Zimbabwe

Lord Goldsmith of Richmond Park Excerpts

Thursday 27th October 2022 Lords Chamber

[Lord Oates]

To ask His Majesty’s Government what discussions they have had with the Government of Zimbabwe about the continued detention of opposition Members of the Zimbabwean Parliament Job Sikhala and Godfrey Sithole, and other opposition activists.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)]

My Lords, the UK is concerned by the trend of lengthy pre-trial detention of government critics in Zimbabwe. We are monitoring the ongoing detention of the MPs Job Sikhala and Godfrey Sithole. As the ambassador publicly stated on 2 October, the UK is committed to the fundamental right to peaceful assembly and association, as enshrined in Zimbabwe’s constitution. The former Minister for Africa also raised the issue with the Foreign Minister of Zimbabwe on 30 June.

[Lord Oates (LD)]

My Lords, the Minister will be aware that opposition MPs Job Sikhala and Godfrey Sithole have now been detained without bail for 142 days in Chikurubi maximum security prison and paraded before court in leg irons; that only a week ago, the Bulawayo MP Jasmine Toffa was violently assaulted as part of an attack on CCC activists; and that across Zimbabwe political violence is raging in the lead-up to the 2023 general elections. Will he join me in calling on the Zimbabwe Government to end this political violence now? Will he join me also in making clear to ZANU-PF officials and Ministers, members of the Zimbabwe Republic Police and Zimbabwe prison officers that the world is watching and holds them accountable for the safety and security of all Zimbabwe’s citizens?

[Lord Goldsmith of Richmond Park (Con)]

I thank the noble Lord for raising this enormously important issue. He is right: the world is watching and of course the UK is deeply concerned by the challenging human rights situation in Zimbabwe. Political parties, journalists and opponents should be able to operate without any form of harassment. We regularly call for the rights of freedom of assembly and association, as well as the rule of law and due process, to be respected in line with Zimbabwe’s own constitution. We monitor all individual cases, including those that he mentioned, such as that of Jasmine Toffa MP. All political violence is concerning and violence against women in politics is of particular concern, particularly in Zimbabwe.

[Lord St John of Bletso (CB)]

My Lords, following the continued violence against opposition supporters and candidates at the Matabeleland election last weekend, and the refusal of the electoral commission to release the electoral roll, what chance is there of there being free and fair elections in Zimbabwe in July?

[Lord Goldsmith of Richmond Park (Con)]

The noble Lord is right to raise this issue as well. The UK is working closely with international partners to encourage the Zimbabwean Government to live up to their own constitution and commitment to electoral reform, including by implementing the recommendations from the 2018 electoral monitoring reports. We recognise that there has been only very limited progress to date on the electoral reforms recommended in the 2018 paper. Key outstanding areas include a transparent voter registration process, publication of an accurate voters roll, transparent use of state-owned resources and more effort to demonstrate the independence of the electoral commission. This remains a priority in our discussions with not just Zimbabwe but neighbouring countries as well.

[The Lord Bishop of Southwark]

My Lords, the diocese of Southwark is linked with four of the five Anglican dioceses in Zimbabwe and the neighbouring diocese of Rochester with the fifth, Harare. Does the Minister agree that the systemic corruption and long-standing poor level of governance in Zimbabwe continually undermine civil society and reduce the well-being of the people and all the institutions there, including the Church?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, Zimbabwe is a country with extraordinary potential and an extraordinary history, and of course it is right that the current political approach inhibits that potential. The UK is a long-standing partner of Zimbabwe and we provide significant levels of ODA. However, I want to be clear to the House that we do so in a way that avoids government-to-government bilateral financial aid. In other words, none of the money that we provide is channelled through the Government. Instead, we work through multilateral organisations, and wherever we possibly can we support civil society and NGOs in the private sector.

[Lord Collins of Highbury (Lab)]

My Lords, just to pick up on that point, I have raised on numerous occasions with Ministers the continued repression of civil society in Zimbabwe, including of trade unionists. Can the Minister tell us the latest FCDO assessment of the passage of the Private Voluntary Organisations Amendment Bill, which Ministers have acknowledged could be used to restrict civil space? Could he tell us also how we are working with allies, global civil society and interfaith groups to ensure that it is their voice that is heard in Zimbabwe and not simply government voices?

[Lord Goldsmith of Richmond Park (Con)]

The Government very much agree with the opening remarks of the noble Lord. We are concerned that the Private Voluntary Organisations Amendment Bill, if it becomes law and is implemented, could very easily be used to undermine the ability of civil society to operate effectively in Zimbabwe. It also puts at risk its ability to deliver development and humanitarian assistance. We engage very widely, not only with civil society within Zimbabwe and through our overseas development assistance, which I mentioned earlier, but also, importantly, with South Africa. As noble Lords will know, we have deep and long-standing ties with South Africa, recognising the important role that the African Union and the Southern African Development Community have in relation to Zimbabwe. UK officials speak very often on a broad range of issues, including of course on Zimbabwe.

[Lord Hayward (Con)]

My Lords, reference has already been made to the elections in 2018; at that time I was one of the observers from this country on behalf of the Commonwealth, with the noble Baroness, Lady Jay. The report was pretty damning, particularly in relation to the events after the general election in 2018. Can my noble friend ensure that very strong representations are made to the electoral commission, because it has been lamentable in any action? It was before the 2018 election, and there is no sign that it will enforce any form of free and fair elections next year.

[Lord Goldsmith of Richmond Park (Con)]

My Lords, we will use whatever leverage we have to maximise the chance of free and fair elections. I make a broader point: we know that President Mnangagwa wants more engagement with the UK—that is clear—and in many respects we want him to have that too. However, deeper re-engagement with the UK will require meaningful political and economic reform and respect for human rights and the rule of law in line with the President’s own stated commitments when he took office. The former Africa Minister reinforced that message when she met the President last year at COP.

[Lord Purvis of Tweed (LD)]

My Lords, I admire my noble friend’s consistency on this issue. I am afraid that this consistency is not reflected in the Ministers for Africa; we will now be on our sixth in just three years. I heard the Minister refer to the welcome involvement of officials with our SADC friends. However, have there been any ministerial meetings with SADC allies on a regional solution to ensure that there is the highest pressure for an end to political violence and the holding of free and fair elections?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, I cannot provide details of ministerial meetings; that is not to say that they have not happened—I just do not have the details of specific meetings. However, I know that at numerous international fora the then Africa Minister, as well as other Ministers including myself, have had discussions with neighbouring countries in the region where this and other issues have been raised. However, I will provide details on specific meetings with SADC after this Question.

[Baroness Hoey (Non-Afl)]

My Lords, the noble Lord, Lord Oates, has outlined the shocking violence perpetrated by ZANU-PF and Mnangagwa on anyone, really, who opposes the regime. The economic situation is dire, and hunger is being used against anyone who opposes the regime. Does not the visit of the South African President—the first state visit under His Majesty the King—give the Government a wonderful opportunity to work with the South African Government and talk to them about how they, and other countries in Africa, can influence together to ensure that there really will be free and fair elections next year in Zimbabwe?

[Lord Goldsmith of Richmond Park (Con)]

The noble Baroness has been a champion of Zimbabwe for many years, and I pay tribute to her for that. She is right to identify this upcoming visit as an opportunity. There is no doubt that South Africa, and indeed southern African countries, not least through SADC, have a particular ability to influence Zimbabwe, far more so than we can. I am sure that the topic we are discussing today will be on the agenda when the visit happens.

China: Security and Trade (IRDC Report)

Lord Goldsmith of Richmond Park Excerpts

Thursday 20th October 2022 Grand Committee

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)]

My Lords, I thank my noble friend Lady Anelay for tabling this debate and for her committee’s work, as well as for her introductory remarks. I thank all noble Lords for their insightful contributions.

Last year in our integrated review, the UK Government assessed that China’s increasing assertiveness and growing impact on many aspects of our lives will be one of the defining geopolitical factors of the 21st century. This is, therefore, a key and timely debate.

In line with the IRDC’s report, I will cover the UK’s approach to China, our trade relationship, regional security, and the importance of working with our allies and partners, and I shall do my best to answer as many of the questions that were raised as possible.

The global geopolitical context has changed greatly in the last year, and in response the Prime Minister has commissioned an update of the integrated review. Vladimir Putin’s invasion of Ukraine has threatened our collective security and stability, and it has had an acute impact on global economic resilience, supply chains and energy security. We will continue to press China to use its relationship with Vladimir Putin to push for an end to his war, rather than condoning or excusing his actions.

The noble Lord, Lord Goodlad, made the point that China’s influence on Russia is considerable. There is no doubt that that is true, so we continue to engage with China at every level—in Beijing, in London and at the UN—to make it clear that the world is watching what it chooses to say and do. Of course, we condemn any military support to Russia for its illegal invasion of Ukraine, and we expect China to stand up for Ukraine’s sovereignty and territorial integrity and to uphold its commitment to the UN charter. Without going into detail, I note the comments made by the noble Lord, Lord Howell, on China’s anxiety about Russia’s potential use of strategic nuclear weapons.

As the Foreign Secretary recently made clear in his speech in Singapore, it remains a top priority for the UK to pursue deeper engagement with our partners in the Indo-Pacific region. China is a major global actor as a G20 member, with a permanent seat on the UN Security Council. This Government are committed to doing more to adapt to China’s growing impact and influence. As we do so, our policy will be defined by our national interests, particularly our sovereignty, security and prosperity. It is in our interest to have a mature and robust relationship with China in order to manage disagreements, defend our freedoms and co-operate where our interests align.

One of the greatest strengths in our relationship with China is the link between the people of our countries. It is worth emphasising that the British-Chinese diaspora play a key role in our communities and culture. We continue to welcome hundreds of thousands of Chinese students to the UK and work to ensure that they are treated as well here as British and other international students are. International research collaboration, including within our universities, is central to the UK’s position as a science superpower. However, as a number of noble Lords suggested, we will not accept collaborations that compromise our national security, and we work closely with universities, funding bodies and industry to protect our higher education and research sector.

In response to the noble Baroness, Lady Coussins, who raised Confucius Institutes in particular and asked what the UK is doing about them, the Government obviously take seriously any concerns about the operation of international organisations at UK educational centres. Like all similar bodies, the Confucius Institutes need to operate transparently and with a full commitment to our values of openness and freedom of expression. As with any international collaboration, universities have a responsibility to ensure that any partnership with a Confucius Institute is managed appropriately and that the right due diligence is in place. We encourage providers with any concerns whatever to contact the Government directly.

A number of noble Lords mentioned the importance of engaging China on the global issue of climate change, and they were absolutely right to do so. The committee rightly observes that we cannot deliver our global climate goals without engaging with China. It is just not feasible; it is not possible. That point was well made by the noble Lord, Lord Teverson, and the noble Baroness, Lady Blackstone. As the world’s largest greenhouse gas emitter, and the world’s largest investor in renewable energy, China plays a critical role. In particular, we are working with China and other financiers of international coal to accelerate momentum and ambition for the global transition from coal to clean energy through our COP 26 energy transition campaign. As a consequence, and on the back of very extensive diplomacy in the run-up to COP 26, we were able to have an influence on China’s position. Noble Lords will know that China has committed to net zero by 2060 and has said that its intention, and its policy, is to see emissions peak by 2030, the end of this decade. China also committed to ending the financing of overseas coal, which we also pressed hard for in the context of our presidency of COP.

Scientific collaboration also plays a key role in mitigating climate change. The UK Government supported work by meteorological experts in both countries to model extreme climate change impacts around the world. We are increasingly working with China at the diplomatic level: first, to support efforts to secure an ambitious outcome for the CBD COP 15 in Montreal, at the end of this year; and, secondly, to follow up on commitments that we secured from China—quite late in the day, as it happens—to join other countries that signed the Glasgow leaders’ declaration, the commitment to end deforestation by the end of this decade.

