To ask Her Majesty’s Government what are their priorities for the future of European Union international development co-operation.

My Lords, Her Majesty’s Government’s four main priorities for working with the EU on development are: greater EU leadership on the international stage, particularly on the millennium development goals; ensuring greater coherence between EU policies in support of development; to improve the quality of European Commission development and humanitarian assistance; and to work through the EU-Africa Infrastructure Trust Fund to accelerate integrated regional development in Africa.

I thank my noble friend for that very encouraging reply. Does he agree that the issues of world poverty, together with those of climate change, trade and international security, are so complex that they simply cannot be solved on a basis of national programmes, and that international co-ordination is absolutely indispensible? Does he therefore accept that the EU has a key role to play in this, and that our commitment to its institutions is essential in ensuring that it happens properly?

My Lords, my noble friend makes an important point. Indeed, 2010 is five years before the deadline for meeting the millennium development goals. The global development plan which we are seeking in partnership—starting with the DfID conference tomorrow which will move on from the European Union position towards an international view—is an attempt to identify where we are deficient. The EU is off track in meeting its interim ODA target of 0.56 per cent of gross national income by 2010 although the United Kingdom is on track. There is failure to meet a number of the millennium development goals and 1 billion people in the world are still hungry. There is a lot of work to do. However, I agree entirely with my noble friend that it can only be done in collaboration with our European partners and our international partners as well.

Given that in 2008-09 DfID contributed £1.15 billion to the European Commission’s aid programme—about a fifth of DfID’s total programme that year—what discussions have DfID Ministers had with the new Development Commissioner to make certain that British aid spent through the European Commission is spent effectively, swiftly disbursed and properly focused?

My Lords, the Department for International Development and the Foreign Office have ongoing discussions almost daily with the relevant parts of the European Commission in Brussels, particularly in the light of the Lisbon treaty and the new arrangements that are in place. We certainly regard the Development Commissioner as extremely important. Of course we ensure that our money is spent on issues and in areas where we believe it will do the most to eradicate poverty. We have a strong record in this area. We have been at the forefront in seeking efficiency reforms within the European Union to aid that task, and we will continue to do so.

My Lords, having returned just yesterday from Gaza, perhaps I may press the Government to be more robust on the continuing blockade of the Gaza Strip. Is the Minister aware that European aid funding has already been earmarked for more than 2,000 badly needed new houses, for which plans are agreed, but that the Netanyahu Government refuse to allow in the necessary construction materials? Will he follow the example of Vice-President Biden and make it clear, on behalf of our taxpayers, that their continuing behaviour is intolerable?

I recognise the noble Lord’s question if only because I think that, only a couple of weeks ago, I featured in giving an answer which was in almost the same terms. Yesterday’s speech by Vice-President Biden was a very clear signal to the Government of Israel of not only the United States’ concern but the concern of Europe and Britain, which we continue to press at every turn. The sooner that message gets home, the sooner we will see the reconstruction that will remove the misery that people in Gaza are living in, and the sooner we will be able to take that step towards meaningful talks on peace in the region.

My Lords, further to the question of the noble Baroness, Lady Rawlings, what proportion of our foreign aid is filtered through the European Union and how much of it goes astray? Would it not better to cut such aid and replace it with investment in agriculture and with free trade, which is often denied to the countries in question?

My Lords, we spend money both bilaterally and multilaterally through the EU because the European Union makes policy on climate change, trade, agriculture and fisheries and is therefore in a unique position in terms of aid, trade and foreign policy. I can give a breakdown on the proportions of the money spent. I know that the noble Lord’s enthusiasm for Europe is less than total, but international development is one area in which even he could not find much to criticise Europe. He makes the point about fraud, but the truth is that the amount of fraud is very small. The auditors have made a point about inadequate reporting by member states, and in 2009 they named Spain, Italy and Portugal as responsible for 80 per cent of the financial errors. However, actual fraud was found in only two cases among all the irregularities considered in 2008. Methinks that the noble Lord doth protest too much.

My Lords, meeting the development goals is very important in respect of the young people of this country. What steps are the Government taking with the European partners to ensure that there is an appropriate education policy to enable our young people to be fully participant in the process of helping to achieve these goals?

The right reverend Prelate makes an important point. Personally, I am quite encouraged. We, as people involved in politics, may sometimes despair at the willingness of young people to take a more serious attitude to the domestic political agenda, but I have found that when you talk to them about the international agenda, issues of climate change and poverty in Africa, there is a very ready understanding. The right reverend Prelate is absolutely right: we must continue and extend our efforts to ensure that all our young people are aware of the world in which they live, and the important part that they play not just in the United Kingdom and in Europe but in developing a better world for all of us.

My Lords, when it comes to the efficiency of expenditure, is it not the other way round from what the noble Lord, Lord Pearson, has said? If you go round different countries in Africa—as I do quite a lot as vice-president of the All-Party Group on Africa—you will find that the recipient countries have very limited resources. They do not want Britain, France, Germany, the Netherlands, Sweden and half a dozen other countries coming in, one after the other, with different priorities. Over the past few years it has been very noticeable, from Senegal to Madagascar, that the efficiency of the European channel lies in bringing things together and helping with technical assistance at the same time. It is a great step forward in most cases for the effectiveness of our expenditure.

I agree entirely with my noble friend. Previously, when the European Union had delegations in member countries, those delegations were often regarded by various political actors and civil society in those countries as key, crucial and, in some ways, impartial in terms of the advice and guidance given. They were not the former colonial power and they were not people who came in with a particular nationality; they were seen as a European responsibility and as a European response to world problems. I think that we are enhanced by such arrangements. We will be even more enhanced when we develop properly the new system that Cathy Ashton will be responsible for.