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Dept for International Development

Answer

Mr. Patrick Hall: To ask the Secretary of State for International Development what support her Department is providing to the ethical trading initiative in 2002-03. [54756] Clare Short: I recently agreed funding of £1.315 million to strengthen the work of the Ethical Trading Initiative (ETI) over the next three years. This will be disbursed in yearly tranches. The tranche for 2002-03 is £513,000. This is 47.5 per cent. of total ETI income in this year. Subsequent years will see a decrease in the proportion of DFID funds as a proportion of total funds, to 40 per cent. in year two and 26.5 per cent. in year three. We have provided £780,000 since the ETI was set up in 1998 to the end of March 2002. This new three-year grant of £1.315 million represents 38 per cent. of total ETI income over this forthcoming three-year period. This new funding will enable the ETI to build on the excellent progress it has made over the last three years and to develop expertise and knowledge in new areas which will help its increasing number of members continue to improve labour conditions in the supply chains of corporate members. The remaining 62 per cent. will be generated by corporate and NGO membership fees and a small amount of trading income from services provided to non-members, such as for training. The corporate membership fee total over the period is expected to be £1.92 million, or 56 per cent. of total income. However, ETl's "learning by doing" approach is very demanding on members' time and other resources and this contribution has been conservatively valued as a further £1.8 million over three years. DFID has supported the Ethical Trading Initiative since its establishment in 1998. It is an alliance of major British retailers, non-governmental organisations and trade unions dedicated to the improvement of labour standards throughout the supply chains of its corporate members. The ETl's corporate members bring together almost £100 billion in annual turnover. Significant proportions of the corporate members' supply chains are located in developing countries and the ETI therefore has a considerable worldwide reach. The corporate members are committed to independent verification, and work to bring their supply chains into compliance with International Labour Organisation standards in a way that brings benefits to workers in developing countries.

Secondary information

Type

Written question

Reference

385 c682-3W; 54756

Session

2001-02

Question not reached

Yes

Subjects

Developing countries Development aid Ethics Forced labour Overseas trade Standards Ethical Trading Initiative

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk