(1 day, 10 hours ago)
Lords ChamberI am grateful to the Minister for giving the House the opportunity to ask questions on this Statement. I should begin by saying that the Official Opposition welcome the fact that the Government of Gibraltar have been at the table throughout these negotiations. Gibraltar is British. The Government tell us that sovereignty was never on the table throughout these negotiations, and it never should be. I only wish they were consistent in their application of this approach to other treaties.
This treaty runs to more than 1,000 pages and, of course, we need time carefully to consider the detail. I thank the Minister and his colleagues for ensuring the publication of the treaty in draft. This has allowed us to begin the process of scrutiny early. Can the Minister say when the treaty will be laid formally so that we can plan for the CRaG process that will follow? When we went through the CRaG process for the 2025 UK-Mauritius treaty, the Government failed to follow the Ponsonby rule, which established the convention that the Government will allow a debate on a substantive Motion in respect of treaty ratification where a formal request is made by the Official Opposition. Can the Minister confirm whether the Government will follow the convention if a request is received in respect of this treaty?
On a connected scrutiny point, can the Minister say whether domestic legislation will also be needed before we proceed to ratification? If so, when will that be laid before the House? As the Minister knows, we have been critical of the Government’s sequencing of the agreements in respect to the UK-Mauritius treaty and the Bill, so can he say whether the Government are aware of any extant and binding treaties in respect of Gibraltar that may be in tension with the terms of the draft treaty that has now been agreed with the EU?
I turn from process to the practicalities of the treaty. Can the Minister please set out the steps that will be taken under the treaty to protect the rights of British citizens freely to visit Gibraltar? We know that dual passport checks will be undertaken at the airport in Gibraltar. What recourse will a citizen have in circumstances where Spanish border control and British border control are in disagreement on a person’s admission to what will remain British territory? Can he say what oversight UK authorities will have over the activities of the Spanish border control operations in Gibraltar? What is the process for dispute resolution?
Ministers know that we on these Benches have profound concerns about the process of dynamic alignment. We must not be rule-takers. How will dynamic alignment operate under this treaty? How will Gibraltar and the UK avoid becoming subject to ongoing EU rule-taking without meaningful political control? Can the Minister confirm that Gibraltar and not EU politicians will decide on her own future?
When the Minister in the other place was asked about Article 25 and its reference to the ECHR, he said that
“we comply with the ECHR, as does Gibraltar and, indeed, Spain and the EU. We do not shy away from that”.—[Official Report, 26/2/26; col. 489.]
That is, obviously, a statement of the status quo, but can the Minister please explain what the status of Article 25 would be if the UK were to withdraw from the ECHR? Would an amendment to the treaty need to be agreed with the EU at that point or could the UK derogate from Article 25 unilaterally?
Finally, on a point of fairness, this treaty appears to create an imbalance in the treatment of EU citizens and UK citizens. An EU national may have free access to Gibraltar through the land border without any restrictions whatever, but a British national travelling from the UK could potentially be banned from entering at the airport by Spanish border control guards. These are challenging issues, and we understand why compromise can be necessary, but could the Minister please set out the work that he is doing to ensure that UK citizens continue to have smooth and free access to Gibraltar, which is, after all, still a British territory? I look forward to the Minister’s reply to these questions.
My Lords, I welcome the Minister back to FCDO business, even though it may well be temporary. These Benches support this treaty. In the House of Commons, without any sense of irony, the Conservative Opposition said that Parliament had been kept in the dark about this treaty. However, it was the previous Government who ignored the wishes of the 96% of people of Gibraltar who sought to remain in the EU, forced on them the hardest of Brexits, took no action to correct the damage that they were told by Gibraltarians would happen, and then refused to present to Parliament a mandate for negotiations to have a sustainable agreement.
I therefore thank the Government for working closely with the Gibraltar Government and agreeing with these Benches, who said before the election that nothing about Gibraltar should be agreed without Gibraltar. I also put on record the hard work of the Chief Minister and the Deputy Chief Minister, Joseph Garcia, who is from our sister party, as well as of officials, including the recently retired Dominique Searle, the Gibraltar representative in the UK, for all their patience, perseverance and dedication to reach agreement.
