Campaigns success as David Cameron calls on the EU to open up the books
CAFOD is delighted that the Prime Minister has spoken out in support of vital legislation requiring oil, gas and mining companies to open up their books on the payments they make to developing countries.
Last month, thousands of CAFOD campaigners called on UK government to champion concrete action on country-by-country reporting at EU level, in line with US legislation passed in 2010, to enable people living in poverty benefit from the wealth beneath their feet. Over 4,000 people wrote to George Osborne and 1,200 people at our Tea time for change lobby of parliament urged their MPs to do the same.
On 20 July the Prime Minister responded. Speaking at the Pan-African University in Lagos, Nigeria, he stated “When it comes to trade, we must always guard against exploitation – we must make sure it is fair as well as free. It’s vital that when foreign companies invest in a country, the benefits of that investment reach the African people, so they can become less reliant on aid.”
Referencing the Dodd Frank Act passed last year in the US, he endorsed our call for the EU to require extractives companies to publish what they pay on a country and project basis. “Mineral wealth should be a blessing, not a curse”, he said. “We want to disclose the payments our companies make to your governments, so you can hold your governments to account for the money they receive... And I’m calling on Europe to do the same.”
Kevin McCullough, CAFOD’s Head of Campaigns, welcomed the announcement. “This is a positive step forward and is a great victory for CAFOD campaigners. But we still have some way to go. As in the US, we know that oil, gas and mining industries will be lobbying EU member states hard to water down these proposals. It will be important for the UK government to continue to champion this in Europe over the coming months and make clear the difference this legislation will have for people living in poverty.”
Currently many poor communities living in resource-rich countries do not see the benefits from foreign mining operations. Zambia is rich in copper with a thriving export market, and yet with one doctor per 10,000 people and life expectancy a mere 47 years, is still trapped in cycle of aid. CAFOD has been calling for communities to be informed about the payments that are made by reforming the law - enabling citizens to hold their governments to account, and demand a fair share be spent on basic services such as schools, hospitals and electricity.
Thank you to all of you who took action on this vital issue. EU legislation is being drawn up and is due to be published in draft form in November 2011 – CAFOD will be tracking its progress.
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