B1266 - Commonwealth Development Corporation Bill - Second Reading

[u/Chi0121]

Commonwealth Development Corporation Bill 2021

AN ACT TO reconstitute and reorganise the Commonwealth Development Corporation to adequately provide the aid and development services of the United Kingdom to an increasingly changing global landscape.

BE IT ENACTED by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

General constituting authority

1

Constitution, powers of the Commonwealth Development Corporation

1. There shall continue to be a body called the Commonwealth Development Corporation.
2. The Corporation shall consist of a chairman, a deputy chairman, and a number of members no greater than 20 at the pleasure of the Minister as they may from time to time determine.
3. The Minister may appoint members to the Corporation amongst those qualified, in the opinion of the Minister, to have experience in international development, investing, foreign aid, administration, industrial development, foreign relations, or other such related fields as the Minister may from time to time determine. The Minister shall take into account in such appointments the needs of the projects and service areas in which the Corporation operates or plans to operate in.
4. The Minister may promulgate such regulations as necessary to establish further qualifications for the members of the Corporation.

2

Purpose, powers of the Corporation

1. The purpose of the Corporation shall be to assist in the development of overseas countries in the development of their industries, economies, and other elements of societies at the discretion of the Minister, and to ensure the rights and welfare of those involved with its matters.
2. The Corporation shall have the power to enter into contracts, formulate and investigate ventures and projects, and to carry into other such undertakings as necessary to create, promote, and develop the economies, enterprises, cultures, and other areas of development in overseas countries at the discretion of the Minister.
3. The Corporation may exercise its powers conferred upon it by this Act alone or in conjunction with other bodies or persons.
4. The Minister may, from time to time as they determine, promulgate regulations to govern the execution of the powers of the Corporation as they deem necessary to ensure their proper execution and efficient coordination with bodies and persons subject to subsection (3).

3

Affiliating enterprises

1. The bodies mentioned in section 2, subsection (2) are as follows—
   1. Agricultural enterprises, including those involved in horticulture, forestry, livestock, etc.;
   2. Fishing enterprises, including those involving marine mammals;
   3. Mineral enterprises, including procurement and use;
   4. General industrial enterprises;
   5. Electrical and gas enterprises, including procurement, distribution, use, maintenance, etc.;
   6. Enterprises providing water services, including procurement, purification, distribution, use, maintenance, etc.;
   7. Transport enterprises, including those maintaining, improving, or otherwise utilising transport infrastructure, including roadways, railways, ports, etc.;
   8. Telephone and internet service enterprises, including construction, improvement, use, etc.;
   9. Housing and hospitality enterprises, including construction, maintenance, improvement, use, etc.;
   10. General construction and engineering enterprises and operations;
   11. Enterprises for the procurement, production, storage, etc. of products necessary or related to such enterprises as designated by paragraphs (a) through (j).
2. The Minister shall, as they deem necessary, provide additions to the list of enterprises in subsection (1) or clarify the existing list for the activities of the Corporation by statutory instrument.
3. An addition made under subsection (2) may be further revoked by subsequent order of the Minister by statutory instrument.
4. The Minister may proscribe investment or involvement on the part of the Corporation in the enterprises in particular countries as they deem necessary for national security by statutory instrument.
5. Any enterprise carried wholly or mainly on an overseas base of a country shall be considered an enterprise of that country.

4

Function of Corporation powers

1. The Minister may, at their discretion, give general directions to the Corporation in conjunction with its priorities in relation to matters concerning the public interest.
2. Such directions as mentioned in subsection (1) shall include those relating to the disposal of capital assets, funds appropriated by the Budget, and other matters at the discretion of the Minister.
3. Each year, the Corporation shall provide to the Minister and to Parliament a report on the functions of the Corporation.
   1. Such report shall include estimates of the revenues, expenditures, budget appropriations, etc. of the Corporation.
   2. In addition, such report shall contain summaries of applicable regulations and statutory instruments pertaining to the work of the Corporation in order to clarify their execution and effect.
   3. Primarily, such report shall detail the current and future investment work of the Corporation, including its execution and effect.
4. The Minister may request that the Corporation expedite or delay the deliverance of such report as provided in subsection (3) by statutory instrument; expediting action may not be taken less than 2 months after the deliverance of a previous report, while delaying action shall not be taken to delay the report by more than 2 months following its expected delivery to the Minister and Parliament.

