Overseas aid:A 24 per cent increase in overseas aid spending marks a first step towards reaching the UN target for assistance to the developing world.
The increase, which fulfils a promise made by the Taoiseach at a UN summit in September, was welcomed by aid agencies last night.
Spending on aid rises to €675 million next year, up from €545 million this year. This means the aid budget is increasing at four times the overall rate of Government spending.
The increase brings the aid budget next year to 0.47 per cent of gross national product (GNP), up from 0.41 per cent. The Government has promised to further increase it to 0.5 per cent in 2007 and to reach the UN target of 0.7 per cent in 2012.
Minister for Foreign Affairs Dermot Ahern said the money would be spent on doubling the budget for fighting HIV/Aids, famine and hunger, increasing the role of the private sector in development and strengthening anti-corruption measures. Mr Ahern is to reveal further details of his plans in a major policy speech today.
The Minister of State for Development co-operation, Conor Lenihan, said the increase would move Ireland "from mid-table to top of the league in aid spending internationally".
"We will now be spending more than €160 on aid for every man, woman and child in the country," he said. "The public's money is making a real difference in the lives of the world's poorest people. They should be proud of that." He said this year's increase was larger than the entire aid budget in 1995.
Spending on emergencies is set to increase from €37.5 million to €60 million next year, while contributions to UN agencies will rise from €47 million to €65 million.
Dóchas, the umbrella group of 35 Irish aid agencies, said Ireland was now on track with its aid programme.
Director Hans Zomer said: "Today, the Government has taken the first step in ensuring more and better aid.
"We will now work with the Government to ensure these funds are spent in the best possible way, and make serious inroads in the fight against hunger, poverty and disease." He said it had laid the foundation for Ireland's leadership in the international arena.
In his UN speech, the Taoiseach promised to increase the aid budget to €658 million. This was revised to €675 million, in line with aincrease in GNP since September. By 2012, if the UN target is reached, it is expected to increase to €1.5 billion a year.
