Syria

Lord Risby Excerpts

Thursday 9th February 2017 Grand Committee

[Lord Risby (Con)]

My Lords, I congratulate the noble Baroness, Lady Cox. She is absolutely right to highlight the extent of the humanitarian horror of the Syrian crisis. I applaud her for her efforts on behalf of the Christian community that is left there, and in essence agree with her vision. I personally mourn the death of a great friend, the Archbishop of Aleppo, who disappeared and was presumably killed.

In 2000 I attended the funeral in Damascus of President Hafez al-Assad, representing the Opposition. It was the first time that I met his son Bashar, and there were great hopes that he would modernise the economy. Indeed there was some progress, and the new President fully protected the minorities. However, when minor demonstrations broke out in Syria, and after some hesitation, President Assad ruthlessly cracked down, and the rest is history. It was a grotesque misjudgment and wholly unnecessary. Had we and others taken out his capacity to rain cluster bombs, barrel bombs and chemical weapons on his population by bombing his airfields, he would have been forced to the conference table. We never did, though, and our support for opposition groups was limited and sometimes wholly counterproductive.

As a result of the Russians moving in substantially in 2015, Assad is now on his way back to controlling the country. It is a tragic and ironic situation that the man who had so much to do with the destruction of his country should now be seen as part of the solution. It now appears to be recognised even by us that he is there to stay, as expressed by the Foreign Secretary. However, I immediately praise Her Majesty’s Government, who have so generously committed money to good humanitarian efforts to alleviate the plight of the refugees. We can be truly proud of the generosity, added to by private funding and care. I was very pleased personally to help in raising money for relief.

However, we are where we are, and we have to face the clear reality. When a recent meeting took place in Astana, it was essentially led by Turkey, Iran and the Russians, whose influence and role in Syria is now decisive. I therefore ask the Minister if she is in a position to clarify what the next stage will be. I understand that additional meetings in Geneva were planned, but may have been postponed to cement a ceasefire. Do we know if the anti-Assad opposition is to be involved? This would be appear to be essential to make progress, and of course it would be under UN auspices. President Trump has advocated, with the support of Saudi Arabia, the establishment of safe zones to provide some degree of security for refugees. Do we agree with this? I understand that he has commissioned a report to be ready by April.

Of course there will simply be no progress without the agreement of Russia and indeed President Assad himself. The Foreign Secretary reiterated his view that President Assad ideally should go, but we now have to accept the new reality of his staying. Indeed, all I can say in retrospect is that all of us should pray and yearn for this unspeakable horror and heart-breaking situation to end.

Populism and Nationalism

Lord Risby Excerpts

Thursday 19th January 2017 Lords Chamber

[Lord Risby (Con)]

My Lords, I congratulate the noble Lord, Lord Bruce, on introducing this most timely debate. In industrialised societies, we are seeing the rise of political movements that are challenging liberal values and the consensus that has existed for decades. Two major countries continue single-mindedly to expand their interests—namely, Russia and China—which unnerves their neighbours. In some countries, religion is being used to further sustain the control and popularity of governing regimes. At the WEF meeting this week in Davos, it is precisely these themes which are sources of discussion and concern. The rise of nationalism and protectionism challenge existing multilateral co-operation and institutions, which is particularly difficult for countries which have led enhanced international co-operation and agreement.

I say this because, however critical and concerned we may be about these themes, it seems to me that we need to delve into some of the actual reasons for this in Europe and the United States in particular. After the Second World War, a remarkable level of social cohesion developed in many western societies. In the United States, manufacturing grew apace and living standards improved markedly across economic divides, irrespective of education or skills levels. In areas described today as the rust belt, there were jobs for all. In France, there is now nostalgia for the 30 glorious years of economic and social advance in the same period. Despite frequent industrial disturbances here, a former Prime Minister said that we had,

“never had it so good”.

I believe that much of this sense of alienation today arises from the embers of the financial crash of 2008. Some Governments had concluded that, in the prosperous preceding years, fiscal caution could be de-emphasised or even abandoned. With the resulting high budgetary deficits, traditional Keynesian responses to the crash were extremely difficult to pursue. Instead, central banks pursued a policy of very low interest rates; this in turn led to high asset inflation, the beneficiaries being those who could borrow money and participate often in property booms. Many citizens felt that those in the financial sector who had recklessly contributed to the financial crash escaped any real censure. Technology changes added to the concerns of those who felt separated from economic recovery, particularly in the United States, so that the very underpinnings of social cohesion began to fracture. High-end pay became in some instances wholly disconnected from successful performance. All this made for a combustible cocktail.

