Bank for International Settlements (Immunities and Privileges) Order 2021

Lord Kirkhope of Harrogate Excerpts

Wednesday 10th February 2021 Grand Committee

[Lord Kirkhope of Harrogate (Con) [V]]

My Lords, I am pleased to take part in this short debate and to add my support to the initiative of the Bank of England and the Government in bringing the Bank for International Settlements innovation hub to the UK. As other speakers, including my noble friend Lady Wheatcroft, have said, we are acknowledged as leaders in fintech and the combination of domestic skills and this institution will further consolidate that situation. I hope that the furtherance of the work of the hub will not only benefit the UK and the developed economies but will also directly impact on development of the weaker economies of the world. The bank itself has good intentions but is not yet as representative globally as I would like it to be. Can my noble friend assure me that, by hosting this hub, we will also encourage the bank to institute wider membership from those parts of the world that are currently underrepresented in its counsels?

I turn to the interesting way in which the order is presented, and the measures and entitlements it offers to bank staff and dependants. We are, of course, fully acquainted with the diplomatic immunities offered to ambassadors and others who represent their countries here in the UK, which are confirmed by the various Vienna conventions and the convention on consular relations, followed by the Diplomatic Privileges Act 1964. I will move off my script for a second. Knowing of the incredible diplomatic skills and charm of the Minister, might he have a word with his friends in the Foreign Office and see if we cannot sort out this ongoing problem regarding the diplomatic status of the EU’s ambassador? I would be pleased if he would. Having said that, I will go back to my script. In recent years, from time to time, we have witnessed some of our guests and their staff interpreting the privileges they have here in a wider context than the normal caveat of “relating to acts performed in the course of their duties”.

As we all know, there are also other immunities from prosecution available to our own citizens, where the Crown Prosecution Service believes that this might aid the conviction of a criminal, where co-operation is a key element. However, I would be interested to know how many organisations like the bank under discussion today have currently enjoyed the special immunities that this order confers? For instance, I know that the International Maritime Organization is based in London. Does it and its staff enjoy these privileges? I am assuming that there are many others too, so perhaps my noble friend might elucidate on this. I see that, in this case, the offer of immunity was a condition of securing the bid to have the bank here. Apart from any other cases of a similar kind, is it now a normal expectation that such immunities have to be offered? Is there international precedent, pursued by other states in such bids? Where others have been successful and we have not, is that because they have made better offers of this kind?

This order is also unique in allowing the exercise of Section 12 of the International Development Act 2002 for the very first time. An Order in Council by Her Majesty is an interesting feature of this measure, especially as it relates to immunities and privileges of a non-domestic body. Can my noble friend enlighten the Committee as to whether this is now regarded as a precedent in any way? Regardless of the general immunities which this order will confer, I note, as a former Immigration Minister, that bank officials and staff will, additionally, have the benefit of exemptions from immigration controls for their dependants. Was this extra provision requested as part of the bid process, or offered because of any other precedents? The main immunities are to BIS officials and employees and are wide, but the extension to dependants appears in the negative Order in Council.

The securing of this facility for the UK is, of course, to be welcomed. Only the Government and the Bank of England know the details of the competition to win the bid but it is obviously important and of interest to all noble Lords, as legislators, to be aware of the terms we need to offer in global competitions of this kind.