Asset Freezing (Compensation) Bill [HL]

Lord Empey Excerpts

2nd reading (Hansard) : House of Lords
Friday 27th October 2017 Lords Chamber

Moved by

[Lord Empey]

That the Bill be now read a second time.

[Lord Empey (UUP)]

My Lords, during the last Session of Parliament I introduced a similar Bill into your Lordships’ House. While the Bill was passed by your Lordships and sent to the other place, a combination of obstruction and a lack of time brought about by the snap general election earlier this year resulted in it being lost.

The Bill is put forward on behalf of an all-party parliamentary support group that is trying to help the many victims of terrorism in this country, whether sponsored by Gaddafi or others. Many of your Lordships will be familiar with the circumstances that have led to today’s proceedings, but it is worth reminding ourselves of the background to this case. The Libyan dictator was a long-term supporter of violent groups in many countries from the 1970s, but nowhere was his support to terrorism more apparent than with his unprecedented support for the Provisional IRA. Gaddafi provided training on his territory, finance and a massive amount of weaponry over many years. Literally shiploads were sent to the IRA in the 1980s. It is estimated that four or five major shipments were made, with only one being intercepted—the “MV Eksund”, intercepted by the French Navy in the Bay of Biscay on 1 November 1987.

Large quantities of the explosive Semtex were included in these shipments. The explosive, which is hard to detect and has a long shelf life, was the IRA’s weapon of choice for many years. It was following the bombing of Libya, authorised by President Reagan in 1986 and using UK airbases, that Gaddafi intensified his weapons smuggling. Some of the victims who suffered as a result of the use of this explosive link the US bombing of Libya to the supply of Semtex. They argue that as a result of the UK Government’s action in permitting the raid, retaliation was made against them and their families. Gaddafi was looking for a spectacular response made on his behalf, and arguably it came at Enniskillen, nearly 30 years ago next month. These victims believe that Her Majesty’s Government therefore have a responsibility to them—yet, unlike in the case of US citizens, the Government did not pursue the Libyan authorities in the courts or diplomatically by bringing that country to the attention of the Security Council. Any objective observer would conclude that, had the IRA not had access to Semtex in particular, its campaign would have fizzled out much earlier than it did and many lives would have been saved as a result.

The finger of guilt for sustaining the IRA in its campaign of terror within and without this country points directly to the Gaddafi regime. The regime waged a proxy war on this country, and any new Government of Libya have a legal duty under international law to take responsibility for the actions of their former head of state. There has been a perception that Gaddafi-sponsored terrorism was primarily a Northern Ireland issue, but that is not the case. Victims are located all around our nation. The number of GB-based soldiers who were killed and injured is substantial, and there has been a significant number of high-profile attacks. For example, we had the Harrods bombing, the Canary Wharf bombing, the Baltic Exchange bombing and the notorious Hyde Park bombing.

The last example I mentioned is notorious because insult was added to injury by the disclosure that when a suspect was arrested and brought to court charged with four counts of murder relating to the incident on 20 July 1982, he was able to wave a piece of paper at the judge on 24 February 2014 and claim that he was promised he could come to the UK as he was not wanted in connection with any ongoing police inquiry. This on-the-run letter for the suspect John Downey remains a toxic example of a double standard in the way in which a potential terrorist was treated and the way in which former members of the security forces are treated.

Successive Governments have failed to resolve the issue of compensation for victims. There has been no sustained attempt by Her Majesty’s Government to secure compensation from the Libyans, either from frozen assets or by agreement with the Libyan Government—when one was functioning—hence the need to look again at the legislative options open to us to resolve this matter.

Before referring to the clauses of the Bill, perhaps I may illustrate what I mean by an inconsistent approach by the Government. Although I have been writing to Governments since 2002 on these matters, I wish to draw the House's attention to a few more recent interventions.

I wrote to the former Prime Minister David Cameron on 30 August 2011 asking if it was possible to withhold some of the frozen assets for the benefit of victims of Libyan-sponsored terror. The then Prime Minister replied on 15 November 2011, repeating what he had said in the other place in September of that year in the following terms. He said that,

“the issue of compensation for UK victims of IRA terrorism will be an important priority for a revitalised relationship between Britain and the new Libyan authorities”.

That response filled me with hope that things were indeed moving in the right direction—but fast forward to 21 January 2014, when I received an answer to a Written Question from the then Foreign Office Minister, the noble Baroness, Lady Warsi. I asked her whether the Government were continuing to negotiate with the Libyan Government regarding possible compensation for UK citizens killed or injured by weapons supplied by the former Gaddafi regime. Her response was as follows:

“The Government is not involved in any negotiations with the Libyan government on securing compensation payments for the British victims of Qadhafi sponsored … IRA … terrorism”.—[Official Report, 22/11/14; col. WA 136.]


The reply went on to say that the Government considered such claims to be a private matter between the victims and the Libyan Government.

