I am grateful to my hon. Friend for that example, which is a perfect reason why it would make sense to accept new clause 5.
New clause 6, also tabled by my hon. Friend the Member for Shipley, concerns the calculation of gross national income for the purposes of section 1. As has already been touched on briefly in an intervention by my hon. Friend the Member for Christchurch, some difficulty has arisen this week concerning national statistics. As often happens, to be fair, they are subject to revision as more information comes in and more firms send their statistics to the Office for National Statistics.
New clause 6 therefore proposes:
“Adjustments to the figure provided to Parliament as the UK’s gross national income as at the end of the financial year shall not change or invalidate the UK’s performance against the target under section 1.”
Together with the other amendments that are being proposed, that would go some way towards dealing with the problem we have seen this week.
Amendment 16 proposes:
“Clause 1, page 1, line 4, leave out ‘gross national income’ and insert ‘final gross national income of the preceding year.’”
It would also deal with the problem of changes being made to the gross national income after the figures had been reported.
Amendment 5 is slightly different. It was tabled by my hon. Friend the Member for North East Somerset, who has disappeared for the moment. It proposes:
“Clause 1, Page 1, line 5, at end insert “when the central government net cash requirement is in surplus.””
That is an important change, given the overall position of our nation’s finances, and I am sure that my hon. Friend will have more to say about this and his other amendments before the House today.
Amendment 20 would
“leave out “met” and insert “progressed toward”.”
That would cut down on the number of times the Secretary of State has to account for not having met the target.
Amendment 6, which would amend clause 1, page 1, line 7, deals with the inclusion of a role for the Office for Budget Responsibility. This is perhaps one of the most important amendments being proposed this morning, because rather than leaving matters as are currently provided for in the Bill it would be much better if the responsibility for determining whether the target had been met was decided by the independent OBR.
The OBR has been much in the news this week, as it has given its report on the nation’s finances. Again, rather than having the current provision in the Bill, it would be much more sensible if this task was given to the independent OBR. It would not be much of a further imposition on its resources. It is the organisation that has these figures, and each week, each month and each year it has to report to this House. It will be the first organisation to know whether the figure—0.7% or any other figure that the House may decide upon—has been met.
New clause 7, also in this sub-group, was tabled by my hon. Friend the Member for Shipley and is entitled, “Applicability and expiry of the provisions of this Act”. Subsection (1) reads:
“This Act shall come into force on such a day appointed by the Secretary of State by an order contained in a statutory instrument.”
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Subsection (2) provides that no order shall be made under subsection (1)
“unless a referendum has taken place in the United Kingdom and more than 50% of those casting a vote do so in favour of meeting the target.”
Subsection (3) provides that the
“Act shall only have effect in those years where the United Kingdom records a budget surplus.”
Subsection (4) provides:
“The Secretary of State may vary the target mentioned in section 1 by an order contained in a statutory instrument in response to the UK leaving or joining a multilateral organisation which itself disburses ODA.”
Of course, that could be very pertinent if, for example, the UK voted in a referendum on our EU membership. Finally, subsection (5) provides:
“This Act shall expire on the anniversary of its coming into force in the fifth year of its being so in force.”
Essentially, that is a sunset provision.