomatic channels, we cannot be too diplomatic when confronted by some of the human rights abuses that take place.

Deputy Eric Byrne

I welcome the Tánaiste and the Minister of State. When I was elected to the Dáil, I had a particularly keen interest in international affairs so I am delighted to be a member of this committee. I thank the Tánaiste for all the compliments he throws our way.

The Government has been in office for 14 months and I believe this has been a great year for Ireland, given the way we have managed to project this country internationally. I realise this sounds stupidly political. However, it must be recorded that the amount of work carried out by Irish Ministers at the level of international affairs and trade has been phenomenal. It has been a great year and next year promises to be just as good. I applaud the fact that Ireland has been chosen, through the Tánaiste, as the chairman in office of the OSCE. The latter, which comprises 56 nations, is a huge, vast and fascinating organisation and to chair it a real honour for this country. The amount of diplomatic building and networking one can do by being active at this level is phenomenal.

Members have debated at length the White Paper on Irish Aid and there has been a wonderful discourse between members, as parliamentarians, and the NGO sector led by Dóchas. Members are almost on first-name terms with the representatives from Concern and the other NGOs who appear before the committee on a regular basis. There is phenomenal bonding and a great sense of pride in the work that is being done. I attended the launch of Irish Aid's Africa strategy by the previous Minister of State and it is wonderful that such work is going on and such engagement in respect of Africa is under way. For example, I understand representatives of up to seven African embassies will appear before the joint committee next week under the chairmanship of the Kenyan ambassador. It is wonderful that they recognise the work that is going on.

In respect of trade, I congratulate the American officials who, for the very first time, invited the Chairman of the Oireachtas Joint Committee on Foreign Affairs and Trade to the events at the White House. President Obama was present, the relationship between Ireland and America bonded and consolidated and the international platform Ireland has from that event is phenomenal. I congratulate the Minister and his officials on pursuing, for example, the policy whereby former President Clinton hosted a very important meeting of business figures who have as yet not invested in Ireland. Hopefully, the consequence of this meeting will be that further American investment in Ireland takes place. Moreover, it was complemented by the second conference at Farmleigh House. I acknowledge and applaud Fianna Fáil for initiating this major event in the first instance, which again has projected this country in a phenomenally progressive way. Overall, we have done very well.

It may be of interest to note that Africa Day is coming up fairly soon and I understand Iveagh Gardens will be the venue. It is a highly exciting and interesting event and I have attended most of them. It is nice to see the African community come together under a single banner to celebrate their continent, nations and often their individual tribal affiliations and I welcome this event. However, while it appears as though Irish Aid or the Department itself is organising Africa Day, Dublin City Council is not 100% satisfied the Department of Foreign Affairs and Trade and its officials recognise or engage with the council to the extent they should on two levels. First, the city council has an international office that does phenomenal work not exclusively on behalf of the city but on behalf of Ireland Inc. It was no mean task, for example, for Dublin City Council to have managed to create a twinning arrangement with Beijing, notwithstanding the internal political opposition. This now has blossomed and has allowed Ireland to develop further contacts with China. I personally am working with Chinese people on a range of issues, particularly in the educational field, which hopefully will reach fruition this year. When trade missions go abroad, Dublin is recognised as the capital and the engine of growth, and urban areas are growing. Consequently, there should be better co-operation because the city council also is pushing the boat out, and it did in the past. It was most successful in establishing relationships with San Jose just at the appropriate time when Ireland needed direct foreign investment, which duly came from Silicon Valley. Again, this was nurtured by the city of Dublin, not necessarily through its international office but through its mayors and the managerial system.

