British Overseas Territories

Lord Howell of Guildford Excerpts

Thursday 10th March 2011 Lords Chamber

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, as one would expect in this House, this has been a dazzling debate full of expertise. I congratulate my noble friend Lady Hooper on instigating a valuable debate on the overseas territories. A lot has happened since the previous one in 2008 and it is certainly right that we should mobilise some of our collective expertise. It is right as well for the Government to make their comments, which I shall seek to do in a moment, on the overseas territories as a whole. I was particularly delighted to listen to the maiden speech of my noble friend Lord Ribeiro, who brings to this House, with his enormously distinguished record, great expertise and clarity. I shall comment on some of the things that he said as I go along, but I think that we are all extremely pleased that he has joined us and hope often to hear from him in the future.

The only way of tackling this vast range of subjects, issues and territories is for me to go through those subjects, issues and territories in turn and then to relate to noble Lords who have spoken on them as I go along. I may not succeed in 20 minutes in referring to every noble Lord; I may not succeed even in covering every one of the issues, although I shall have a very good try. I shall therefore proceed on a themed basis.

To reassert a point made by noble Lords, the Government are responsible for ensuring the security and good governance of the overseas territories and promoting the well-being of their inhabitants—that is not in question. We are talking about almost a quarter of a million people, most of whom are British citizens, and some of the smallest and most remote communities in the world. We have a responsibility to provide effective stewardship, even for our uninhabited territories—they include some of the world’s most pristine and varied environmental assets, to which some of your Lordships have referred. We take these responsibilities extremely seriously and none of them should be underestimated. I do not deny that the territories create substantial challenges for the UK Government, but they also have the potential to offer common benefits for all. In our view, we need a vigilant and active approach to managing the risks and problems, especially at a time when a number of the territories have been extremely hard hit by the global recession and the shrinkage of trade, particularly tourism, in some areas. It is a broad and complex agenda that involves many government departments, but I shall endeavour to give the overall picture from the Foreign and Commonwealth Office’s point of view.

This Government have to some extent lived up to their responsibilities already—we have been office for some eight or nine months. In the strategic defence and security review, we identified defence as a core mission. We relaunched the air access project on St Helena and initiated the task of underpinning public finances in the Turks and Caicos Islands, to which I shall come in detail in a moment—a number of your Lordships rightly and unsurprisingly raised that issue. The Foreign Secretary commissioned a review of our policy towards the overseas territories, led by the Parliamentary Under-Secretary of State, Henry Bellingham, with a view to framing a new strategy to guide our relationship in the future and addressing some of the points that the noble Lord, Lord Anderson, rightly raised. Mr Bellingham has discussed aspects with ministerial colleagues and a range of interested organisations and individuals, including the leaders of the overseas territories. The Government intend to announce the conclusions of that review shortly. In the mean time, we have already announced, back in February, that the overseas territories programme fund will be raised by £7 million a year. By way of a further update, we have just announced additional funding to meet certain problems to which I shall again come in detail as I go along.

We continue to stand up for the Falkland Islands, to which the noble Lord, Lord Anderson, has just referred. We have no doubt about their sovereignty. The principle of self-determination enshrined in the UN charter underlies our position. There can be no negotiation on sovereignty unless and until the Falkland islanders so wish. Members of the Government, including the Prime Minister, have consistently made this clear. We are also wholeheartedly committed to the Falkland islanders’ right to develop their economy, including a hydrocarbons industry within their waters. We are fully aware that Argentina’s neighbours support its call for negotiation over the Falklands’ sovereignty. That is nothing new; it just maintains endless persistence. We are in close touch with partners in the region. We are enhancing our relationship with Latin America through forthcoming high-level visits and engagement. The noble Baroness, Lady Hooper, has been a tower of strength in developing those relationships. We will continue to defend robustly the Falkland islanders’ right to self-determination and to develop their economy both in private, with partners, and publicly. I do not have anything to add at the moment on the detailed point about fees raised by the noble Lord, Lord Anderson, but I shall look into it. If I obtain more detailed and useful information, I shall write to him.

I turn to the British Antarctic Territories—the order in which I address each territory is not a reflection of its importance; it is merely the order in which it was referred to in the debate—on which the noble Viscount, Lord Montgomery, the noble Lord, Lord Selborne, and others spoke with great expertise. We have a long-term, strategic, scientific, environmental and sustainable management interest in the Antarctic, South Georgia and the South Sandwich Islands. These interests are linked to but in many cases distinct from the Falklands issue that I have just discussed. We will continue to protect our interests and sovereignty by taking a leading role in the Antarctic Treaty system and through a policy of presence, governance and commitment to deliver our international obligations. As to the draft Antarctic Bill, we remain committed to meeting our treaty commitments and will introduce legislation as soon as parliamentary time allows. The Government are considering all options for an expeditious introduction of that Bill, a matter on which there has been a certain amount of comment.

