Gulf of Oman Oil Tanker Attacks

Lord Bellingham Excerpts

Monday 17th June 2019 Commons Chamber

[Dr Murrison]

I gather from the harrumphing from those on the Opposition Front Bench that my de-escalatory attempts were not terribly helpful; clearly it ruffled some feathers, and I understand that. The hon. Gentleman’s remarks are on the record. I do not diverge from him at all, and I hope that those on the Opposition Front Bench were listening.

[Sir Henry Bellingham (North West Norfolk) (Con)]

I thank the right hon. and wise doctor for his measured response. Does he agree that the raison d’être of Iran is exporting revolution throughout the region and further afield? The hon. Member for Dudley North (Ian Austin) mentioned the militias aligned to the Islamic Revolutionary Guard Corps in places such as Lebanon, where they are trying to destroy the state institutions of that small country, which is utterly negative and appalling. What is obviously needed is fundamental change in the Iranian regime. How do the Minister and his colleagues believe that that will be brought about?

Sudan

Lord Bellingham Excerpts

Thursday 13th June 2019 Commons Chamber

[Sir Henry Bellingham (North West Norfolk) (Con)]

(Urgent Question): To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the crisis in Sudan and ongoing human rights abuses.

[The Minister for Africa (Harriett Baldwin)]

The people of Sudan have shown incredible bravery and perseverance in their demands for an end to a brutal and unaccountable regime. We stand with them. The Transitional Military Council must listen to the Sudanese people and respect their legitimate demand for civilian rule.

Since the removal of Bashir on 11 April, the UK has made clear statements alongside our troika partners, the United States and Norway, as well as via the Foreign Secretary, calling for all sides to engage in an inclusive dialogue that leads to a swift and peaceful transition to civilian rule. The UK will continue to engage closely with the full spectrum of Sudanese actors, including civil society, in both Khartoum and London, to support a better future for Sudan.

We continue our call for Sudanese authorities to refrain from all violence, and for constructive dialogue that delivers a credible response to protest demands to resume. We welcome the work of the African Union in mediating, and the early progress reported towards the resumption of talks with the Forces of Freedom and Change. Following the sickening and brutal acts committed by Sudanese security forces on 3 June, I summoned the Sudanese ambassador to the Foreign Office last week, and told him in the strongest terms that these violent acts against civilians must stop.

[Sir Henry Bellingham]

I am very grateful to the Minister for her response. When Omar al-Bashir stood down and the Transitional Military Council took over—the Minister alluded to that—there was a huge amount of optimism. There were peaceful protests and there was space for opposition groups. Since last weekend, however, the situation has become horrendous. We have seen the Rapid Support Forces—the former Janjaweed militia—play a part in killing over 100 people. A number of women have been arrested, as have various opposition politicians, including Mohamed Esmat, and three key people from the SPLM-N—the Sudan People’s Liberation Movement-North.

The Minister mentioned the help she is giving to Sudanese diaspora groups here. What conversations are we having with them, and what additional assistance can we give the alliance? Will she provide more details on that? Its leaders are being arrested, and many key personnel who are abroad want to come back and need help. What efforts are the troika and Her Majesty’s Government making to put pressure on countries such as Saudi Arabia, the United Arab Emirates and Egypt, which are apparently giving support to the Transitional Military Council?

Finally, the Minister rightly mentioned the African Union, which has a key role to play. Does she think it sensible for the AU to have suspended Sudan’s membership at a time when there should be dialogue, discussion and pressure applied, and what will she and the Secretary of State do to work with the AU, which is absolutely the key player in this, to make sure that common sense prevails, that space is given for democracy and that the will of the people triumphs in a country that has so much potential, but which is suffering so much at the moment?

[Harriett Baldwin]

I start by putting on the record my gratitude to my hon. Friend for his tireless advocacy on behalf of the people of Sudan, for his involvement in the all-party group on Sudan and South Sudan, and for the way he posed his question. He is absolutely right that we should also pay tribute to the tireless work of Her Majesty’s Ambassador Irfan Siddiq and his team in the embassy in Khartoum. They have been working relentlessly in very difficult conditions to put forward the view of Her Majesty’s Government, which is that we need to find a way of taking the inspiring activism that led to the removal of former President Bashir a few months ago, and moving forward in line with the aspirations of the Sudanese people towards civilian-led government.

My hon. Friend rightly pointed out the importance of a range of external actors and of our work with US and Norway in the troika. We are one of a group of countries that consider themselves friends of Sudan and want to play a constructive role in moving forward in this transition, which even the Forces of Freedom and Change recognise will have to be a protracted one, given that the country is coming out of a long period of direct rule by Bashir, and that the institutions and structures that we take for granted in our country take time to form in the transition to democracy. It is important therefore that there be an overall agreement, and that the sovereign council, which includes both the Transitional Military Council and civilians, be able to take things forward.

The US, Norway and the UK will work together constructively. We welcome the stance that the African Union has taken, and we fully support its envoy and the work that Prime Minister Abiy Ahmed from Ethiopia has done to find a way forward. My hon. Friend also rightly points out the importance of engaging with our friends in Saudi Arabia and the United Arab Emirates to ensure a smooth transition to civilian rule. The international community has been clear about the completely unacceptable behaviour of the Rapid Support Forces; we deplore the terrible atrocities committed. We will set out the potential rewards of moving to civilian rule and make sure that people understand the tools we have to sanction those who do not play a constructive role in that transition.