On another level, given the present debate about green lights and taxis, Dublin City Council has an office for integration. While the Department may be running Africa Day separately, the city does a great job in running international events such as, for example, the Chinese spring festival. There are many international events, including one taking place tonight for Romanians, through which the city is doing an incredibly important job of building relationships with the new communities and encouraging them to become full participants in the electoral process by registering to vote, etc. While the office for integration is a key and important office within Dublin City Council - I understand similar offices exist around the country - it is poorly funded. It has spectacularly talented and able staff but on the international field, bringing together these 120 new communities will require a greater concentration of resources into efforts to integrate them.

This committee already has touched on this point but while there has been a White Paper on Irish Aid, it has been brought to my attention that not since Dick Spring was Minister has a White Paper on foreign policy been produced and perhaps it is time to have such a debate again. I will conclude by asking specific questions on two minor areas. First, Irish Aid has entered into a strategic partnership with Irish third level institutions and a total of €2.4 million has been allocated to this area in 2012. I seek the background to this allocation and on where that money is going. Second, given the previous abuse of Irish passports by security forces attached to the Israeli and Russian secret services, which used our passports illegally, has abuse or forgeries of our new passports been noted on foot of such heavy investment in technology to try to prevent such abuses?

Deputy Gerald Nash

I welcome the Tánaiste, the Minister of State and the officials from the Department of Foreign Affairs and Trade to the meeting. I first will make some remarks on Ireland's overseas development aid budget. Everyone is correctly proud of Ireland's track record and achievements in respect of overseas development aid. It would have been easy for this country to ditch its commitments to some of the worst-off nations of the world in light of the economic challenges we face. Arguably, however, it never has been more important for Ireland to reassert its commitment to overseas aid and to the delivery of its goals regarding the United Nations targets. I reiterate a point I have made previously in this committee, namely, I perceive Ireland's overseas development aid project to be a badge of its sovereignty, an emblem of its independence and an expression of its nationhood. It encourages me and everyone present, as well as the wider Irish citizenry, that the commitment to overseas develop and aid continues to be sustained, particularly in light of the difficult situation in which this country finds itself.

I share in the opinion expressed by my colleague, Deputy Eric Byrne, that Ireland has made significant progress in re-establishing its tarnished international reputation over the past year or so. Thanks to the collective and decisive work of the Tánaiste, the Minister of State and officials in the Department of Foreign Affairs and Trade and elsewhere, Ireland no longer makes the headlines in the international press for the wrong reasons. In particular, I pay tribute to the quiet, comprehensive and targeted manner in which officials in the Department of Foreign Affairs and Trade, our diplomatic staff and staff in other Departments go about their work. The Irish diplomatic corps is recognised internationally as being of a high quality and standard and we are reaping the rewards of their quiet and effective work in the background to promote Ireland's interests abroad and to assist in its economic recovery.

I note the Tánaiste himself led seven economic trade missions abroad over the past 12 months or so and this is to be welcomed. We are reaping the benefits of those visits and other networks developed in that regard.

I have a few specific questions in regard to some aspects of the Estimates. I note that €60 million will be spent across all Departments in respect of our obligations during Ireland's Presidency of the EU and that that cost will be spread over two years. That amount is in contrast to expenditure in this regard in 2004, which I understand was more than €90 million. We appear to be cutting our cloth in terms of our current financial difficulties. I am aware from the work currently going on that we will have an effective EU Presidency, which everyone believes presents us with an ideal opportunity to re-establish Ireland's priorities and to drive the European Union growth agenda forward.

Subhead B2 refers to anticipated cost increases from suppliers in respect of the passport service. Perhaps the Minister or Minister of State would be more specific in regard to those costs. On the certificate of Irish heritage, an initiative which I welcome, I note that 118 certificates of Irish heritage have been awarded to date. I welcome the high profile awards made in recent months, media treatment of some of which was, in some respects, akin to the New Year Honours List in the United Kingdom, which involves the awarding of high profile people of Irish heritage with such certificates, which in itself is to be welcomed. What process is in train in terms of promoting the certificate of Irish heritage system? How is it being promoted and marketed? My understanding is that it is being directed at everyone who satisfies the qualification criteria. Some 118 certificates have been awarded to date. I note that the system has been only up and running for a number of months but perhaps the Minister or Minister of State could elaborate on the plans to promote that system in a different manner.

