10.2 |
Reconstruction: July 2004 to July 2009
196.
Mr Blair
wrote: “If we had security, the blunt truth is Iraq wouldn’t need
much help
for
reconstruction.” However, in those parts of Iraq where security was
reasonable,
reconstruction
funds should be spent more quickly. This would have a
powerful
demonstrative
effect. Mr Blair suggested to President Bush that they should
get a report
on the
speed and priorities of the reconstruction programme.
197.
The record of
the video conference did not include any reference to
198.
At the end of
December, DFID’s Europe Middle East and Americas
Division
(EMAD)
submitted its Delivery Plan for 2005 to 2008 to the DFID Management
Board,
for
approval.
199.
DFID provided
the Inquiry with a version of the Delivery Plan marked
“Draft”,
but
informed the Inquiry that this version could be the one that was
submitted to
200.
In relation to
Iraq, the draft Delivery Plan stated that DFID was seeking to
“strike
a sensible
balance between short-term fixes and longer-term
development”.119
DFID
planned to
scale down its assistance over the following three years, shifting
from
“post‑conflict
reconstruction” towards targeted technical assistance.
201.
Limiting EMAD
expenditure on Middle Income Countries (MICs),
including
Iraq, would
be a “key factor” in ensuring that DFID met its target of spending
at least
90 percent
of country programme resources on Lower Income Countries (LICs) in
each
year from
2005/06 to 2007/08. Attaining the target for 2005/06 would require
some
£20m of
in-year savings from MIC budgets.
202.
The draft
Delivery Plan stated that the current, agreed DFID budget for Iraq
for
2005/06 was
£86m (reducing to £45m and £30m in the subsequent financial
years).
However:
“It has
been agreed that £20m savings in MIC programmes should be found
through
in-year and
between-year management of spending. We expect the bulk of
these
savings
will be found from underspending on the Iraq budget; bringing the
expected
spend on
Iraq to closer to £66m than the full aid framework allocation of
£86m …”
203.
EMAD invited
the Management Board to agree that those savings should
be
retained
within EMAD, and used for its non-MIC programmes.
117
Letter
Quarrey to Owen, 11 January 2005, ‘Prime Minister’s VTC with
President Bush, 11 January’.
118
Email DFID
[junior official] to Iraq Inquiry [junior official], 20 January
2016, ‘DFID docs on reduction
in Iraq’s
budget for 2005/06’.
119
Paper DFID,
22 December 2004, ‘Draft: Europe Middle East and Americas Division
(EMAD): Director’s
Delivery
Plan [draft] for 2005 – 2008’.
229