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Martin Vickers (Brigg and Immingham) (Con)
I beg to move,
That this House has considered the draft UK-EU Agreement on Gibraltar.
It is a pleasure to see you in the Chair, Sir John, for what I hope will be an interesting and constructive debate about the future of Gibraltar. I am delighted to be joined by the chair of the all-party parliamentary group on Gibraltar—the hon. Member for Portsmouth North (Amanda Martin)—on which I serve as the vice-chairman.
As the result of a discussion between me and the Gibraltar Government representative, who is in the Gallery, we thought it would be useful to have a fact-finding trip to Gibraltar, so that when the treaty on the future of the Rock was up for discussion, we could have one from an informed position. Two or three people who were hoping to go on the trip were unable to, but I was delighted that Baroness Butler-Sloss, the Cross-Bench peer, accompanied me, and we were also joined for one or two of the meetings by Lord James Wharton, from the upper House.
Following discussions with the Gibraltar office here in London, we put together a programme that was pretty comprehensive and gave us a good overview of the views of the local population, the business community and, of course, the politicians in Gibraltar. We had a meeting with His Excellency the Governor, which was just a courtesy call, but it is always a pleasure to meet up with him and other senior diplomats to hear how they approach the issues. I should point out that we went at our own expense, so we were independent of the Government of Gibraltar.
After we had seen the Governor, we were delighted to go to the airport and be joined by the Chief Minister, who delighted in giving us a tour of the airport. He has clearly devoted a great deal of time and effort to the arrangements that are necessary to ensure that all sides are content and, importantly, that the sovereignty of Gibraltar is maintained. We all know the long history of Spanish claims on the Rock, but that is definitely not in any way part of the treaty; sovereignty is absolute.
The Minister of State, Foreign, Commonwealth and Development Office (Stephen Doughty)
indicated assent.
Martin Vickers
I can see the Minister nodding; no doubt he will confirm that later.
On our trip to the airport, the concerns about Spanish officials operating on the Rock were, to some extent, assuaged. I was delighted that we were able to receive reassurance from not just the Chief Minister but his senior officials who accompanied us on the tour of the airport. I know there have been certain concerns about Spanish officials, police and the like operating within British territory, but the arrangements that have been made mean that, to a great extent, our fears can be assuaged.
Next we visited the commander at the British base. He assured us that there is co-operation with the Spanish authorities, which is only beneficial to both sides. There is no interference in the operations of the base, and the military is content with the arrangements. The American navy had been in the port only a day or two before our visit. It was encouraging, particularly in view of the current world situation and some of the noises coming from the American Administration, that work and co-operation are continuing at a purely operational level.
There was one visit on which we heard some discontent. We walked along Main Street and called in to see a number of retailers, purely at random, and they raised some concerns. As we know, the retail sector is struggling in many countries, and Gibraltar is no exception. Interestingly enough, one of the shops we went into dealt in ceramics, and the owner imported most of his products from the UK. He pointed out that because of various impositions on the ceramics sector, the costs were rising in the UK so much that it was becoming unprofitable to operate. With the proposed taxation arrangements in Gibraltar affecting retailers, he was going to cease operations in the not-too-distant future after being in business for about 25 years. It was very sad to hear that. But on the whole, although many of the retailers were not particularly happy, they recognised the overall benefits to Gibraltar of the operations.
I have mentioned the concerns about security and so on. One of our meetings was with the chief commissioner of the police, who recognised that there are a number of issues that need what he described as “further consideration”. Having said that, when we left the meeting we felt that, on the whole, his concerns could be worked through. I am sure the Minister is well aware of them, but I would be more than happy to discuss them with him if that would be beneficial.
We then had a lunchtime meeting with the Chief Minister, the Attorney General and the Health, Care and Business Minister. It is important to stress that we had full co-operation from the Chief Minister and his Ministers during our visit, bearing in mind that we had no official standing and were merely there as representatives of the all-party group. I want to put on the record our sincere thanks to the Gibraltar representative for assisting us in making the arrangements for the visit.
In the course of the lunch with the Chief Minister, once we had dealt with the routine matters we were there to discuss, we had a very useful political discussion. It is always interesting to hear an outside politician’s views of what is happening over here in the UK. I am not entirely sure what they would make of it today, but a couple of months ago we had a fascinating discussion, mainly about whether there were concerns about the treaty across the political spectrum here in the UK. We were able to give reassurance, based on the meetings we had and knowing the views of colleagues from the all-party parliamentary group, that there would be all-party support from Westminster.