Institutional structures further aggravated this. If we look at Europe, at Laeken there was a serious discussion about how European citizens could feel a greater sense of ownership of the European Union and its institutions. In what would eventually emerge, even the most enthusiastic Europhile would accept that the promised sense of ownership was simply never restored. For example, no transitional arrangements were made here for citizens of the new accession countries and the assurances given were that the numbers coming here would be minimal. I happen to have supported the remain cause in the referendum last year but now, all over Europe, there is anxiety about the consequences of globalisation in practice, unrestricted free movement of labour, migratory flows that are in part simply economic, and human rights legislation that can overturn national responses. Much of the manifestation of the resulting populism and nationalism challenges the very democratic values that we all cherish, but we need to take care that the legal and institutional structures that we have constructed to enshrine these long-fought-for values do not in themselves appear inflexible, unresponsive or intolerant of people’s genuine concerns. The remain campaign focused on the economy—usually the basis for electoral success—but this was rejected by people feeling that their identity was being challenged by forces over which they had no control.

If we look down the track at the effect of artificial intelligence, for example, this will further challenge populism, because populism offers a false hope. The change of technology is likely to disappoint those who have supported it. We look at what is happening in France with Marine Le Pen offering protectionism as a solution to high French unemployment—a similar situation is being echoed in the United States. Mercifully, we do not have extreme left or right-wing political movements in this country. We remain a remarkably liberal and open society, but we have to guard against the undermining of this. To do so, we must not permit those liberal values to morph into illiberality, which is to turn a blind eye to negative social attitudes and practices while intolerantly closing down debate and open discussion that impacts the lives of our citizens, leading to their alienation. We in this country are fortunate to be able to resist protectionism and illiberalism. It is part of our role in this Chamber to ensure that those values are continued and cherished.

Middle East

Lord Risby Excerpts

Tuesday 23rd February 2016 Lords Chamber

[Lord Risby (Con)]

My Lords, my noble friend Lord Hague, when he was appointed shadow Foreign Secretary, forecasted that the Middle East would be the epicentre of the world’s problems in the future. It was certainly an understatement. But more latterly, I am pleased that this country has restored relationships with the Gulf states—which were previously ignored—participated in the Iran nuclear process and welcomed President al-Sisi to London inter alia. We as a country have a unique and exceptional understanding of the region.

Very recently, the Cabinet Office Minister, Matthew Hancock, was in Israel, where he launched a most welcome cybersecurity engagement. Of course Israel’s expertise in this area is unparalleled. As my noble friend Lord Grade observed, he made a clear commitment that public authorities here would be banned from boycotts, which again is most welcome news. All this strengthens our bilateral relationship. However, according to the United Nations, more than 400 Palestinians were displaced in the first six weeks of this year because of Israeli demolitions. There have been horrific attacks on Israeli citizens and counter-attacks by Israeli armed forces. It is a tense and dire situation, but with all the horrors across the region, all eyes have moved away from the Israel/Palestine conflict.

But it is all too circular. As long as illegal settlements are being constructed, Mahmoud Abbas has no credibility to negotiate or accept the open offer by the Israeli Government, and that continues to raise tensions. The problem will fester, but surely this is precisely the time for a bold initiative to break the impasse, as inevitably it will return on the radar screen as a focus of concern. Given that in so many respects we have such an excellent relationship with Israel and are committed generously to a two-state solution, surely this is the moment for the British Government to try to promote actively such a dialogue. We do not need any information or analysis from the BBC, the Economist or anyone else. We have skilled diplomats to do this for us. I hope that my noble friend the Minister will agree.

Bilateral Trade: United Kingdom and Africa

Lord Risby Excerpts

Wednesday 11th November 2015 Lords Chamber

[Lord Risby (Con)]

My Lords, I congratulate my noble friend Lord Sheikh on introducing this debate. I have read his report on Ethiopia—a country that has had a difficult past but has certainly made enormous progress—with great interest, and I very much look forward to the maiden speech of the noble Lord, Lord Oates.

Looking back particularly over the past decade or so, we have seen a huge number of African success stories—I pay tribute to the noble and learned Baroness, Lady Scotland, who is trade envoy to South Africa, where such progress has been made, and my role as the Prime Minister’s trade envoy to Algeria is one that I absolutely cherish and enjoy—but the truth is that there are some difficulties on the horizon, in which I believe we can play a role in helping. Many of the economies in Africa have been based on rising commodity prices, but we are now seeing some weakness and there is some concern, and of course the question is how long this will go on for.

A number of African countries have sought to look at diversification, and here we have a unique capability. In the reform of their capital markets and their banking systems—of course, without that their growth would be inhibited—we have a unique offer. We have an outreach programme by the Stock Exchange that interfaces with other countries. We have in this country unique support systems involving lawyers, accountants and insurance specialists, and I have seen all of this on offer to our friends in Algeria. Indeed, I praise the work of the Lord Mayor, who has recently been to Africa, and the previous Lord Mayor, whom I had the privilege of being with in north Africa during her visit.

The second point that I would like to make is that many African countries have a demographic challenge of young people, and we in this country have been quite successful latterly in embracing technological change. We have seen a record start-up rate in this country by international standards, including the establishment of Tech City, and we have set about abolishing some of the red tape, regulation and overprotective employment laws that were inhibiting start-up activity. These are things that, in my role, I have been trying to point out to Algerian friends as very important, and in these aspects of our life we want to share our experience with other African countries, which I believe will welcome what we have done. As my noble friend the Minister contemplates improving business links with Africa, of course there are millions of young Africans who are extremely well educated and motivated and eager to deploy modern technology to start up their own businesses—this is something that I hear everywhere. However, as we look to commodity-rich Africa and help it to grapple with the challenge of diversification, I would just point out that, in a country such as Algeria, which is energy-dependent, it has become very necessary to improve the financial infrastructure—and, again, this is an area where we have an unparalleled advantage.

I would also mention the importance of the expansion of the British Council in a number of African countries. English has become the dominant language of modernity, telecommunications and technology, and in many African countries English is well spoken and can be a key part of our offer. I hope that this aspect, one of the key underpinnings of our relationship, can continue to be offered and expanded.

As my noble friend, who is spearheading so effectively our export effort, contemplates how we can improve our bilateral relationships with a number of African countries, I hope that all these things can be offered to supplement the dynamism and energy that exists in African countries but also to help with the challenge of diversification, which at this juncture is for many of them an important issue that they have to face.

Syria

Lord Risby Excerpts

Wednesday 24th June 2015 Lords Chamber

[Lord Risby (Con)]

My Lords, the tragic humanitarian crisis of biblical proportions arising out of the situation in Syria is now impacting all European countries, to add to the enormous pressures on Lebanon, Jordan and Turkey. This all arose out of a terrible misjudgment by President Assad, who, after some ambiguity, blamed social unrest on foreigners and terrorists. There were arguments as to how to respond; sophisticated voices rejected any action against the Assad regime, saying that there was no strategy. His strategy was clear: survival at any cost, no matter what the bloodshed was and despite the efforts of the United Nations and the Arab League. Today we have the incredible situation whereby ISIL is supplying President Assad with oil and he and ISIL attack moderate Syrian rebels. The notion that he is a buffer against ISIL simply is not being borne out.

Russia, which has its own preoccupations in Ukraine and elsewhere, now realises that Assad and his immediate cabal cannot win. There is a widely held view that Iran would consider sacrificing Assad if there was a nuclear deal that, in turn, would enable it to negotiate its political interests thereafter. It appears that Turkey and Saudi Arabia are willing to act as security guarantors for Syria post Assad. They appear more disposed to support the more moderate rebels—fearing ISIL more than anything else—and they might provide the best guarantee of stopping ISIL taking over Syria in totality, including Damascus.

I refer my noble friend the Minister’s attention to a recent report put together by the Atlantic Council, The Case for a Syrian National Stabilization Force. It may well be of interest and points to a clear strategy for supporting the moderate rebels and, ultimately, looking at political reforms. Of course, the political structures that could support this do not yet exist, and we must not make the mistake of dismissing everybody with political and administrative experience, as regrettably occurred in Iraq.

Assad cannot last. Iran and Russia, for different reasons, are more open to dialogue, however tortuous, and Turkey and Saudi Arabia may well be supportive. At minimum such an approach is worth encouraging and I simply do not know of any viable alternative. I greatly look forward, therefore, to hearing from my noble friend of any role that we and other European partners can have in trying to bring about fresh thinking in resolving this tragedy. There may just be some straws in the wind now to support this.