Iran Nuclear Deal

Lord Bellingham Excerpts

Wednesday 8th May 2019 Commons Chamber

[Mark Field]

I very much hope that Secretary of State Pompeo will be able to visit Germany at the earliest opportunity, or indeed to engage in high-level meetings with his German counterpart, whether at the United Nations in New York or elsewhere. In fairness, I think that he rearranged his programme very late in the day. It was considered important for him to be in Iraq to gain an understanding of what was happening on the ground in Iran, so his programme was reorganised at fairly short notice, but we will ensure that those heartfelt concerns are passed on.

[Sir Henry Bellingham (North West Norfolk) (Con)]

I certainly agree with the Minister that this development is extremely unwelcome, and that there is now a need for calm and for judgment. He mentioned legitimate trade. He will be aware that a significant number of jobs, both here and in Iran, have been created through various trade deals, which is obviously in the interests of both countries. Will he say a bit more about what he is doing to support the role of the INSTEX special purpose vehicle that will be set up under sanctions relief to encourage more legitimate trade?

[Mark Field]

Let me first thank my hon. Friend for all the hugely important work that he does. He is our trade envoy to Libya, which is obviously a difficult role, but in the past he was our Minister for Africa in the Foreign Office, and I know that his contribution there is remembered very fondly.

My hon. Friend has made a good point about the special purpose vehicle, which is important because it will ensure that we see genuine and lasting sanctions relief. The SPV is designed to facilitate legitimate trade under both European and international law. Its immediate focus will understandably be on the facilitation of trade where the immediate needs of the Iranian people are greatest—the humanitarian needs for foodstuffs, agricultural products, pharmaceuticals and trade in consumer goods. That will obviously have an impact on UK companies wishing to trade with Iran, as well as benefiting the Iranian people. The UK, France and Germany are the initial owners and shareholders of the SPV, but we are working with other interested EU member countries that may also wish to play a formal role in these initiatives.

Libya

Lord Bellingham Excerpts

Monday 8th April 2019 Commons Chamber

[Mr Speaker]

Not a doctor, but a former Minister, no less: Sir Henry Bellingham.

[Sir Henry Bellingham (North West Norfolk) (Con)]

Thank you, Mr Speaker. First, I declare my interest as the Prime Minister’s trade envoy to Libya. I congratulate the Minister and the UK on the role they played in helping to secure the recent UN Security Council resolution condemning the military advance. Does he agree that it is extremely disappointing that Haftar ignored the recent EU delegation at Benghazi that urged him to allow the forthcoming national conference to go ahead? He has mentioned this already, but will he give more details about those countries—the UAE, Egypt and Russia in particular—that have actively supported General Haftar? What more can we do to ensure that they play a constructive role?

[Mark Field]

I thank my hon. Friend, who was the Minister for Africa and is our trade envoy to Libya. As he said to me earlier, there is understandably not a lot of trade going on between the countries at the moment, but I know he has a strong interest in and love of Libya and that he wishes that country all the best.

We are doing all that we can within the international community. There is a united UN front to try to ensure that we move ahead and that the conference takes place next week. It is the only game in town to ensure a better life for all Libyans going forward.

Cyclone Idai

Lord Bellingham Excerpts

Wednesday 20th March 2019 Commons Chamber

[Harriett Baldwin]

I endorse the hon. Lady’s comments about the UK’s important leadership role on climate change. We have already committed £5.8 billion during this spending review period to work with international partners on international climate finance. We are also able to show leadership not only through our track record as one of the leading countries for reducing carbon emissions, but by sharing our technical skills, such as those in the offshore wind and solar mini-grid sectors. The week before last, we hosted an event for African Energy Ministers, and a Mozambique Government representative was in attendance. Through the City of London and the green finance initiative, we have been able to provide not only our own contribution, but a further $25 billion of green finance through more than 90 bond issues in seven currencies.

The hon. Lady referred to the role played by City of London institutions in the hidden debt scandal of a few years ago. She will appreciate that I cannot comment publicly on the specific details of the case, but I assure her that the UK will commit to ensuring that there is an investigation.

[Sir Henry Bellingham (North West Norfolk) (Con)]

I start by declaring my interests in the region. I share the sentiments of my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) and his sense of extreme urgency. He mentioned the cyclone in 2000 and the massive damage done to Beira, but lessons were not learned then about the need for permanent sea defences. When it comes to the reconstruction that the Minister promises, will she ensure that emphasis is put on the installation of permanent sea defences along Mozambique’s north-eastern coast?

[Harriett Baldwin]

It sounds as though my hon. Friend has also visited Beira, so he will be aware that Mozambique’s coastline is over 2,500 km long and is particularly vulnerable, but building sea defences is probably not the No. 1 way of improving the area’s resilience when a cyclone hits. Beira’s port has sustained significant damage, and the airport, where supplies are now arriving, has a reduced ability to accept flights. Indeed, many of the roads surrounding Beira are underwater. Unfortunately, heavy rain is still falling, so there is a combination of water from the sea and water from the sky. There are things that can be done to secure resilience, but building flood defences along Mozambique’s entire coastline is probably not, as my hon. Friend will know as a Norfolk MP, the most compelling option in terms of value for money.

Oral Answers to Questions

Lord Bellingham Excerpts

Tuesday 26th February 2019 Commons Chamber

[Mr Hunt]

I shall try to give a one-sentence answer. The Bishop is free to make whatever recommendations he likes, and we have facilitated introductions to other Departments so that he can liaise with them during his review.