Under Subhead B4, emigrant services, I note that there has been a 10% reduction in allocations for, largely, voluntary bodies working with emigrants, which is regrettable in light of the current situation in which we find ourselves. I understand that that reduction came about as a result of the comprehensive spending review. While I understand the need for this cut I believe it is a matter we may revisit in the context of the Estimates for next year and our budgetary priorities. Subhead C4 relates to the allocation for the International Fund for Ireland, which I note has been consistent in recent years, which is to be welcomed. I am very familiar, working on a North-South basis, with the many projects that have benefited from IFI investment. Have moneys from 2011 remained unallocated and what happens to those moneys? Are they subsumed and absorbed back into the general Department budget?

On Subhead E, outturn on passport refunds, I note a figure of -164. Perhaps the Minister or Minister of State will elaborate on the circumstances around that and will say under what circumstances refunds are made in terms of the passport scheme. Also, under Subhead E, repayment of repatriation fees, is there a full cost recovery system in this regard? How does the Department set about recovering costs in relation to repatriation, a situation which also involved tragedy and difficult circumstances for families? What are the default levels in terms of cost recovery under that particular heading?

Deputy Eamon Gilmore

I thank the Chairman and Deputies Kitt and O'Sullivan on their complimentary remarks in regard to improvements in the passport service in terms of the turnaround of passport applications. I take this opportunity to pay tribute to the staff in the passport offices in Cork, Balbriggan and Molesworth Street and to their trade unions for the manner in which they have co-operated with management of the service. There has been a significant turnaround in what was the position last year. It is fair to say that last year there was a dramatic increase in the number of applications, in particular for passports at short notice. I take this opportunity to remind people to apply on time for their passports. I appreciate that there are occasions when people have to travel at short notice, such as an emergency in terms of a funeral or family tragedy, and their passports are not in order. However, people making travel arrangements such as for holidays should ensure their passports are up to date. People should also note that they may encounter problems in some countries if travelling on a passport which is within six months of expiry. Those people looking forward to Ireland qualifying from the first round of the European championships and planning to travelling to the Ukraine for the subsequent rounds should be aware that the Ukraine operates that system. I would advise people planning any travel, be it to the European Championships or on holiday and so on to ensure they get their passport applications in on time.

Deputy Kitt asked about the possibility of increasing the number of passport offices. The passport service now provides a comprehensive range of options for citizens in respect of passport application. Applications may be made by Passport Express, through some 1,000 post offices across this State and 70 post offices in Northern Ireland. A guaranteed ten working day service is available in respect of such applications which are complete and in order. Less urgent applications can also be made by ordinary post. Applicants can also apply in person at the public offices in Dublin and Cork. Positive comments are frequently made about the quality of the service available at the public offices. I am aware that the availability of a local office in Cork, which deals with applications across Munster, is greatly appreciated. Against this background, the issue of opening additional offices in other locations will be kept under active review. We do not have any plans at this time for the opening of a passport office in Northern Ireland. As I stated, passport applications can be made through 70 post office branches there.

I thank Members for their complimentary remarks about our embassies in general and in particular the hard work and dedication of our staff in the Department, in particular the diplomatic staff. Deputy Kitt asked whether the Villa Spada may be used to house the embassies to Italy and the Holy See. The Secretary General of the Department, Mr. David Cooney, has recently been appointed as the non-resident ambassador to the Holy See. Members will be aware he recently presented his credentials to Pope Benedict. It is often said that diplomacy is best exercised quietly. In this particular case, that is especially true. It would be useful if there were a period of time without too much public comment on what may or may not be worked out in practice and which would allow Ambassador Cooney and those with whom he is engaging in the Vatican to see what may be possible.

