Lord Teverson
To move that the Grand Committee do consider the report of the European Union Committee on The EU and Sudan: on the Brink of Change (18th Report, HL Paper 160).
Lord Shutt of Greetland
My Lords, before the noble Lord, Lord Teverson, speaks, I am told that an earlier person who sat in this chair said that there were 15 speakers signed up for the first debate and nine signed up for the second debate this afternoon. If all contributions, other than those of the openers and the winders, are kept to seven minutes, it should allow the Grand Committee to adjourn at 7.45 pm.
Lord Teverson
I thank the noble Lord for his contribution. I would say to him that of all the committees I have ever chaired, this is one that does not do what it is told the most, but it may be that on this occasion it might actually listen.
The story of South Sudan could, in many ways, be described as the best of fairy tales. We had the independence of Sudan back in 1956 and civil war started almost immediately and lasted up until 1972. Then we had a few years of peace and resolution, followed from 1983 right the way through to 2005 by a second civil war in this very sad, war-torn nation—the largest of the African nations. Yet, with 2 million people having perished and some 5 million having been displaced, and despite all that grief and pain which afflicted that nation during those 40 or so years, we had through the hard work, mostly of the United States, a comprehensive peace agreement. A very plain agenda was set out in 2005 and peace broke out. Most importantly, at the beginning of this year, there was a referendum of the people of South Sudan. Perhaps unexpectedly for those who feel pessimistic about Africa as a continent that in the past has not always been able to deliver democracy, the referendum went ahead very effectively. It was praised for the way in which it was handled and declared, with 98 per cent saying yes to independence. That result was respected by the Sudanese Government in Khartoum. Earlier this year, on 9 July, independence was declared with the blessing of Khartoum and the Sudanese Government—in fact, President al-Bashir was there and was respectfully received. We had in that moment the only instance in Africa of a constitutionally arranged division of a state and of a new state being born. That is quite something when we think about the history of that nation and those peoples.
Already at that time, there were great challenges. One of the things that I remember most about this inquiry, as I am sure will my fellow members of the sub-committee, is taking evidence from what were effectively two ambassadors, the head of mission of South Sudan, yet to be an independent state at that time, and the ambassador of Sudan. I meet them in Peers’ Entrance. They were chums. They were slapping each other’s backs, and it was excellent to see them together. They came up to the committee and there was great bonhomie as they started, but as we asked them questions, there was greater division and disagreement on key issues. I remember, as an example of an issue still to be resolved, the ambassador of Sudan saying to the head of mission of South Sudan, “Well, you’ve had $9.5 billion of oil revenues since the CPA in 2005. What has happened to that money?”. I am afraid that there was little answer. That was one of the problems and hazards mentioned in the report. It was a matter not so much of corruption, although that clearly exists, as of the use and disbursement of public and state funds in South Sudan. As is so often the case where there has been a liberation army, there is an army that still has to be paid and takes up a huge amount of the public exchequer. Security sector reform, therefore, is still a major area of concern.
Demarcation is another. There is no proper demarcation of boundaries between north and South Sudan. There are issues of citizenship. Neither South Sudan nor Sudan will allow dual citizenship of both states, so people have to decide. Once they have decided, there is great pressure for them to migrate back to the state where they have citizenship. That leads to a severe mismatch of skills and job opportunities throughout those two nations. There is a challenge of development. South Sudan has one of the highest maternal mortality rates in the world. It has no tarmaced roads outside Juba, its capital, and it has decided even now to move that capital from Juba to a more central location. It has hardly any schools and an illiteracy rate of some 75 per cent.
There is, of course, the continuing problem of oil. The only way that South Sudanese oil—80 per cent of the old country’s oil—can be exported, used and turned into revenue for the Government is through Port Sudan. There has to be an arrangement between the two countries. There was no agreement about the cost of transporting that oil or any such fiscal arrangements. Both countries depend absolutely on that revenue. For South Sudan, it accounts for some 98 per cent of government income.
