November 2010
Thank you for your letter on behalf of your constituent regarding the ‘No New Debt Send a Pound’ campaign.
Unfortunately, DFID does not have the legal authority to accept the £1 coin donations from the general public. DFID is subject to the usual Treasury requirements, which means that any donations are treated as excess income and need to be returned to the Treasury. They are then used to meet all Government priorities and to reduce overall Government borrowing, and cannot be earmarked for international development or any other issue. As an alternative, the Treasury advised us that the money could be transferred onto a local charity; in this instance, the money would have been treated unofficially and not reported as part of DFID’s income.
I understand that neither of these options is in keeping with the wishes of WDM and Jubilee Debt Campaign supporters. DFID has therefore agreed with WDM and Jubilee Debt Campaign that they should collect their supporters’ money for onwards transmission to the UN Adaptation Fund. I am sorry that we are unable to pass on the money ourselves, but we need to operate within the legal confines that govern how the Government raises revenue
Regarding concerns about DFID’s handling of campaign correspondence, I can assure WDM and Jubilee Debt Campaign supporters that DFID does take into account and values the views of the public on international development. I have seen the postcards sent by supporters and been regularly updated on the number of cards received. I therefore appreciate the strength of support on the issue, and I am grateful that they have taken the time to write.
The British Government is supportive of the Adaptation Fund. We are active members of the Adaptation Fund’s Board and we welcome the progress that the Adaptation Fund has made. The Adaptation Fund has now signed a Memorandum of Understanding for its first project, on coastal erosion in Senegal, which will be managed by the first National Implementing Entity to be accredited. I welcome this progress in putting the principle of country ownership into action and starting to support concrete adaptation projects on the ground.
The UK also supports the Pilot Programme for Climate Resilience (PPCR), which was designed to deliver something that no other existing fund or mechanism can – a strategic, programmatic approach to finance for adaptation, which delivers transformational outcomes in a small number of pilot countries. The PPCR plays an important role alongside the Adaptation Fund and aims to provide lessons for the Adaptation Fund and other future financing mechanisms.
The PPCR provides countries with grant finance and the option of taking highly concessional loans on top of this. The loans have zero or near-zero per cent interest rates, low administration and service charges and long repayment periods. The first round of national investment plans has made it clear that there is a strong demand for these highly concessional loans.
I believe both the Adaptation Fund and the PPCR have important, complementary, roles to play in supporting developing countries to adapt to the consequences of climate change.
I will make further decisions on the allocations of the International Climate Fund (ICF) over the course of 2011, based on assessment of fiduciary standards, need, results and value for money.
I would again like to thank you for your interest in supporting adaptation in developing countries and to assure you that DFID remains open to and very much welcomes the views of the WDM, Jubilee Debt Campaign and their supporters.
Andrew Mitchell
Secretary of State