Select Committee on Trade and Industry Minutes of Evidence


Examination of Witnesses (Questions 369 - 379)

TUESDAY 11 MAY 2004

FRIENDS OF THE EARTH

  Q369  Chairman: Good afternoon. Miss Griffiths, since you are in the middle, you have been elected as the person who introduces your two colleagues, and then we will get started.

  Ms Griffiths: I am Hannah Griffiths. I am Corporates Campaigner for Friends of the Earth England, Wales and Northern Ireland. The other Hannah, Hannah Ellis, is Financial Institutions Campaigner for Friends of the Earth International and Naomi Kazaki, a campaigner for Friends of the Earth, Japan.

  Q370  Chairman: It must be about four or five years since you last gave evidence to us on related matters. The impression we get is that plus ça change in the ECGB has not made an awful lot of difference. This would seem to be the gist of your memorandum. Am I being unfair to you when I say that or am I being unfair to ECGD? Do you think that after the overhaul very much has changed?

  Ms Griffiths: I think the overhaul was significant in that ECGD recognised the importance of taking environmental and social factors into consideration, and I think it would be slightly unfair to say that nothing has changed since then. The business principles have been a good first step in the right direction, but I think it is important to separate what has changed in theory and what may or may not have changed in practice on the ground. Since the introduction of the business principles I am fairly certain in saying that no projects have been screened out; so no projects have been rejected on the basis of the business principles. Support for the defence sector, for example, has remained the same, proportional support for fossil fuels has remained about the same since we were last here and I am sure ECGD will argue that some projects will have been improved as a result of the business principles. I would be interested to hear from them what specific concrete improvements they think have been made as a result of the business principles. I think, in summary, I would say we have seen a good first step in the right direction, but it is very much a first step and we need to now translate that into concrete tangible changes on the ground in terms of the projects we are supporting.

  Q371  Chairman: Do you think that the business principles have had a deterrent effect in the sense that some consortia who might have approached ECGD have looked at the business principles and said, "I do not think we can really come to this table with this scheme"? You have said not so many schemes have been screened out. Could it be that they were never going to be screened in as a consequence of the business principles?

  Ms Griffiths: Again, I would be interested to see some analysis of whether the business principles have made a difference in terms of the applications ECGD is receiving, but my guess, the answer to that question, would be, no, it has not put any businesses off. The business principles, frankly, are not so radical that they would be likely to put most British companies off. I think they are probably weaker than some companies' own environmental and social standards. I cannot see that it would put anyone off, but I do not have any evidence on that.

  Q372  Chairman: So the horse frightening qualities are not very apparent?

  Ms Griffiths: I am sorry?

  Q373  Chairman: The horse frightening--

  Ms Griffiths: No, I would not say so.

  Q374  Sir Robert Smith: On the issue of what has changed and what has not in terms of transparency, in section 3 of your submission, 3.1 to 3.3, you talk about the problems you had in the run up to 2002 in terms of obtaining information. You go on to say, "The department's attitude has not changed since then." Have you any more recent examples of obstructive behaviour?

  Ms Griffiths: Of obstructive behaviour?

  Q375  Sir Robert Smith: Yes?

  Ms Griffiths: Not to hand, I do not, no. The environmental impact assessment for the Baku pipeline, we were able to obtain a copy, although I do not think that was directly from ECGD, and we have not had an example as fundamental as the Yusufeli example since then, although I do know from my colleagues at the Corner House that they have requested some information relating to the specificity of the Baku pipeline, and this is an issue I would like to come back to later. A report by Parsons was turned down by ECGD. I will go back to my colleagues, if you will allow me, and submit anything else in writing.

  Q376  Sir Robert Smith: This may be something else you will have to write about, but have you experienced difficulty obtaining impact assessments after a project has been approved for support rather than during the approval process?

  Ms Griffiths: I do not think there have been any cases where we have asked for impact assessments after a project has been approved.

  Q377  Sir Robert Smith: Okay, but if you can write to us on the others?

  Ms Griffiths: I will.

  Q378  Mr Evans: May I stick with the BTC pipeline for a second. It is an area you have put a submission in, other people have referred to it also and we are going to talk to others as well about it. You say that with this the Government ignore their own international policies that they have set down for themselves. You have clearly talked to ECGD about this. What sort of response have you had from them to your concerns?

  Ms Griffiths: ECGD are obviously satisfied that they are meeting government policy and that the standards of the World Bank, for example, have been met by the pipeline, whereas our evidence and our view is opposite to that.

  Q379  Mr Evans: What sort of things are you saying to them then where they are not listening?

  Ms Griffiths: What sort of things are we saying?


 
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