I was horrified by this reply, which was completely at odds with the response of David Cameron on 15 November 2011. Naturally, I got in touch with Ministers again to find out what was going on. Despite a flurry of letters in 2014 involving David Cameron and other Ministers, the introduction of a similar Bill to Parliament last year, meetings with officials in the FCO and Treasury, and an inquiry by the Northern Ireland Affairs Select Committee in the other place, the present Government indicated recently in response to that committee that the issue of claims for compensation by victims was still, in their view, a private matter for individuals. This is not exclusively a private matter and never was. This country was attacked by proxy for more than 20 years, with thousands killed and injured. It is the duty of Her Majesty’s Government to protect their citizens and ensure that justice is done.

The Bill has a straightforward aim. While provoked by the Libyan situation, it is not confined to it and would make provision for the imposing of restrictions on assets owned by persons involved in conduct that gives support and assistance to terrorist organisations in the United Kingdom for the purpose of securing compensation for citizens of the United Kingdom affected by such conduct.

Clause 1(1) states that Her Majesty’s Treasury must “take all actions necessary” to prevent the release of particular assets which have been frozen under European Union Council regulations until circumstances described in subsection (5) have been met. Subsection (2) states that these actions may include imposing domestic asset-freezing measures under the Terrorist Asset-Freezing etc. Act 2010. Subsection (3) sets out the people with assets who are covered by this Act. It states that the assets are owned by persons,

“including but not limited to state parties, who are or have been involved in conduct that gives support and assistance to terrorist organisations in the United Kingdom”.

Subsection (4) sets out when a person would be considered to have been involved in conduct which supported terrorist organisations in the UK. These include a United Nations Security Council resolution or that Her Majesty’s Treasury,

“reasonably believes that the person is or has been involved in conduct to that effect”.

Subsection (5) describes the circumstances referred to in subsection (1). Under this provision, the frozen assets could be released only if a settlement to compensate UK victims of terrorism was reached. Subsection (6) outlines the definitions used by the Bill. It defines terrorist organisations in the UK and organisations which are,

“based in the United Kingdom, and that the Treasury reasonably believes are or have been involved in terrorist activity, within the meaning of the Terrorist Asset-Freezing etc Act 2010”.

In addition, it states that “UK citizen” has the same meaning as in the British Nationality Act 1981.

I think it is clear that the support group which I am representing today is fully aware of our commitments to the United Nations and the European Union that govern and control the Libyan frozen assets here in London. They consist of approximately £9.5 billion. However, we as a country have never asked the United Nations or our EU colleagues for help with this. Under EU regulations there is provision for humanitarian help for the owners of these assets to get access to them—so why can this not be extended to the victims?

The UK has one ace card to play, should that become necessary and if negotiations fail. If a new Government of Libya seeks access to these and other frozen assets around the world, a decision will have to be taken to unfreeze them at the UN Security Council. As a permanent member of that council, the UK has a veto on all decisions. We have seen Russia and China using their veto in their national interest recently concerning Syria and North Korea. Although I hope it can be avoided, the UK may have to follow suit if no agreement can be reached over Libyan assets.

I hope that the Minister, when replying, will assure the House that the idea that these matters are exclusively private is no longer the core of government policy. Private cases can always continue, but there is a national interest here and the Government must pursue it aggressively. At a recent meeting with the Foreign Secretary, the support group was encouraged by his willingness to consider seriously what could be done. I look forward to what the Minister will say in reply. I beg to move.

--- Later in debate ---

[Lord Empey]

My Lords, I too thank those who participated in today’s debate. I want to go over a few points. My noble friend Lord Rogan referred to Semtex and the escalation of the campaign, and the fact that citizens from other countries have achieved compensation. I acknowledge that that was salt in the wound to many victims.

I appreciated the intervention of the noble Lord, Lord Reid of Cardowan. I understand the technical points he made about the letters, but of all the things that have happened over the years, the production of pieces of paper in a court, the existence of which was not known to anybody outwith the Government of the day and the terrorists who held them, was a big shock, to put it mildly. The truth is that someone charged with four counts of murder and contributing to an explosion in this country—the first person to be brought before the courts between 1982 and 2014 on this matter—was able to leave the court a free man. You can look at all the technicalities that surround it, but that is what happened. It was a shock to the core for many people.

We know that mistakes were made, perhaps at police level—I accept that. But the fact is that pieces of paper existed that were not known about. Through my involvement in the negotiations I am well aware that the on-the-runs was a very sensitive issue. It was a matter that could not be left hanging in the wind. Nevertheless, people were shocked by the way this was done and by the fact that some of the people in possession of these letters were the same people hounding members of the security forces who were acting on our behalf. They were having their cake and eating it. The noble Lord, Lord Reid, also mentioned the imbalance, which is at the core of why people are so upset.

I am well aware of the personal experiences of the noble and learned Lord, Lord Carswell—my late aunt and uncle lived across the road from where he lives. Very few people would get under their vehicle like a mechanic in a garage to search for a device, but he was so conscientious. I thank God that he and his family escaped.