Even more importantly, we secured a commitment from China’s biggest commodity trader, COFCO, to align its purchasing criteria with 1.5 degrees and our efforts to break the link between commodity production and deforestation. It was COFCO coming to the table that allowed us to encourage countries such as Brazil, under President Bolsonaro, to sign up to a commitment that they were absolutely not willing to sign up to that point. There are numerous ways in which we are seeking to work with China on climate change and the broader environmental challenge we face.

As an open economy, the UK Government welcome foreign trade and investment to support growth and jobs, including from China. However, we will not accept commercial activity that compromises our national security or values, and we have safeguards in place that enable us to engage with Chinese investors and businesses with increasing confidence.

The National Security and Investment Act came into force in January 2022. It is not specific to China and applies to all investors in the UK, regardless of nationality. We will not hesitate to use the Act’s powers to intervene if and where necessary—including to block the most concerning acquisitions. The Act’s annual report and final orders document the use of NSI powers to date, including to block two acquisitions by Chinese companies. In May this year, a package of measures came into force to update the UK’s export control regime. This enhanced our military end-use controls and added China to the list of destinations to which those controls must now apply. These changes strengthen our ability to prevent exports and address threats to national security and human rights.

In different ways, the noble Lords, Lord Campbell and Lord Alton, and the noble and gallant Lord, Lord Stirrup, referenced the controversy over Huawei, which rightly dominated the news for some time in the year before last. On 13 October this year, the Secretary of State for DCMS issued a designation notice to Huawei and a designated vendor direction to 35 telecom providers. This gives 12 specific restrictions to telecom providers in their use of Huawei. The Secretary of State has decided that these legal controls are necessary and proportionate to our national security risks. The UK is now on a path towards complete removal of Huawei from the UK’s 5G networks by the end of 2027.

The noble Lord, Lord Alton, also asked about Hikvision. I needed to check, but we continue to make clear our concern about human rights violations in Xinjiang—which I will come to in a few moments—including the use of mass surveillance and the technology used to facilitate it. We take the security of our citizens and establishments extremely seriously and have a range of measures, some of which I have just identified, to scrutinise the integrity of those arrangements.

The committee rightly identifies the risks to trade and investment and our supply chains in today’s increasingly interconnected world. We recognise that China has clearly set out to use its influence in the global economy to pursue its broader foreign policy objectives. We monitor this closely and are working to strengthen the UK’s critical supply chain resilience and avoid strategic dependency. This includes international collaboration with allies and partners to discourage trade restrictions and coercive measures.

My noble friend Lord Bethell emphasised this particularly well. To him I just say—he may even have been part of this—that BEIS launched the UK’s critical minerals strategy in July, which sets out measures to improve the resilience of critical mineral supply chains. Obviously, supply chains are complex and markets are volatile, with most critical minerals sourced from just a small handful of countries. China is a big player, for reasons that noble Lords have already identified.

I will move on to respond to comments from the noble Viscount, Lord Waverley, who talked about British investment partnerships. Through BII, we are providing a positive development finance offer in the Indo-Pacific region and around the world. Our offer is characterised by high standards, transparency and reliability. It supports the Build Back Better initiative—I hesitate to use the term—specifically as an alternative to the belt and road initiative. With a particular focus on climate finance and green infrastructure, we are helping developing and emerging countries in the Indo-Pacific meet their financing needs for infrastructure and enterprise.

The Government have deepened economic ties with our partners in the Indo-Pacific region in the last two years. We have signed free trade agreements with Australia and New Zealand and a digital economy agreement with Singapore, and we continue to make progress towards a new free trade agreement with India. We are also now in the second and final phase of accession to the CPTPP. By acceding to the CPTPP, the UK will join a valuable network of countries committed to the international rules and norms that underpin free trade. Meanwhile, as an ASEAN dialogue partner, and the only European country to have been given such status, we recognise the key role that ASEAN plays. We have made clear our full support for the ASEAN outlook on the Indo-Pacific.

The committee rightly recognised the importance of working with allies and partners in the Indo-Pacific and beyond with regard to China. We speak to those partners on a regular basis to understand their approaches towards China, their hopes and concerns and more. There is much common ground between us; we share many of the same concerns. We and our international partners have a clear message: China must live up to its international responsibilities.

A number of noble Lords rightly referenced the horrors in Xinjiang—in particular, the noble Lord, Lord Alton, who has raised the issue many times with me in our various exchanges in the Chamber. The noble Baroness, Lady Anelay, also spoke powerfully about the issue, as did a number of other noble Lords. Clearly, China must be held to the same human rights standards as all other members of the international community. The UK has led international efforts to hold China to account for its human rights violations through the UN and through our sanctions regime and measures to ensure that no UK organisations are complicit in these violations through their supply chains.

Given the gravity of the recent UN High Commissioner’s report, which found that China has carried out serious human rights violations—including, as the noble Lord, Lord Alton, said, possible crimes against humanity in the area—it is important that UN members are given an opportunity to consider those findings fully. On 6 October, the UK brought a vote to the United Nations Human Rights Council requesting a vote on the report. We did not succeed—the vote did not pass—and China successfully managed to stifle debate temporarily. However, we are convinced through our efforts that that will not endure and that we will be able to ensure that the report and its findings are properly digested and responded to in that key UN context.

I echo the comments of the noble Lord, Lord Collins, about those Members of Parliament in the UK who have been sanctioned by China, and pay tribute to them. Those sanctions are not only unwarranted but completely unacceptable, and we have provided, as noble Lords will know, guidance and support to those sanctioned by China, including a specialist briefing from relevant government departments on such things as cybersecurity.

Just to move to Hong Kong, China’s national security law has undoubtedly stifled opposition and, more than that, criminalised dissent. In response, the UK has declared China to be in a state of ongoing non-compliance with the Sino-British joint declaration. As noble Lords commented, we also introduced a bespoke immigration route for British national overseas status holders and their immediate family members. The UK will continue to stand up for the rights and freedoms of the people of Hong Kong, as agreed in the Sino-British joint declaration.

I think it was the noble Lord, Lord Purvis, who asked why the Prime Minister had scrapped the National Security Council—I hope that I have attached the question to the right noble Lord. My understanding is that she replaced it rather than scrapped it; she replaced it with a foreign policy and security council. From my understanding, there is no difference in function, so we are talking about semantics and a label, as opposed to anything meaningful.

[Lord Purvis of Tweed (LD)]

I am grateful for that clarification; perhaps the Minister could write to Members who took part. I looked at No. 10 Downing Street’s briefing on the new Cabinet sub-committees. It is a markedly different committee which includes trade; it is not simply a change of title with the same definition—as I understand it, but I am happy for him to write to me with more information, because it is important.

[Lord Goldsmith of Richmond Park (Con)]

I doubt I am qualified to get into a scrap on this issue, but my understanding is that there is nothing that the NSC was doing that is not done within the new council. But I shall seek clarity on the issue.

Regional partnerships are especially important in defence and security. We are deepening our engagement with Indo-Pacific partners bilaterally, multilaterally and with smaller groups of like-minded partners. The Five Power Defence Arrangements, where we work together with Australia, Malaysia, New Zealand and Singapore, reached their 50th anniversary last year. The AUKUS defence partnership with Australia and the US also strengthens regional peace and stability, and the UK has responded positively to the requests of our partners to build their capacity in maritime security. The deployment of the UK carrier strike group to the Indo-Pacific last year, where it engaged with 40 countries, demonstrated our commitment to partnership. Two Royal Navy offshore patrol vessels, now stationed permanently in the region, are further deepening this partnership and supporting capacity-building.

The former Prime Minister—my apologies: she is the current Prime Minister—has commissioned an update of the integrated review to be completed by the end of the year. That integrated review will take account of and reflect the dramatic changes that have happened as a consequence of Russia’s illegal invasion of Ukraine, but the priorities within the integrated review will remain the same: we are not looking at any dramatic shift.

I am so sorry, but I cannot read the names of who asked me certain questions; I apologise if I attribute them to the wrong noble Lords.

On Taiwan, the UK has a clear interest in peace and stability in the Taiwan Strait. As we have always said, the issue must be settled by the people on both sides of the strait through constructive dialogue, without any threat or use of force or coercion. On the issue of visits to Taiwan by western politicians—this is an example of where I cannot read the name of the noble Lord who asked the question—and specifically the visit of Speaker Nancy Pelosi to Taiwan, it is our view that China’s military exercises were inherently destabilising. They form part of a pattern of escalatory Chinese activity over recent months which includes a growing number of military flights near Taiwan. These are not the actions of a responsible international actor. They undermine peace and stability in the Taiwan Strait, which is clearly a matter of global concern. The UK’s long-standing policy on Taiwan remains exactly the same. We have no diplomatic relations with Taiwan, but we have a strong unofficial relationship based on deep and growing ties in an increasingly wide range of areas, underpinned by shared democratic values.

On the issue of academic freedom, particularly in relation to students from China here in the UK—a question raised by the noble Baroness, Lady Anelay—academic freedom and freedom of speech are obviously fundamental values to us in the UK. They are cornerstones of the UK’s world-class higher education system and central to a student’s experience. Universities have specific legal responsibilities to protect academic freedom and freedom of speech within the law. Academics, students and visiting speakers must therefore be empowered to challenge ideas and discuss controversial subjects. If institutions or individuals feel under pressure to compromise on those values, to compromise on academic freedom or freedom of expression, we strongly encourage them to come to the Government and provide us with that information.

It is essential to maintain the UK’s place at the heart of an unrivalled global network of economic, diplomatic and security partnerships—partnerships that deliver for British businesses and British people. That is why the Government continue to invest in China expertise and Mandarin language skills across government and our international network. This expertise, coupled with a deeper understanding of the wider Indo-Pacific region, will be even more important as China’s international assertiveness increases and our ties to the region continue to grow.

Before I come to the end, I want to address recent events in Manchester, which we discussed yesterday on the back of an Urgent Question. However, the Minister in the other place has since said more on the subject. Like other noble Lords, I have seen the consul general’s Sky News interview, which has been referenced in the debate today, in which he claimed that it was his duty to get involved in a physical altercation with a protestor. I would add, as my colleague in the other place did, that no matter how absurd those comments may appear to us, it remains important that we follow due process and await details from the police investigation before determining whatever actions we should take.

However, as the Minister for the Americas and the Overseas Territories, Jesse Norman, set out in the other place, we will take further action without any hesitation, depending on the outcome of that investigation. Our ambassador in Beijing will deliver a clear message directly to the Ministry of Foreign Affairs, and we will send a public message to the Hong Kong community in the UK. I was asked by a noble Lord—again, I sincerely apologise that I cannot read my own writing to see who it was—when that police investigation is likely to end. I am afraid I cannot give a specific date, but I will seek to extract one from the authorities and to share it if I can.

To conclude, the International Relations and Defence Committee’s report makes a valuable contribution to this hugely important topic. We welcome the committee’s scrutiny of our approach to China as we manage disagreements, defend our freedoms and co-operate where our interests align. I end by thanking my noble friend Lady Anelay once again for tabling this debate and all noble Lords for their insightful contributions.

[Lord Alton of Liverpool (CB)]

My Lords, I asked a number of questions—eight in particular—which have not been answered. I recognise that the Minister cannot answer everything in the course of the debate, but I did ask if he could give an assurance that he would write to answer those questions he was not able to deal with.

[Lord Goldsmith of Richmond Park (Con)]

I apologise if I did not answer all eight questions. I am quite sure I did not; I will check Hansard and will certainly follow up on whatever questions remain unanswered.