According to the report we put together, we discussed the evolving UK-EU relationship, and on the whole the direction of travel was greatly supported. We also discussed a number of the issues that were causing concern, including—if I can remember the ins and outs of it—people taking advantage of the arrangements that were being put in place. It is probably not something we need to cover today, but it is worth recording that there were some concerns about people trying to take advantage of the health services provided in Gibraltar. We also had a constructive meeting with the vice-chancellor of the university, whom we had met on previous occasions. It was interesting to receive an update on how things were progressing there.
We had an interesting meeting with Keith Azopardi, the leader of the opposition in Gibraltar, because we wanted to ensure that we received views on the treaty from across the political spectrum. He pointed out that the opposition had imposed a number of red lines in their discussions, but as Members will know, the draft treaty was eventually approved unanimously by the Gibraltarian Parliament. The leader of the opposition quite understandably pointed out his party’s concerns. As opposition parties do, it obviously wanted to carve out a position whereby if something went wrong, he would be able to say, “I told you so.” I can see Government Members smiling at that, because they have been in opposition—my party is in opposition now, and the shadow minister, my right hon. Friend the Member for Aldridge-Brownhills (Wendy Morton), may point out one or two of our concerns in that respect.
Mr Azopardi expressed genuine concerns but—he will probably not thank me for saying this—in all honesty I think he was struggling to find reasons why he would have been tempted to vote against the treaty. It is important to recognise that political parties across Gibraltar have supported the treaty and feel on balance that it would be beneficial for it to be ratified.
The Minister of State, Foreign, Commonwealth and Development Office (Stephen Doughty)
I am genuinely grateful to the hon. Member for Brigg and Immingham (Martin Vickers) for securing this debate. I pay tribute to his work as vice-chair of the all-party parliamentary group on Gibraltar, and to that of its chair, my hon. Friend the Member for Portsmouth North (Amanda Martin). I thank all right hon. and hon. Members for their contributions, which have been broadly in the spirit that I and the people and Government of Gibraltar would have hoped for: reasonable, fair scrutiny with broad support. It is important to emphasise that, because it sends a strong signal that complements the strong support of the democratically elected Parliament of Gibraltar for the draft UK-EU agreement.
I will respond to specific points as I go, but will start by paying a tribute to all those involved in the process over many years: His Majesty’s Government of Gibraltar—the Chief Minister, the Deputy Chief Minister, the Attorney General and all their officials and teams—and our teams in the Foreign, Commonwealth and Development Office, particularly the senior officials who did sterling work in taking us through the detailed process. The treaty is a big one, with many associated administrative and practical arrangements. I know there have at times been frustrations about the length of the process and the detail, but it was important to get it right. This is about the future of Gibraltar and our relationship with the EU, Gibraltar and Spain.
I also pay tribute to our friends in the EU and Spain for the constructive spirit they have shown throughout the discussions and negotiations. We have come to a conclusion that is beneficial for people, which is what we all sought to do. My hon. Friend the Member for Leeds South West and Morley (Mark Sewards) made a party political point but an important one: in the end, this was about people and businesses, their lives and their ability to move, to trade and to get on, without the uncertainty caused by Brexit.
Gibraltar was not included in the EU-UK trade and co-operation agreement that was negotiated by the previous Government following the UK’s departure from the EU. That meant serious uncertainty for the people and businesses of Gibraltar, which is why we have worked together to find a practical and lasting solution that protects Gibraltar’s economy and way of life for the long term, while crucially safeguarding our sovereignty.
We had previously reached the provisional and political agreements, and have been involved in the detailed process for some time. We have now achieved an agreement that ensures the free circulation of people and goods between Gibraltar and the EU by removing the physical barriers on the border between Gibraltar and Spain. I cannot overemphasise the importance of that, not least because of what the people of Gibraltar went through for so many years. That will mean jobs, investment and stability, not just for Gibraltar but—it is important to emphasise—for the whole region. That involves EU Schengen area rules relating to border checks being applied in Gibraltar and a customs union being established between the EU and Gibraltar. That will bring certainty to the territory.