The other challenge is the province of Abyei. I should explain that under the comprehensive peace agreement, Abyei was not allocated between the two states. How that should happen was to be agreed by the time of independence through consultation with its citizens or by referendum. That did not happen. At around the time of independence, more Sudanese forces occupied Abyei, and there was a very difficult military situation. All those challenges have reached the great situation of a new member state of the world community.
What has happened since then? We have an agreement that Ethiopian troops should come in and be peacekeepers and that the north Sudanese and South Sudanese militias should withdraw. The Ethiopian troops are there; that is the good side. However, neither of the Sudanese nations have withdrawn their own troops. In Sudan itself there are continuing problems in North Kordofan and the Blue Nile province. Unfortunately, there has been no Arab spring in Sudan, and there is little sign of it as yet.
South Sudan, too, suffers from internal violence to do with the unity of the state. There is also a situation with provincial governors, particularly Mr George Athor, one of the generals not appointed to be the governor of a state, who has taken on resistance within South Sudan. Violence in South Sudan is of great importance as well. Oil production in the south has gone down by 25 per cent, and there have been continuing disputes, many difficulties and no prices agreed. Most recently, there have been interruptions of supply. Trade between the two countries has declined in other ways and has sometimes been severed.
One of the other big problems, particularly at the Sudanese level, is a lack of trust in the world community to help deliver the solution that maybe Khartoum was looking for. One thing has not happened for good reasons, as those of us who see the violence, difficulties and human rights record of north Sudan will know. Part of the deal was that Sudan would be let back into the international community and would no longer be listed as a terrorist state by the United States. That has not happened.
However, there has been some good news. There is no war at the moment. The United Nations high-level implementation panel continues to do its good work. The transitional Government of Salva Kiir in South Sudan has some diversity in terms of gender balance and of bringing in members of other tribes. It is not completely dominated by the Dinka. Ironically, because oil reserves in South Sudan are not infinite and plans for pipelines through Uganda or Kenya to the coast are not feasible, the two nations are locked together and, in a way, have to resolve the dispute on oil for them both to survive fiscally. So there is good news out there and there is still, at the moment, world attention.
Those are the challenges within Sudan and South Sudan. I very much welcomed the government response, mainly because it almost completely agreed with our report. It is very difficult to see how we should move forward. We found the response from the European Union high representative more difficult. One of the key areas dealt with the European Union, particularly the External Action Service, having been very slow in setting up a delegation in Juba and in delivering what we would expect the European Union to be able to do. We did not receive a proper response from the high representative on that. We still look forward to it, and I am sure it will come in due course.
I was asked before this debate what I wanted to get out of it. I always saw that what we want to avoid is South Sudan, the world’s newest state, becoming one of its failed states. I want this debate to be a part of that. However, we need a stable north Sudan as well. It also has its challenges; it has lost 50 per cent of its oil revenue. We need stability in north Sudan for this part of the world to succeed. The other thing that I want to come from this debate is for South Sudan not to decline into obscurity and be forgotten as we deal with other issues in the world. If this part of Africa does not succeed and does not manage to turn around and deliver the promises of the comprehensive agreement, the world will come to regret it. What should the EU do? It is quite clear to me. The EU will not be a lead player but it is important in delivering justice, security reform, education and health structures—everything that makes a society work and gives optimism that a society can be successful.
Lastly, it is very important that other players play their full part as well. I should love to see a way for the United States to re-engage in this. We understand that it is very difficult for the US because of the situation with Sudan and the al-Bashir Government. However, the US has real leverage in this area. The other country that has leverage is the customer for that oil: China. China intervened in the disputes over oil when it stopped being delivered. I hope it will use its leverage further with the troika of the UK, the United States and Norway. Both Europe and the United Kingdom should work closely with China to make sure that South Sudan becomes the success that we always hoped it would be. I beg to move.
