Ministers to try to agree overseas aid budget

Government Ministers will today make a final attempt to resolve differences over the future size of Ireland's overseas aid budget…

Government Ministers will today make a final attempt to resolve differences over the future size of Ireland's overseas aid budget in advance of next week's UN summit in New York, which is to be addressed by the Taoiseach.

With Mr Ahern due to announce at the summit when Ireland will achieve the UN goal of 0.7 per cent of GNP on overseas aid, today's Cabinet meeting represents the last chance for Ministers to reach agreement.

There was speculation last night that the ultimate decision would be left to the Taoiseach and senior Ministers attending the summit.

"This one is going down to the wire," said one source. "It may only be decided on the day."

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The Minister for Finance, Brian Cowen, wants Ireland to reach the target by 2015, the date set by 25 EU leaders earlier this year.

However, Minister for Foreign Affairs Dermot Ahern and the junior Minister with responsibility for overseas aid, Conor Lenihan, are pushing for an earlier date, 2012.

Mr Ahern has also demanded that major increases should be made to the aid budget in the short term by proposing that Ireland reach an 0.5 per cent target in two years' time.

The Taoiseach is believed to support an earlier date for reaching the target.

At the last UN development summit, held in New York in 2000, when Ireland was seeking a seat on the UN Security Council, he promised that the Republic would attain 0.7 per cent by 2007.

However, the Government subsequently reneged on that commitment.

Cabinet ministers were unable to reach agreement on the issue last June and deferred a decision until the autumn.

Further discussion at last week's Cabinet meeting also proved inconclusive.

Depending on when it is met, the commitment calls for the spending of an additional €800 million to €1 billion a year on overseas aid, in addition to the current €500 million budget.

Aid agencies and church groups have criticised the Government for failing to honour its original commitment and for not setting a new target.

Yesterday the Make Poverty History campaign called on the Taoiseach to announce a "credible plan" to meet the target by 2010 "at the latest," including clearly defined year-by-year expenditure targets.

Campaigners are planning an all-night "sit-out" outside Mr Ahern's office this Friday.

The Oireachtas Joint Committee on Foreign Affairs, which includes eight Fianna Fáil members and former PD minister Liz O'Donnell, has called on the Government to set 2010 as its target date.

However, Mr Cowen is expected to argue today that the current increase in oil prices, and its knock-on negative effects on the economy, provide further grounds for taking a cautious approach to aid increases.

More than 170 heads of government are due to attend the UN summit, from September 14th-16th.

The main purpose of the gathering is to review progress towards the Millennium Development Goals, for example, the halving of extreme poverty, and to consider sweeping institutional changes in the UN which have been proposed by secretary general Kofi Annan.

Paul Cullen

Paul Cullen

Paul Cullen is a former heath editor of The Irish Times.