This Bill will raise the limit on government financial assistance that can be provided to CDC Group plc (formerly the Commonwealth Development Corporation) (the “CDC”).
The new limit will be £6,000 million. The Bill will also introduce a power to allow the Secretary of State to further increase the financial limit up to £12,000 million by regulations
The CDC is a government-owned financial institution that has an investment portfolio and business interests in the emerging markets of Asia, Africa and Latin America.
The Bill will enable the Secretary of State to accelerate CDC’s growth so that it can play a fuller role in the delivery of the UK’s international development objectives. An expanded CDC is a key vehicle for the delivery of DFID’s economic development work, which will help developing countries build prosperous economies that create jobs and lift people out of poverty and is a core element of the UK’s Aid Strategy.
This is a Department for International Development Bill from Priti Patel MP.
Any law that increases government spending in a particular area will always be subject to scrutiny and debate. The CDC itself has been criticised in the past for allegedly moving away from financing beneficial international development towards seeking large profits from schemes that enriched CDC’s managers while bringing little or no benefit to the poor.
How to get involved
Contact your local MP.
If I don’t act, will it go through?
As a government Bill, there is a strong chance this will become law.