Select Committee on International Development First Report


THE FUTURE OF THE EC DEVELOPMENT BUDGET

ECHO

75. The Commission has recommended a cut in the emergency aid reserve of 150 million ecu, to 200 million ecu per year, on the basis that the resources allocated directly to ECHO at the beginning of each year will be increased by the same amount. This will increase the ability of ECHO to access resources for emergency operations more quickly than has previously been the case. DFID has welcomed this proposal in principle, provided it does not result in an overall increase in the funding available for humanitarian operations.[140] Mr Alberto Navarro, Commissioner responsible for ECHO, told the Committee in Brussels that he would welcome such a reallocation of resources.[141]

76. To date, the accounting mechanism showing the movement of funds from the emergency aid reserve to ECHO has been complicated. In each annual budget, the emergency aid reserve appears as a separate budget heading under Category 6 (Reserves). In subsequent years, however, budgets do not show the extent to which resources have been moved from the reserve into ECHO's budget. Therefore, purely in terms of transparent accounting, the allocation of resources directly to ECHO, eliminating the need for complex movement of resources from reserves later in the year, would be a positive step forward. In the interests of transparency and efficiency, we share DFID's support for the proposal put forward by the Commission to cut the emergency aid reserve by 150 million ecu and allocate those resources directly to ECHO.


140  Evidence, p.12 Back

141  Annex p.xlviii  Back


 
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