Chinese Consulate: Attack on Hong Kong Protesters

Lord Goldsmith of Richmond Park Excerpts

Tuesday 18th October 2022 Lords Chamber

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)]

My Lords, with the leave of the House I shall now repeat in the form of a Statement the Answer given by my right honourable friend the Minister for the Americas and the Overseas Territories to an Urgent Question in the other place on the protests at the Chinese consulate in Manchester. The Statement is as follows:

“His Majesty’s Government are extremely concerned at the apparent scenes of violence at the consulate of the People’s Republic of China in Manchester on Sunday afternoon. Greater Manchester Police had been pre-notified of the demonstration and intervened to restore order, and we are grateful to it for its action. I understand that Greater Manchester Police has launched an investigation to establish the facts of the incident.

The Foreign Secretary has issued a summons to the Chinese chargé d’affaires at the Chinese embassy in London, to express His Majesty’s Government’s deep concern at the incident and to demand an explanation for the actions of the consulate staff. It would be inappropriate to go into further detail until the investigation has concluded, but let me be clear that peaceful protest, as this House has always recognised, is a fundamental part of British society and our way of life. All those on British soil have the right to express their views peacefully without fear of violence. FCDO officials expressed that clearly to the Chinese embassy yesterday. We will continue to work with the Home Office and Greater Manchester Police colleagues to decide on appropriate next steps.”

[Lord Collins of Highbury (Lab)]

I thank the Minister for repeating that Statement. I share the Government and the Minister’s concerns at the violence at the consulate. While I welcome the fact that the chargé d’affaires has been summoned and that a meeting apparently took place this afternoon, we must show that such behaviour will not be tolerated on our streets. Therefore, I was disappointed that Jesse Norman was today unable to confirm that the Foreign Secretary would immediately summon the Chinese ambassador to demand an explanation for the incident. I hope that the Minister will urge him to do so without delay.

[Lord Goldsmith of Richmond Park (Con)]

I thank the noble Lord for his remarks. As was said in the Statement, the police in Manchester have launched their investigation, and a police patrol plan is in place in the area. The use of police powers and management of demonstrations are obviously operational matters for the police—but, in relation to what happened on the ground, at this stage it would be inappropriate to comment further until that investigation is completed, at which point the noble Lord’s remarks may well become more pertinent.

[Lord Dholakia (LD)]

My Lords, there is ample video evidence to be able to see precisely what happened in Manchester on that day. There are hundreds of Hong Kong refugees now in this country for the purpose of resettlement. Is there any way that it can be determined whether there is diplomatic immunity, on the basis that we can take no action—other than making sure that we expel those who are responsible from this country back to China?

[Lord Goldsmith of Richmond Park (Con)]

The noble Lord makes an important point, but it is one to which I cannot respond with any degree of authority or detail. We have to wait until the investigation is complete before knowing for sure what took place at the protest, and whatever actions follow will result from that clearer understanding.

[Lord Alton of Liverpool (CB)]

My Lords, I declare my non-financial interest as vice-chair of the All-Party Parliamentary Groups on Hong Kong and on Uyghurs, and as a patron of Hong Kong Watch. This question is about grievous bodily harm, which has been done to a peaceful protester who has had to be hospitalised. It is about the Chinese Communist Party believing that it is above the law and can act with impunity on British soil. It is about the importation of CCP brutality, which has so disfigured the lives of the peoples of Hong Kong, Xinjiang, Tibet and Taiwan, and Chinese citizens who have dared to question the tyranny of the one-party state. It is also about the contagious spread of CCP cadres, whether they are intimidating students on our campuses and subverting institutions and even, as our intelligence agency has pointed out, CCP spies working in the precincts of our Parliament.

The key question for the Minister tonight is that, once this investigation has been completed—and we all welcome the work that is being done by the Greater Manchester Police force—if it shows that Consul-General Zheng Xiyuan, Consul Gao Lianjia, Counsellor Chen Wei and Deputy Consul-General Fan Yingjie, who were all directly involved in attacking peaceful protesters in Manchester, will the Government ensure that they will be treated as persona non grata forthwith and told to pack their bags? To do anything less would devalue the currency of our belief in free speech and the right to protection while peacefully expressing dissent.

[Lord Goldsmith of Richmond Park (Con)]

The noble Lord makes a powerful intervention. However, it is simply not possible for me to respond in any detail until those inquiries are completed. Once they are and we know what happened, it would then be for the Government to respond appropriately.

The noble Lord makes an important point. Peaceful protest is an absolutely core part of a democratic society. It is a long-standing tradition in this country. People are free to gather to demonstrate their views, and to do so knowing that they will not be punished as a consequence. As the noble Lord knows, that is not true all around the world. However, it is very precious and we will continue to defend it.

The noble Lord has done some sterling work for those from Hong Kong fleeing persecution. I hope he will agree with me that the Government have stood by those citizens of Hong Kong who face persecution. We have been very clear that China remains in an ongoing state of non-compliance with the Sino-British joint declaration.

I was looking for the latest figure for the number of people who have come over from Hong Kong—as I say that, I find them. There have been 140,000 applications, with 133,000 granted. That is a reflection of the value that the British people and Government place on our friends in Hong Kong.

[Lord Campbell of Pittenweem (LD)]

My Lords, I cannot resist an observation to this effect: suppose that the roles had been reversed and representatives of the United Kingdom had behaved in this way. One can only imagine the rightful indignation that we would have heard from Beijing. Here is the question I want to address: have there been incidents of peaceful presentation at this particular location in the past that have passed without incident?

[Lord Goldsmith of Richmond Park (Con)]

The noble Lord makes a useful observation on the turning of the tables. The answer is that I do not know. I suspect that there have been peaceful protests. The fact that we have not debated incidents in that venue suggests that the answer to his question is yes, but I will need to get back to him to confirm that.

[Lord Collins of Highbury (Lab)]

My Lords, I want to come back to my original question. I totally understand that it is not the Government’s position to interfere with the operations of the police or their investigations. However, the Government felt it right to summon the chargé d’affaires to make clear our view about this incident. Why is it not right for the Foreign Secretary to summon the ambassador to make this position clear? Surely that must be done immediately.

[Lord Goldsmith of Richmond Park (Con)]

My Lords, that depends on what is discovered. It may well be, as noble Lords are implying, that this was an egregious act of wrongdoing. If that is the case, the Government will respond accordingly and, at that point, our conversation and interaction with China and Chinese representatives would change. However, at this point, it would be premature for me to map out a course of action.

[Lord Alton of Liverpool (CB)]

My Lords, will the Minister ensure that he takes a look at the video material that is available? It shows the protester being dragged into the consulate grounds. What happened to the protester is all on film. This is not us becoming angry about what someone said might have happened; it can be seen very clearly.

[Lord Goldsmith of Richmond Park (Con)]

My Lords, I have seen the images captured on video. All I would say is that there has to be a process. This is a very serious incident. If noble Lords’ fears are confirmed, obviously the situation will be escalated, as it must be. It is incumbent on the Government, before they respond, to they know absolutely the facts on the ground.

House adjourned at 7.14 pm.

Sanctions (Damages Cap) Regulations 2022

Lord Goldsmith of Richmond Park Excerpts

Tuesday 18th October 2022 Grand Committee

Moved by

[Lord Goldsmith of Richmond Park]

That the Grand Committee do consider the Sanctions (Damages Cap) Regulations 2022.

Relevant document: 11th Report from the Secondary Legislation Scrutiny Committee

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)]

My Lords, this instrument, which is subject to the affirmative procedure, was laid before Parliament in draft on 20 July 2022, under Section 55(5) of the Sanctions and Anti-Money Laundering Act 2018—the sanctions Act. It will be made once it is approved by both Houses.

The instrument represents further action to strengthen the UK’s sanctions regime in response to Vladimir Putin’s illegal and abhorrent war against the people of Ukraine. Since the invasion, the UK has worked with international partners to deliver an unprecedented package of sanctions against Putin’s regime and his allies who are complicit in its brutality.

As noble Lords will be aware, the Economic Crime (Transparency and Enforcement) Act 2022 proceeded quickly through Parliament following Russia’s invasion and received Royal Assent on 15 March. That Act amended the sanctions Act to reform how sanctions are imposed and reviewed and how challenges to them are dealt with. Those amendments received cross-party support, including across the Benches in this House.

The economic crime Act created a power for the Government to set a limit on the amount of damages that a court can award for designations made in bad faith. In exercise of that power, the instrument before us introduces a cap of £10,000. This cap will apply to any proceedings challenging the Government’s use of designation powers under the sanctions Act or to the specification of a ship issued on or after 4 March 2022. It will minimise the risks to His Majesty’s Government of spurious or vexatious litigation from deep-pocketed oligarchs, as we continue to ratchet up the pressure on Putin. It is right and proper that the Government protect public funds in this way.

To be clear, this will not affect the right of a designated person to challenge their designation in a court or, if appropriate, have the designation lifted. Furthermore, the courts will have the power to disapply the damages cap to avoid any potential breaches of human rights, where necessary, in individual cases. But the cap will send a strong signal that Putin’s oligarchs and kleptocrats cannot draw on the public purse in this country to boost their coffers, that this Government will not be distracted from the task in hand by endless litigation and that we will not be knocked off course by the risk of damages claims. Noble Lords should make no mistake: this is not about protecting the Government from acting in bad faith. It is about sending a clear message to friends of Putin who are tempted to bring claims without merit.

To conclude, the UK Government will not hesitate in bringing forward further sanctions to target those who participate in or facilitate Putin’s illegal war of choice. On 26 September, the UK announced further sanctions targeting those responsible for Putin’s sham referenda. They included four Russian Government officials, four further oligarchs, 55 state board executives, and 29 individuals and organisations working for illegitimate proxy groups in Donetsk, Luhansk and Zaporizhzhia. On 30 September, the Foreign Secretary announced a new set of sanctions that further limited Russia’s access to the foreign services on which it depends.

Taken alongside previous action, the UK is now preventing Russian access to advertising, architectural, auditing, engineering and IT consultancy services, as well as various commercial legal services. The announcement included a new ban on the export of nearly 700 goods that are crucial to Russia’s industrial and technological capabilities. It also included new sanctions on Elvira Nabiullina—with apologies for the pronunciation—the governor of the Central Bank of the Russian Federation, who has been instrumental in managing the Russian economy throughout the war and in the rouble being imposed on Ukrainian territories that have been seized by Russia.

I trust that the Committee will support this instrument, which strengthens the UK’s ability to sanction those responsible for Putin’s illegal and brutal war. I beg to move.

[Lord Collins of Highbury (Lab)]

I thank the Minister for introducing this statutory instrument. Yesterday, we debated other sanctions and focused particularly on Russia. Of course, around the time of that debate, 28 unmanned drones reaped further unnecessary destruction in the capital, Kyiv. A young couple, who were expecting their first child in a matter of months, were among those killed by the senseless barbarity that is driving Putin’s war effort. I know that such crimes will strengthen the resolve not only of the people and Government of Ukraine but that of our Government, this House and all Members of Parliament to ensure that we continue to support Ukraine.

Before I cover the substance of this SI, last night the Minister kindly promised to let me have sight of a letter to my honourable friend Stephen Doughty that answered several of his questions, which I had repeated. By the time I got back to my office, I had received it; I thank the Minister. I specifically raised the issue of mixers, which scramble the origins of crypto transactions to make them virtually untraceable. I asked why two of those mixers—Tornado and Blender—are not on our sanctions list, despite being targeted by the United States. Short of the letter saying that it would be wrong of the Minister to speculate about the targets of future sanctions, there was no mention of them. I will keep repeating the point I have made before: if we do not act in concert with our allies, such as the United States, these mixers will have the capacity to funnel billions to Putin and his cronies. I hope the Minister can reassure us tonight that the Government will act on this.