I welcome the fact that the Gibraltar Parliament is debating this treaty as we speak. The fact that the Gibraltar Government have accepted a constructive amendment from the opposition means that we will likely see it pass unanimously in the Gibraltar Parliament and then be sent to us for consideration under the CRaG process. I hope that, if our EU committee seeks a debate on this, the Government will honour the Grimstone convention in this House and timetable a debate. I would be grateful if the Minister could confirm that the Government will do that if the EU committee seeks it.
These Benches have supported, and will always support, the right of the Gibraltarians to decide their future. Therefore, can the Minister confirm that there are no sovereignty concessions and, indeed, no mechanisms in this treaty that would allow for sovereignty claims? I know that the Gibraltar Government sought independent legal advice to confirm this, but the Minister putting it on the record at the Dispatch Box would be helpful.
I believe that the EU and Spain have entered into these new arrangements in good faith, but we have to be conscious of the previous unilateral actions of Madrid, which has caused disruption and concern for Gibraltarians in the past. Can we receive assurances that the dispute resolution mechanisms between the EU and the UK will also allow for Gibraltar to seek to extract itself from the terms should it feel that the terms have been reneged on? I hope that that will never be necessary, but we do not know; a right-wing Government in Madrid might perhaps take a different view from the current one.
I note also the Gibraltar Government’s pragmatic position on the involvement and operation of the ECJ. We are perhaps starting to see sensible approaches again, which is welcome. As we seek better and closer relations with the EU, can we ensure in the reset on SPS and, I hope, youth movement that there will be no negative implications for this treaty? I would be grateful if the Minister could confirm that. Also, as part of the SPS discussions, can we seek an SPS point for Gibraltar adjacent to Gibraltar—not farther away than currently being envisaged—which will be greatly beneficial to the Gibraltar economy?
The benefits of the work of the Gib Government will be for the people and the economy of Gibraltar. There are 15,000 crossings each day for workers in Gibraltar. All parts of society are interconnected. The healthcare and social care service is reliant on staffing and family relationships cross the frontier. This does not make any Gibraltarian less British, but it does mean that easing and removing friction is a pressing need.
We would also like to see no delay now in the implementation and I ask the Minister if we are preparing for provisional implementation of the agreed text, prior to formal ratification, to avoid the unnecessary burden of installing costly infrastructure for entry and exit systems before 10 April. This would be a pragmatic and welcome step.
We welcome the approach of the Gibraltar Government, the UK Government and the EU, and we hope that we can learn positive lessons and build on this leadership by Gibraltar so that the rest of the UK can adopt a similar mechanism and processes to enjoy the benefits that Gibraltar will see. If it is good for the people and economy of Gibraltar, does the Minister agree that it is good for the people and the economy of the UK as a whole?
I thank the noble Lords for their questions and contributions and I welcome their support for the agreement. There is no doubt that this is good for Gibraltar. I declare an interest: I was a union official representing members in Gibraltar for 30-odd years, so I visited it on numerous occasions. I also went there and experienced it when there were difficulties on the border. In fact, I represented 10,000 Moroccan workers who were based in the barracks in Gibraltar when the border was far from open, so this is good news. Sovereignty is not, and never has been, on the table. In fact, the agreement safeguards it explicitly, and the double lock we set out at the beginning has been fully respected.
I can reassure the noble Lord, Lord Callanan, that we expect the signature next month. Following the signature, the treaty will be laid under CRaG in the usual way, and we will follow the appropriate parliamentary processes. There are, of course, parallel processes on the EU side that must be observed. There is no doubt that we will follow CRaG, and Parliament will be able to fully scrutinise the treaty.
This really is good news not only for the economy and the people of Gibraltar—as the noble Lord said, 15,000 people will be affected, and this has the support of Gibraltar—but the economy of Gibraltar is 90% service-orientated and the cross-border employment created is also having a positive impact on the region in Spain, so it is good news for Spain as well. Certainly, when I first went to Gibraltar, La Línea and the area around that was one of the highest areas of unemployment in Spain. So, this really is good news.
I can also reassure the noble Lord that British citizens have always been subject to immigration checks in Gibraltar. That has always been the case. Certainly, as a union official, I could not work in Gibraltar unless explicitly approved by the Gibraltar Government. Immigration and entry into Gibraltar is and will remain the responsibility of the Government of Gibraltar. As the noble Lord said, as we speak, the Gibraltar Parliament is considering the treaty. The principle we have adhered to in these negotiations is “Nothing about Gibraltar without Gibraltar”, and we have been clear that that will continue to be the case as we move forward.
