European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Luce

Committee: 10th sitting (Hansard): House of Lords
Monday 26th March 2018 Lords Chamber

[Lord Luce (CB)]

My Lords, I declare an interest as a former Governor of Gibraltar. I support very much the amendment moved by the noble and learned Baroness, Lady Butler-Sloss, and supported by the noble Lord, Lord Chidgey. I find myself in total agreement with all the speeches that have been made so far.

Without any doubt, the people of Gibraltar have as a whole been suffering great anxiety over the last several months about their future. It is essential that we find ways to assure them of their future. Let us remind ourselves that during the referendum, 96% of them voted in favour of remaining in the European Union. Why? Because it enabled them to expand their financial services through the passporting system and, through the internal border, the Commission could give some form of protection to a smooth flow—in so far as there has been one—across that border. But under Brexit, as the noble Lord, Lord Hannay, so rightly said, it would immediately become an external border with all the consequences which would flow from that.

A very important element is that 90% of Gibraltar’s business with the EU is with the United Kingdom, principally in financial services. It is essential that they have that reassurance so they can retain that access, making it easier for them to do business with the United Kingdom. Hence this amendment, which is designed to give reassurances to the people of Gibraltar about their acquired rights as corporations and individual citizens.

Events have moved in a better direction in the last couple of weeks, and the verbal assurances given by Ministers have been transformed into a concrete package, which was announced on 8 March as a result of the joint ministerial council meeting. It assures Gibraltar of continuity with the United Kingdom, with mechanisms which are now in place to secure trading and commercial links with the United Kingdom until the end of 2020—that is to say, for the transition period. But as the noble Lord, Lord Hannay, pointed out, it is not clear whether this transition period applies to Gibraltar’s relationship with the whole of the European Union. I hope the Minister will give a clear answer on that question at the end of the debate.

My concern then flows to the post-Brexit period for Gibraltar, and I agree entirely with the comments that have been made. As far as the United Kingdom is concerned, there have been assurances and very important commitments to design a modernised agreement based on high standards of regulation and enforcement. That means further regulatory alignment between Gibraltar and the United Kingdom. There are long-term commitments to have growing market access for financial services to the United Kingdom and strengthened relationships on the health services, environment and transport. As I am Chancellor of the new University of Gibraltar, I am very glad of its commitment to develop reciprocal relations between students in Gibraltar and the United Kingdom.

[Lord Adonis (Lab)]

Does the noble Lord know whether the Government of Gibraltar are in favour of a referendum on a final withdrawal treaty and, as a former Governor of Gibraltar, does he think that is a good idea?

[Lord Luce]

I am not going to be drawn on that but, if I may, I will end my remarks by emphasising the need for words not just of caution but of hope. On caution, I refer to clause 24 of the European Union’s negotiating procedures, which gives Spain a right of veto. That remains a matter of profound anxiety regarding the negotiations that are going to take place in the next six months. It is in the hands of Spain whether it handles Gibraltar like Catalonia, or in a more sane fashion. I can say only that in terms of hope, what is required is a sustained dialogue between the UK and Spanish Governments, which I hope is now taking place, involving very strongly the Government of Gibraltar. The purpose should be to work in a positive and statesmanlike fashion to achieve an agreement on economic co-operation across the border between Gibraltar and Andalusia, bearing in mind that 13,000 people a day cross that border—40% of the workforce of Gibraltar. It would be profoundly to their mutual advantage to achieve that, if Spain has a positive attitude, but beyond that Spain has got to be positive about its future long-term relations with Gibraltar. There is still a long way to go.