[Sir Henry Bellingham (North West Norfolk) (Con)]

5. What recent assessment the Government have made of the prospects for peace and stability in Zimbabwe.

[Peter Aldous (Waveney) (Con)]

25. What recent assessment the Government have made of the prospects for peace and stability in Zimbabwe.

[The Minister for Africa (Harriett Baldwin)]

Fundamental political and economic reform in line with Zimbabwe’s own constitution is vital for a peaceful and stable Zimbabwe. I spoke to Foreign Minister Moyo on 29 January, and made clear that the Zimbabwean Government must investigate all alleged human rights violations and deliver on President Mnangagwa’s public commitment to reform.

[Sir Henry Bellingham]

Does the Minister agree that, first, the elections in Zimbabwe were seriously flawed, and secondly, the recent repression of peaceful protests was completely unacceptable and outrageous? Can she confirm that there is currently no question of Her Majesty’s Government’s supporting Zimbabwe’s return to the Commonwealth, and does she agree that we should now consider extending targeted sanctions?

[Mr Speaker]

According to my assessment, two agreements and one confirmation are required.

Oral Answers to Questions

Lord Bellingham Excerpts

Tuesday 30th October 2018 Commons Chamber

[Mr Hunt]

I will happily send him a copy of my speech so that he can see exactly what I said. What he will see is that I said it was very important that the UK and continental Europe work together to stand against precisely those totalitarian regimes.

[Sir Henry Bellingham (North West Norfolk) (Con)]

11. What discussions he has had with his US counterpart on the proposed (a) content and (b) timeline for a US-brokered peace plan for Israel and the Palestinians.

[Mr Philip Hollobone (Kettering) (Con)]

12. What assessment he has made of the implications for the Israeli-Palestinian peace process of the Human Rights Watch report, “Two Authorities, One Way, Zero Dissent: Arbitrary Arrest and Torture under the Palestinian Authority and Hamas”, published in October 2018.

[The Minister for the Middle East (Alistair Burt)]

I discussed the proposed United States peace plan with the US President’s middle east envoy, Jason Greenblatt, on 28 September in New York. The Foreign Secretary discussed this with the special adviser to the US President, Jared Kushner, on 22 August. The UK remains committed to a negotiated settlement leading to a two-state solution based on 1967 borders, with Jerusalem as a shared capital.

[Sir Henry Bellingham]

I am glad the Minister has made that commitment, but does he agree that the time really has come for a re-energising and reinvigorating of a two-state solution? Will he personally take a lead in that? Surely what the world expects from both sides is restraint and statesmanship, with Hamas stopping the constant rocket attacks and Israel drawing a halt to the west bank settlement programme?

[Alistair Burt]

I am grateful for my hon. Friend’s questions. The need to keep the middle east peace process at the forefront of the world’s mind is perhaps greater than ever. Just because it has gone on for so long, that is no reason why it should slip away. I absolutely assure my hon. Friend that, everywhere I go and in every conversation I have in the region, they know that the middle east peace process will come up because the United Kingdom must not let it be as it is, because there will no peace or security for either the state of Israel or its neighbours unless the issue is finally resolved.

UK Relations with Qatar

Lord Bellingham Excerpts

Wednesday 23rd May 2018 Westminster Hall

[Fabian Hamilton]

I thank the hon. and gallant Gentleman for that contribution. That danger is always there, but from what I have seen myself and from speaking to people from Qatar—people within the Foreign Ministry and visiting dignitaries here in London—I have the impression that the Qataris want to become a beacon of openness and liberalism in the region, rather than falling into the hands of one of the larger regional superpowers. I hope that that will continue and that they will press ahead with that. I will say a little more about that in the time I have remaining, but I want to leave time for the Minister.

The right hon. Member for Preseli Pembrokeshire (Stephen Crabb) talked of his affinity for small nations punching above their weight as a Welsh Member of Parliament and a former Secretary of State for Wales, and I agree that that is important in international relations. He mentioned the huge investment in the South Hook LNG terminal in Milford Haven, where the first tanker came in on 20 March 2009, and how important that has been as an investment in his constituency and his part of Wales. He also mentioned the direct flights from Doha to Cardiff; I urge Qatar Airways to open direct flights to Leeds Bradford airport as well, which I believe is even smaller than Cardiff airport.

The right hon. Gentleman mentioned charitable donations, a very important issue for Qataris. I have met officials from the Qatar Charity and I was impressed at the way they collect charitable donations and ensure that, as part of their faith, they distribute those donations wisely, sensibly and for the best possible use of those less fortunate than they are. That is a duty that all Muslims, Christians and those of other main faiths share, but the charity carries it out with great aplomb.

The hon. Member for Strangford (Jim Shannon) talked about strong defence ties and said that things are not always black and white—we know that, but we always need to be reminded of it. The relationship with Qatar should, of course, be mutually beneficial. He mentioned another important player in Britain’s relations with Qatar, our excellent ambassador Ajay Sharma, whom I have met and with whom I was extremely impressed. The hon. Gentleman also said that we should use UK influence to help to improve workers’ rights, and I believe that is something we have indeed been doing.

Qatar, as we know, has a population of 2.6 million, of whom only 313,000, or approximately 12%, are official Qatari citizens. Qatar is a former British protectorate; the UK has had an embassy in the emirate since 1949, and Qatar has had an embassy in London since 1970. We have heard a lot this afternoon about the emirate getting ready to host the 2022 World cup. Qatar is allegedly spending up to $500 million a week on World cup-related infrastructure projects.

The UK Government have consistently highlighted the fact that their close links with Qatar allow them to speak candidly with the emirate, in a friendly manner, on issues relating to human rights, migrant labour issues and so on. The Government see their close ties as a means to promote regional stability in a well-known unstable region. Since the blockade of Qatar by its neighbours, the UK has been a firm supporter of the Kuwaiti mediation process that is attempting to end the crisis. We in the Opposition totally support that policy and the work the Kuwaitis are trying to do.