I turn now to the substance of today’s SIs. It is absolutely right to disincentivise oligarchs and other designated persons from pursuing the Government through the courts by capping the damages that they could receive if they prove that they were sanctioned in bad faith. For far too long, oligarchs from Russia and beyond have acted with complete impunity, their wealth a symbol of global failure to tackle the illicit finance channels which span our economy, politics and society.

Last month, it was revealed that at least 21 Russian businessmen were engaged in legal proceedings across the European Union to overturn sanctions against them, according to filings at the European Court of Justice. I absolutely agree with the noble Lord that today’s action is a welcome step in constraining their ability to tie up these designations in legal showdowns and limit our ability to act. Given that they operate within the parameters of the ECHR, Labour welcomes these changes.

However, it makes no sense to make these changes without acting against illicit Russian finance, which still pollutes the City of London. Labour welcomed the economic crime Act, but the measures it sets out are only the beginning in addressing the chronic problem of dirty money. Minimising what an oligarch can glean from a protracted legal battle is one thing but driving illicit finance out of our institutions is another matter entirely.

As I have repeatedly stated in the Chamber, we must reform Companies House, with new powers to verify information and remove corporate entities from the register once rules are broken. It is vital to ensure that our enforcement bodies are funded for the long term and are no longer outgunned by the seemingly endless resources of oligarchs that we are up against. Spotlight on Corruption highlighted that money laundering prosecutions have dropped by 35% over the last five years. The United Kingdom is by far the most frequent country of origin of SLAPPs—strategic lawsuits against public participation, also known as intimidation lawsuits—with 31% of these cases originating in the UK, according to the Anti-SLAPP Coalition.

The existing budget for economic crime law enforcement is £400 million, with only £100 million of that coming from the Treasury. Given that this is supposed to be a priority of the Government, that amount seems entirely inadequate. I hope the Minister can reassure us that we will build capacity to tackle these oligarchs.

Before I conclude, I have a couple of questions. The cap on damages appears to apply to any proceedings after 4 March. Does the Minister know how many proceedings this will apply to? When the then Minister of State at the Home Office, the noble Baroness, Lady Williams, introduced the relevant sections of the economic crime Act, she said that the cap on damages would limit the oligarchs’ claims, but it is not clear what will have been paid out before the cap comes into effect. Is there information on that amount? Can the Minister tell us exactly how the Government concluded that £10,000 is an appropriate level for a cap?

With these comments, I reiterate that we are strongly supportive of the Government’s actions, and we certainly support the adoption of this SI.

[Lord Goldsmith of Richmond Park (Con)]

I thank the noble Lord for his comments and support for the measure. We have acted swiftly to hold Russia to account for its attack on Ukraine. The UK is inflicting devastating pain in areas of strategic importance to Putin and Russia following the unprovoked and illegal invasion. The Government brought forward this legislation before the Summer Recess and, as the noble Lord said, the cap will apply to all proceedings brought before 4 March.

We continue to make maximum use of our sanctions powers to ensure the strongest possible response to Putin’s illegal invasion of Ukraine. We must ensure that the measures and cases are carefully targeted on the basis of robust evidence before we sanction individuals, goods or companies. That is why we are taking it step by step but noble Lords may rest assured that we will continue to sanction where it will have maximum impact.

It is important to recall that, when this House decided to restrict damages to cases of bad faith, it also gave the Government the power to set a cap. That was done precisely to send the message that no one should benefit from massive payouts from sanctions litigation. We have concluded that £10,000 is appropriate. I am confident in the integrity of our process but this is about sending a message. By imposing a cap, we are removing incentives for deep-pocketed oligarchs or financial institutions to bring unfounded or vexatious litigation. A court cannot neglect to apply the damages cap except in specific circumstances where failure to do so would be in breach of the individual’s human rights.

The starting point will always be that the damages cap applies and will be disapplied only in those very particular circumstances. Any designated person may challenge their designation in court and have it removed if it is not justified, and has the right to receive damages where the Government have acted in bad faith. The core right remains for any designated person to challenge their designation in court and have it removed if it is not justified. This House considered the arguments and supported without objection the Government’s proposal to exclude damages for negligence during the passage of the Economic Crime (Transparency and Enforcement) Act.

I apologise that reference was not made in the letter that the noble Lord, Lord Collins, saw last night to the two mixers he mentioned in his comments yesterday. I am not able to be specific in my answer to him now other than to say that we are working in concert with our allies and will continue to act where appropriate. Absolutely no entity is off the table. We will go further to bring about an end to Putin’s war. I note the recommendation made by the noble Lord; he makes a strong argument. I will make sure that there is appropriate follow-up by government but I hope he understands why I cannot go into more detail now.

The noble Lord asked about 4 March and, I think, how many processes would pre-apply before that date. I think the answer is none. He also asked what has been paid out as a result of actions that precede these measures coming into force. I think the answer to that is also nothing. I think that is correct—I am getting a nod of agreement behind me. That is good news.

The noble Lord rightly raised the question of capacity. I hope I can reassure him by saying that, in December last year, there were 48 substantive roles in the sanctions unit, which has now become the sanctions directorate. We have doubled the number of officials focused on our response. We now have more than 100 permanent staff delivering our response. This number does not include those working across the FCDO and its overseas network, who cover sanctions as part of their wider roles.

The Office of Financial Sanctions Implementation—the OFSI—has also doubled its size this financial year and continues to grow to meet the challenges of the sanctions introduced under the Russia sanctions regime. The recruitment of new permanent staff continues following the former Chancellor’s announcement in March to double the size of the OFSI.

It is the responsibility of the UK and our allies to ensure that our sanctions regimes are maintained and updated appropriately so that we can respond at pace to the activities of malign actors around the world. I once again thank the noble Lord for his insightful contributions and support.

Motion agreed.

Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2022

Lord Goldsmith of Richmond Park Excerpts

Monday 17th October 2022 Lords Chamber

Moved by

[Lord Goldsmith of Richmond Park]

That the Regulations laid before the House on 19 July be approved.

Relevant documents: 12th Report by the Joint Committee on Statutory Instruments (special attention drawn to the instrument)

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)]

My Lords, the instrument before us was laid on Tuesday 19 July 2022, under the powers provided by the Sanctions and Anti-Money Laundering Act 2018, also known as the sanctions Act. The Joint Committee on Statutory Instruments published its 12th report of the 2022-23 Session on Friday 14 October. The committee reported the instrument for two reasons: one for defective drafting and another relating to one of the sanctions regimes to which the amendment applies—the Burundi (Sanctions) Regulations 2021. I will address each of these briefly in turn.

First, the JCSI raised concerns about the absence of definitions on sanctions in the new information provisions. It is not satisfied that the drafting of the new regulation clearly achieves the stated policy to limit the functions in question to those imposed under the relevant instrument. We are considering the most appropriate way to address the committee on that point.

The second aspect flagged to us by the committee relates to the Burundi (Sanctions) Regulations 2021, which was originally laid in December 2021 to replace the Burundi (Sanctions) (EU Exit) Regulations 2019. The replacement regulations were made to reflect the 2020 Burundi elections and the peaceful transfer of power. As noble Lords may recall, the 2021 regulations were debated but they were not approved by resolutions of both Houses within 28 days, and therefore ceased to have effect on 23 January 2022. This was in accordance with Section 55(3) of SAMLA. Having carefully considered the consequences, the FCDO concluded that the 2019 regulations have not been revoked by the 2021 regulations and therefore remain in force. The Joint Committee on Statutory Instruments accepted this conclusion.

The UK Government continue to monitor developments in Burundi and to keep the sanctions regime under review; we are currently considering a 2022 regulation. We thank the committee for its detailed feedback and continued engagement on the FCDO’s sanctions legislation, which we continue to bring forward at pace. I also take this opportunity to thank those across your Lordships’ House for the continued support for amendments brought forward by His Majesty’s Government to update the sanctions regime throughout this Session.

Sanctions form a key pillar of our foreign policy. It is essential that our sanctions regimes are maintained and updated appropriately, so that we can respond at pace to the activities of malign actors around the world. Indeed, we have recently shown the strength and utility of our sanctions in our response to Vladimir Putin’s invasion of Ukraine and Russia’s crimes against the Ukrainian people.

The legislative instrument that we are debating today updates all our sanctions regimes, including those we are required to implement due to our UN obligations, as well as our autonomous UK regimes. These regulations ensure that crypto asset businesses fall within the scope of financial sanctions reporting requirements, strengthening our ability to respond to emerging threats and evolving global standards.

Specifically, the regulations require crypto asset exchanges and custodian wallet providers to report to the Treasury if they encounter any designated persons in the course of business or if they are holding any frozen assets on behalf of customers who are designated. Crypto asset businesses are also required to report any suspected breaches of financial sanctions.

The regulations also include new powers for public authorities to share financial sanctions information with the Treasury. This change ensures a wide range of persons and organisations, from regulators to local authorities, have a dedicated information-sharing gateway. They will no longer have to rely on gateways that are not sanctions-specific or on the Treasury’s powers to compel information from partners.

We hope that this will give organisations confidence to share information so that the Government can better pursue breaches and uphold the integrity of UK sanctions. These changes are possible thanks to the Economic Crime (Transparency and Enforcement) Act 2022, which amended the sanctions Act in March this year.

The regulations also make changes to our various sanctions regimes to update definitions and clarify intentions. These amendments ensure that the definition of “designated person” is consistent across regulations. They include a correction of the reporting obligations relating to the transfer of funds to a ring-fenced account. They clarify that, within the Libya sanctions regime, it is not a breach of sanctions to credit a frozen account with interest and specify that Treasury licences would be available for the purpose of satisfying prior obligations. They also correct acronyms which were entered incorrectly into the initial regulations or were missing, and update the name of the African Union peacekeeping force in Somalia.

These regulations will ensure that our sanctions continue to hold to account corrupt officials, abusers of human rights, and malign actors across the world, and that our UN sanctions regimes remain accurate. To conclude, these amendments mean that our sanctions regimes take account of the most modern financial services and prevent loopholes being exploited in the future. I welcome this opportunity to hear views on these regulations. I beg to move.

[Lord Beith (LD)]

My Lords, I rise briefly to intervene in this debate on the point which the Minister helpfully set out in his opening remarks, one of the two issues raised by the Joint Committee on Statutory Instruments. This instrument amends the Burundi (Sanctions) (EU Exit) Regulations 2019 but, according to the legislation.gov.uk website—the definitive source—those regulations were revoked by the Burundi (Sanctions) Regulations 2021. Commercial websites on UK legislation also refer to the 2019 regulations having been revoked. That would make today’s proceedings a little odd, because we would be amending something that was no longer law.

However, this is not the case. As the department explained in its memorandum to the Joint Committee, although the revoking SI was debated in 2021, it was not approved by both Houses of Parliament within the required 28 days. Therefore, under the terms of the Sanctions and Anti-Money Laundering Act 2018, as a “made affirmative” instrument, it expired. The Joint Committee agrees with the department’s view that the original regulations have not been revoked and can therefore be amended tonight.

I raise this matter because it is important that affected citizens and businesses, and their lawyers, can establish with clarity what the law is or was at a relevant time. In this instance, the only sources to which you could have turned to find out—not only government but commercial sites—had got it wrong. I raise it as a warning of the pitfalls of complex legislation by statutory instrument—of which we have a lot coming down the track—and the need to be absolutely clear about what is and is not law in force. The committee has written to the hard-working team at the National Archives to ensure that the matter is put right there. The committee’s advisers should be commended for identifying it. It is important that we get these things right.