Baroness Verma
My Lords, I thank my noble friend Lord Teverson for tabling today’s debate, and all noble Lords for their valuable contribution to this very important topic. I hope that I will reassure noble Lords through my remarks and responses to questions raised that the Government very much take on board noble Lords’ concerns that progress in Sudan and South Sudan is slow. If I cannot answer questions today, I will write to noble Lords, but I would like to start by paying tribute to the Associate Parliamentary Group for Sudan, some of whose members have participated today. Its continued interest and commitment to the people of both Sudans is crucial and vital, and is rightly welcomed by all those who care about the welfare of the peoples of these two countries. As with the noble Lord, Lord Sewel, if it is repetition on a good point, repetition it will be.
We very much welcomed the report produced in June this year by EU Sub-Committee C, which accurately predicted many of the challenges that would be faced by the two countries after South Sudan’s secession. It made some very sensible recommendations, and made clear what can be achieved by working with our EU partners in Sudan and South Sudan. We very much value the role of the EU in Sudan, and particularly, as the noble Baroness, Lady Kinnock, just said, of EU special representative, Rosalind Marsden. We look forward to continuing to work with them and her.
At this stage, it would be most useful if perhaps I set out the current UK policy towards Sudan and South Sudan. Since the committee’s report was issued in June, we have seen the birth of the world’s newest nation, South Sudan. The independence of South Sudan on 9 July was a great success, passing peacefully and with the consent of both nations. Our own Foreign Secretary was there to represent the UK and made clear our ongoing commitment to both countries.
We continue to make clear that we would like to see two prosperous states peacefully coexisting with each other. We want to see a swift resolution to the many conflicts in Sudan and South Sudan, which are affecting stability in both countries, and we want to see full humanitarian access granted to all conflict areas. We can work closely with our international partners, particularly the EU, in pursuit of these goals.
The UK continues with its extensive development programme, co-ordinated through DfID, in both countries. Humanitarian needs play a big part of our programming, but we also provide significant development assistance to both countries. We should also be clear that no money goes directly to the Governments in Sudan or South Sudan.
In South Sudan, the UK is providing over £90 million a year for the next four years to help the people of South Sudan. This funding will support international efforts to promote peace and stability in South Sudan. Specifically, our assistance will help to build more accountable, inclusive and transparent government; deliver basic services, such as education, clean water and healthcare; support economic growth; provide humanitarian relief; and improve security and access to justice.
In Sudan, we are providing £50 million per year for the next four years. Sudan has undergone massive upheaval this year. As such, we are looking at our programme to make sure it meets the needs of the Sudanese people in these changing times. Whatever happens, our programmes will contribute to the provision of humanitarian aid to those most in need. They will help deliver clean water, sanitation and better education. Our programmes will also aim to deliver better access to justice, particularly for women, and improved governance in Sudan.
On a recent visit in November, the Parliamentary Under-Secretary of State Stephen O’Brien announced additional support for the World Food Programme that will enable it to meet the humanitarian food needs of approximately 315,000 people who have been particularly affected by conflict in Southern Kordofan, Blue Nile and Abyei. This will cost around £4.8 million.
The British Council is increasingly engaged in Sudan. While there in July, Henry Bellingham, Foreign Office Minister for Africa, witnessed the signing of a statement of intent between the British Council and the Sudanese Ministry of Education confirming the commitment of both parties to an English-teacher training programme. It will lead to the development of a cadre of 40 ministry teacher trainers and result in 900 more teachers at basic and secondary school level in Khartoum state receiving professional development training.
However, it is unfortunate that, despite the efforts of the UK and the international community, progress remains slow in many areas and we have seen deterioration in others. The violence in Southern Kordofan and Blue Nile state continues. It is estimated that, in total, 200,000 people have been displaced from Southern Kordofan and 130,000 from Blue Nile state. There is little humanitarian access to either area. We are working closely with our international partners to push for an immediate cessation of hostilities and to encourage the establishment of an agreed process to address the root causes of violence in both states. We urge the Government of Sudan and the Sudan People’s Liberation Movement in the north to allow immediate humanitarian access to the area.