The Emir, Tamim bin Hamad Al Thani, has continued his father’s desire to make Qatar an internationally open state. Qatar likes to profess that it is a state that does not take sides and is open to dialogue with anyone. It has maintained relations with Washington, but has also managed to build bridges with Iran, develop ties with Hamas and Hezbollah—not something we would necessarily approve of—and backed rebel groups in Syria and Libya. It also provided troops to help quell unrest in Bahrain before the blockade. Qatar opened trade relations with Israel in 1996 and maintains close ties with that country, as was alluded to earlier. That makes Qatar a possible candidate to be a negotiator for peace between the Palestinian people and the Israelis.

In 2016 the United Kingdom exported £3 billion of goods and services to Qatar, which represented 0.6% of all British exports in that year, and imported £2.2 billion from it. According to the House of Commons Library, Qatar was the UK’s 32nd largest export market and 42nd largest source of imports in 2016. We have heard a bit about the Qatar Investment Authority, which is one of the world’s largest sovereign wealth funds and has invested hugely in the United Kingdom. It owns 879 commercial and residential properties in London, including the Canary Wharf Group, Chelsea Barracks, the Shard, the HSBC tower and Harrods. The QIA also has a stake in the Savoy hotel, while another unit of the QIA, Qatar Holdings, owns Claridge’s, the Berkeley and the Connaught, with an additional stake in the InterContinental London Park Lane. Qatari authorities also own over 20% of Sainsbury’s—I wonder what they think about the proposed merger with Asda—and 20% of London Heathrow airport, and have a 20% stake in International Airlines Group, the parent company of British Airways.

I know the Minister has a lot to say, so I will conclude by mentioning labour issues. As we have heard, Qatar was home to 1.7 million migrant workers in 2015, accounting for more than 90% of the country’s workforce. Some 40% of those workers are employed in the construction sector alone. The majority of migrant workers, mainly from south Asia, live in labour camps where thousands of them are forced to live in abject squalor in overcrowded and insanitary accommodation. The Daily Mail—not a paper I am normally apt to quote from—highlighted in 2015 the lack of a minimum wage, with workers such as carpenters paid as little as 56p per hour. I am not sure it took the same view when we were looking at the National Minimum Wage Act 1998, but none the less I am glad it highlighted this matter.

Examples of abuses include contractors withholding workers’ passports and personal documents so they cannot leave the country. Workers need permission from their employer to leave. They are housed in unsanitary camps, sleeping in small dormitory rooms, sometimes with more than 20 people to a room. Many workers are paid less than £1 an hour. The reforms implemented by Qatar are significant in the region, because Qatar would be almost unique in aligning its laws and practices with international labour standards. The International Labour Organisation has recognised that the reforms being carried out amount to quite a lot and would put right the past abuse of migrant labour.

Finally, we know that the effect of the blockade has been to liberalise the constitution—the opposite of what was intended. There is an improvement in the role of women, a reform of the education system is taking place and there is now discussion of citizens’ rights for non-Qataris, so that many of those who have lived in the country for more than 30 years will be able to become citizens even if they are not Qatari-born. The increasingly popular young Emir, Tamim bin Hamad Al Thani, has been Emir for nearly five years, since 25 June 2013. He was born after I got married; his birth date was 3 June 1980, so he will be 38 next month. He has become increasingly popular, not unpopular, as a result of the blockade.

We in the Opposition also call on all the states that have implemented the blockade to lift it, and we hope, as other hon. Members have said this afternoon, that progress toward liberalisation and openness will continue beyond 2022, as it must.

[Sir Henry Bellingham (in the Chair)]

Before calling the Minister, I just remind him, although I am sure he does not need to be reminded, that the proposer of the debate would like to have two minutes at the end to wind up.

Sanctions and Anti-Money Laundering Bill [Lords]

Lord Bellingham Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 1st May 2018 Commons Chamber

[Sir Henry Bellingham (North West Norfolk) (Con)]

The hon. Lady mentioned the 2012 White Paper on the overseas territories, in which we said that in extreme cases we would legislate on such matters but that we would always try to build consensus first, because of our great respect for the constitutions of those territories. I plan to make a few remarks about that, but given the Government’s announcement today, will she confirm that she will not press new clause 14, which would extend new clause 6 to the Crown dependencies?

[Helen Goodman]

I will come on to that at the end of my speech.

I was explaining that these crimes are significant and that we see money being laundered in the UK, and I wanted to give the example of Mr Temerko, who was once a senior figure in Russia’s defence industry and who rose to become a key player in the Russian oil giant Yukos. His engineering company, Offshore Group Newcastle Ltd, had a large site up in Hadrian’s yard in Newcastle, where it was doing some energy work. The company won a grant from the Government’s regional growth fund in 2013, but it later went into administration and the work in the north-east was left unfinished. OGN Ltd is owned by a parent company based in the secrecy jurisdiction of the British Virgin Islands. Clearly, the effects of the lack of transparency are not felt solely in London; they are felt across the United Kingdom.

As I have said, I acknowledge that progress has been made, in so far as registers of beneficial ownership or “similarly effective systems” have been set up, but these are not transparent.

--- Later in debate ---

[Mr Mitchell]

Of course, and that is exactly the sort of fact that would be displayed by an open register. My hon. Friend makes my point for me. That is the sort of openness that we seek. We seek to expose the sort of money that I have outlined and that the right hon. Member for Barking so eloquently described.