Not on behalf of the committee in any way, perhaps I could also raise the question that the Minister touched on: what is the Government’s current view of the relevance, purpose and desirability of sanctions against Burundi?

--- Later in debate ---

[Lord Collins of Highbury (Lab)]

My Lords, I, too, welcome the Minister’s introduction of these regulations. I assure him and the Government of our continued support for these measures. In the debate that we had last week, we made our continued support absolutely clear.

There are a couple of points I want to focus on. These were raised by my honourable friend Stephen Doughty in the other place in relation to cryptocurrencies being used to evade sanctions and particularly how they can be used to inject capital into the democracies of the world for the purposes of swaying elections. During the Commons debate, Stephen Doughty asked why the Government have not yet sanctioned Tornado Cash and Blender, two cryptocurrency services already sanctioned by the United States. While I am pleased that the Minister confirmed that the Government are looking at sanctioning those two organisations, I hope the Minister can update tonight about when we can expect further legislation in this regard.

Just picking up the point made by the noble Baroness, Lady Kramer, the Minister in the Commons was unable to update the House on the steps taken to pursue greater global regulation of cryptocurrencies. I hope the Minister can tell us whether the United Kingdom mission to the United Nations has taken part in any discussions on this and whether the point was raised at the annual meeting of the IMF and the World Bank earlier this month, in addition to answering some of the other points that the noble Baroness has raised.

Since the invasion of Ukraine by Putin’s regime, there has been a huge increase in rouble to crypto trades resulting from individuals and businesses wanting to evade sanctions on cross-border payments. Will the Minister tell us what the Government are doing to monitor the providers used for these exchanges?

Finally, earlier this month the US Government fined Bittrex, a cryptocurrency exchange, for repeated violations of sanctions. Will the Minister tell us, specifically and in a more general sense, how we are working with the United States and other allies on investigations such as these so that we can ensure that our measures have full compliance? As the noble Lord, Lord Ahmad, repeatedly says, sanctions are not effective unless we act in concert with others, so I hope the Minister can respond on these points.

[Lord Goldsmith of Richmond Park (Con)]

My Lords, I thank noble Lords who have contributed to this debate today. I will do my best to address the issues that were raised by noble Lords.

Crypto asset exchange providers and custodian wallet providers have been added to the definition of relevant firms in all UK sanctions regulations, and relevant firms must report certain information to the Treasury when encountering a designated person in the course of their business or where they become aware of a breach of financial sanctions regulations. Reporting obligations themselves have not changed.

The instrument that we are debating today strengthens our sanctions in two ways: first, the measure further supports the UK’s technical implementation of recommendation 15 of the Financial Action Task Force standards. It is the international standard-setting body for all anti-money laundering, counterterrorist financing and counterproliferation financing. Recommendation 15 requires the Government to ensure that certain financial sanctions reporting obligations are applied not only to financial institutions and designated non-financial businesses and professions but to virtual assets service providers. These regulations bring crypto asset exchange providers and custodians wallet providers into the scope of those obligations.

The second area in which this strengthens our regime relates to enforcement. The instrument seeks to address the risk of crypto assets being used to breach or circumvent financial sanctions. The definition of “relevant firm” now covers firms that either record holdings of or enable the transfer of crypto assets and are therefore most likely to hold relevant information.

I will address some of the specific points raised by the noble Baroness, Lady Kramer. I felt she made an interesting point about the possibility of the FCA and the NCA sharing the proceeds of fines to build up their capacity, and I will certainly convey that suggestion to my colleague in the other place. I believe the Office of Financial Sanctions Implementation has doubled in capacity this year, and we have seen that mirrored through the infrastructure we have to counter these forms of crime in the UK.

The noble Baroness gave a very effective plug for her Private Member’s Bill to protect whistleblowers. I will not pretend that I know chapter and verse of her Bill, but it certainly sounds sensible and worthy of serious consideration. I will also pass that to colleagues and do my best to ensure that it is treated with the seriousness it no doubt deserves.

The noble Lord, Lord Beith, asked a couple of questions about Burundi. As he acknowledged, the view—I think it is a consensus—is that the 2019 Burundi sanctions regulations remain in place. On the second point, the issue about guidance online has been brought to the attention of the FCDO. Colleagues in the FCDO are now working with those websites to ensure that the right guidance is available, so I think the point he made has already been registered in the Foreign Office by the relevant department.

The noble Lord, Lord Collins, repeated the question put to colleagues in the other place by Stephen Doughty in relation to two firms in particular. Although I do not have the answer for him now, I know that a letter is winging its way across to Stephen Doughty—I am told it will reach him this evening—and addresses the points he raised. I hope that is satisfactory. I will make sure that the noble Lord receives a copy of the letter.

The noble Viscount, Lord Waverley, made a number of interesting points. I flag to him that a new combating kleptocracy cell has been set up this year in the National Crime Agency. I hope it will be able to fulfil some of the roles and functions he outlined in his contribution.

[Lord Beith (LD)]

I asked the Minister a general question about Burundi, to which the appropriate section of these regulations relates specifically. Bearing in mind that most countries reduced or ended their sanctions on Burundi earlier this year, what is the current Foreign Office position?

[Lord Goldsmith of Richmond Park (Con)]

My concern in answering this question is that I never know where the line is drawn. We are not supposed to talk about individual or upcoming sanctions. My understanding is that this has been largely an academic issue—I really hope I am not crossing any lines here—and that, regardless of whether the regulations had been revoked, and we understand that they have not, it would have had no material impact on any company or individual. It is unfortunate and an error, but it has not had any real-world impact. I hope that addresses his question.

[Baroness Kramer (LD)]

I thank the Minister for the responses he has given me so far, but I raised the issue of British Overseas Territories and cited the example of Binance, one of the largest crypto exchanges, which is based in the Cayman Islands, and how these SIs would impact that. If he cannot answer, I am perfectly happy if he comes back in written form.

[Lord Goldsmith of Richmond Park (Con)]

I apologise for missing that question. The new sanctions automatically come into force in the overseas territories—all except Gibraltar and Bermuda—as soon as they come into force in the UK. As noble Lords would imagine, the UK’s Office of Financial Sanctions Implementation has for many years been engaging substantially and very regularly with the overseas territories and Crown dependencies to help support their development of compliance, enforcement and licensing functions. I hope that addresses the noble Baroness’s question.

It is the responsibility of the UK and our allies to ensure that our sanctions regimes are maintained and updated appropriately so that we can respond at pace to the activities of malign actors around the world. In co-ordination with our allies, we must and do continue to make sure that our sanctions regimes take account of the most modern financial services and prevent loopholes being exploited in the future. I am grateful to noble Lords for having indicated their support for this measure and once again thank them for their contributions.

Motion agreed.

UN Sustainable Development Goals

Lord Goldsmith of Richmond Park Excerpts

Thursday 13th October 2022 Lords Chamber

[Lord Bruce of Bennachie (LD)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and, in so doing, draw attention to my entry in the register of interests.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)]

My Lords, we remain committed to achieving the sustainable development goals by 2030, including the eradication of extreme poverty. For the first time in years the number of people living in extreme poverty is rising. To get the sustainable development goals back on track we need to counter malign activity, deliver lasting growth, alleviate suffering and tackle the causes of the crises. The UK’s strategy for international development outlines how we will focus our development efforts to deliver this ambition.

[Lord Bruce of Bennachie (LD)]

I welcome the sentiment behind that Answer. The Minister will recall that David Cameron was chair of the UN commission that established the sustainable development goals. Yet last month the replenishment conference of the Global Fund to fight AIDS, Tuberculosis and Malaria raised $14.25 billion, but the UK, hitherto a major donor, contributed absolutely nothing. Even the Democratic Republic of the Congo contributed $6 million. UK aid has been savagely cut, and now frozen, so development agencies do not even know what their future is, after an unexplained £3 billion overspend. How on earth can the UK maintain that it has a credible commitment to the UN objectives of ending absolute poverty by 2030 and leaving no one behind? Without the restoration of our aid budget, there is no credibility in the Government’s statements.

[Lord Goldsmith of Richmond Park (Con)]

I have already made comments about the issue of 0.5% and 0.7%. I will not repeat them, other than to say that, like everyone in this House and the other place, we look forward to being able to return to 0.7% very soon. On the specific point that the noble Lord made about the Global Fund, it is true that we have not yet committed to a number, but that is not the same as saying that we are delivering nothing to the Global Fund. We are committed to the Global Fund. I cannot announce the financial commitment that that represents, but it is not true to say that we are withdrawing our support; far from it: we will be making a substantial commitment in due course.

[Lord Trees (CB)]

My Lords, disease causes poverty and poverty causes disease in a vicious circle. Does the noble Lord agree that health underpins all development: social, educational and economic? Does he further agree that, within ODA and our ODA commitment, our support for health should be prioritised?

[Lord Goldsmith of Richmond Park (Con)]

The noble Lord is obviously right. Health remains one of the top four priorities as set out in the integrated review and the international development strategy, neither of which has changed or been forced to be changed as a consequence of recent activities, not least Russia’s illegal invasion of Ukraine. Health remains a top priority and will continue to do so.

[Baroness Stroud (Con)]

My Lords, when the UK Government signed up to the sustainable development goals and the eradication of absolute poverty by 2030 they also made that commitment for the UK itself. Will the Minister outline the strategy for the UK eradicating absolute poverty here? If that strategy does not exist, will the Government bring forward a strategy to do so?

--- Later in debate ---

[Lord Goldsmith of Richmond Park (Con)]

The noble Baroness makes an important point. I am afraid this is far beyond my brief, given that my focus is on international poverty alleviation, environment and climate change, but I will ensure that her question is noted and that there is a response.

[Lord Collins of Highbury (Lab)]

My Lords, one thing about the SDGs is that they are not about ODA; they are about all countries making a commitment to address these vital goals for the future. One of the goals that will impact on poverty is goal 13 on climate change and the action that we need to take, not only domestically—I am not going to talk outside his brief. What are the Government doing to ensure that climate change and SDG 13 are a major priority for the international community? Will the Minister commit to making steps to ensure that the UN adopts climate as the fourth pillar so that we can actually see the world address this issue to safeguard our future?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, it is widely acknowledged that COP 26, of which we were president, was a diplomatic triumph. We did not achieve everything that we wanted to achieve, but by the time we completed the conference—we remain president until we hand over to Egypt—90% of the global economy was signed up to net-zero commitments; it was 30% when we took on that role. As to broadening the agenda at the climate conference beyond merely counting carbon and looking at the impact on the natural world—forests, mangroves and so on—I think it is recognised that COP 26 was the turning point that we needed. We remain president of COP and continue to maintain and nurture the diplomatic capabilities that we built up for COP 26. All our climate environment attachés are still working hard to ensure that, as we hand the baton to Egypt, we hand over something that can be properly built on by the new president. We are also using the same network to advance global ambition in relation to the biodiversity COP, which is happening in Montreal at the end of the year and is no less important than the climate COP.

[The Lord Bishop of Coventry]

My Lords, the latest Goalkeepers report from the Gates Foundation finds that we need to speed up the pace of our progress by five times if we are to stand any chance of meeting the goals. Mindful of the noble Lord’s earlier answers, does he agree with the report’s emphasis on providing to sub-Saharan Africa and other low-income regions the necessary support and investment in agricultural R&D to provide for innovative inventions such as drought-resistant maize and short-duration rice?

