Select Committee on International Development Minutes of Evidence


Examination of Witnesses (Questions 180-188)

MR JOHANNES LUCHNER

20 JUNE 2006

  Q180  Ann McKechin: What policy areas, yes?

  Mr Luchner: I will give you one example for which it is too large, which is money. We are faced with calls to finance programmes, we are faced with calls to finance the CERF and we have a constant budget. I think many people forget that Member States are for the moment in a situation where they have committed themselves to an increase in ODA and therefore have increasing budgets with which they can finance new things, whereas for the Commission it is a zero sum game. If Louis Michel decides to give €20 million to the CERF, he will take it from the European NGOs, he has to take it from somewhere because the budget has not increased. That would have been an issue where one could have maybe tried to coordinate a little bit earlier on and also to ask question: "Okay, your ODA budgets have gone up but what is your commitment in terms of the European Union, the European Commission budget?" I think in terms of sectoral policies, there is no European approach. Do we charge in health clinics? Do we then talk to governments? Niger is an example. Ninety-five per cent of the victims you see in refugee camps are women and children. It is a European policy point. How do you address that? You come down to very technical issues maybe but they are of crucial importance to the beneficiaries. I think now we need certainty and we need to find a way of how we relate in terms of civil protection and humanitarian aid. I think the LRRD[2] debate is a good example of a debate where everybody has agreed but why are the results not coming. I think there we could work more concretely. I think basically compared to development co-operation the whole area is open to more policy coordination.

  Q181 Ann McKechin: If the budgets of the EU nations are increasing for ODA over the next five years, as they have indicated last year in the obligation, but they are not increasing in real terms the ECHO budget, does that mean that we will end up with more emphasis on the bilateral donors than the multilateral approach which ECHO has offered?

  Mr Luchner: Financially by default, I hope policy-wise not. I hope that the Commission can play the role it is supposed to play.

  Ann McKechin: So there will be a greater need for coordination than there ever has been?

  Q182  Chairman: Why is Louis Michel not touring the European capitals lobbying for his share of this?

  Mr Luchner: Because he is touring African capitals as Development and Humanitarian Aid Commissioner. I have to say DG ECHO has limited capacity and we have to build that up slowly, but there are a large number of areas where there is a basic consensus emerging, particularly the Good Humanitarian Donorship Initiative which to me represents the core of what we should be doing and what we should be committed to.

  Q183  John Barrett: If I could turn to disaster preparedness. You mentioned earlier that 20 to 30% of your budget goes on disasters. Hilary Benn here has pledged that DFID will allocate 10% of the money it spends on humanitarian to work on disaster preparedness. Has ECHO any plans to follow the lead taken by DFID and allocate a specific proportion of its budget to disaster preparedness?

  Mr Luchner: On the figures I think I might have expressed myself badly. Ten to 20% of the operational budget is spent on natural disasters as opposed to complex emergencies. We have a fixed budget for disaster preparedness which is set by our budgetary authority, ie the Member States and the Council and the European Parliament. Last time we made a proposal and the Member States cut it down and the Parliament increased it, so we are not independent in that to that extent if it is a DIPECHO[3] programme, which is about 3% of the entire budget and this year we are 19 million, where we finance mostly small-scale, local, community-based disaster preparedness actions that we want to keep. We are making an effort inside the house to streamline disaster preparedness wherever possible into other programmes. We have come to the conclusion that it is not a good idea to do that in what we call emergency decisions, that is relatively small decisions up to €3 million which is the immediate response to a crisis, normally a natural disaster, but in the longer term six to 18 months decision we will more and more integrate that aspect of disaster preparedness because it is good humanitarian policy and good economic policy, if you will, it is a good way to spend the money. We are now looking (which would be a pilot project) at a gap filler at a macro level between humanitarian aid and development aid. There is an upcoming decision on the drought in the greater Horn of Africa which would be a large decision, I think up to 10 million, entirely focused on managing the drought cycle and on preparedness. I say it is a gap filler because there also we have talked to our national officers in the various countries and to our desk officers in Brussels to see what they can do and how they can take over through national governments. So, yes, we want to do a lot. We asked for a budget. I would guess we would stay at at least three to 4% of our budget specifically on DIPECHO programmes. We will continue with mainstreaming and we will have hopefully, if our Member States and the Parliament agree, decisions like on the greater Horn of Africa, specific situations, to invest more in disaster preparedness.

  Q184 Chairman: Just on that point, I was trying to find it in the notes that we had but I think there was a comparison that said if you took the Pakistan earthquake and an earthquake in California that had the same Richter scale measurement and the same basic population base; in one case the casualties amounted to two deaths and in Pakistan it was 79,000, which is an indication of being prepared and the soundness of investing in that. You obviously express the constraints that you are under, but there is a reality, is there not, that poor countries are much more susceptible to disaster because structures are not strong enough and they are not reinforced? That was true of the Pakistan earthquake. Then when you go in afterwards to ensure you rebuild to a standard that takes account of the susceptibilities of a disaster, how much of that kind of evaluation and commitment is carried on within ECHO?

  Mr Luchner: Evaluation of?

  Q185  Chairman: Of vulnerability and indeed whether or not money should go in in advance of disasters in areas which are susceptible and then after a disaster ensuring that the reconstruction is a reconstruction that does not make them vulnerable to the same disaster again?

  Mr Luchner: That goes on on an on-going basis, at any rate in terms of vulnerability at all levels, both at country level and at—

  Q186  Chairman: The concern one has is that given you have said the constraints you have on your budget, and our own Department's argument is to put some money into preparing people against it, you do not really have the ability to do that if your budget is static. Is that a specific issue where you could do more?

  Mr Luchner: Yes, absolutely. The Commission has an emergency reserve of €220 million. We have gone to that reserve four times in the last five years and we will go back to it now for Darfur and the Palestinian Occupied Territories. We never have enough money on average so, yes, we could do that. For DIPECHO and for disaster preparedness it is a specific budget line that needs to be voted and therefore whether it is increased or decreased depends entirely on the Council and European Parliament. Yes, you could spend far more money certainly.

  Q187  Chairman: It is a kind of difference between emergency relief/disaster response and development and what you are really saying is if you provide the right development money you reduce the number of disasters?

  Mr Luchner: Absolutely, that is why I mentioned it earlier that Commissioner Michel has given written instructions to the development services to mainstream the risk reduction and preparedness aspects in the development programmes because that is where the big money is. We at DG ECHO will continue to focus at the grass-roots and smaller project level in what we do and not do very large decisions, with the exception I just mentioned of the greater Horn of Africa.

  Q188  Chairman: Thank you very much indeed for answering our questions. If you could give us a note on the Panzi Hospital, that would reassure those of us who visited and those who heard about it as well that it is not quite as bad as we feared. Thank you very much.

  Mr Luchner: Yes, thank you.





2   Linking Relief, Rehabilitation and Development. Back

3   ECHO's disaster preparedness programme. Back


 
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