Let me turn first to some of the questions about scrutiny; I will answer the questions from the shadow Minister, the right hon. Member for Aldridge-Brownhills (Wendy Morton), in detail in due course. The CRaG Act 2010 gives statutory form to long-standing constitutional conventions on the scrutiny of treaties and is the process we are legally obliged to follow to ratify treaties. Despite the very particular approach of the CRaG system, transparency has been at the heart of our approach. I gently rebuff some of shadow Minister’s comments, because we published the draft text of the agreement on 26 February, and I gave an oral statement to the House on the same day. We have had this debate today and I have appeared before Committees and answered many questions. We have attempted at all stages to be transparent and open. I have offered private briefings to shadow ministerial colleagues and the shadow Foreign Secretary, the right hon. Member for Witham (Priti Patel).
Stephen Doughty
I will come back to the timeline in due course. It is quite right that throughout the process Parliament has provided scrutiny, as it has been doing in this debate, which is very welcome.
Edward Morello
Perhaps it is useful to point out that the Foreign Affairs Committee does not, as standard, hold evidence sessions on every treaty that is laid before Parliament under the CRaG process. The Minister and the Chief Minister very kindly appeared before us to give evidence, and frankly a lot of the questions that the shadow Minister asked were probably answered in that evidence session.
Stephen Doughty
Indeed; that is a fair point, and I appreciate the hon. Gentleman making it. We did appear before the Foreign Affairs Committee, and we have endured scrutiny in the media and from businesses and others—and quite rightly so. On my visit to Gibraltar, I met with the leader of the opposition, businesses and others, who had legitimate and reasonable questions to ask. We have done our best to answer those transparently and in good faith.
What matters most at this point is providing clarity and certainty for the people and businesses of Gibraltar, which is why I am pleased to say that the UK and EU will provisionally apply the agreement from 15 July—next week. This is an important milestone for Gibraltar. The UK and the EU, along with Gibraltar and Spain, are committed to fully ratifying the treaty as soon as possible, and we are all working at pace to achieve that.
My understanding is that the process in the European Parliament will take place this autumn, up to December. We will be operating under a similar timeline, in accordance with the discussions we are having with the relevant Committees and others regarding the CRaG process. Once signed, the treaty will be provided immediately to the UK Parliament, and I will make the appropriate statements to signify that moment. We will then have the CRaG process and ratification. I hope that satisfies Members who asked about the timeline, but I will go into a little more detail later.
Much of the legislative and operational work to bring the agreement into force is being led by His Majesty’s Government of Gibraltar, and they have made very strong progress in a short space of time. They have already put in place their main primary legislation and are working tirelessly on the many practical steps needed to apply the agreement. I am pleased to say that there is very strong co-operation between the Spanish and Gibraltarian authorities across areas of shared implementation, including the physical infrastructure works required at Gibraltar’s airport. We stand ready to assist in whatever way we can, and have done so throughout the process.
It is important to emphasise, as many Members have, that negotiations on sovereignty were never on the table during the treaty negotiations, and that was not in doubt. The agreement is about technical arrangements that govern Gibraltar’s relationship with the EU. I appreciate the compliments paid by the Liberal Democrat spokesperson, the hon. Member for Surrey Heath (Dr Pinkerton), and others about article 2 of the treaty, which makes it clear that the agreement in no way affects our sovereignty position on Gibraltar and cannot be used to challenge it.
As I set out both in opposition and now in government, we remain committed to the Gibraltar double lock, which means we would never enter into arrangements under which the people of Gibraltar would pass under the sovereignty of another state against their freely and democratically expressed wishes, and we would never enter into a process of sovereignty negotiations with which Gibraltar was not content. The sovereignty of Gibraltar is protected in the treaty for the long term. If it had not been, we would not have agreed it.
Many Members raised important points about the military base. Safeguarding the operational autonomy of the UK’s military facilities has been a red line for the UK Government throughout our discussions. The agreement protects that autonomy and allows our facilities to continue their vital contribution to regional security and prosperity. The Ministry of Defence has been closely involved in the negotiations at every stage. We have the full backing of the Defence Secretary and defence teams on this agreement. I am glad that that was confirmed by colleagues’ experiences of engaging with the Commander British Forces in Gibraltar.