More recently, there have been worrying developments, with the Sudanese Air Force bombing Yida in South Sudan and Quffa in the border area on 10 November, and further violent altercations on 3 December. The Minister for Africa, Henry Bellingham, made a statement in November condemning any action that puts civilian lives at risk and called on both parties to exercise restraint. These latest events make it all the more important that both sides allow a border monitoring mission to deploy quickly.
We also continue to urge both Sudan and South Sudan to find a way to resolve their remaining areas of difference. It is particularly concerning that the parties could not come to an agreement on oil revenue sharing during the talks in Addis Ababa last week. We encourage both parties to make every effort to come to an agreement in the next rounds of talks that will take place throughout December.
We also urge both parties to come to an agreement on citizenship, border demarcation and the status of the disputed region of Abyei. As the Foreign Secretary said in a joint statement yesterday with his Norwegian and US colleagues, it is vital that the two parties return to the table as soon as possible to find equitable solutions. The situation on both security and humanitarian difficulties in Darfur remains an area of grave concern. The UK is actively supporting the development of the UN-AU road map for the peace process in Darfur, which is due to be presented to the UN Security Council in January 2012.
We hope that this will push for the early implementation of the Doha Document for Peace in Darfur; continue with negotiations with those movements not yet signed up to the agreement; include consultations with the people of Darfur; and set out a clear process by which the international community can support the process.
I will now respond to some of the points raised by noble Lords. I know that a number of noble Lords have raised the failure of the two countries to reach an agreement on equitable sharing of oil revenues between the two countries. We welcome the constructive role being played by the AU high-level implementation panel which is mediating between the parties on this question. The troika of the UK, US and Norway is playing an important role by supporting mediation politically and with technical advice. And, of course, we welcome the recent actions by China, raised by noble Lords to support a negotiated solution between the two countries on the question of oil. The EU also has a valuable part to play alongside the troika in supporting the AU’s mediation.
Talks facilitated by the AU, the African Union, in Addis Ababa on 25 to 30 November unfortunately came to no agreement, but constructive proposals were placed on the table. The noble Lord, Lord Chidgey, has noted that this included an offer by South Sudan on the level of compensation it could pay to Sudan for its loss of oil revenue with a headline figure of $4.5 billion. That proposal needs to be looked at in a broader context, including the outstanding debts that are to be offset, but it is a proposal that we hope the Sudanese Government will consider seriously and to which it will respond constructively.
Noble Lords have raised the unwelcome statements by the Sudanese Government that they are intending to withhold payments for South Sudanese oil. Such threats are clearly not helpful in reaching an agreement which is needed for the economic welfare of both countries. My noble friend Lord Selkirk has mentioned the proposal that a new pipeline should be built to take South Sudan’s oil to the sea without crossing Sudan as a longer-term solution. We believe that if such a proposal were viable or affordable for Sudan, it would not take away the need to urgently seek a solution for the near term.
As my right honourable friend the Foreign Secretary said in a joint statement yesterday with his Norwegian and US colleagues it is vital that the two parties should return to the table as soon as possible to find equitable solutions for the economic benefit of both countries.
It is also vital that South Sudan, whose oil reserves are finite, should seek to diversity its economy rapidly, as noble Lords have mentioned today, to ensure longer term growth.
Noble Lords have rightly mentioned the importance of tackling corruption in South Sudan and of ensuring that the new Government have the right measures in place to deal with this. We welcome the renewed emphasis that President Kiir has placed on stamping out corruption in recent public statements. It will be important that this is followed up by implementing the various actions that have been agreed with expert international assistance. Dealing with corruption and improving the management of public finances will be considered at the international engagement conference for South Sudan that is to be held in Washington on 14 and 15 December. My honourable friend the Parliamentary Secretary at DfID, Stephen O’Brien, will be chairing the session on improving transparency and accountability in government. We hope that this will be an opportunity for the Government of South Sudan to announce further specific measures in this area.