We are also clear that, as is normal in these types of agreements, a range of mechanisms are available to help the parties to resolve disagreements. Certainly the expectation is that we will resolve those issues amicably through dialogue, and if that is not possible then there is a formal dispute resolution mechanism that includes the possibility of using independent arbitration to resolve the issues. Lastly, although we hope it does not come to this and no one expects it to, there is the ultimate insurance of a unilateral termination clause that can be used in the event that it becomes apparent that the agreement is not working for us or our Gibraltarian partners. So it is clear that all the guarantees that we have sought, particularly those regarding our military operations and facilities, are there.
I am pleased that the noble Lords welcome the agreement and that, after five years of uncertainty for the economy, we now have a situation where we can move forward that will support the continuation of Gibraltar as a British territory but under the control and determination of the Gibraltar people.
My Lords, I have visited Gibraltar many times, and I trust the judgment of the Chief Minister, Fabian Picardo, who has welcomed this draft treaty. However, its publication has echoes of the Windsor Framework, which was supposed to strengthen Northern Ireland’s place within the United Kingdom but has instead diluted UK sovereignty over the Province, where EU law now increasingly dominates, has created a major trade barrier between Great Britain and Northern Ireland and has significantly increased costs for consumers. How confident is the Minister that the draft treaty has been properly thought out and will not leave Gibraltarians in the same position as Northern Ireland, subject to a diktat from Brussels over which they have no say? Might it also increase the risk of Gibraltar’s proud British identity being compromised by a Spanish Government who have long wanted to have their own flag flying over the Rock?
There have been a number of occasions when the noble Lord and I have been in Gibraltar together, so I certainly understand and fully appreciate his commitment. However, I want to be clear that we were not willing to enter into an agreement that the Government of Gibraltar were not content with. They are fully supportive of the agreement, which they judge will be good for jobs and businesses in Gibraltar, for the people of Gibraltar and indeed, as I said earlier, for the prosperity of the whole region.
Gibraltar is not joining the EU single market or Schengen. It will align with some laws through its own domestic system, mainly in relation to immigration and customs. The Court of Justice of the European Union will not have jurisdiction over Gibraltar but will have a limited interpretative role in resolving disputes over EU law. Accordingly, Gibraltar courts will factor CJEU rulings into their consideration when ruling on matters that touch on EU-aligned law in Gibraltar.
However, let us be clear: we know that Gibraltar is a small place geographically, but it has huge potential for service industries. That is where the jobs are coming from and where Gibraltar exports, and this agreement will guarantee that for the future. With all parties agreeing to that, we can see a prosperous future for the people of Gibraltar.
What increases will there be in taxes, excise duties and handling charges? How much money will be sent to Spain for levelling up? What are the estimated costs of all the additional regulation? Is this not rather bad for business in Gibraltar?
I do not think a single businessman in Gibraltar would agree to that. As the noble Lord said, 98% of the people in Gibraltar, through their referendum, supported the continuation of membership of the EU. The EU benefited Gibraltar in terms of cross-border trade and prosperity. The situation since Brexit has been five years of uncertainty that has impacted on businesses. What the Gibraltar Government fully understand, but perhaps the noble Lord does not, is that their service industry is their biggest export—that is what generates jobs. Other customs and tax issues are for the Gibraltar Government to agree, but they will work in concert where that does not impact on the trade that they seek to expand upon.
The Duke of Wellington (CB)
My Lords, I declare my interest in Spain. I very much welcome this draft treaty. I think it is very much for the benefit of the United Kingdom, Gibraltar and Spain. There is reference in the helpful note prepared by the Foreign Office to various “Parliaments with an interest”. The note then goes on to say:
“The Government will … work closely with the Government of Gibraltar, the EU and Spain”.
Can I ask about ratification? Does this treaty need to be ratified by the European Parliament, the British Government, the Gibraltar Government and the Spanish Government—or not? That is one question. Secondly, there is reference to indirect taxes in Gibraltar being imposed without adopting VAT. Can the Minister explain what that means?
This is a treaty between the EU and the United Kingdom and obviously the EU has consulted and engaged with the Spanish Government, who are supportive of the EU agreement. We have been consistent, as I have said before, and there has not been a single meeting without the Gibraltar Government and the Chief Minister being present. That will continue in any discussions. On the tax and customs relationship, there will be changes, not least because the border will be open for goods. The days when I bought 200 cigarettes and put them in the boot of my car to get across that border are well over. Cigarettes will undoubtedly cost roughly the same in Gibraltar in the future as in the EU. That is still substantially lower. I notice the noble Lord smiling at me—it is about time he stopped smoking.
