Zimbabwe (Blood Diamonds)

Debate between Lord Hain and Alistair Burt

Tuesday 17th July 2012 Westminster Hall

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Alistair Burt)]

In the absence of my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown), I will begin by thanking you, Mr Havard, for chairing the debate. It is a pleasure to serve under your chairmanship. I also apologise for the obvious absence of the Minister for Africa, the Under-Secretary of State for Foreign and Commonwealth Affairs, my hon. Friend the Member for North West Norfolk (Mr Bellingham). As the hon. Member for Vauxhall (Kate Hoey) said, he is currently travelling on the continent, although I know that he has taken a keen interest in this debate. He has followed this issue closely over recent months, and I suspect that he has been in contact with most of the Members present today. He will be interested to read the text of the debate, and he helped me considerably with compiling a response.

I also thank the right hon. Member for Neath (Mr Hain) for initiating the debate. His background in this issue, his courage over the years in dealing with the issues that lie behind this debate, not only in Zimbabwe but in South Africa, and his knowledge of the area and work as a Minister, have been exemplary. I appreciate his comments and I will reflect on them as the debate progresses. I share the comments made by the hon. Member for Wrexham (Ian Lucas) about other hon. Members who have made significant contributions to the debate and expressed their various points of view and knowledge.

I would like to highlight the work of Global Witness and the contribution that it has made with the publication of its report and the various other issues with which it is involved. I commend it for its unrelenting efforts to keep the spotlight firmly on Marange diamonds, and stress how much the Government share its concerns. The issues raised today are of considerable importance for the future of Zimbabwe and the prospects for free and fair elections in that country, and it is therefore important that we approach the debate in that context.

Since the formation of the inclusive Government, the situation in Zimbabwe has grown increasingly complex. We should no longer view Zimbabwe solely through the lens of Mugabe’s continued grip on power, although we must not be naive in assessing prospects for the future. The hon. Member for Strangford (Jim Shannon) and other hon. Members have been keen to press that point, and I assure the Chamber that the Government are in no way being naive when assessing the current situation of the Zimbabwean Government. For each reform made, another appears to be ignored. Instances of human rights abuses continue to decline, but low-level intimidation and harassment continue. The visit of the UN High Commissioner for Human Rights was an important step forward, but the day after her departure an MDC activist was brutally killed as a result of political violence.

Therefore, before I address in detail the issue of Zimbabwe’s diamonds and the relevant EU measures, I would be grateful for a few minutes in which to set out the broader picture as viewed by the Government. First, as has been noted in previous debates, we must acknowledge the fundamental progress that has been made in Zimbabwe since the formation of the inclusive Government in 2009, and particularly the impressive and vital turnaround of the Zimbabwean economy. It is fair to say that the pace of political progress has been slower than economic progress, but there have been steps forward, particularly within the last six months. Two key pieces of legislation—the Human Rights Commission Bill and the Electoral Amendment Bill—are about to pass through Parliament. Those important steps demonstrate that the global political agreement is not yet dead.

Even more important is the progress that has been made in the constitutional process, and we understand that negotiators from all parties have agreed a final draft that will soon be submitted to principals for approval. Once agreed, a second all-stakeholders conference should follow before the constitutional referendum takes place, and that is expected before the end of the year. Understandably, there are critics of the process, and particularly of the violence associated with the early stages of outreach. None the less, it represents a significant achievement and an important step towards the elections that we expect to see next year.

It is also important to recognise the ongoing efforts of President Zuma and his partners in the Southern African Development Community—a point made strongly by my hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile). At the Luanda summit on 1 June, SADC again confirmed that elections cannot take place until necessary reforms have been completed. We continue to support SADC in its role as guarantor of the global political agreement, and applaud its efforts to work with all parties to keep the reform process moving forward.

The hon. Member for Wrexham raised the issue of freedom and fairness, and of elections and the importance of electoral monitoring including parliamentarians. I strongly support him on that. I was an election observer in South Africa in 1999, for the second elections there. Parliamentarians have an immense contribution to make, and it is increasingly important that they have, and take, the opportunity. We look with some concern at attempts to make it more difficult for parliamentarians to take part, so it is important to keep that process moving forward. More than one hon. Member said that South Africa had to take its responsibilities seriously and ensure that what everyone is talking about—a freer and fairer election process—actually happens on the ground. That will be the acid test of whether those currently in power in Zimbabwe recognise the democratic right of a people to change their Government as and when they wish, and to ensure that the process is there for that to be a possibility.

Such a commitment is vital, despite progress, as there is a long road to travel and a closing window of opportunity. High Commissioner Pillay identified many unresolved issues following her recent visit—in particular, the risk posed by some partisan elements in Zimbabwe’s security sector. We share her concerns that

“unless the parties agree quickly on some key major reforms and there is a distinct shift in attitude, the next election…could turn into a repeat of…2008”.

That continues to be the unfortunate, underlying reality of the situation in Zimbabwe. I hope that that note of caution is recognised by the Chamber. We very much understand that reforms are not irreversible. Everything has to be watched very carefully, despite the progress that has been made.

That leads me back to the central issue that is being debated today: the question of Zimbabwe’s diamonds and the influence they will have on the coming elections. The concerns raised by the right hon. Gentleman are shared by the Government. As he is aware, there have been some positive developments. The most recent reports by civil society confirm that human rights abuses in Marange have decreased significantly since their peak in 2008, and we welcome that. However, I share the right hon. Gentleman’s concerns that revenue from Marange diamonds is being used to build an infrastructure of violence and intimidation in the run-up to elections. It is clear that revenue from diamonds is being siphoned off, as the right hon. Gentleman mentioned. Finance Minister Biti reported a shortfall of $92 million of revenue in the first quarter of 2012.