Noble Lords have asked about the progress in establishing EU representation in Juba. An EU delegation is in place sharing a compound with a number of other EU member states, as has been mentioned in the course of this debate. The UK too has been increasing its presence with more than 30 staff from the Foreign Office and DfID now in place. We are currently sharing the same compound although we are exploring the option of more permanent accommodation. We recognise that the EU delegation has been understaffed in Sudan so far. I know that the External Action Service has action in hand to remedy that and we look forward to the arrival soon of a senior head of delegation.
My noble friend Lord Chidgey and other noble Lords asked whether South Sudan could benefit from Sudan's original allocation under the European Development Fund, which has not been used due to Sudan's failure to ratify the Cotonou agreement. I can assure him that the EU is drawing on a number of sources, including unspent EDF money, to fund significant development and humanitarian programmes in the medium term. South Sudan will itself need to join the agreement in order to benefit from the EDF in future rounds.
My noble friend was also right to stress the importance of ensuring that aid money is not misappropriated given the difficult environment for delivering aid in South Sudan and the wider problems of corruption that I have already mentioned. The EU has long experience of providing assistance in difficult circumstances and has the procedures and safeguards available to ensure that best practice is followed. But that is not a reason to be complacent. This will be an area in which we will pay close attention in considering how effectively the EU is spending its resources in South Sudan.
I am being handed a paper to say that I must wind up, so I will go through some quick points. The noble Lord, Lord Teverson, and other noble Lords are concerned that the Sudanese armed forces and the Sudanese People's Liberation Army have not yet withdrawn from Abyei despite the presence of the UN interim security force. We are urging of both sides immediate redeployment and the granting of full humanitarian access to the area.
The noble Lord, Lord Teverson, also commented on support to South Sudan. I will undertake to write to the noble Lord about that support. There is a comprehensive plan and that would be helpful rather than skipping over some points now. However, I will say that one of the first actions South Sudan on becoming an independent state was to apply for membership of the Commonwealth, which is a positive sign. To join the Commonwealth you have to undertake all the criteria and it is welcome to all of us to see that it is willing to undertake the core values of democracy, human rights and law. It is a welcome move.
The noble Lord, Lord Jay, asked about DfID. It is piloting a new approach to aid partnerships with fragile countries such as South Sudan which was the focus of discussion at the summit last week it will continue to play a leading role in ensuring that the aid community in South Sudan follows best practice.
It is clear that there is still a long way to go before the people of South Sudan and Sudan can live their lives in a peaceful and prosperous environment. For our part, we will not be afraid to deliver tough messages to both Governments when we need to. We will have to continue to make it clear that both countries must refrain from military action in each other's territories either directly or through support to other armed groups. We will keep urging both countries to negotiate seriously to settle issues outstanding from the comprehensive peace agreement and from the secession of South Sudan.
The UK remains fully committed to helping the people of both countries through humanitarian and development projects. We will continue to provide assistance to respond to the humanitarian needs of conflict-affected populations, to support security and access to justice, to build basic services and encourage more transparent and accountable government in both countries. Through all of this, we will work as closely as closely as possible with our key international partners including the EU. Through a united international effort, perhaps we can begin to make strong progress in Sudan and South Sudan and it is important that we note that since the secession, we have seen some positive developments in both countries. Sudan has also shown some welcome signs of becoming a more constructive voice in regional issues. For example, it is playing a leading role in the Arab League’s recent action against the Syrian regime and its support for the new Government in Libya.
I know that noble Lords will not be satisfied with the responses today because all noble Lords who have taken part today know that we have a very long journey of challenges ahead. I hope that noble Lords will take on board that the Government take this issue incredibly seriously. Where I have failed to respond directly to noble Lords’ questions, I will undertake to write to noble Lords.
However, I hope that when we next have a debate on Sudan we will be able to talk about more progress and better governance in both countries. I thank all noble Lords, particularly my noble friend, for raising this very important topic today.