Draft Inter-American Investment Corporation (Further Payments to Capital Stock) (Amendment) Order 2026
House of Commons · General Committees · 1 Sep 2026 · 29 speeches · Official Report
The Committee consisted of the following Members:
Chair: Dr Andrew Murrison
Alaba, Mr Bayo (Southend East and Rochford) (Ind)
† Al-Hassan, Sadik (North Somerset) (Lab)
Jopp, Lincoln (Spelthorne) (Con)
Kohler, Mr Paul (Wimbledon) (LD)
† Kumar, Sonia (Dudley) (Lab)
† McNeill, Kirsty (Minister for International Development)
† Mathew, Brian (Melksham and Devizes) (LD)
† Mohamed, Abtisam (Sheffield Central) (Lab)
† Moon, Perran (Camborne and Redruth) (Lab)
† Morton, Wendy (Aldridge-Brownhills) (Con)
† Murray, Chris (Edinburgh East and Musselburgh) (Lab)
† Siddiq, Tulip (Hampstead and Highgate) (Lab)
Smith, Sir Julian (Skipton and Ripon) (Con)
† Snowden, Mr Andrew (Fylde) (Con)
† Uppal, Harpreet (Huddersfield) (Lab)
† Williams, David (Stoke-on-Trent North) (Lab)
Witherden, Steve (Montgomeryshire and Glyndŵr) (Lab)
Emma Elson, Committee Clerk
† attended the Committee
Third Delegated Legislation Committee
Tuesday 1 September 2026
[Dr Andrew Murrison in the Chair ]
Draft Inter-American Investment Corporation (Further Payments to Capital Stock) (Amendment) Order 2026
I beg to move, That the Committee has considered the draft Inter-American Investment Corporation (Further Payments to Capital Stock) (Amendment) Order 2026. It is a pleasure to serve under your chairmanship, Dr Murrison. The draft order was laid before the House on 16 June. It will permit the UK Government to make financial contributions to the Inter-American Investment Corporation, up to the stated values. Allow me briefly to take the Committee through the background and purpose of the draft order. The draft order permits the UK Government to make further payments to the Inter-American Investment Corporation, also known as IDB Invest, which is the private sector arm of the Inter-American Development Bank Group, also known as the IDB. The IDB is the largest source of development finance for Latin America and the Caribbean, with the group’s overall financing reaching about $35 billion in 2025 alone. The IDB is a trusted UK partner and is instrumental to the achievement of regional objectives on sustainable development, action on climate change, biodiversity protection and pandemic and disaster preparedness. The G20 has called on multilateral development banks to adopt new business models to stretch balance sheets, increase lending and take on more risk to support smaller businesses. In response, IDB Invest has committed to implementing a new business model. IDB Invest will shift to an originate-to-share approach to transfer its investments to the private sector, recycling...
It is a pleasure to serve under your chairmanship, Dr Murrison. Let me start by welcoming the new Minister to her position. The Inter-American Development Bank Group is an important source of development finance across Latin America and the Caribbean, and its private sector arm has an important role to play in mobilising investment and supporting private sector-led growth. The draft order, however, authorises a further $25 million of UK taxpayers’ money, taking the UK’s total investment in the Inter-American Investment Corporation to approximately $131 million. It would increase the UK’s shareholding from 0.22% to 1.83%. For the benefit of the Committee, can the Minister confirm to which financial year this relates? Given the pressures on the aid budget, it is right that Parliament seeks clarity about what additional influence and outcomes the investment will secure. My first question is about the decision to provide this additional funding. Can the Minister set out precisely what the additional $25 million will be used for and whether any conditions have been attached to it? What assessment has the Foreign, Commonwealth and Development Office made of the additional development impact this investment will deliver compared with alternative uses of that funding? Secondly, what has the UK sought to achieve through the corporation’s new strategy and capital increase? The Government say the increased shareholding will strengthen UK influence and representation at board level. It...
I am grateful to the right hon. Lady for her comments and reflections. Starting with her question about financial years, the new capital paid in will be spread across seven years, starting in 2025-26. She also asked about the conditions attached to it, and I will reflect on those when I talk about the particular areas we have pressed for prioritisation. I should say, as I did in my opening, that this institution has already innovated in response to pressure and reflections from the G20. We were delighted to have had that influence at the outset. We have pressed for a new focus on climate, on supporting Caribbean small island developing states, including the overseas territories, and on vulnerable populations. The right hon. Lady asked for any reflections on the development impacts that we anticipate. I reflected on those in my opening remarks, and I will not repeat them now. On increasing and securing the UK’s influence, we have secured greater board representation for the UK, which is always something we seek to do. IDB Invest is a unique institution at the forefront of private sector investment in Latin America and the Caribbean. IDB Invest aims to dedicate 60% of its investments to climate and green finance, and it is also supporting micro, small and medium-sized enterprises, empowering women, expanding access to essential services and driving innovation. Through its new originate-to-share business model, IDB Invest is scaling up its impact, mobilising capital at...
Committee rose.