David Cameron’s Government understood this clearly. He showed real leadership by insisting that what he called the “shroud of secrecy” must be ripped away in this fight against money laundering and tax evasion. If the House had drawn back from agreeing to new clause 6 today, it would have sent a terrible signal against what has previously been a really strong strand of global Britain. It would have been a huge relief to thieves and money launderers around the world that our tax havens would have remained open for business.

I turn to the four matters of concern to the overseas territories in the hope of reassuring them that the House is putting in place a practical measure that is not as serious as some of them seem to believe. The first concern is the belief that the measure will damage the overseas territories’ economies and destroy their income. No doubt the same arguments were used against the abolition of the slave trade. It is true that there may be some immediate but modest effect, but consider the nature of much of the funding that the overseas territories are handling and that I and others have described. In fact, the economy of the British Virgin Islands, for example, may actually improve, because much of its business is professional, transparent and completely proper. In the past, I have myself invested in an international property fund in the BVI that was properly governed. In such cases, people from different jurisdictions can put funds in without a tax charge, but when they take funds out, they pay tax in the jurisdiction where they live. So it is perfectly possible, and in my view quite likely, that if open registers are fully implemented in a jurisdiction such as the BVI, some of the serious international financial organisations and banks will choose to go there, although they do not do so today.

[Sir Henry Bellingham]

I declare an interest as chairman of the all-party group for the British Virgin Islands. I sympathise, in many ways, with much of what my right hon. Friend is saying, but if there is a temporary hit to the BVI economy because of real difficulties in transitioning to the new arrangements that he has outlined, what help should the Foreign Office try to give to the BVI?

[Mr Mitchell]

I will come to that point in a moment, but I hope that my hon. Friend will extol to his friends in the BVI the fact that this is not something that they should regret and seek to avoid, but something that offers them real commercial and economic opportunities.

The second argument, as we have heard, is that the territories already have closed registers that are available to law enforcement authorities and HMRC which, in the case of terrorism, will react promptly—almost within an hour. That is of course true, but it completely misses the point. That point is made eloquently but passively by the Panama and Paradise papers: it is only by openness and scrutiny—by allowing charities, NGOs and the media to join up the dots—that we can expose this dirty money and the people standing behind it, and closed registers do not begin to allow us to do that.

--- Later in debate ---

[Sir Henry Bellingham]

I declare an interest as the chairman of the all-party group on the British Virgin Islands and as a former Minister for the overseas territories. I had the pleasure of visiting all but two of them during my time in office.

It is a pleasure to follow the hon. Member for Glasgow Central (Alison Thewliss). She said that not enough progress has been made, but I disagree. I think a lot of progress has been made, and I will come on to that in a moment. We are all of the same view, however, about the problem that exists, which was so eloquently outlined by the right hon. Member for Barking (Dame Margaret Hodge) and my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell). No one can disagree with what they said or about the scale of the problem; it is just a question of how we attack and deal with this problem.

When I was a Minister, I came across a number of examples of straightforward pilfering by different parties in African countries. One that my right hon. Friend and I dealt with, when he was the Secretary of State for International Development and I was the Minister for Africa, involved the Democratic Republic of the Congo, where a company called Tullow had its licence expropriated, completely unreasonably, by the DRC Government. It transpired that, after it was expropriated, it was handed over to a nephew, I think, of President Kabila and to a relative of President Zuma, while the company receiving the assets was registered in the BVI.

We know exactly what the problem is, but the question is how we should go about dealing with it. In many ways, I am disappointed with the Government. I feel that they should have tabled their new clause a bit earlier and made the arguments for it and that they should very much have stuck to their ground, but we must now move forward.

As far as the economies of those territories are concerned, unless people have had the chance to go there, it is difficult fully to understand the extent to which some of them have become dependent on international financial services—in the Caymans, it is obviously banking; in the BVI, it is international corporate registrations. They are extremely successful economies, with a very large number of professional service jobs clustering around their business model. I agree entirely with my right hon. Friend when he said that they can compete in other areas, such as tax and efficiency, as well as looking after the clients, and I hope that many parts of those professional and service businesses can expand, but there will be a disruption to their business model in the short term.

I am concerned that the Foreign and Commonwealth Office will be required to work incredibly closely with the Governments of those territories—particularly those of the BVI and the Cayman Islands, and to some extent those of the Turks and Caicos Islands and Bermuda—to make sure that, over the next few years, it puts in a huge amount of effort, knowledge sharing and capacity building.

My right hon. Friend will be more aware than anyone that, under the International Development Act 2002, the Department for International Development is the first port of call for financial assistance when something goes wrong in the territories. He and I obviously remember what happened in Montserrat, when DFID quite rightly came to the rescue, and when the Government of the Turks and Caicos Islands in effect went bust, DFID came up with a very large loan. That is why it is incredibly important that successful economies, such as that of the BVI, can transition to the new world in which they are going to have to live.

I would not have supported my right hon. Friend’s new clause 6. He asked me to support it, and I thought long and hard about it. In many ways, I would like to have done so, but I was very concerned about it for a few reasons, the first of which involves the constitution. As the hon. Member for Bishop Auckland (Helen Goodman) pointed out, I was the Minister responsible for the overseas territories White Paper in 2012, into which DFID had a significant input, as indeed did the Department for Environment, Food and Rural Affairs.

My right hon. Friend the Member for Newbury (Richard Benyon) assisted in that part of the White Paper that looked at international obligations on biodiversity and so on. The White Paper said that the UK Government could and would legislate in extreme circumstances, and that was a given because the territories are our responsibility. The citizens of those territories are as British as we are, and we have the ultimate responsibility for them. In some circumstances, we would of course legislate, and we reserved the right to do so. But the White Paper, and all the discussions and promotion on it, made it clear that that would always be a last resort, and in every circumstance we would try to build consensus and work in partnership with the territories.