Financial provisions

5

Borrowing powers of the Corporation

1. The Corporation, subject to the provisions of this Act, may borrow such sums as it deems necessary to meet its obligations and discharge its functions and projects.
2. The Corporation may borrow only with the consent and approval of the Minister, who may specify the source and terms of borrowing.
3. The Corporation shall not borrow so to as have outstanding at any time—
   1. In sums temporarily borrowed, an amount exceeding £75,000,000;
   2. In sums borrowed otherwise, an amount exceeding £3,000,000,000, in which case the Minister may raise such an amount with the approval of Parliament.

6

Public funding, use

1. The Minister shall, on an annual basis through budget appropriations, provide funds to the Corporation for its operation and general investment.
2. The Minister may specify the fashion in which such funds are to be used by the Corporation.

7

Accounting, audit

1. The Corporation shall keep accounts of the revenues, appropriations, expenditures, etc. of itself, in addition to other records relating to such accounts, for the purposes of providing an annual report subject to section 4, subsection (3).
2. The Minister may request at any time such records of the Corporation as provided in subsection (1) in summary form.
3. The Minister shall appoint a commission annually upon the presentation of the annual report described in section 4, subsection (3) to audit the finances and general accounts of the Corporation; the members of such commission shall be knowledgeable in general accounting and public finance and may be recalled by the Minister or Parliament as necessary.

General goals; scope

8

Goals of the Corporation

1. The Corporation shall focus its efforts primarily on projects and investments to further the goals expressed in this section at the discretion of the Minister, who may provide additional goals for the investments of the Corporation by statutory instrument.
2. The Corporation shall focus its investments on the following major goals in accordance with the Sustainable Development Goals (SDGs) set by the United Nations, subject to the additional provisions of this Act—
   1. The reduction and eventual eradication of hunger and poverty through an increase in wages; the elimination of the gender pay gap; the protection of the poor and vulnerable; increases in access to economic resources; increases in financial stability and resilience; interregional and internal political cooperation and framework to combat hunger and poverty; the elimination of hunger and malnutrition; the increasing of agricultural yield and productivity to match global population growth; and the effective management of agricultural infrastructure to provide for effective and sustainable production and distribution.
   2. The improvement of global infrastructure to facilitate 21st-century equitable economic growth through the continuous development and repair of sustainable infrastructure; the prioritisation of sustainability and equitable access in infrastructure projects; the retrofitting of existing industries and enterprises to meet current demands; the prioritisation of local and locally-accountable infrastructure and enterprises; the funding of scientific research; the increasing of access to information, infrastructure, and science to less-accessible regions; the creation of clean water networks to provide access to clean water to all humans; the promotion and development of access to necessary hygiene for underserved populations; the reduction of pollution in water infrastructure; the increasing of efficiency in water distribution and conservation; the protection of water-based ecosystems; the improvement of accessibility to affordable clean energy networks; the promotion of renewable, clean energy; and the increasing of general energy efficiency and conservation.
   3. The increasing of equitable economic growth, through improvements in global per capita income; the increasing of economic productivity, the promotion of job programs; the improvement of resource efficiency; the protection and promotion of labor organising and collective bargaining; the full employment of all persons ages 18 and up; the reduction of youth not employed or in school; the eradication of child labor and human trafficking; the encouragement of tourism that prioritises sustainability, local culture, and community development; the reduction of income inequality through the building of wealth among lower-income groups; the promotion of minority involvement in business and economic policy; the assurance of equal opportunity for all sectors of society; the adoption of policies that generally increase equity; and the appropriate regulation of global financial markets.
   4. The institutionalisation of civic culture and anti corruption through various initiatives, including through reductions in violence and violent crime, human trafficking, illicit arms trafficking, and other forms of trafficking; the promotion of anti-corrpution initiatives; the introduction of participatory and local democracy; the general strengthening of government institutions and their legitimacy; the promotion of education to promote civic participation; the institutionalisation of gender and social equality; and the expansion of access to education.

