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The Report of the Iraq Inquiry
New funding mechanisms for civilian operations
616.  A cross‑government review of the UK’s approach to post‑conflict reconstruction
began in summer 2003 (see Section 10.3). Following that review, the inter‑departmental
Post‑Conflict Reconstruction Unit (PCRU) was established in September 2004.
It became operational during 2005.
617.  The remit of the PCRU was to facilitate integrated planning for the military and
civilian components of an intervention, including by identifying resources from existing
government budgets.384
618.  From June 2006, departments and in particular the FCO sought to develop new
mechanisms to fund civilian stabilisation operations.
619.  Sir Michael Jay and senior FCO officials, the Chiefs of Staff, Dr Nemat Shafik,
DFID Director General Programmes, and Mr Jim Drummond, DFID Director UN Conflict
and Humanitarian Division, agreed on 6 June 2006 that officials should work up a joint
FCO/MOD/DFID proposal on how to ensure a comprehensive approach to funding for
“stabilisation/reconstruction campaigns”.385 The FCO would lead that work.
620.  During the meeting, officials agreed that as the Treasury would strongly oppose
any bid to relax the rules on access to the Reserve, the focus of the proposal should
probably be on increasing the size of the GCPP, for example by creating a new funding
line for “quick impact development projects” in semi‑permissive environments.
621.  Air Chief Marshal Sir Jock Stirrup, Chief of the Defence Staff, suggested an
allocation for that new line of £50m.
622.  Sir Michael Jay commented that the Iraq and Afghanistan context might make
the Treasury (and No.10) more receptive to a proposal.
623.  Discussions continued between the FCO, the MOD, DFID and PCRU until
mid‑September, but did not produce a consensus on how any “QIP Fund” should
be managed or delivered on the ground, or on the criteria that might be used to
determine funding from it.386 There was consensus that the £50m allocation proposed
by ACM Stirrup at the 6 June meeting was too large, given the need and the difficulties
of disbursing funds effectively.
624.  The Inquiry has seen no indications that Treasury officials were aware of or
engaged in those discussions.387
384 Paper [Cabinet Office], 20 July 2004, ‘DOP paper on the Post Conflict Reconstruction Unit’.
385 Minute Powell to Pattison, 7 June 2006, ‘PUS/COS Lunch, 6 June’.
386 Paper FCO, 1 August 2006, ‘Quick Impact Projects: Discussion Paper 01 August 2006’.
387 Letter Link to Williams, 10 July 2006, ‘Quick Impact Projects (QIP) – Iraq and Afghanistan’; Letter
Laurence to Link, 19 July 2006, ‘Quick Impact Projects – Iraq and Afghanistan’; Letter Teuten to Link, 21 July
2006, ‘Quick Impact Projects (QIP) – Iraq and Afghanistan’; Minute Mosselsmans to Link, 21 July 2006,
‘Quick Impact Projects’; Letter Pattison to Laurence, 18 September 2006, ‘Quick Impact Projects (QIPs)’.
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