My Lords, I have recently joined the European Affairs Committee. Does the Minister agree that it might be better, when we consider all this, to take on board what the Government of Gibraltar think its impact will be on business in Gibraltar, rather than, with all due respect to him, what the noble Lord, Lord Redwood, thinks?
I think the noble Lord is right. That is the principle we have adopted. In tomorrow’s newspapers, particularly those in Gibraltar, we will read that the Parliament of Gibraltar agree. It is a matter for Gibraltar; it is good news and I think we should appreciate that.
My Lords, it is good to hear that the Minister has a personal connection with Gibraltar and experience of working there, because there is so much misunderstanding about what Gibraltar is and who the people of Gibraltar are. Will he confirm that his Government recognise that Gibraltarians are not and never have been Spanish, that they are Gibraltarian, that they want to remain British, and have always said so? Will he further confirm that his Government recognise the strategic importance of Gibraltar as a base for the Royal Navy—an integral part of NATO operations in the Mediterranean and the surrounding district—and that that will always be respected?
Absolutely. The noble Baroness knows my commitment to Gibraltar. This Government are committed, and Minister Doughty has been absolutely clear about that in all the negotiations. I repeat, nothing about Gibraltar without Gibraltar; that is the key. Nothing in the agreement, either now or in the future, will fetter our ability to operate unimpeded at the naval base. This was a firm condition for us, and Spain has been co-operative and is a key NATO ally. My noble friend is sitting next to me; MoD officials and Ministers have been closely involved in the negotiations and the Defence Secretary fully supports the agreement. It is absolutely a commitment that we will maintain.
Lord Barrow (CB)
My Lords, I warmly welcome the conclusion of these negotiations. This has been years in the making and I know from first-hand experience how tough the negotiations were. However, this is a UK-EU agreement, so how will the Government of Gibraltar be involved in decision-making if it comes into force? What will happen, for instance, if the Government of Gibraltar feel that the agreement is no longer delivering the hoped-for economic and other benefits?
I thank the noble Lord and hope that I made the position clear at the beginning. To repeat, Minister Doughty wrote to the Chief Minister yesterday, making these principles absolutely clear. In fact, the Chief Minister read out to the Gibraltar Parliament the principles about which we have been clear throughout the negotiations: nothing about Gibraltar without Gibraltar. The agreement has been negotiated to ensure the long-term continued security and prosperity of Gibraltar. The United Kingdom will exercise its powers on the termination or suspension of its obligations under the agreement only following full consultation with the Government of Gibraltar, whose wishes and views we will follow. That is the principle to which we will stick rigidly.
It is wonderful to hear the phrase “nothing about Gibraltar without Gibraltar”. How much Northern Ireland would have wished that was the case when we were having negotiations with the European Union; however, that is a matter not for the Minister but for the previous Government, who would have done well to take that on board.
To follow on from the question asked by the noble Lord, Lord Purvis, about dispute resolution, in the past Madrid has caused some difficulties for Gibraltar by closing the border and what have you. Are the Minister and the Government happy with what has been put in place to deal with any difficulties that may arise from Madrid? That would be really important for the Gibraltarians, who have suffered in the past.
The noble Baroness is right—the Gibraltarians have suffered in the past, as I have personally experienced and seen. That has had a serious impact on the economy of not only Gibraltar but the local surrounding area. We are clear that dispute resolution processes and mechanisms will be available to both parties and are sure that any situation is best dealt with through agreement. However, if it cannot be resolved amicably, there are processes in place that we are certain will work.
What we have seen over the past five years of negotiations is a determination for all parties to see this as a way to ensure the success of Gibraltar’s economy and its continued opportunity for employment for 15,000 people in the local area. Both Gibraltar and Spain are benefiting from this agreement.
My Lords, I wonder whether the Minister could answer the question asked by my noble friend Lord Purvis about provisional implementation before 10 April.
I do not have a clear answer on that. We have a process; the treaty has to go through a formal process in the EU. But I think today’s debate in the Gibraltar Parliament, where I hope there will be unanimous agreement—I share the noble Lord’s aspiration—will ensure that there is a stability about the future. People know the way they are now going, which is getting rid of that five years of uncertainty that we have seen since Brexit.