The agreement also removes immigration checks at Gibraltar’s land border with Spain. That is crucial for the nearly 15,000 people who cross the border every day for work, and for protecting Gibraltar’s economy. To unlock the benefits of a fluid border, travellers arriving at the airport will undergo dual immigration controls. Under this system, visitors have the benefit of crossing freely into Spain without checks. Time spent in Gibraltar will therefore count towards the EU’s 90/180 days requirement. The Government of Gibraltar have assessed that the significant impact of an open border outweighs any challenges that might result from it. Because Gibraltar automatically already applies a period for UK residents coming into Gibraltar, it has been pointed out that, practically, this means very little. It does not, of course, affect the residents of Gibraltar itself. The agreement delivers a solution that the Government of Gibraltar want, and the Chief Minister has been very clear on that.
The treaty has a series of benefits for wider relationships. The shadow Minister rightly pointed out the welcome announcement regarding non-co-operative jurisdictions from our friends in Spain. That is important to Gibraltar and is a testament to how things have moved forward. We have seen tangible and positive developments in our relationship with our friends in Spain across a whole series of issues that matter to people here in the UK, including our co-operation in business, security and trade. That is welcome. The treaty is, of course, one of the crucial aspects of the reset in our relationship with the European Union. This agreement is good for Gibraltar and for the United Kingdom, and it is good for all the people, including our people. Right hon. and hon. Members have accurately reflected the work and statecraft that has gone into it and the practical benefits it will deliver. This marks a turning point.
Before I conclude, let me respond to some of the specific points that have been made. I have answered the questions about the timing of the CRaG process, but Members will appreciate that bringing a treaty of this complexity into effect has required a set of interlocking processes. We are not the sole guardians of the process; there are processes in Gibraltar, Spain and the European Union, and the treaty can be signed only once those processes—including the EU’s translation of the text into 23 other official languages—have concluded and been aligned. Rather than delaying the publication until that point, we chose to bring forward the draft treaty so that Members could scrutinise it and see the detail.
I assure Members that the text published in February remains substantively unchanged. The intervening period has been used for legal verification, technical checks and the preparation of authentic language versions. That is one of the reasons why the final treaty will be published and signed imminently. The provisional application will take place from 15 July, and we will then make the appropriate statements in this House and start the CRaG process, in line with discussions with the secretariat of the European Affairs Committee regarding the practical arrangements.
Stephen Doughty
I am conscious that in between there will be a recess. I will ensure that that does not affect this House’s ability to have the proper period to scrutinise under the CRaG process. That may be what the shadow Minister was going to ask.
Wendy Morton
It was along those lines, but for absolute clarity, does the Minister envisage the treaty coming forward before we break for recess?
Stephen Doughty
I do envisage the treaty coming forward, but I want to ensure that we do not start the clock and then Members feel they do not have a chance to scrutinise it over the recess. The minute that the treaty is signed, it will be provided—within appropriate transmission times—to both Houses. We will ensure that we are in close contact with the Committees and that we have an agreement on the CRaG process, and we will make the appropriate statements. Sir John, you will know that the timing of statements and debates in the House is a matter for the usual channels between the Government and the Opposition, but I do not want to shy away from scrutiny, and that is why I welcome this debate. We will not try to curtail the CRaG process in any way. In practical terms, this treaty will have had far more pre-scrutiny and Committee scrutiny in this House than many other international treaties. I hope that provides some assurance to colleagues.
Members asked a number of other questions. I have covered the questions about article 2 and sovereignty. I was asked about future scenarios that might emerge with respect to the relationship between the UK and Gibraltar. It is important to emphasise that the Gibraltar Parliament unanimously passed a motion calling on the UK to ratify the treaty, subject to the existence of a concordat assuring that the UK can exercise its powers in the treaty only with the consent of His Majesty’s Government of Gibraltar, and that the people of Gibraltar have the right to determine in a referendum whether the treaty should be terminated in the future. Obviously, we hope to never get to that scenario, but it is important that we have those safeguards in place.
To answer the questions that my hon. Friend the Member for Leeds South West and Morley asked, I quote from my letter to the Chief Minister on 2 March:
“It is therefore politically inconceivable that in any normal circumstances, should a democratically elected Government in Gibraltar or indeed the Gibraltarian people determine that this agreement does not serve their interests, His Majesty’s Government would not take action.”
I hope that provides assurance, as it is certainly the tenor of my discussions with the Chief Minister and, indeed, of the discussions he has had in the Gibraltar Parliament.