France has a different model, with some of its territories incorporated into La France and with representatives in the Assemblée Nationale. We have moved to a model of home rule that is different in every case. Every territory has a different constitution and a different type of home rule, and we must work now to try to build consensus. I sincerely hope that the nuclear option contained in new clause 6 of Orders in Council will not be needed. We will have to work hard to make sure that we make progress in terms of what is outlined in the new clause. If we do not, I foresee a serious stand-off with at least three of the territories. I also fear for the economies of the territories if change happens very quickly and they have a significant loss of income. How will they transition and build up tourism, for example, or agriculture, where the BVI is very far behind?

I am concerned also that those territories have nascent independence movements and they will look at what has been said in the House today and say, “Well, if Britain is not prepared to work with us on a consensual basis, why should we remain in the British family?” I will do all I can to dissuade them from that course of action. Over the next two or three years, I hope that Ministers will have many discussions and make a generous offer of assistance, so that we can make progress in the right way.

[Jo Swinson]

The hon. Gentleman says that we need consensus and to try to work with the overseas territories. I would gently point out that the UK has been showing leadership on this issue since the international summit in 2013. Why does he think the overseas territories have engaged so little on this agenda, and why is he optimistic about success without the type of measure that the House will agree today, given that the Government have been making the case for five years?

[Sir Henry Bellingham]

I understand the hon. Lady’s point, but I would point out that some of us worked extremely hard to build up to the exchange of notes in 2016, so that our law enforcement agencies can access key information from, for example, the BVI within a matter of hours and use it in various measures they take against serious organised crime, money laundering, international slavery and the expropriation of assets—[Interruption.] I hope that it is someone important. On 70 occasions, the law enforcement agencies have been able to move against unsavoury people and get results.

If we move too quickly and without a decent transition, many of the corporate registrations will not stay in the BVI, the Cayman Islands, the Turks and Caicos Islands, Anguilla and so on: they will move to places such as Delaware, Panama, Venezuela, Nebraska and Equatorial Guinea—which my right hon. Friend the Member for Sutton Coldfield and I know well, as we have both visited it. Unless we are incredibly careful, that displacement will take place and, as the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) pointed out, it will take place to the Crown dependencies.

[Mr Mitchell]

My hon. Friend does not appear to accept the point that has been made repeatedly today that the territories may well allow access to law and order agencies, within an hour in the case of terrorism, through closed registers, but that does not allow civil society—charities, NGOs and the media—to expose them to the sort of scrutiny that the Paradise and Panama papers did. They allowed us to join up the dots. That is why I emphatically disagree with him on this point about closed registers. They work for law and order agencies, but they do not work to stop the dreadful money laundering.

[Sir Henry Bellingham]

I will not get into an argument with my right hon. Friend because I think we agree on so much of this. My concern is that it required a leak from Panama to expose those people, and there will be many other jurisdictions that may not have leaks in future and where much of the business will go, unless the whole world moves to the end goal of open registers—

[Mr Kenneth Clarke]

I accept the point that my hon. Friend is making, but it is not the best point. Until we move, we have little chance of speeding up any response by Delaware, Panama and the other places he named. It is not an overwhelming argument to say, “Well, we should carry on having billions of pounds of criminal money flowing through our overseas territories while we wait for Panama to make a move.” That is not the strongest argument.

[Sir Henry Bellingham]

My right hon. and learned Friend the Father of the House is, as ever, very wise. I want to proceed on a pragmatic, staged basis, and I think we could have come together on the Government’s compromise, had it been tabled in good time.

[Mr Seely]

Would not just waiting until everyone else moves show a lack of leadership on our part?

[Sir Henry Bellingham]

That is a fair point, and those of us who have been supporting the Government loyally on this and working with them accept that it is a weakness in the argument. If we set an example, we hope that other people will follow. I hope that when the Minister winds up he will say how we will try to influence other countries and jurisdictions to follow this example.

[Mr Cox]

My hon. Friend has enormous experience of these territories and he will know, as I know, that the operation of surveillance and monitoring of flows of capital through the overseas territories is one of the best intelligence sources that we have on the movement of criminal moneys. To demand that the overseas territories all suddenly go public will give one hit—just like the WikiLeaks thing was a one-hit wonder—because no one will then trust those jurisdictions where the light of publicity has been shone. All it will mean is that the money goes to where it is darkest, as the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) said. The surveillance and intelligence operations that have been so effective will no longer be applicable. I know the jurisdictions well, and that is what will happen.

[Sir Henry Bellingham]

I very much hope that what my hon. and learned Friend says will not happen. Unfortunately, there will be a period of time when many corporate registrations will go elsewhere and we will then need the rest of the world to catch up.

Will the Minister, when he winds up, spell out very clearly how the Foreign and Commonwealth Office and Department for International Development will work with the territories to help them with the transition over the next few years? What specific efforts will be made to help them to diversify their economies away from financial services? What expert advice will be given to build up parts of businesses that we hope will attract international interest? Will he outline to the House what measures he thinks his Department can take in terms of representations we make to other jurisdictions? Having set an example, we need to make a virtue of it. We need to go out and ensure that we play our part even more fully in OECD and G20 initiatives across every single organisation involved, particularly the IMF and the World Bank. Will he spell out what we will do to work with them to ensure that we raise standards elsewhere in the world?

Finally, I would have supported the Government’s proposed amendment as I thought it was sensible and pragmatic. It would have helped to build a consensus with the overseas territories, rather than move in a direction that could lead to very serious constitutional problems and difficulties unless we are very careful indeed. The Minister needs to use all his diplomacy and experience to ensure that the transition is done properly and correctly.

