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Ethical Trading
4. Helen Jackson: What contacts her Department has with organisations advocating fair trade and ethical investment; and what consideration she is giving to further development in these areas. [14110]
Clare Short: As I said, I am very keen to encourage and reinforce the fair trade and ethical investment consumer movements in every possible way. My Department has numerous and growing contacts with groups interested in fair trade and ethical investment in developing countries. I especially welcome our increasing contacts with groups within the British business community, which is increasingly interested in the issue. The potential of those movements to improve labour standards and environmental protection for large numbers of people in developing countries is considerable. We are asking British companies and non-governmental organisations to work together towards those goals.
Helen Jackson: I thank my right hon. Friend for that answer and congratulate her on what last week's White Paper had to say about fair trade. May I suggest, however, that the really difficult part will be in achieving any world consensus or action on practical ways in which fair trade and ethical investment can operate? Nevertheless, I congratulate my right hon. Friend and you, Madam Speaker, on launching a practical example in the House today showing that it is possible to drink fair trade coffee. Not only does such coffee offer production workers good wages and conditions--it tastes very good, too.
Clare Short: I am grateful to my hon. Friend, and I agree with her that it is very good that the House will now consume ethical coffee which has been produced without abusing labour or pesticides--[Interruption.] Conservative Members sneer at ethics, but the British people are interested in them. Like you, Madam Speaker, I had a cup of that coffee this morning and it was extremely good. As I have said, ethical movements and consumers' interest in such movements are potentially very influential in the world.
Currently, my Department is assisting all British supermarkets and non-governmental organisations in talks on a code for ethical sourcing so that the British people will know that everything on the shelves in those supermarkets is being produced with decent labour standards and non-abuse of the environment. The value of the produce ordered in developing countries by the top 10 British supermarkets is greater than the total income of the world's 35 poorest countries, so the potential power of this is enormous.
Mr. Wilkinson:
May I refer the right hon. Lady to section 3 of her White Paper, which deals specifically
Clare Short:
The hon. Gentleman raises a very important issue--which includes the issue of tobacco production. However, I prefer to deal with the matter straight on, rather than to play silly political games.
The issue of trade liberalisation extends to agriculture. Although industrialised countries frequently lecture developing countries about the need to open their markets to trade, we have highly protected and highly subsidised agriculture--dumping lots of agricultural produce on world markets and undermining the capacity of those countries to develop. I am against such subsidies in principle, including for tobacco. [Interruption.] I take no lessons from Opposition Members.
Due to the proposal to widen the European Union, there is a very good opportunity for--and a driving commitment to--common agricultural policy reform. It is the duty of my Department to ensure that the interests of the developing world, and its chance to work its way out of poverty, are taken into account in the review of the CAP.
5. Ann Clwyd:
What representations her Department has received in response to the White Paper on International Development in respect of its emphasis on poverty. [14111]
Mr. Foulkes:
We had about 150 detailed written submissions from outside bodies in preparing the White Paper, many of which called for a focus on poverty elimination. Since its publication on 5 November, the White Paper has had an enthusiastic and positive reception, particularly for its commitment to work towards ending world poverty.
Ann Clwyd:
What mechanisms will the Department use to target investment from British companies on the poorest countries, and how will those targets benefit the poorest people in those countries?
Mr. Foulkes:
I am grateful to my hon. Friend. We shall be working with our development partners to help poorer countries to create an enabling environment which will attract more investment. In particular, we shall work to reduce initial costs and the perceived risks of investments which support the aim of poverty elimination.
Dr. Tonge:
Does the Minister agree that it is very sad that a country as rich as ours cannot increase its proportion of aid to developing countries? I understand that the Department is to review and redirect funds over the next two years. Will the Minister give an undertaking that the review will be totally transparent and that the House will be told which countries and organisations are to be the winners and losers?
Mr. Foulkes:
I am beginning to wonder whether the hon. Lady has read the White Paper. It commits the
We also intend to create a public-private partnership of the Commonwealth Development Corporation, which will put hundreds of millions of extra pounds into the development programme. It is about time the hon. Lady recognised that, and congratulated the new Government on what we are doing.
Sir Alastair Goodlad:
Does the hon. Gentleman agree that abject poverty can be created by sudden natural disaster? What has been his Department's response to the worsening crisis in southern Somalia as a result of flooding of the River Giuba, which has reportedly caused at least 150,000 people to be cast into total destitution over the past day or two in a situation of worsening anarchy?
Mr. Foulkes:
I am grateful to the right hon. Gentleman for that question. As soon as I heard about the situation in southern Somalia, I discussed it with our officials, and we have made it absolutely clear--my right hon. Friend the Secretary of State has also made it clear--that we shall make resources available through the international aid agencies working in Somalia. As soon as we get a request we shall consider it sympathetically. I am grateful to the right hon. Gentleman for his support.
Mr. Connarty:
Will the Minister confirm that he is making all haste to allow the Commonwealth Development Corporation to access private financial sums to invest in ethical projects such as those that we have discussed? Can he give the House some idea of the time scale for the changes that he intends to bring about?
Mr. Foulkes:
I am grateful to my hon. Friend. In fact, the purpose of the public-private partnership is to access more money to help poorer countries. It will, however, require legislation, which we hope can be introduced in the next Session. I am grateful to my hon. Friend for indicating his willingness to serve on the Committee that will examine that legislation.
6. Mr. Spring:
What are her plans for the future of the Commonwealth Development Corporation. [14112]
Clare Short:
As has just been said, my plans are to propose to Parliament that private investors should be invited to invest money in the CDC, turning a state corporation into a partnership between the public and private sectors. The Government will retain a substantial minority holding and a golden share, which will ensure that the CDC remains a development organisation. The new arrangements will enable it to increase private sector investment into the poorest countries.
Mr. Spring:
How long will the Government retain their golden share? Does the Secretary of State accept that there is a risk that the CDC could be acquired by an organisation not dedicated to the fullest implementation of the developmental process?
Clare Short:
I am glad that the hon. Gentleman is concerned about that. We intend that the golden share will be held in perpetuity.
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