The question of governance and transparency in diamond revenue flows therefore remains genuinely difficult to answer. It is clear that although there is still an important role for the international community—of course, we have discussed this with partners—solutions will have to be found inside Zimbabwe in light of lack of international unity. We have raised concerns about the handling of diamond finance with the British Virgin Islands. We will continue to work with international partners to support Zimbabwe, but our focus is increasingly on helping to improve conditions for effective regulation of the industry. We are, therefore, supporting initiatives by the World Bank and the International Monetary Fund in the mining sector. We will also bring the new Global Witness report allegations on Anjin to the attention of the Chinese.

The challenge in achieving international unity was illustrated by the difficulties faced by the Kimberley process in dealing with the situation in Marange. Despite being unable directly to address human rights violations owing to its narrow mandate, the Kimberley process managed to impose a near total ban on Marange diamond exports from 2009 to 2011. The agreement reached at Kinshasa last November, to allow restricted exports, is robust but fair. It allows Zimbabwe only to export diamonds from the Marange region that comply with Kimberley process standards. It established a credible independent monitoring mechanism to ensure those standards are respected, including a role for civil society—something hon. Members from all parts of House have supported the fight to achieve. However, as is well known to hon. Members, the remit of the Kimberley process only allows it to take action to tackle

“rough diamonds used by rebel movements or their allies to finance conflict aimed at undermining legitimate governments”.

It is unable directly to address the issue of revenue flows from the sale of diamonds in Zimbabwe, although it has played a helpful role in increasing transparency over production and export data from Zimbabwe.

In answer to the questions from the right hon. Member for Neath and others, I confirm that the UK would like to see the Kimberley Process’s mandate expanded to enable it to take human rights more explicitly into consideration. We have negotiated a strong EU position— the hon. Member for Strangford was keen to know what we had been doing with EU members, and their responsibility—that reflects our sense that the mandate of the process must be widened, and we are encouraging other Kimberley process participants to support that position.

[Mr Hain]

I welcome the fact that the Minister has indicated that the Government will seek to broaden the remit of the Kimberley process on rough diamonds. However, despite a welcome indication that he will raise the question of Anjin with the Chinese Government, he has not said yet whether Anjin, Sam Pa and the Sino-Zimbabwe development will be put on the EU sanctions list when the British Government go to the Foreign Affairs Council meeting on Monday.

[Alistair Burt]

May I address that point a little later in my remarks? The right hon. Gentleman anticipates where I am going.

While in principle we welcome the development of a supplement on diamonds to the OECD due diligence guidance for responsible supply chains of minerals from conflict-affected and high-risk areas, we do not believe that this is the right time to launch such a process, given the risk of undermining ongoing efforts to reform the Kimberley process. An OECD-led process would also be effective only if the diamond industry and diamond producing states agreed to participate, and therefore significant further consultations would be needed before any such process could begin.

That leads me on to the important and live question of the EU’s targeted measures on Zimbabwe. As all are aware, those measures are under discussion in Brussels. In answer to the questions from hon. Members, let me set out our aim. We want to support the process towards a credible referendum ahead of free and fair elections in 2013. In doing so, we need to encourage progress and incentivise reform, which is why we need to use the measures in the right way to effect a change in behaviour. Therefore, we, and our EU partners, are looking at what options exist to best respond to the clear calls from reformers, including the Movement for Democratic Change, the UN High Commissioner for Human Rights, and President Zuma and SADC, for the EU to show flexibility to support the reform process.

I was grateful to the hon. Member for Vauxhall, because she put it correctly when she spoke of mixed feelings about how to proceed, and of the uncertainty. I do not think it would be any surprise to indicate that that is exactly where we all are. It is difficult to get the balance right. However, we believe the best way to support progress is through a shift in the EU approach. We have, therefore, proposed to partners that, if there is a peaceful and credible constitutional referendum, the EU should respond accordingly with a suspension of the ban on direct EU development aid and a suspension of the asset freeze and travel ban on all but a small core of individuals around President Mugabe, particularly those who will have most influence on the potential for violence in the next election. For the avoidance of doubt, there is no prospect of any suspension being applied to President Mugabe himself. The process will demonstrate to reformers across the political spectrum that the EU is serious about responding to concrete progress on the ground, and reflects our confidence in the facilitation process being undertaken by President Zuma and the leaders of SADC. It also puts the onus on to the Zimbabwe Government to live up to their commitments. If the situation deteriorates, we can, of course, respond appropriately.

As my hon. Friend the Member for Tiverton and Honiton (Neil Parish) said, all EU partners need to agree a shift in approach, and discussions are ongoing. Alternative approaches have also been suggested, including steps the EU could take in advance of a constitutional referendum.

Within that broad approach, the question of diamonds is particularly acute. We are grateful to Global Witness for its continued effort to shine a light on evidence, and to the right hon. Gentleman for the evidence he set out today. We have listened carefully, and I know that my hon. Friend the Under-Secretary of State will do so, too. The militarisation of diamond finance is an issue that has a direct impact on the prospects for free and fair elections, and we are acutely aware of that risk. We are looking very carefully at the evidence and we will share it with partners. Although the dynamic we seek is one of responding to progress, where there is strong evidence we will of course take it seriously and encourage the addition of further names, but hon. Members will understand if I do not go into detail. Ultimately, this decision will be taken by all 27 member states in unanimity, based on the legal arguments.

We have had a very important debate, the consequences of which are long lasting. I hope I have done something to indicate the general approach of the Government, to recognise the evidence raised, and to give an assurance that evidence is taken into account in our discussion with all our partners. We know this is a complex area. We want to see progress and we hope that the deliberations of the Chamber and our own considerations will help that progress to move forward without any suspicion of naivety in our approach to the Government of Zimbabwe.