I have touched on the questions about the 90-in-180-day rule, but for the record, under the agreement, non-resident British nationals can visit Gibraltar for up to 90 days, as is the case today—there is no change in that—but, as visitors will be free to enter Spain without checks, time spent in Gibraltar will count towards the 90-in-180-day requirement of the EU. Importantly, immigration into Gibraltar is and will remain the responsibility of the Government of Gibraltar. The agreement provides a unique solution, a fluid border, and puts different procedures and processes in place.
On the military base, there are lots of details, but I was asked a specific question, so I want to be clear that UK military personnel entering Gibraltar will not be subject to Schengen checks under the proposed arrangements. That will enable our facilities to continue their vital operations without interference or interruption. The posting of UK military personnel serving in Gibraltar and their families will not depend on Schengen border checks; as is the case now, the UK will decide who will serve in Gibraltar. We also have important agreements on goods entering the base. As colleagues will understand, we do not disclose sensitive operational details, but we have agreed special arrangements to ensure the functioning of the new arrangements.
Jim Shannon
I thank the Minister for his comprehensive response. I asked him about officials from Spain being at border control posts alongside officials from Gibraltar to oversee that work, and about the impact and influence that they may have. Can he confirm that that will be the case? What influence will the Spanish officials have? Will they oversee or counteract Gibraltar border control and customs officials?
Stephen Doughty
The hon. Gentleman asks a good question. The practical checks that take place at the airport are not dissimilar to the juxtaposed controls at St Pancras and elsewhere. We tried to come up with a practical solution to the new arrangement, and it is one that has the full agreement of the Government of Gibraltar. Everyone arriving at the airport will undergo Gibraltar immigration controls carried out by Gibraltar officials, followed by Schengen entry checks carried out by Spanish officials on behalf of the EU. On completion of those checks, individuals will be able to enter both Gibraltar and the Schengen area.
As I said, that set-up is similar—it is not exactly the same—to how we make the arrangements work practically at St Pancras. Of course, 18,000 people use Eurostar every day, and we have heard about the 15,000 people crossing the border in Gibraltar. The Government of Gibraltar and the different authorities are working closely on a whole series of practical and physical arrangements for how things will work—I will not go into the detail of all the different maps, plans and architect’s drawings that we scrutinised in great detail.
As was rightly pointed out by the Liberal Democrat spokesperson, another benefit of the agreement is that, subject to commercial interest, new flight routes into Gibraltar from other areas within the Schengen area could open up. Again, this will provide an economic boost and benefit. I pay particular tribute to the Deputy Chief Minister, who has taken a keen role in relation to the airport and its functioning over the years; it has been at the heart of the agreement throughout.
On customs checks and the business impacts, I recognise the points made by Members about the questions they have been asked by businesses. The UK Government and the Government of Gibraltar are confident that overall, the economic benefits of the agreement will massively outweigh any issues with changes. Obviously, there will be implementation periods for the taxation arrangements, which are for Gibraltar to decide on; for example, there will be a period coming up to the VAT rate changes.
On customs checks for businesses, to allow for free flow across the Gibraltar-Spain border, goods in Gibraltar must meet EU standards. Over half of all goods in Gibraltar arrive from the EU and already meet those standards, as do many others that arrive from outside the EU. They are going to be pre-cleared away from the land border by relevant customs officials. The Government of Gibraltar fully support that new model, which brings in the benefits of an open border and protects Gibraltar’s economy.
Points were made about security. I think there is a steadfast commitment on both sides to work together, with practical arrangements between law enforcement agencies. None of us wants anything going on in Gibraltar or indeed over the border in Spain that will put anyone at risk. We all know the types of threats, which we share. That is at the heart of the wider discussions we are having with the EU about how we better align on law enforcement and security and defence.
I want to conclude by thanking everybody for their scrutiny, which has been hugely important. I thank the all-party group for its consistent engagement over many years, and I thank friends in the Gallery for their engagement. I really do think this is a milestone moment in finalising something that was left undone by Brexit. The agreement will have practical benefits for the people of Gibraltar, for the people of the whole region, for the United Kingdom, and for the UK and the EU. There are wins across the board in the agreement. I very much hope that Members will engage with the CRaG process as it goes forward. I will keep the House fully informed, as appropriate, the minute the treaty is signed and deposited. With that, I thank Members for their contributions.