Government 'impeding' EU directive

The Government is set to "stand in the way" of an important EU directive that has the potential to transform the lives of millions of Africans in poverty, a number of aid organisations claim.

Anti-corruption organisation Transparency International said the Government was “answering to a small number of large mining and exploration companies” in its opposition to the Accounting and Transparency Directive, which will be discussed at the Council of the EU in Brussels on Monday.

Minister for Jobs, Enterprise and Innovation, Richard Bruton, will attend the discussion.

The directive requires European extractive and forestry companies to publish detailed information on the payments they make to governments, on a project-by-project basis.

It would apply outside and within the EU, meaning extractive and exploration companies would have to publish details of payments to the Irish Government.

According to Joseph Stead, senior adviser on economic justice with Christian Aid, the directive would mean millions of people in resource-rich but poverty-stricken countries could hold their governments to account.

“We know the value of exports from Africa is nine times the amount of aid that goes in.”

“For example, despite an estimated $1bn of mineral exports each year, in 2006 the Democratic Republic of Congo’s treasury received just $86,000 from mineral rights. This directive would be huge for the developing countries and their people.”

Christian Aid had heard “through intelligence” that the Irish Government was to take a “hard line" against the directive. “We don’t know where this position is coming from,” said Mr Stead.

Justin Kilcullen, director of Trócaire, said he was “puzzled” by the Irish stance. “An estimated 1.5 billion people live on less than $2 a day in 'resource-rich' countries, and these proposals, if implemented, would be an historic step forwards, enabling citizens in those countries to hold their governments to account.”

John Devitt, chief executive of Transparency International Ireland, said he was “very concerned” about the position of the Government “standing in the way of meaningful transparency”.

“To oppose these directive is to offer a chance to big companies to hide their transactions to governments and from the public, especially in countries with a weak rule of law.

“The public has a right to know whether decisions are being made in the public interest or in the interest of private companies. The Irish stance flies in the face of the international consensus to open business, and especially extractive businesses, to public scrutiny,” Mr Devitt said.

A spokeswoman for Mr Bruton’s department said: “The Irish Government supports the overall objective of this measure, but has some concerns from a red tape/administrative burden point of view and remains unconvinced that the Audit and Accountancy Directive represents the best way of achieving it.

"We have, through interventions at the Council Working Group, helpfully suggested alternative ways of achieving the same outcomes.”