The Minister of State will address the specific questions raised in regard to our development aid programme but I would like to make a couple of general observations on it because the point was made that it is something of which Ireland is very proud. Our aid programme has been commented on very favourably internationally. The budget for it has fallen as a result of the economic situation in the country. It is down approximately 30% on its peak. However, we can take some considerable satisfaction and pride from the fact that we have stabilised the aid budget and that even in difficult economic circumstances - everybody in this room and in the country is aware that we had to introduce a very difficult budget last year - we were able to discharge our responsibility to the poorest people in the world. I hope we will be able to continue to do that.

We have said - it is an international commitment - that we will reach the 0.7% target and this Government has recommitted itself to doing that. Reaching that target by 2015 will be very challenging, in particular in the economic circumstances in which we find ourselves. I was very encouraged throughout last year at the very positive responses we received in the country and internationally to the fact that we had managed to, in effect, maintain our ODA commitment in difficult economic circumstances. The committee should probably come back and have a further discussion about it.

Deputy Mac Lochlainn raised a number of issues in regard to trade, in particular with the BRIC countries and Turkey. There is a strong focus in the Government's trade strategy on the BRIC countries and on other emerging markets. As he will know, the Taoiseach and several Ministers visited China recently and I hope to do so later in the year. My colleague, the Minister of State, Deputy Costello, led a trade mission to Turkey in March and he will lead an Enterprise Ireland trade mission to Russia next month. Our ambassador in each of the BRIC countries leads a market team working very closely with the State agencies.

I take the point Deputy Maureen O'Sullivan made in regard to the embassy in Tehran. It is fair to say we have trade with Iran but at the time the embassy in Tehran was opened, there were hopes for a much higher level of trade being developed than turned out to be the case. As I said in regard to opposition to the embassy at the OECD, I hope that in time as our financial and economic situation improve, we will be back at this committee talking about embassies and missions we are opening rather than closing. I see the closure of these missions as something we have to do at this time because we cannot be spread too thinly. It is a question of finance and of personnel resources. We must concentrate our people where we immediately need them.

Our budget for both the lead into and the actual Presidency of the European Union is €60 million. That compares with €93 million in 2004. We have decided to run the Presidency in as cost effective a way as we can. One of the ways we are doing that is that we have reduced, for example, the number of informal ministerial meetings which would occur during the Presidency. We are now looking at ten or maybe 11 informal meetings. We have also decided to hold them in one venue. The practice in the past was that informal meetings were held in various venues throughout the country. By sheer coincidence, they were very often held in the constituency of the Minister hosting them. However, we have decided not to do that this time. We are going to use Dublin Castle and that means we do not have to move translation equipment and so on around. There are significant savings to be made on that.

The normal European Council meetings will continue. The other significant change which has happened since 2004 is the way the European Council meets. It used always be a summit in the state holding the Presidency. Some of the meetings are now held in Brussels. There is a permanent European Council Presidency which does not rotate. President Van Rompuy now convenes the meetings, so there is a change at an organisational level as well.

Deputy Maureen O'Sullivan asked a number of very specific questions in regard to the Union for the Mediterranean to which I hope I have the answers. In advance of our forthcoming Presidency, Ireland is making a modest first contribution to the Union for the Mediterranean as well as a contribution to its constituent NGO body, the Anna Lindt Foundation. It is a small contribution of €25,000 in 2012 and it is considered important that we should be seen to support visibly the Union for the Mediterranean and the Anna Lindt Foundation at a time when a significant number of Arab states are undergoing radical transition from autocratic rule. The Commission does not contribute in any significant way but there are some seminars and so on which may be co-funded by the Commission.

Deputy Byrne referred to the United States relationship. I agree with him that the relationship with the United States is very important to Ireland, in particular the economic relationship. I had the opportunity this morning of attending an event organised by the American Chamber of Commerce launching a new report on the economic relationship between the United States and the European Union. It was a particularly significant event given the level of investment by US companies in Ireland, which I hope can continue.