My Lords, many years ago the commander-in-chief of a commando brigade invaded Spain when they were meant to be exercising in Gibraltar. That was quite embarrassing, but my question relates to the military. I have not had a chance to look at the totality of this treaty, but what I have heard about it is very good. Will we still be able to use the Z berth for nuclear submarine repairs in Gibraltar? Will we be able to store the whole gamut of weapon stocks that we have, without any interference or checking from the Spanish, and will we be able to do both air and maritime operations from Gibraltar, without any aspect of those coming under the purview of Spain?
I am not going to declare what arms we have where at the current time, but the reality is that nothing in this agreement will affect our ability to operate unimpeded. That is absolutely guaranteed and the MoD has been involved, certainly in respect of our naval operations out of Gibraltar. The noble Lord also mentioned the airport and elements of the agreement relating to it. Obviously, there is oversight of the company running its commercial civilian aspects, but these do not affect RAF Gibraltar. The terms of the agreement fully protect the operations and independence of the UK’s military facilities in Gibraltar. The airfield is run and managed by the MoD; the agreement does not change this one bit.
My Lords, we have the current slightly bizarre situation where British military aircraft flying into RAF Gibraltar are not allowed to overfly Spanish airspace. Is that resolved by this treaty or not?
Nothing impedes our operations and, of course, Spain is a NATO ally and we work co-operatively with Spain. One of the really good things about this agreement from a civilian point of view for Gibraltar International Airport—again, this is an important point on the economy—is that flights will be able to operate across Europe, including to Spain. That will create opportunities for the airlines that operate out of Gibraltar. It is a tourist destination in the area, so great opportunities can exist from this agreement.
My Lords, in the other place the Foreign Secretary stated that uniformed Spanish officials will be stationed at checkpoints only at the borders. However, various commentators have since warned that these same uniformed officials will be able to operate within the territory away from the border. Can the Minister give the House some reassurance on this very important point?
I do not think there is any confusion. There will be border checks, but the key difference is that it will operate so that there is freedom across the border. The border will be open in the terms of the agreement, which is significant, but flying into Gibraltar there will be checks. Those checks are required and will be operated on the same basis as we have, for example, with the French in St Pancras. We have border controls in London done by the French. A similar sort of operation will be conducted in the terms of this agreement.
My Lords, can my noble friend kindly write to the noble Lord, Lord Vaux, about flights into Gibraltar over Spanish land? I only ever visited in 1977 and 1979, in solidarity when the Spanish had closed the border. It is a great place for tourism but, if I remember correctly, there is a very tight turn on the aircraft because of the inability to fly over Spanish land.
Commercial flights were obviously limited because there was no opportunity to fly anywhere else in the EU. I have flown there many times and have done that sharp turn; it can be pretty frightening. The really good thing about this agreement is that it opens up Gibraltar International Airport to other EU destinations and other destinations in Spain. I think that is a really good thing that will change. I repeat that the agreement does not impede any of the activities of our defence operations, whether that is the RAF or the Navy.
Can I ask the Minister a point of clarification? I think I understood him to say this in his opening statement. Is it the British Government’s legal position that the nature of entry requirements to Gibraltar is a matter for the Gibraltar Government and not the UK Government?
Yes, it has always been the case. Believe it or not, that also happens in Jersey and the Isle of Man. It is not an unusual situation. I have visited Gibraltar on numerous occasions and had to go through those checks. If I wanted to stay for any lengthy period, I had to request permission from the Gibraltar Parliament.
Baroness Royall of Blaisdon (Lab)
My Lords, I recognise that these negotiations have been taking place over many years and have included the noble Lord. I pay tribute to Minister Doughty and his team for all that they have done, and the Governments of Gibraltar and Spain. Does my noble friend agree that this deal concludes the final chapter in the Brexit deal and leaves us free to pursue a modern, mutually beneficial economic relationship with the European Union?
Those aspirations are not necessarily reliant on each other. The really good thing is that this agreement is for the people of Gibraltar and the Government of Gibraltar. I agree with my noble friend: Minister Doughty has worked tirelessly with the Chief Minister of Gibraltar to achieve this agreement. On whether it will influence our future, we all know that the prosperity of our country and Gibraltar requires good relations with the EU. That is our objective and we will continue to do that.