[Lord Elton (Con)]

In that context, it might be worth reminding the Minister that an exactly similar device killed one of Margaret Thatcher’s Ministers, Ian Gow.

[Lord Empey]

The noble Lord is absolutely right. If noble Lords look inside the Chamber of the House of Commons they will see above the door the names of those Members of the House of Commons who were killed—Airey Neave, Ian Gow, the Reverend Robert Bradford and Anthony Berry in the Brighton bomb. That was a very poignant intervention.

I appreciate the comments of the noble Lord, Lord Davies of Oldham, about parliamentary procedure. As a hand in these things, I am sure that over the years he has been quite happy to use the odd bit of procedure himself, as I am sure we all have in the different fora in which we have operated. Nevertheless, he makes the point—he knows and everyone knows—that a private Member does not have the resources to draft all of the technicalities that are needed in a Private Member’s Bill. Although I thank the Public Bill Office for its assistance, I am well aware that without the backing of the Government, it is difficult for a Private Member’s Bill to make progress. However, it creates a platform for Members to bring issues into the public domain. I make no excuse whatever for that because that is what we are trying to do here. I thank the noble Lord very much for his contribution and support just as I thank the noble Lord, Lord Reid. When we discussed the Bill last time, the noble Lord, Lord McAvoy, also contributed on behalf of the Labour Party. We appreciate all those matters.

The noble Lord, Lord Browne, mentioned fairness and transparency. Those things have been sorely lacking over the years. My noble friend Lord Lexden used the dreaded phrase “devolve and forget” with regard to devolution. With the circumstances in which we find ourselves in Belfast at the moment, I sincerely hope that we see that devolving and forgetting does not work. We know that it is not a good policy. My noble friend Lord Lexden also mentioned Airey Neave and what happened in March 1979 and standing up for victims. He has been one of the most consistent and persistent supporters of Northern Ireland over his lifetime and we greatly appreciate that.

On the Minister’s response, in my speech I quoted what Prime Minister Cameron said in 2011 and what the noble Baroness, Lady Warsi, said in 2014 and said that they were totally inconsistent—one excluded the other. The Minister used a phrase that I welcome when he said that Her Majesty’s Government would now be prepared to pursue more openly and communicate more effectively with victims. He used the phrase “seek redress”. That is an improvement in their position because in 2014 they were saying that they would have no involvement whatever. The Foreign Secretary hosted a meeting with Alistair Burt. Our ambassador to Libya was present as were a number of officials, so he was taking the matter seriously. I believe that his approach is beginning to focus the Government on doing something about this.

Look: we all know that the people of Libya were the principal sufferers over the regime of Gaddafi. The country was a personal fiefdom. It was brutalised. People were disappeared and murdered and treated appallingly. We are not seeking to ignore them or to set those people aside. But the people of Libya have to understand that they are not alone. People in this country have to be taken into account. It is the first duty of Her Majesty’s Government to protect their citizens. That is the first and important duty of government. I attended hearings of the Northern Ireland Affairs Committee when a number of other persons were present including the former Foreign Secretary Jack Straw, and when the question of compensation was raised he said that people had already received compensation. Many of them may have from the British taxpayer, but it is not the British taxpayer who should be paying. It is the people who perpetrated and provided the material so that the terrorists could operate in this country. There is a state-to-state issue here. I think we can claim today that the Government have moved from their position of saying that it is purely a private matter to saying that there has to be state-to-state involvement. The two are not mutually exclusive, but that represents a step forward, and I welcome it.

Reference was made to Jim Fitzpatrick in the other place. He has been a stalwart campaigner. I attended a debate that he had in Westminster Hall last year. He was present when we met the Foreign Secretary a few weeks ago, along with the group chair, Andrew Rosindell, the Member for Romford. We have quite a substantial amount of support and we meet from time to time, so this is not a party issue. This is a parliamentary issue. It is a national issue. We do not know the politics of the people involved and it is none of our business. The fact is that a group of our citizens have suffered directly as a result of the actions of the state of Libya under the Gaddafi regime. While people will be free to take private cases against individuals who they know or believe were involved, this is not a matter that the Government can sit on their hands over. I hope that the contribution that the Minister has made today when he said that the Government would seek redress implies that they will actually do something.

I hope that the Minister will be able to anticipate that, if we do not see that redress is being sought—and sought in a proactive way—I am quite certain from what all noble Lords have said in their remarks that we will be back to ensure that this matter does not fall down through the cracks. We have brought Bills forward two years running and we will bring them forward every year if we have to. It is not something that we will give up on. If it takes letters and delegations—whatever it takes—we will persist. The Government must realise that this is not something that can be put on the back burner any more. That will not happen. I think that there is unanimity in the House on this matter and I hope that a message can be brought back to the Foreign Secretary to say that we appreciate that he is taking the matter seriously but, to coin a phrase, we are not going away. With that, I ask the House to give this Bill a Second Reading.

Bill read a second time and committed to a Committee of the Whole House.