Deputy Byrne also asked about the possibility of a White Paper on foreign policy. The last White Paper on foreign policy was produced in the mid-1990s. It was an extensive process at that time involving much public consultation. If one looks at the situation now as compared with then, we have a more developed committee system in the Oireachtas which allows for much wider discussion of foreign policy on a regular basis. This is probably the appropriate forum where we can discuss and engage on foreign policy. I am also conscious of the commitment of resources, in particular staff resources, which would be required to prepare a White Paper on foreign policy. The immediate priority of my Department in the present economic environment is the restoration of Ireland's reputation and the work that the Department of Foreign Affairs and Trade can do in contributing to Ireland's economic recovery, particularly in the area of trade promotion. That runs across our priorities in regard to Europe and obviously the Presidency is a huge commitment, our priorities in regard to contribution to international affairs generally, which includes our chairmanship of the OSCE this year, the work being done through our missions and embassies to promote Ireland's interests across a range of areas and doing that with less resources and fewer personnel than heretofore. We must remain focused on that work and ensure the resources available to us, financial and personnel, are focused on that work in addition to all the normal activity, such as consular work, repatriation of people who find themselves in difficult circumstances, and all the day-to-day work. I do not envisage that we will prepare a White Paper on foreign policy. However, we should have continuing discussion on foreign policy and clearly this is the committee where that work can be done. I am aware the committee is engaged with many people who are interested in foreign policy issues and certainly I am quite happy to have discussions on such issues at any time at this committee.

On the issue of abuse of passports, the new passport is more secure but there can never be absolute security in respect of a passport. We do not have any evidence of significant fraud but we are looking at further improving the security of passport books.

Deputy Nash raised a number of specific issues. I have answered his question on the Presidency. There was a question on consultancy, the figure for which is €100,000 which is the same as that for last year. The Estimate for this year is the same as that for last year. In regard to repatriation, the policy is that we pursue all advances which are made to persons who are repatriated and we write to those concerned. In some cases where there is genuine distress there may have been medical or psychiatric problems and obviously we use discretion in those cases. We write off a small number of outstanding advances. The procedure is that they have to be signed off on by the Secretary General. Persons who are being repatriated are generally required to sign undertakings that they will repay the money and sometimes we make flexible arrangements for that repayment.

The certificate of Irish heritage which was launched last year will grow. We did not expect there would be an instant demand. The Deputy used the figure of 118 but I understand that 600 have been issued to date. I expect following the promotion during the St. Patrick's Day festival and at the Gathering next year that awareness of and demand for the certificate of Irish heritage will grow.

On the International Fund for Ireland, the funding which is provided for in the Estimates is to pay part of the administrative cost of the fund. The donors, mainly the US and the EU, provide the funds which are distributed, which in 2011 amounted to €27 million. A board operates independently of the Government, the activities of which are fully audited. Members will be aware that a decision was taken to wind down the fund in time. That gives rise to the issue of the way funding might be developed and maintained, particularly for projects in difficult to reach areas. The Secretary of State for Northern Ireland, Owen Paterson, and I have discussed this matter with the First Minister and Deputy First Minister in Northern Ireland and we are examining ways in which community funding and so on can be continued in some other way. Various options are being examined in that regard. I hope that covers everything unless I have missed something, which I will answer if I have done so.

Chairman

I thank the Tánaiste for his comprehensive answers.

Deputy Joe Costello

I thank the committee for all its support from the parties represented and none, including Independents, throughout the year and for the response to the presentation on the review of the White Paper and the submission made. That is important and it is being fed into the process as we go about examining the various submissions and working through a policy into the autumn.