[Lord Goldsmith of Richmond Park (Con)]

That is an extremely important point. It is a core part of the work we are doing, particularly in the Horn of Africa, which we discussed in the previous Question. I will not repeat all the numbers because the House will have heard them, but the right reverend Prelate makes an important point. Total annual global aid is around $170 billion, but it is estimated that the funding gap, if we are to achieve the sustainable development goals, is nearer $3.7 trillion. Even if we were all to double our aid commitments globally it would still not touch the sides. The answer therefore has to be to use other tools that Governments have access to. I mentioned trade earlier. The UK, as the fifth- or sixth-biggest economy in the world and a big, attractive market for those poorer countries, is committed to making itself more available and more accessible to those countries in a way that perhaps we should have done in the past.

[Baroness Hoey (Non-Afl)]

My Lords, many of the people facing extreme poverty live in certain countries in Africa and many of those countries are run by corrupt neo-dictatorships, particularly Zimbabwe at the moment. What more can His Majesty’s Government do to expose the corruption in these countries, which is costing the lives of so many ordinary African people?

[Lord Goldsmith of Richmond Park (Con)]

The noble Baroness is right. Unfortunately, it is not just a handful of countries; a lot of countries could fit the description that she put forward. From the perspective of our international development assistance, we are very careful not to provide funding directly to Governments because we know that, where we do, a lot of that money ends up fuelling corruption and rarely reaches the projects on the ground. Our job is to try to find examples of projects that we can support outside national Governments where we can attempt to enable those communities where we are investing to prosper in a way that does not foster corruption in those countries.

[Lord Purvis of Tweed (LD)]

My Lords, it is not good enough for the Minister to say that he hopes to return to 0.7%. The Government set fiscal tests that would be determined by the OBR. The OBR said in its spring report that those tests had been met for next year and the Government, in their spending review, had set an unallocated £4 billion a year. It would be unacceptable if, as a result of the mini-Budget, this unallocated fund was now raided. Would the Minister not agree that tax cuts for the richest at home meaning raiding the budget for the poorest abroad is morally unacceptable?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, I will not return to 0.7% other than to say that we are very keen to return to it as soon as we are able to.

[Baroness Foster of Oxton (Con)]

My Lords, I echo the comment made by the noble Baroness opposite. I spent five years on the African, Caribbean and Pacific-EU Joint Parliamentary Assembly when I was an MEP and we regularly visited many countries in Africa. What was so obvious so often was that the aid provided never reached the people it was meant for. Too many Governments renege on their responsibilities and continue to be too reliant on overseas aid. As was said, the corruption was rife. Does my noble friend agree that these Governments need to be brought to account if we are to achieve the improvements needed to improve the lives of the people there?

[Lord Goldsmith of Richmond Park (Con)]

I agree very strongly, but without exaggerating the ability the UK has to do that. What we can do is be sure that the money we provide from UK taxpayers via our overseas development assistance does not fuel that kind of corruption. It is also worth looking for opportunities in countries where governance is less of a problem to use other mechanisms to deliver development. Gabon, for example, a country I recently visited, is not asking the UK for ODA. It is not asking any country for aid; what it wants is to be able to trade in a more equal and fair manner, and to access our markets in a way that it has not been able to in the past. That would be worth far more, by its calculations—I think it is probably right—than anything we could ever offer through aid.

Horn of Africa: Famine

Lord Goldsmith of Richmond Park Excerpts

Thursday 13th October 2022 Lords Chamber

[The Lord Bishop of St Albans]

To ask His Majesty’s Government what assessment they have made of the famine in the Horn of Africa.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)]

My Lords, the crisis in east Africa continues to worsen. Drought is causing significant levels of food insecurity. Over 51 million people in the region are estimated to be facing severe food insecurity, and of particular concern is the recent data from the Bay region in Somalia projecting that famine is likely to occur this year. The UK is a major humanitarian donor to the east Africa region and UK-funded activities are making a difference and saving lives. In the financial year 2022-23, the UK intends to provide approximately £156 million in humanitarian aid across east Africa. Of this amount, nearly 50% has already been allocated to help those affected by this devastating crisis.

[The Lord Bishop of St Albans]

My Lords, a combination of conflict, climate change, increasing world food prices and a fifth year of drought means that we have an absolute humanitarian crisis hitting this part of the world. In Somalia alone, the UN is estimating that about half a million children are likely to die shortly. We have slashed our aid budgets to that part of the world. We need emergency funding as well as long-term funding. What can we do in addition to what the Minister has said in working with our international partners to get emergency aid into those areas which are dreadfully affected?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, it is absolutely right to say that the UK reduced the proportion of its GNI spending on overseas aid from 0.7% to 0.5%, but we are committed to returning to 0.7%. Like many noble Lords, I hope that happens as soon as possible, but in the meantime it is worth reiterating—to remind the House—that we remain one of the world’s most generous donors, particularly when it comes to humanitarian assistance, and the proportion of our ODA which goes toward the very poorest people in the world is higher than that of any of the other G7 donor countries, I believe. It is an important point that if you tot up all the international aid provided year on year, which comes to around $160 billion a year, that is not a patch on the actual needs, so we will not solve these problems through ODA alone. That is why our emphasis in the UK on facilitating easier trade with poorer countries and bringing investment to them is so important to leverage the support we can give.

[Lord Bellingham (Con)]

My Lords, further to the excellent question from the right reverend Prelate, does the Minister agree that there are now indications that some of the humanitarian aid is being intercepted and interrupted by that vile terrorist organisation, al-Shabaab? What assessment has he made of this and what measures can be taken to try to stop it?

[Lord Goldsmith of Richmond Park (Con)]

My noble friend makes a hugely important point. The challenge of delivering humanitarian assistance to countries where there are so many people in need but where the authorities are not always moving in lockstep with us makes things very much more difficult. In Somalia, it is now estimated that nearly 8 million people—approximately half of the country’s population—currently need humanitarian assistance. We will continue to focus as much of our support as possible in that region and the wider region of the Horn of Africa, while using whatever leverage we have to deliver political stability in Somalia.

[Lord Purvis of Tweed (LD)]

My Lords, during the 10 minutes of this Question, 12 people will die of severe hunger and malnutrition in the Horn of Africa. I declare that I was in the wider region over the recess. The scale of the Government’s cuts is adding to the problem. The UK committed £861 million in 2017 to support a less severe famine, and there is now less than a third of that from UK support. Hospitals that serve children in Somalia are closing which the UK was directly funding. At the very least, can the Minister intervene to ensure that hospitals that serve children are not being closed as a result of UK cuts?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, the UK-supported humanitarian activities are saving lives and having immeasurable impacts. In the year 2021-22, we provided a total of £230 million in humanitarian assistance to the east Africa region, to which the noble Lord referred. In the current financial year, the UK intends to provide £156 million in addition to that. The impact of our work can be seen and measured but, in the light of the undoubted ODA pressures that we face, we are doing everything we can to prioritise spending where it is most needed, tackling the most acute humanitarian crises.

[Baroness Ritchie of Downpatrick (Lab)]

My Lords, the Horn of Africa is now entering an unprecedented fifth failed rainy season, which is having devastating consequences for the local population. Can the Minister outline when the Government will reinstate the overseas aid budget to 0.7% of GNI? Will it be this year, next year or in 2024?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, I would love to be able to answer that question, but I cannot. The Treasury set a test, with which the House is familiar, and it will be the Treasury that decides when we have met that test. My hope, like that of everyone here, is that we pass that test sooner rather than later and that we resume our 0.7% commitment.

[Baroness Sugg (Con)]

My Lords, the UK aid budget is under additional pressure after the cut from 0.7%, as the Government may be planning to charge an estimated £3 billion of domestic refugee costs to ODA, which would amount to about 25% of what we would normally spend overseas. I am sure we are all in favour of supporting Ukrainian refugees in this country, but I hope that this will not be done at the expense of children and their families who are in so much need in the Horn of Africa. Can my noble friend confirm the domestic refugee cost for this year and tell me how it will be funded?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, my noble friend is right. The Government’s response to the ongoing crisis in Ukraine, the wider ODA pressures, including the ODA-eligible expenditure incurred through the Afghan resettlement programme and the UK support to people fleeing Ukraine, has put unexpected and significant pressure on the ODA budget. The Foreign Office and the Treasury are in discussion as to how much of that funding should be categorised as ODA and how much should not. Of course, the hope has to be that there is as little impact as possible on the broader ODA budget, and that is certainly the Foreign Office’s position.

[Lord Collins of Highbury (Lab)]

My Lords, the right reverend Prelate referred to the underlying causes. One persistent underlying cause has been conflict. The situation in Tigray is of particular concern, especially as it has involved awful crimes against humanity. What steps is the Minister’s department taking to work with our allies to ensure that we can bring peace to this region, so that all the development support measures can have effect?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, the situation in Ethiopia is particularly alarming. Ethiopia was the country that, for many people, opened our eyes to some of the problems of acute famine in the world. It was the beginning of a whole bunch of UN and philanthropic programmes designed to tackle acute famine—both the immediate effects and prevention. Ethiopia is now relapsing to those days. Millions of people in Ethiopia face the real prospect of famine returning. That is exacerbated massively by the conflict to which the noble Lord refers. This is a priority for us. It is an issue raised at every opportunity by the Minister for Africa. I do not want to exaggerate the potential power we have as a country to bring such conflict to an end, but we are using whatever levers we have, and on a routine basis.

[Baroness Sheehan (LD)]

My Lords, it is clear that climate change is making these events more frequent and more intense, so do the Government support the Climate Vulnerable Forum’s call for COP 27 to commission an IPCC special report specifically focused on loss and damage? If the answer is no, perhaps the Minister can say why such a report would be undesirable.

[Lord Goldsmith of Richmond Park (Con)]

My Lords, I have spoken regularly to representatives of the Climate Vulnerable Forum, and they make a very strong argument on loss and damage. They would probably agree that it is because of our presidency of COP 26 that loss and damage now has a chapter within the annual COPs where that can be discussed. It will be for the donor countries at COP 27 to determine how far they want to go, but the UK’s position is that the arguments are very strong, we will maintain our commitment to £11.6 billion for international climate finance, and are doing everything we can to encourage other countries to step up as well.

[Viscount Waverley (CB)]

Although I agree with the Minister that the bolstering of humanitarian aid is critical and essential, does he accept that the mantra of poverty alleviation should be to achieve more with less? With that innovation, much more can be done to assist peoples around the world. How might that be achieved, and might not the private sector play a critical part in that process?

[Lord Goldsmith of Richmond Park (Con)]

The noble Viscount is absolutely right. There is no way these problems can be solved through ODA or other aid alone; it is just not possible. That is why the UK has taken an innovative approach to trade, for example. I believe that 65 poorer countries now enjoy simpler, cleaner trade access to the UK than they had before. In many respects, in many of those countries, that is worth more than they could ever expect to receive in aid. That is just one example of what the UK is trying to do to leverage our position to deliver more than just 0.5% or, I hope soon, 0.7%.

Russia: Tactical Nuclear Weapon Deployment

Lord Goldsmith of Richmond Park Excerpts

Tuesday 11th October 2022 Lords Chamber

[Viscount Stansgate (Lab)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper—but I wish it were not necessary to ask it.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)]

Likewise.

My Lords, President Putin’s comments are deeply irresponsible. No other country in the world is talking about nuclear use. President Putin should be clear that, for the UK and our allies, any use at all of nuclear weapons would break a taboo on nuclear use that goes back to 1945 and has held since then. It would lead to severe consequences for Russia. President Putin has launched an illegal and unprovoked invasion of Ukraine. His forces continue to commit senseless atrocities. The people of Ukraine are seeking only to restore their sovereignty and territorial integrity, and we will continue to support Ukraine’s right to defend herself.