Perhaps I should say a little about our investment in Antarctic science. The particular issue is a matter for the Secretary of State for Business, Innovation and Skills, but I believe that detailed announcements will be made in due course. In general, the UK directly invests some £50 million a year. It is difficult to quantify the total investment, as there are many cross-cutting programmes and in practice a range of research council activities contribute directly to polar science. For example, the UK’s European Space Agency subscription is about £48 million per annum and includes earth observation work. The main funding in the Antarctic is provided by the Natural Environment Research Council primarily for the British Antarctic Survey. Similarly, many UK universities are involved in Antarctic research. There are too many of them to mention individually. However, I should highlight Cambridge University’s involvement, not least via its support for the Scott Polar Research Institute.

On Gibraltar, the noble Lord, Lord Luce, of course, was a distinguished governor and knows probably more than many people about the situation there. Again, the position is quite clear: the UK will never enter into arrangements under which the people of Gibraltar would pass under the sovereignty of another state against their wishes. Furthermore, the UK will not enter into a process of sovereignty negotiations with which Gibraltar is not content. We will continue to stand up for Gibraltar’s rights and interests, including in the European Union. We are fully committed to the trilateral process of dialogue, which has been working rather well between the UK, Spain and Gibraltar, and Spain and Gibraltar share our commitment. We hope that the trilateral forum will continue to make progress on enhancing co-operation for the benefit of all the people of Gibraltar and the surrounding area.

The Turks and Caicos Islands were mentioned by my noble friends Lord Jones, Lord Ribeiro, in his remarkable maiden speech, and Lord Selborne, and by the noble Lord, Lord Anderson. I shall spend several minutes on this matter because it is very important and I know that it concerns your Lordships considerably. We are determined to sort out the problems in the Turks and Caicos Islands and to put the islands back on the path to a sustainable future under a democratically elected Government. There are three main strands to what we are trying to do: rebuilding public finances; implementing systemic reforms, including a modified constitution; and ensuring that the special investigation and prosecution team can pursue its work.

The Minister of State at DfID announced in a Written Statement at the end of February that DfID has now finalised a loan guarantee to provide the Turks and Caicos Islands Government with access to a maximum capital amount of $260 million over the next five years. The intention is that that guarantee should cost the taxpayer nothing but will enable a return to fiscal surplus. We are pursuing reforms in nearly every aspect of the territory’s administration. Following extensive consultation, the Government have now published a draft constitution that makes proposals for the months ahead. This is an important opportunity for the political parties in the territory to engage in detail. We must ensure that reforms are well advanced and embedded before we can safely return the territory to elected government.

I say to my noble friends that we do not want to postpone elections any longer than necessary, but they cannot be held this year. A joint FCO/DfID Written Ministerial Statement last September set out the milestones—I think that there has been reference to those because I have commented on this since—an assessment of which would need to be met before elections could take place. These milestones do not include everything that will have to be done before elections take place, but they are, in the Government’s view, at this stage, minimum preconditions before the Turks and Caicos Islands can return to elected government. It is hoped that the milestones will be met in time for elections in 2012.

It is true that very recently there have been demonstrations in the Turks and Caicos Islands calling for a date to be set for the elections. One fully understands the pressure and concern and no one questions the right of everyone in the TCI to have the freedom to express their views, but I cannot condone the use of lawbreaking in support of freedom of expression. Such actions could easily deter future tourists and investors from visiting the islands and could have a disastrous effect on the islands’ already fragile economy. The governor remains open to dialogue with responsible community representatives to discuss their concerns and I hope that the demonstrators will use this avenue to convey their grievances.

In addition, my right honourable friend the Foreign Secretary has announced that he is approving a discretionary grant of £6.6 million to the Turks and Caicos Islands Government to reimburse the costs incurred in the past year pursuing corruption and violent crime. That is for the special investigation and prosecution team, for related civil recovery work and for the Royal Turks and Caicos Islands Police. Officials in the Foreign Office are co-ordinating this carefully with DfID’s work to underpin the territory’s finances. That is the scene on the Turks and Caicos Islands. If I had more time, I would go into more detail, but I have not.