Trade and Investment

Lord Risby Excerpts

Monday 15th June 2015 Lords Chamber

[Lord Risby (Con)]

My Lords, it is a great personal pleasure for me to see my noble friend Lord Maude on the Front Bench and to congratulate him on a truly excellent speech. Perhaps my noble friend thought that when he came to your Lordships’ House he might be escaping me. The simple reason for that is that I was his deputy not once, not twice, not three times, but now four times—he is technically my boss since I am a trade envoy of the Prime Minister. I am absolutely delighted that that should be the case. I believe that my noble friend has now made three maiden parliamentary speeches, which is excellent too. I have worked with him in many roles over the years; he combines a stellar intellect with an extraordinary commitment to get things done with a clear sense of focus and direction. It is exactly for that reason that he will be enormously valuable in discussions and debates in your Lordships’ House, and in the crucial role that he now enjoys in government.

We have a brilliant service industry in this country—the best in the world, in many respects. This certainly is not the moment to discuss the whys and wherefores of the calamity that struck this country in 2008 and beyond, but it told us something—that we needed a different regulation of our financial services industry, but also a rebalancing of our economy. In common with other industrial countries, we have seen a decline in manufacturing in the United Kingdom. In our case, we have seen an overdependence on the financial services industry, much of it concentrated in London. Indeed, as many noble Lords have already indicated, our export performance has not matched that of others. One problem has been that accessibility of our banking and insurance services has been very difficult in some key markets.

Over the years all British Prime Ministers have tried to promote exports and inward investment, but by any objective standards, the time and energy that has been committed by this Prime Minister and this Chancellor of the Exchequer to that end has been widely and enormously appreciated by the business community, as I have heard so often. UKTI has been refashioned to develop new market opportunities and to encourage inward investment. However, the culture of export promotion remains a work in progress, as our home market has always been somewhat consumer oriented and, for many businesses, enough for their business purposes.

Let me deal first with inward investment. Our openness and attractiveness to external investment sources is simply unique in Europe. We remain the top European destination for foreign direct investment and second in the whole world, but until recently some 90% of FDI came from either America or Europe. Clearly this is now beginning to change, which is to be welcomed, as we see the new world economic order unfolding, with huge and recent investments by the Chinese, Gulf Arabs and others. We can recall with gratitude the huge investment made by the Japanese in this country in the 1980s, particularly in our car industry. It is estimated that the wave of FDI has created more than 200,000 jobs and safeguarded 260,000. It is crucial that we continue on this process, but we must do so by continuing to have low business taxes, a pro-business sentiment and flexible employment structures that continue to be attractive to people.

We, of course, as a country also benefit enormously from the English language, and our reputation as a very open and welcoming society. We can also be proud of a big change in business start-up culture, and the dynamism of our high-tech sector. An extraordinary statistic on the rate of start-ups in this country compared with France was published recently. We have much to learn from France as regards the co-operation between government and the private sector in assertively pushing the interests of France in export markets. That is to be admired in many respects. I read an extraordinary statistic which I hardly believe to be true, but it is part of our success story and must be encouraged—namely, apparently, 9,000 British people now live in Paris and 400,000 French people live in London, many of whom are the most enterprising and dynamic young French citizens who have been attracted here. In that context, the Chancellor of the Exchequer has removed or modified burdens on smaller businesses and has overseen the establishment of new enterprise zones and digital entrepreneur hubs. He has improved R&D tax credits and given extra support to exporters with the expansion of fast broadband, which is certainly much needed.

In March, the Government hit our target of signing up 3,000 medium-sized businesses to a support programme designed to help them break into new global markets. However, we still have work to do. Only one in six such businesses currently exports outside the European Union compared with one in four in Germany and one in three in Italy, so progress needs to be made. I am sure your Lordships will want to support this and perhaps my noble friend will comment further on it.