[Viscount Stansgate (Lab)]

My Lords, I thank the Minister for that Answer. The House knows very well how terribly dangerous the situation now is, as reflected in the recent comments of the President of the United States. Would the Minister agree that the urgent priority for the UK Government, working with other nuclear powers, including China and India, should be to exert the maximum pressure on Russia not to use a tactical nuclear weapon? Would he further agree that it is in the interests of no nuclear power for nuclear weapons to be used and that, were that event horizon ever to be crossed, the world would face terrifying instability? Should we not be concentrating our efforts on trying to de-escalate the war in Ukraine?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, these discussions are happening all over the world; it is in no one’s interests whatever that President Putin comes even close to realising the mindless threats that he has been making. But it is incumbent on us, our NATO allies and powers beyond NATO to reiterate the risk that Russia itself and President Putin would face were he to go down that route. I think we can all agree that the language that has been used by NATO and by our friends in America has made that very clear.

[Lord Robathan (Con)]

Does my noble friend think that the situation in Ukraine and Russia underlines the need for, and the value of having, an independent continuously at sea nuclear deterrent?

[Lord Goldsmith of Richmond Park (Con)]

That is very much the view of the British Government. As the noble Lord knows, we have maintained and will continue to maintain our deterrent for all eventualities.

[Baroness Smith of Newnham (LD)]

My Lords—

[Lord Singh of Wimbledon (CB)]

My Lords, NATO was created to contain the threat of the former Soviet Union—an entity that no longer exists. It is individual countries, not NATO, that have been aiding and helping the brave people of Ukraine. Would the Minister agree that if we were to say that we will disband NATO it might just give Putin the escape route he so desperately requires? If that does not work, it will at least show the Russian people what sort of person Putin is.

[Lord Goldsmith of Richmond Park (Con)]

My Lords, it is precisely the existence of NATO that gives us some hope that we can check President Putin’s power. NATO has been very clear, as we as an active member of it have been, that we will continue to respond to Russia’s threat and hostile actions in a united and responsible way, including by significantly strengthening deterrence and defence for all allies. NATO absolutely does not seek confrontation with Russia, but it is nevertheless speaking with one very clear voice.

[Baroness Smith of Newnham (LD)]

My Lords, when I stood to intervene a moment ago, I had planned to point out that the head of GCHQ had pointed out that any talk of using nuclear weapons was highly dangerous. I would now add to that that any talk of disbanding NATO is also highly dangerous and misguided.

I had planned to ask the Minister what lessons the Prime Minister had taken away from the meeting of the new European Political Community in Prague last week. She spoke very highly of the fact that there was collective resolve to stand up to Russian aggression. I wonder how that will be demonstrated.

[Lord Goldsmith of Richmond Park (Con)]

My Lords, in the grimness of the situation in Ukraine and the aggression that has been brought on by Vladimir Putin, one silver lining that has perhaps resulted is that Europe really has come together and really does speak with one voice on this issue. That is reflected in so many other discussions we are having across the board with our friends and allies across the European Union.

[Lord Austin of Dudley (Non-Afl)]

My Lords, in the light of the appalling bombardment of Kyiv yesterday, what plans do the Government have to increase military support for Ukraine? Will the Government agree with and endorse the warning issued by General Petraeus last week, who said that any use of nuclear weapons by the Russians would result in the US taking out every Russian force they could see and identify on the battlefield in Ukraine and in Crimea, and every ship in the Black Sea?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, the UK has been a proud contributor to Ukraine’s heroic efforts. We have given £2.3 billion so far in military support to Ukraine, and we are committed to meeting or exceeding that amount next year. We have provided support in other forms as well, amounting to around £1.6 billion and, as the Prime Minister reiterated today, our support is absolutely unwavering. However, I think it is also clear that were Vladimir Putin to engage in the kind of abomination we are talking about today, the repercussions for him would be very serious indeed.

[Lord Browne of Ladyton (Lab)]

My Lords, I draw attention to my interest as a vice-chair of the Nuclear Threat Initiative and the chair of the European Leadership Network. In September, Jake Sullivan told CBS’s “Face the Nation” that the US was communicating

“directly, privately and at very high levels to the Kremlin that any use of nuclear weapons will be met with catastrophic consequences for Russia”.

As the noble Baroness, Lady Smith of Newnham, reminded us, this morning on the “Today” programme, Sir Jeremy Fleming, the director of GCHQ, cautioned that any talk of nuclear weapons was very dangerous and that we need to be very careful about how we talk about that. So is it not best that we take Sir Jeremy’s implied advice and do not keep talking up the potential use of nuclear weapons in this context?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, there is no one in the House and, indeed, the country who would welcome the threats that we have heard from Russia being realised, but it is important that we reiterate, as NATO and the UK have, that any employment of nuclear weapons would fundamentally alter the very nature of this already grim conflict. It is important that the world is clear that were the fundamental security of any NATO member to be threatened, NATO has the capabilities and the resolve to impose costs on an adversary, whoever that is, that would far outweigh the benefits that any adversary could hope to achieve. I do not believe that that is talking up the prospect of nuclear conflict, which is the very last thing that any of us wants, but it is important nevertheless that the consequences are understood across the board.

[The Lord Bishop of Coventry]

My Lords, what is the Government’s assessment of the impact of the present threat and the potential use of tactical nuclear weapons on the wider non-proliferation regime? What measures are they taking to strengthen the long-term resilience of that regime, together with the Article 6 commitments of the NPT?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, I am not aware of an assessment that has been made by government, so I do not want to provide an answer which would, I am afraid, be off the hoof from my point of view, but I will look into this and ask the appropriate Minister and department whether such an assessment exists and, if it does, I will make sure it is made public.

[Lord Stirrup (CB)]

My Lords, expanding on a point made by the noble Viscount, Lord Stansgate, one of the most effective ways of minimising the risk of the use of nuclear weapons in this conflict would be for the Chinese leadership to send an unequivocal message, albeit privately, to the Russians that such use would be unacceptable to them. What diplomatic measures are in hand to pursue such an outcome?

[Lord Goldsmith of Richmond Park (Con)]

The noble and gallant Lord makes an extremely important point. While I cannot go into the details of diplomatic engagement with China on this issue or many others, the point he has made has been absolutely heard and understood and is entirely valid.

[Lord Collins of Highbury (Lab)]

My Lords, Putin’s reckless talk should be condemned by all and the situation is serious, but our focus should remain on what is happening in Ukraine. Irrespective of the distortions and lies coming from the Kremlin, now is not the time to weaken or dilute our firm support for the people of Ukraine. Can the Minister tell the House whether the Government will take further steps to strengthen Ukraine’s capacity for air defence?

--- Later in debate ---

[Lord Goldsmith of Richmond Park (Con)]

My Lords, we are not in any respect taking our foot off support for Ukraine. I mentioned earlier the financial and military support we have provided and hinted at the non-military support which amounts to around £1.6 billion so far. In addition to that, we are part of a process of introducing what I think is the largest and most severe economic sanctions package that Russia has ever faced. More than 1,200 individuals have been sanctioned by the UK, as well as 120 entities, including all their subsidiaries. Some 80% of the Russian banking sector is now subject to sanctions and more than 60% of the central bank’s foreign reserves are frozen. We know that one of the many consequences of that package is that companies in Russia are now struggling to produce the weapons that they have been asked to produce by the Russian state.

Ethiopia: Humanitarian and Security Situation

Lord Goldsmith of Richmond Park Excerpts

Tuesday 6th September 2022 Lords Chamber

[Lord Browne of Ladyton]

To ask Her Majesty’s Government what assessment they have made of the humanitarian and security situation in northern Ethiopia.

[The Minister of State, Department for the Environment, Food and Rural Affairs and Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)]

My Lords, the UK is gravely concerned about the resumption of fighting between the Tigray People’s Liberation Front and the Ethiopian Government. There is no military solution to this conflict; only political negotiations can resolve it. Thirteen million people in northern Ethiopia are in need now of humanitarian assistance as a result of the conflict and the UK is urging all parties to immediately reinstate the truce, allow humanitarian access and begin peace talks.

[Lord Browne of Ladyton (Lab)]

My Lords, this conflict is responsible for the deaths of half a million or more people already from either war or famine. On 2 August, following a meeting in Addis Ababa and a visit to the Tigrayan capital, Mekelle, the US special envoy, Mike Hammer, and envoys of the EU, the UN and the UK called for the restoration of basic, essential services and unfettered humanitarian access, implying that Abiy, who had met them, had agreed to do these things. However, he summarily dismissed their call and maintained the blockade, continuing to use starvation as a weapon of war. Fighting has now resumed, with Eritrea’s re-entry into the conflict, a counteroffensive by the TPLF and lethal air strikes by Abiy aimed at civilian areas, including a kindergarten. Considering the humanitarian, regional and geopolitical implications of increasing instability in Ethiopia, what steps are we taking to end this conflict? What leverage do we have?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, as I said, 22 months of fighting has shown that the only solution is a political one and we have been very forthright in urging all parties to reinstate the previously agreed cessation of hostilities, begin peace talks and guarantee humanitarian access to northern Ethiopia for basic services. We have supported and continue to support the African Union’s mediation efforts. The African Union is pushing hard for a redoubling of those efforts to avert further escalation. Our view and its view is that Tigrayan forces should leave Amhara and Eritrean forces should withdraw from Ethiopia. We are as dismayed as the noble Lord no doubt is at the recent reports of civilian casualties following a government air strike on Tigray. This is a humanitarian crisis that is growing terrifyingly quickly, affecting vast numbers of people.

[Lord Purvis of Tweed (LD)]

My Lords, on a previous Question I raised the concern that this could become a regional pressure point: indeed, with the Eritrean Government forces, it is now an issue on the Sudanese border as well. I declare an interest in that I will be in the wider region at the weekend. The Sudanese authorities have advised NGOs and UN bodies to pull back from the Sudanese border, which will make the situation for those Ethiopians who are fleeing this violence even worse. What direct humanitarian support is the UK providing to these bodies, which are literally providing life-saving services in this border area?

[Lord Goldsmith of Richmond Park (Con)]

I thank the noble Lord for his efforts in the wider region. The UK is a major humanitarian donor to the East African region. UK-funded activities are making a measurable difference to people’s lives. In the current financial year, we will have provided around £156 million in humanitarian aid across East Africa, £76 million of which has already been spent, and UK aid is helping millions of people access food, water and healthcare right now. We know from history that early intervention saves lives; that is why a few months ago—this year—£24 million in funding was announced for early action and support: a scaling up of assistance in Ethiopia, South Sudan, Somalia and Kenya. In April, we helped to bring states together at the UN drought round table, which mobilised around $400 million in new commitments for the region. The UK is providing a lot of finance, but we are also flexing, wherever possible, our diplomatic muscle and using the networks that we have built up.

[Lord Alton of Liverpool (CB)]

My Lords, I declare an interest as the co-chair of the All-Party Parliamentary Group on Eritrea. Does the noble Lord agree that the malign role of Eritrean militias has undoubtedly exacerbated an already grievous situation? The conflict is spreading from Tigray to other ethnic groups and to neighbouring countries, with terrorist organisations such as al-Shabaab exploiting the instability. With an entire population, as the noble Lord has said, on the verge of starvation and death, how has the United Kingdom responded to the bombing of civilian targets, including in close proximity recently to the university in Mekelle, by galvanising the international community to end the weaponising of hunger and famine, rapes and gender-based violence and to bring those responsible to justice? Does he not agree that the scale of what is happening in Africa is directly comparable to the scale of what is happening in Europe, in Ukraine?