On the question the Chairman raised about the Africa strategy, the Tánaiste referred to that. We consider it to be a very important document. It is also considered to be very important by all of the representatives of the African countries we have met. I was speaking to the Botswanian Foreign Minister today. I have met representatives of most of the African Union countries at the summit in Addis Ababa and they regard it as a coming of age on their part in that they see themselves being treated on an equal basis with the countries in the European Union. They believe it is a great idea in terms of the political, economic and social dimensions that they are included in the Africa strategy. They regard it as a way forward and are anxious to engage on it. They are anxious to bring trade delegations here and for us to bring trade delegations to Africa. That is extremely complementary to our aid programme. We will develop that and it will play a role in the review process for the White Paper.

Deputy Kitt, who is a former Minister of State with responsibility for overseas development aid, referred to the good work done by the embassies and the staff in general. I agree wholeheartedly with that comment. I am amazed by the amount of good work that has been done and that so few people, with the extra dimension in terms of trade and development in the foreign affairs portfolio, can do so much both in the head office here and abroad in the embassies. We are very lucky to have people of that calibre in the Department of Foreign Affairs and Trade.

The Deputy also referred to the reduction of 30% in funding from 2008 to 2011 and that we must try to achieve good value for money. That is very much the case. We remain at the top of the OECD list that determines we are the No. 1 country in the world in terms of aid effectiveness, despite the cuts that have taken place. That is the position as it presents.

In terms of the focus on hunger, nutrition, food security and the principles underpinning human rights, good governance and the rule of law, we are at the heart of good practice in that respect, and that is recognised universally. Deputy Kitt also referred to the good work done by the missionaries and NGOs. That is very true and we are building on all of their work.

Deputy Mac Lochlainn referred to the excellent mother and child initiative outlined by Concern this morning about the need to increase nutrition levels for a child's first 1,000 days of life and Ireland's good reputation in operating it. He also raised the issue of the 0.7% target and how we can achieve it. Obviously it is contained in our programme for Government and we have stated that it is our objective to achieve the target by 2015. We all recognise the difficulties that exist and that every penny spent on overseas development aid must be borrowed and interest paid on it, which poses a uniquely difficult problem for us. It has been a tremendous achievement for us to have stabilised funding this year and without a decrease. There was approximately a 10% drop in funding over the previous three years but it has stabilised. Our target is at least 0.5% this year. We hope that it will be more but that depends on the gross national income and the eventual outturn. These are challenging times and there are a lot of circumstances that we may not have full control over, but we will fight to achieve the target.

There has been no increase in consultancy costs and they will remain the same as last year. There was less spent last year than we have budgeted for this year. Consultancy services are about good value for money in terms of planning and accountability. Transparency is extremely important to us as well as a good independent audit and evaluation service. We would add technical matters and take technical advice to achieve the best results.

There was a question on bilateral funding and whether we should give money directly to governments. We give general budgetary funding to only two African Governments, Mozambique and Tanzania. We do it carefully and in areas that we can stand over. Last Monday, we discussed funding at the meeting of the European Union, during the Danish Presidency, and heard a presentation on the Council's conclusions on development aid. A lot of members were concerned about the issue, general budgetary support to individual countries, sectoral budgetary support and project support. It was highlighted that we need to ensure that funding is as flexible as possible but each European Union country must carefully monitor how budgetary support is dispensed. Obviously we can do a lot more if we have an input into an education system rather than just building a school. General budgetary support is great if one can stand over it and we will examine it carefully in terms of countries, regions and local government.

Deputy Maureen O'Sullivan spoke about parliament, as opposed to government, and we know the good role that it plays. A lot of the members present are also members of AWEPA and the Deputy chairs it. She, along with many other Members, has actively extended the parliamentary role in overseas development aid. She asked specifically about the administrative budget of €32 million. I can confirm that it is pretty much the same percentage every year. It is extremely competitive because it is 6.2% this year but is very low when compared with the 8% that other countries contribute and 10% contributed by non-governmental organisations.