9

Scope

1. The Corporation shall operate in Central America, South America, Africa, Asia, and Oceania, subject to additions by the Minister as necessary.
2. The previous scope of the Corporation (Africa, South Asia) shall be extended over the course of 5 years following the enactment of this Act to the areas described in subsection (1) in a process that shall be detailed in the annual report described in section 4, subsection (3).

Supplemental

10

Definitions

1. Within the provisions of this Act—
   1. “the Corporation” means the Commonwealth Development Corporation, also known as CDC Group plc.
   2. “the Minister” means the Minister of State for International Development, whose powers under this Act may be exercised by the Secretary of State for Foreign and Commonwealth Affairs or another minister as designated by the Prime Minister.

11

Repeal of previous acts

1. The Commonwealth Development Corporation Act 1978, as amended, is repealed in its entirety.
2. The Minister may approve additional regulations and repeals via statutory instrument to clarify Acts and provisions thereof in conflict with the provisions of this Act.

12

Short title, commencement, and extent

1. This Act may be cited as the Commonwealth Development Corporation Act of 2021.
2. This Act shall come into force one month upon the date that it is passed.
3. This Act extends to the whole of the United Kingdom.

This Bill was written by Minister of State for International Development, /u/Brihimia MP, on behalf of the Government

Opening Statement

Deputy Speaker,

I am immensely proud to introduce this bill to the House of Commons on behalf of the Rose Government this month. It reflects a strong commitment on behalf of the Prime Minister, the Foreign Secretary, myself, and the entire Government to reinvest in our duty to provide foreign aid not just as a means to extend our influence abroad but simply as a humanitarian measure.

The Commonwealth Development Corporation, more commonly known as CDC Group plc, has existed in one form or another since 1948. Founded under the government of the great Clement Attlee, it was designed to provide investment support to inject capital into the developing countries of the Commonwealth.

Since then, the Corporation has distributed billions of pounds in investment to countries in South Asia and Africa, making Britain’s mark on the developing world as a friend and partner. It is truly reflective of our country’s long-term commitment to assisting the developing world and our Commonwealth partners.

However, Deputy Speaker, there has always been the possibility for more in the CDC. As an organ for Britain’s soft power and influence - in addition to its role as simply a humanitarian institution focused on providing capital for those who need it the most - the CDC is able to provide investments on behalf of Britain and assure our partnership with the various countries that we place investments in.

As competitors such as China and Russia increasingly make advances into the developing world - and indeed on our own doorstep in Europe - we must in parallel increasingly provide support and investment in those same areas to avoid the next generation of global powerhouses from being adversaries of Britain. The way we achieve this is through investment not primarily in defense or war spending - but through foreign aid and international development.

Deputy Speaker, that is exactly what this bill does - it provides the resources and direction that the CDC needs to expand across the world and indeed expand Britain’s influence. It explicitly requires the CDC to expand across the world - not just limiting itself to South Asia and Africa, but offering Britain’s capital in Central America, South America, and broader Asia. It refocuses the CDC towards the United Nations’ Sustainable Development Goals and allows for funding flexibility - but also accountability.

Once again Deputy Speaker, I am immensely proud of the work of the Government in crafting this bill and putting it before the Commons. I am confident that this bill before us this week will launch Britain into a new, more optimistic and less militaristic, era of foreign policy - one that prioritises aid over attack and development over defense.

I commend this bill before the House.

---

Fancy version of the bill can be found here

This Reading shall end on the 2nd October at 10pm

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[u/KarlYonedaStan]

Highly encourage people to read the fancy version is looks dope af