I turn now to another issue that greatly concerns your Lordships, the British Indian Ocean Territory, to which the noble Lord, Lord Luce, my noble friend Lord Selborne and others have referred. Let me set out the position as we see it now. Successive Governments have expressed regret for the way in which the resettlement of the Chagossians was carried out in the late 1960s and 1970s. I repeat those regrets today and do not seek to justify many of the things that were done at the time. However, the UK courts have considered the issues very carefully. The Law Lords upheld the validity in law of the BIOT Orders in Council 2004, which mean that no person has the right of abode in BIOT or the right to enter the territory unless authorised. A High Court judgment given by Mr Justice Ouseley on 9 October 2003 and upheld by the Court of Appeal on 22 July 2004 went thoroughly into the circumstances in which the 1982 compensation settlement was reached and in which it was accepted that the compensation was in full and final settlement of all claims.

The Chagossians have taken their case for resettlement and further compensation to the European Court of Human Rights, as we all know. The Government will continue to contest the case, as we believe that the reasons for not allowing resettlement on the grounds of feasibility and defence security are clear and compelling; nor do we see the case for paying further compensation, as it has already been paid in full and final settlement of all claims. Obviously, I and my colleagues fully understand the disappointment felt by Chagossians on hearing that the Government have decided not to change the fundamental policy on resettlement, compensation and the marine protected area, but I stress strongly that we are most keen to continue engaging with the Chagossian communities. The Minister for the Overseas Territories, Mr Bellingham, has already met Mr Olivier Bancoult and Mrs Sabrina Jean of the Chagos Refugee Group and Hengride Permal of the Chagos Islands Community Association to hear their concerns. Our high commissions in Port Louis and Victoria continue to meet Chagossian communities in Mauritius and the Seychelles, while officials from the BIOT Administration keep in touch with Chagossian communities in the UK.

We are looking at ways of mitigating the impact of our policy on the Chagossians through continuing to enable them to visit the territory and engage in humanitarian, cultural and environmental activities. We are arranging a further visit by Chagossians to the territory later this month and Mr Bellingham is very keen that such visits should continue. We want to involve the Chagossian communities in implementation of the marine protected area—although there is a certain difficulty, obviously, as the Chagossians are seeking annulment of the area in the UK courts—and we are seeking practical ways in which we can continue to help the Chagossian communities in Mauritius, Seychelles and this country.

I say finally on the issue that, while we have no doubts about the UK’s sovereignty over the British Indian Ocean Territory, we value our bilateral relationship with Mauritius and would welcome a constructive dialogue with its Government on these issues. We will continue to look at this policy in detail and engage with all those with an interest.

I have a long list of many more other issues. The right reverend Prelate the Bishop of Ripon and Leeds raised the issue of tax havens and I have not commented on the Caribbean, which covers some of the same issues. We are working closely with these territories to stabilise public finances and to strengthen regulatory regimes, to help them to meet international tax transparency standards, which is very important, and to support them in longer-term economic planning.

I should like to spend more time on the Commonwealth but time does not allow. The case for full participation in all Commonwealth meetings is based on membership of the Commonwealth. Of course, the OTs are not strictly individual members of the Commonwealth, but they are associated. We are looking at ways to strengthen the links between the OTs and the Commonwealth.

On advanced passenger duty, the Government are exploring changes to the aviation tax system. Any major changes will be subject to consultation. On St Helena, the Secretary of State stated last July that we have made progress on a wide range of aspects. The invitation to tender has gone to bidders. Air Safety Support International has approved the use of engineered material arresting systems for the St Helena airport and the Secretary of State for International Development will consider issuing a further Statement when he is in a position to report on all the conditions that he set out in the July Statement. On Anguilla, we have accepted the package of measures and actioned the recommendations by the UK-funded experts to deliver the Chief Minister’s commitment to balance Anguilla’s overall budget by the beginning of 2013. I do not have time to cover offshore financial centres, but I have mentioned them in referring to the Caribbean.

In the last minute, let me reassure noble Lords who raised matters about defence that part of the strategy for the protection of the overseas territories is the maintenance of a minimum credible deterrence and reassurance posture on the islands. There are many more details that I could give about defence, but time does not allow me to cover them. Therefore, I must simply end this debate by saying that we are determined to see a policy of strategic engagement with the overseas territories. We share the view expressed by the noble Lord, Lord Anderson, that new and positive thinking is needed and we believe that we can carry forward the proposals that we have in mind with some of the suggestions of your Lordships. This is a complex and wide-ranging portfolio. There are many other points that I would dearly have liked to cover with your Lordships, but under the rules of this engagement in your Lordships’ House I must here call an end to this debate.