Diplomatic Service and Resources

Lord Bellingham Excerpts

Tuesday 13th March 2018 Westminster Hall

[Richard Benyon (Newbury) (Con)]

I beg to move,

That this House has considered the Diplomatic Service and resources.

It is a great pleasure to serve under your chairmanship, Mr Bailey. I am grateful for and slightly awed by the array of right hon. and hon. Members present who have much more experience of this issue than I have. It is an extremely important one and I am very grateful to the Minister for being here. I hope that he will be able to address some of the points that I and others raise.

We exist at a time of the greatest turbulence and change. With Brexit, we have the resulting need to engage as never before with countries around the world. We see, never more than this week, challenges to the rules-based order. We see the rise of new powers, such as China, which is stamping its mark on the world politically, economically and militarily on a scale unimagined a few years ago. We also see the influence of political disrupters across western democracies. This is the time to challenge policy of several Governments and many decades that has led to a decline in our commitment to foreign engagement.

It has been a real privilege for me to travel as a Minister, as a trade envoy, as the leader of the UK’s delegation to the NATO Parliamentary Assembly and in other capacities, and to see at first hand the astounding professionalism of our diplomatic staff around the world. Numbers are not everything. Having a fluent Arabic-speaking middle east expert as our ambassador to Iraq with the President’s personal mobile number on his speed dial is of incalculable value. However, we have reached a critical moment in our ability to promote our interests abroad.

I had a conversation yesterday with Lord Waldegrave. He has spent time as a Minister in both the Treasury and the Foreign and Commonwealth Office and he said, in a way that was somewhat light-hearted but nevertheless heartfelt, that in his impression there has been a multi-decadal battle between the Treasury and the FCO, which the Treasury has now won—a battle between the two great Departments of state that vie for influence with No. 10 and across Government. Two decades ago, it was deemed the right thing to hive off international development to a new Department. Part of that perhaps was a good thing at the time, but I have always felt that part of it was distaste for the concept that aid and influence could ever go together. For me, that has never been a problem: of course they can, and they should.

In some areas, the European Union was seen by some as the deliverer of our overseas influence.

[Sir Henry Bellingham (North West Norfolk) (Con)]

My right hon. Friend talks about the Treasury and other Departments. Obviously, the Department for International Development has had successive incredible spending rounds. Does he agree that the military attaché network, which he and I have seen in places such as Africa, does a huge amount of good in terms of influence and building those relationships? Surely, in countries that are basically aid-dependent, DFID should be paying for that network.

[Richard Benyon]

My hon. Friend makes a very good point. Later in my speech, I will talk about defence attachés and how we can copy the way that other countries do that better.

I have travelled to parts of the world where the Union flag might exist in the corner of an island state’s flag but there is no Union flag flying over anything that could resemble a high commission, embassy or diplomatic mission. All aid to the Pacific region was delivered through the EU; I could not find one sign of recognition of the sacrifice that the UK taxpayer made to provide that much-needed aid—it all had the EU mark on it.

Well before 2010, embassies were being sold off. They were bricks and mortar whose value in terms of influence vastly outweighed their real estate value. Our missions abroad were reduced and our diplomatic service language school was closed. After 2010, some good things started to happen: the language school was reopened; embassies that had been closed were reopened. But what that really meant was that our diplomatic missions abroad were marginally broader, but shallower too. I was in Mali just as we reopened our embassy there. An excellent ambassador arrived and she took over with a staff of one locally recruited driver. According to the FCO figures, there are now three FCO personnel there.

This year, the Government will spend £2.15 billion on the winter fuel allowance—a welfare element that we all support—but that is more than the £2 billion we spend on our foreign affairs budget. Let us compare how France and Germany—two similar-sized countries, both in the EU—manage their diplomatic services abroad. France spends £4.2 billion on its diplomatic service—more than twice what we spend on ours. As a country, it has a clear view that in order to maintain its P5 status it will stay true to its spheres of influence. Our 30-year bout of post-colonial guilt syndrome in this country, which may well have abated now, never seemed to have a parallel in the French psyche. France maintains a very clear involvement and commitment to countries in north and west Africa in particular, but also across the middle east. It maintains a much more permanent presence in areas where it has a history of influence.

--- Later in debate ---

[Richard Benyon]

I could not agree more. I saw a similar one-post operation in Addis Ababa, where our excellent ambassador, Susanna Moorehead, has forged a team that includes representatives of DFID, the Foreign and Commonwealth Office and the Department for International Trade into one cohesive force. They certainly punch above their weight, and they are able to influence things as a result. I particularly note what my right hon. Friend said about Zimbabwe. There has never been a more important time for us to engage there. If we allow ourselves to be optimistic, there is the chance that Zimbabwe will emerge from the tragedy of recent decades.

[Sir Henry Bellingham]

Will my right hon. Friend also consider the influence that small missions can have? For example, in the past seven years we have opened embassies in Abidjan, Juba and Antananarivo. Although they have only one FCO-employed official and some locally employed staff, they deliver huge influence and are very warmly received by the host country. Surely we should do that more in Africa and the Pacific.

[Richard Benyon]

I could not agree more. As I said, numbers are not everything. Diplomats’ ability to influence and to project Britain’s engagement abroad is of course down to the skill of individuals and their capacity to get that message across. The number of countries where we do not have anyone is missing from the list of personnel in the FCO’s annual report and accounts. We need to look at that.