The Deputy also asked about human rights. We are extremely proactive because we have raised human rights issues in every country that we have gone to. I have only been in two countries so far, Malawi and Ethiopia, and I can assure the committee that human rights played an integral part of my agenda. Human rights are part of our development package and our embassies constantly engage, at a high level, with various Departments and Governments to ensure that they are implemented.

Deputy Eric Byrne raised the question of our high reputation and association with Dublin City Council and local authorities. We have a good relationship with local authorities. For example, my Department fully funds or makes a considerable contribution to Africa Day and liaises with the city councils of Dublin, Limerick, Cork and Galway. Africa Day falls on 25 May but there will be week long events from 20 May to 27 May. The Tánaiste, the Lord Mayor of Dublin and I will launch it on 25 May at the Irish Financial Services Centre instead of at the Iveagh Gardens, as it was in the past. A large range of issues will be highlighted over the week in Dublin and Cork, Galway and Limerick will host their own events. It will be a major opportunity for African businesses, NGOs and various communities and cultures to display and showcase their activities. I advise everybody to attend one of the events if they have the opportunity.

We are well aware of the international office in Dublin. During the Ireland's Presidency of the EU next year my Department and the Dublin City Council will engage in a major international conference on poverty.

Deputy Eric Byrne's final question was on third level institutions. There is a strong relationship between Irish and African third level institutions. For example, the Dundalk Institute of Technology, which Deputy Nash might be interested in, is linked with the University of Uganda where we are concentrating on conducting expert studies on water and irrigation, a central issue. We also have third level fellowships for African students in various third level institutions here. It is a valuable part of the work the Department undertakes.

Deputy Nash made an important and telling point that he was proud that, even in these difficult times, we have maintained a strong level of development aid. He sees it as a badge of our sovereignty and that point is worth making. He also congratulated one and all on their good work that was done in this respect.

In conclusion, I am aware of the good work done by the committee and the integral part it plays in influencing the parliamentary or Government's point of view. We regard that as essential as work continues on the review of the White Paper and our EU Presidency and I intend to liaise with the committee until the end of that process. I look forward to receiving the committee's views, opinions and deliberations and I thank it for all of its support.

Chairman

I thank the Minister of State, Deputy Costello, and the Tánaiste. I was very pleased to hear the Tánaiste's comments on the Vatican embassy. I have always said we have a very experienced diplomat in charge of the embassy at the moment. He also happens to be the Secretary General of the Department. I know that if he is given time and space to discuss these matters with his counterparts in the Vatican, a suitable solution can be reached in the near future. I appreciate the Tánaiste's comments on the value of this committee, which he sees as a platform for discussing foreign policy. We value his contribution on that subject today. We hope he will come before us when he is making further announcements. We would be happy to facilitate him on that at any stage. We look forward to engaging with him later this year, under the new system, in advance of the publication of the 2013 Estimates.

I also thank the Minister of State, Deputy Costello. I remind him that members of the joint committee went to Ethiopia as part of an Irish Aid visit last year. He is aware that representatives of University College Cork are working in the northern part of Ethiopia. The third level sector is making a good input in our programme countries. Ambassadors from African countries will appear before the joint committee next week, in advance of Africa Day. We will engage with them on this country's Africa strategy. We will have a broad discussion with them on the strengthening of bilateral relationships with Africa. I thank the Minister of State and the Tánaiste again for their contributions and their input into this committee. I thank members for their very careful reading of the Estimates and their considered contributions today. We have had a very good and thorough meeting on this year's Estimates. We will prepare for 2013 at a later stage.

Deputy Pádraig Mac Lochlainn

Before we conclude, I would like to commend the Tánaiste on the leadership he has shown in regard to the Middle East in recent times. The Opposition sometimes offers criticism but on this occasion I am giving credit where credit is due. I hope the considerable leadership that has been shown by the Tánaiste and the Department of Foreign Affairs and Trade recently will assist in the journey towards peace in the region.