[Lord Goldsmith of Richmond Park (Con)]

The noble Lord has a long track record on these issues and I appreciate the very regular updates I get from him, all of which I transfer to my colleague in the other place in whose portfolio this sits. I know it is appreciated there as well. Millions of people in Ethiopia have been lifted out of poverty in recent years; it was a development success story. We all remember the horrors that created much of what we now regard to be the aid movement, but those gains that we saw are massively at risk today. The reality is that millions upon millions of people are now facing a return to base poverty—actual starvation —so this is of course a priority for us. We are working with all the international bodies that have a role to play, whether that is in preventing sexual violence or alleviating the immediate threats of starvation, and we are working through all the UN agencies. We are and remain an international development leader in Africa, notwithstanding the pressures on the ODA budget in the UK, and Africa will remain a priority for us.

[Lord Udny-Lister (Con)]

My Lords, would the Minister look again at the situation in the Horn of Africa? There is instability in northern Ethiopia, Sudan and Somalia, yet Somaliland, which is not recognised as a country—the British Government will still not look at recognising its Government—is after all the only stable place in that region.

[Lord Goldsmith of Richmond Park (Con)]

The noble Lord makes such an important point. I am tempted to depart from the current line to take on Somaliland, but I will simply say that it is one of the most extraordinary success stories. It is a plucky country and a place that has defied all the odds. It is one of the only countries in the world that has almost eliminated electoral fraud through the use of iris technology. It is a country where, following a democratic election, candidates shake hands and power is transferred peacefully. It is an area in one of the most troubled regions on earth which has managed to rid itself of the problems of al-Shabaab, which were mentioned in a previous question. I cannot think of another country that has succeeded or flourished more against all the odds. In my view, it is a country that we should be supporting, and we should ramp up our support in the months and years to come.

[Lord Collins of Highbury (Lab)]

My Lords, can I return to the noble Lord’s initial statement that there is no military solution to the war in Ethiopia? Secretary of State Blinken said recently that talks should resume without any precondition. Of course, the African Union process has faltered, but can he tell us whether the Government and the Foreign Secretary, or the Foreign Office, have been in touch with Secretary Blinken to ensure that we can get talks started without any preconditions, and that we have humanitarian access to those people who are suffering terribly?

[Lord Goldsmith of Richmond Park (Con)]

HMA Addis Ababa and the UK special envoy to the Horn of Africa met Prime Minister Abiy on 12 May and Deputy Prime Minister Demeke and National Security Adviser Redwan on 16 August. We are continuously pressing for a resumption of peace talks. The Minister for Africa visited Ethiopia in January this year and has been very public on this issue on a regular basis. We are actively supporting the African Union’s efforts to mediate. The noble Lord says that there should be no preconditions, but clearly it is essential that at the very base of those discussions there is an agreement that Tigrayan forces must leave Amhara—that is non-negotiable—and that Eritrean forces should withdraw from Ethiopia. Although I cannot answer the noble Lord’s question in relation to Secretary Blinken, I am absolutely certain that the answer is yes. However, I cannot answer that authoritatively; I will ensure that he has an answer from the Minister for Africa.

[Lord Dobbs (Con)]

My Lords, one of the distressing aspects of this terrible situation is the deliberate destruction of cultural artefacts within Ethiopia, so may I try to link this Question with the earlier Question about cultural artefacts? Even from the Floor of this House, there have been recent calls for the immediate return of 11 religious tablets held in the British Museum that came from the Ethiopian Orthodox Church. Would it not be madness, given this present situation, to think about doing that right now? Might I encourage the Minister to have a word with his colleague, the noble Lord, Lord Parkinson—he will not have to go too far to have this conversation—about coming up with a much more grown-up policy about the return of cultural artefacts, which, above all, recognises the incredible part that British museums have played as custodians of these artefacts which otherwise would not be in any museum and would have been destroyed long ago?

--- Later in debate ---

[Lord Goldsmith of Richmond Park (Con)]

The noble Lord makes a really important and valid point. My understanding is that there have been no recent discussions with the Government of Ethiopia on this issue. The tablets are legally owned by the trustees of the British Museum, which is operationally independent of government. Decisions relating to the care and management of its collection are of course a matter for the trustees. But I note the comments of the noble Lord and I am sure his message will be heard loud and clear in the Foreign Office.

Water Companies: Borrowings

Lord Goldsmith of Richmond Park Excerpts

Monday 5th September 2022 Lords Chamber

[Lord Hain]

To ask Her Majesty’s Government whether water companies’ borrowings have increased since they were privatised; and if so, by how much.

[The Minister of State, Department for the Environment, Food and Rural Affairs and Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)]

My Lords, as of 31 March this year, water companies have reported total borrowing of £57.6 billion. Privatisation of the water sector has delivered around £170 billion of investment through private finance and this country would not have seen that level of investment if the water industry was in public ownership. Holding a licence to provide an essential public service of this sort is a privilege. Governments and regulators have high expectations of water companies and of the financial behaviours of their owners and investors.

[Lord Hain (Lab)]

My Lords, surely the Government have to reform the privatised water system. Despite a huge hike in pumping raw sewage into rivers and off beaches, abject failures to fix chronic and widespread leakages amid hosepipe bans and a total failure to reduce discharges from storm overflows, annual bonuses paid to water company executives rose by 20% in 2021. Since privatisation, customers’ bills have shot up by 40% and the companies have paid out £72 billion in dividends. Yet in Wales, 45% of rivers are of good ecological status, compared with 14% in England. Wales also secured 45 Blue Flag beaches and marinas last year, proportionately many more than England. Will Ministers replace the broken England model with the Welsh not-for-dividend one, which also means that returns going to shareholders are invested in infrastructure and capital is raised at a lower rate?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, I cited figures in relation to investment by the sector, so I will not repeat them. But I make the point that, as a consequence of the Environment Act, which this House, along with the other place, brought into law just a few months ago, companies are now required to be transparent in a way that they never had to be before about how executive bonuses and dividends are linked to services for customers. Ofwat is still going through the process but will have the power, as a consequence of the Environment Act, to tie the licensing system to the performance of companies in relation to that link between pay and performance. That is a first; it would not have happened were it not for the Environment Act.

In relation to storm overflows, I am sure the question will come up again but the noble Lord exaggerates the course of action over the last few years. I will not for a second pretend that we do not have a problem with sewage flowing into our waters but the situation is getting better, not worse.

[Noble Lords]

Oh!

[Lord Goldsmith of Richmond Park (Con)]

It is simply an objective fact that we are the first Government specifically to tackle sewage overflows in the way that we have. We are the first Government to set a legal requirement on water companies to tackle significantly storm overflows. That has never been there before—not before Brexit or before we joined the European Union—and is a new development. We are taking stronger action than any Government in the history of this country.

[Baroness Jones of Moulsecoomb (GP)]

Is there any truth in the report that at least two water companies have needed cash injections and that the Government’s recent sewage reduction plan was a result of those companies’ poor credit ratings?

[Lord Goldsmith of Richmond Park (Con)]

I cannot answer questions on the two companies but will ask the Minister responsible for this area and get back to the noble Baroness. The reason we took the steps we took in the Environment Act was to improve the environment. This is an issue that everyone cares about; it does not matter where they live or which part of the political spectrum they occupy. Everyone wants our waters to be clean and we are taking the strongest possible action to make them so.

[Baroness Neville-Rolfe (Con)]

My Lords, I am grateful to the Government and to this House for the changes that were made to improve the situation on sewage, but does my noble friend think that the current system is delivering enough freshwater reservoirs for the future across the UK?

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[Lord Goldsmith of Richmond Park (Con)]

It is a good question and a number of steps are being taken at the moment. As part of the commitment that the water companies have made on investment, the numbers for which I provided earlier, we are seeing a lot of work being done between them to invest in schemes that will transfer water between areas of need and areas of plenty. We have already seen water transferred from the Lake District to the Manchester area, and from Wales to the Liverpool area. Work is under way at the moment by Anglian Water to transport water—from an investment of around £400 million—which, once completed, will mean an entirely new network longer than any motorway in the UK. That investment is happening and will continue to do so.

[Baroness Butler-Sloss (CB)]

My Lords, is the Minister not being somewhat complacent? Beaches across the country have been unusable in this hot weather. Should the noble Lord not be worried about that?

[Lord Goldsmith of Richmond Park (Con)]

I am deeply worried about it. As I said, I do not pretend for a second that we do not have a problem with pollution; we do. Incidentally, this is not a UK problem but one that affects countries across the European Union. But I also said, rightly, that this Government are the first to take these steps. There is now a legal requirement for those companies to take action; that did not exist before. Our plan will require water companies to deliver the largest ever infrastructure programme, with £56 billion of capital investment over 25 years. If it is followed through, the plan will protect biodiversity, the ecology of our rivers and seas and the public health of our water users for generations to come. As I said, we now have the tools to do this, but of course it is for future Governments, including this one, to ensure that they are used to their maximum.

[Lord Wallace of Saltaire (LD)]

My Lords, the Government make great play of being on the side of the people in their opinions, as opposed to the dreadful establishment. From opinion polls over last few months, it is very clear that the popular will is in favour of reversing privatisation. Do the Government intend to stand against the people’s will on this or to go along with it against the establishment?

[Lord Goldsmith of Richmond Park (Con)]

We very much share the overwhelming view of the population of this country that more action needs to be taken to protect not just the health of our waters but the resilience of supply. This goes back to the question asked by my noble friend. But we do not believe that nationalisation is the answer: it would place an enormous financial burden on the taxpayer and would not deliver anything like the level of investment that we have seen in recent years.

[Lord Grocott (Lab)]

Will the Minister now respond specifically to the question put to him by my noble friend Lord Hain: why is the record in Wales so much better than the one in England?

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[Lord Goldsmith of Richmond Park (Con)]

I am not convinced that the record in Wales is significantly better than the one here. A report today, which I am surprised has not been brought up yet, showed a worrying increase in pollution in areas of this country. But, in every case that has been reported, to my knowledge, that is a consequence of our having put record investment into monitoring in a way that we never did before. There were problems that were not captured but they are now, reflecting a significant increase of the problem and greater justification for the actions that we know we need to take. But I do not think that we should pretend that a problem is new because we have just discovered it; it has been there for a long time.

[Lord McLoughlin (Con)]

My Lords, is it not a fact that, between 1997 and 2010, the then Labour Government decided not to change the way the water authorities or boards were managed because of the record levels of investment going into the industry, as my noble friend pointed out? He told us what has been going in since privatisation, but has he any figures for the level of investment when the water boards were still under the control of the Treasury?

[Lord Goldsmith of Richmond Park (Con)]

My noble friend makes an important point. Although I do not have the numbers at the tips of my fingers, it is very clear that the record levels of investment would not have happened had the sector not been privatised. We would not see anything like that level of investment if we were to renationalise the sector. Of course we care about the manner in which executives are paid, incentivised and all the rest of it, but that is why we are now able, as a consequence of the Act that noble Lords voted through, to require total transparency through Ofwat for the first time, in a way that has been lacking until now.

[Baroness Hayman of Ullock (Lab)]

My Lords, data that has, rather appropriately, been leaked shows that water companies’ replacement of water and wastewater pipes stands at an astonishingly low average of 0.05%, with even the best performers replacing only 0.2% of their network every year. Does the Minister believe that we should be replacing our pipe network slightly quicker than what works out to be once every 2,000 years? With a growing proportion of our pipes failing, and with many over 100 years old, just how bad can water wastage and sewage spillage become?

[Lord Goldsmith of Richmond Park (Con)]

I have to admit that I am not familiar with the leak that the noble Baroness describes, but there are certainly problems with leaks, and not just in government. We have a serious need for investment in the pipe network, which has been made a lot worse by record heat this summer. As noble Lords will know, the heat causes the ground to shift, which imposes significant stress on pipes. A record number of pipes now need to be fixed, which requires investment. But there is a clear obligation, which is associated with very severe penalties for companies not investing in tackling this problem. The Government have been clear that this will remain a priority.