I said that I would come back to the point that my hon. Friend the Member for North West Norfolk (Sir Henry Bellingham) made about defence attachés. France deploys a cadre of highly professional defence attachés who are proficient in local languages and who develop their careers and are rewarded as resident experts in countries across the middle east and north and west Africa. They often attend local staff colleges. Their career involvement in the regions to which they are posted is considered a virtue. I, too, have met some outstanding defence attachés. I know that there has been a change in recent years to try to develop longer-term postings, and that we send people to staff colleges, for example. However, the French colonel I met who had a direct way in to the Minister of Defence in a particular country had that because he had been in that region for 15 years, was fluent in the language and had embedded himself in the politics of the region.

--- Later in debate ---

[Sir Nicholas Soames]

I do not think that it is nearly serious enough for the kind of steps that the Government will need to take against Russia. Just to say a lot of dignitaries will not be sent to the World cup is nowhere near good enough. It is a pathetic response. We will need to do much better and be much tougher, so that it is understood across the full spectrum that the behaviour in question is something up with which we will not put.

It is not just a question of money, although that is vital, of course. It is also a question—and my right hon. Friend the Member for Newbury made the point extremely well—of how we marry our hard power, which is sadly considerably diminished, to our exceptional soft power, and ensure that they both work closely together in achieving our diplomatic objectives. It is frankly far too casual and complacent a habit, into which this country falls at the slightest opportunity, to assume that that happens by magic. It is my view that our exceptional and truly remarkable soft power is not well or effectively co-ordinated with our other diplomacy. Indeed, there is a view in the Foreign Office that it should be left well alone to get on with it by itself. The issues of security, development, energy, climate change and all the rest of it have to be worked through in tandem with soft power, as well as with diplomacy, the military, development aid experts and everyone else involved, so that they work together and not in competition.

I want to return to a point that my right hon. Friend the Member for Newbury has already enlarged on, and mention how extraordinarily impressed I was by our diplomatic mission in Harare—our excellent ambassador and her wonderful staff—and by the DFID staff, who are excellent. They are working together and acting as a force multiplier for the United Kingdom and for our objectives in Zimbabwe. We could not have been so successful in Zimbabwe with that extraordinary aid programme, which is brilliant, without everyone working together. It is a model for the rest of the diplomatic service. There are still places, in the lands of the ungodly, where that does not happen. It is unthinkable, to my mind, that the Foreign Secretary does not issue a fatwa to the effect that it will happen everywhere—and that right soon. It is a ridiculous waste of money and assets for the two to be accommodated separately. They should be accommodated together and work together for British interests.

I cannot believe that my right hon. Friend the Minister believes that it is sensible even to consider closing more diplomatic posts. Indeed, we must now be pretty much at the bare minimum of our representation. We need adequately to staff the smaller posts, so that we do not just have an ambassador and a locally engaged driver. It is all very well having locally engaged staff. They are marvellous and do a good job, and they are very loyal; but they are not, at the end of the day, Brits. We are after promoting our British way of life and our values. I again endorse the point that we must return constantly to making sure that people understand the values of this country as we make our sad way from the European Union. It is right that we re-establish our values as they are. That requires a good, decent diplomatic story.

I also reaffirm my unstinting support and admiration for the BBC World Service and congratulate everyone who works in that extraordinary organisation on the excellent job they do for this country. It would be a foolish short-term measure to reduce in any way the financial support to the BBC World Service, and I look to the Government to give me an assurance that that will not be the case. I endorse the views of the provost, or rather Lord Waldegrave—he is the provost of the school that my right hon. Friend the Member for Newbury went to—about the winner of the battle between the two great Departments of state, with respect to the Foreign Office and the Ministry of Defence. I always used to say—I hasten to say it was as a joke, because I actually got a letter from the Foreign Office stating that it did not work for the Russians—that the Treasury works for the Russians, given how successfully it has undermined our military effort. I wholly support my right hon. Friend the Secretary of State for Defence in the energetic and earnest campaign that he is rightly waging to increase our military spending to about 2.5% as a bare minimum.

[Sir Henry Bellingham]

My right hon. Friend has mentioned the BBC World Service. Does he agree that in many of the countries that he mentioned, where we need to have one family in one location, the role of the British Council is also extremely important and is a crucial way of building up our soft power, as is the role of the BBC World Service?

[Sir Nicholas Soames]

My hon. Friend has always been known for his natural exuberance. If he would pause for a second, he would hear the magisterial exposition that I am about to give of the British Council. Another balls-up by Bellingham.

To pre-empt my hon. Friend’s over-excitement, we have a priceless asset in the British Council. I again urge the Foreign Office to accept its vital importance. It is important that it should work extremely closely with the Foreign Office and in the general promotion of the British aim, and that the Government should continue to fund it, recognising the exceptional results that it achieves for Great Britain. I try always, when I am lucky enough to travel abroad, to call on the British Council. I cannot tell you, Mr Bailey, how much I admire the remarkable work done, in place after place where I have been, by the people who work for the British Council. It is extraordinary. They build profound relationships with people—for example, through the learning of English, which hopefully equips people to come here and study. It is part of a greater British effort, and important for that.

There is a compelling—indeed, unassailable—case for Britain to retain and develop its active diplomacy, which means it must be better resourced, and to provide the money needed to do the job properly. We are all struggling to retain a rules-based world, which is clearly in our best interests and which we have always promoted. We have, over the years, been its architect and great supporter, with our American allies and others. It is today a concept under considerable threat. Our country is truly at a crossroads. Our global influence is already coming under considerable pressure and it is essential for the further success, safety and security of this realm that our diplomacy is properly resourced, so that it can do the very good job that it currently does on a shoestring.