I was particularly interested in the very interesting and informed comments of my noble friend Lady Mobarik in respect of Pakistan and the opportunities there. Wearing my hat as the Prime Minister’s envoy to Algeria, I know that it is very interested in the start-up culture and high-tech sector which have developed in this country. Of course, in a country such as this there is an argument to be had about how you encourage this by cutting red tape and amending tax policy. However, a country such as Algeria is relatively new business territory for us and we have seen a substantial growth in business activity with it. In December last year, as part of the trade envoy programme, 1,000 potential investors wanted to attend a conference in London labelled “Algeria Open for Business”. Recently, we secured our first Rolls-Royce engine order there. We have had a remarkable success story with a Northern Ireland dairy company supplying farm products there, further energy construction and servicing deals and, very soon, we hope, a major hospital contract.

I pay tribute to my noble friend Lord Marland, who encouraged this whole process and drove this programme forward. However, the Prime Minister’s visit just over two years ago made a dramatic breakthrough. UKTI is now supporting trade and credit finance at a level unseen before. All this is very welcome. It is also particularly welcome that 89% of its customers are SMEs. Additionally, funding has been put in place to give support and advice to possible new SME entrants. Surely this is an area which offers the greatest promise.

I also express my gratitude for the change of attitude which evolved in our Foreign Office. Ambassadors now give considerable support and energy to export and inward investment promotion, as I have seen and admired in Algeria and elsewhere. There is simply no alternative to pursuing business-friendly policies if we are to secure the economic growth which gives businesses confidence that they are supported in their export ambitions. Business organisations are playing their part with UKTI, BIS and the FCO in encouraging this culture, and it is working. The latest British Chambers of Commerce international trade survey found that businesses that export reap better performance but there is more still to be done, and the BCC is there to assist. Its Overseas Business Networks programme links accredited British chambers with those abroad under the banner of Export Britain, offering advice on export readiness, planning, making connections and getting goods to market. I dwell on this because these activities supplement the work of government through UKTI and provide an international link that is hugely welcome.

As the relative importance of the European economy continues to shrink, identifying and targeting new markets remains a critical objective. I hope and believe that those of us who are privileged to be part of the Prime Minister’s trade envoy programme can in some measure contribute to this in markets that have been relatively unexploited historically. The Chancellor of the Exchequer said recently, I think with real candour:

“We have to tackle the endemic weaknesses in the British economy that no Government have been able to solve in the past: we are not productive enough and we do not export enough, save enough, train enough or build enough”.—[Official Report, Commons, 4/6/15; col. 798.]

In once again welcoming my noble friend to his role, I say in conclusion that he brings great experience of the private sector to this undertaking and I know that his contribution in driving forward our export promotion and continuing to attract inward investment will be greatly valued by this country.

EU and Russia (EUC Report)

Lord Risby Excerpts

Tuesday 24th March 2015 Lords Chamber

[Lord Risby (Con)]

My Lords, I warmly congratulate my noble friend Lord Tugendhat on so effectively presenting this brilliant report—and it is a brilliant report. So many people outside your Lordships’ House have read it and complimented all the work of the committee in producing it. It certainly has been a fantastic read for us all.

For some years, I have been chairman of the British Ukrainian Society, which I now declare. Indeed, one of its directors is my noble friend Lord Oxford, who now brings all his experience and understanding to our deliberations. I warmly congratulate him on such a superb maiden speech.

When the Soviet empire collapsed, the departure and independence of Ukraine were very keenly felt by many Russians. But Ukraine has always aspired to be independent, and that spirit provoked savage reprisals by Stalin. Before the Second World War, Stalin effectively starved to death millions of Ukrainians—the Holodomor. In this Palace of Westminster, we have sought to commemorate this tragedy with artistic and photographic exhibitions. It is certainly an event that has scarred the memories of the people of Ukraine.

Regrettably, since independence, Ukraine has been both ill governed and highly dependent on Russian energy supplies. Russia, in turn, has used energy as a weapon of foreign policy, using differential pricing to influence those whom it favours or dislikes. Therefore, Ukraine has been dependent on Russia not only for energy supplies and transmission but as its major export market. Regrettably, a number of those who have led Ukraine politically since independence acquired massive wealth. Former President Yanukovych, now in exile in Russia, apparently built up a fortune of some $70 billion. His effective removal by outraged Ukrainian citizens following the Maidan demonstrations led to the subsequent invasion by Russia, furious at his departure, of Crimea and the Donbass. Ukraine has perennially been in debt to Russia. Indeed, the failure of President Yanukovych to sign the EU Association Agreement was linked to Ukraine’s debt to Russia, which the agreement did not cover. That is because the EU essentially believed, with some degree of understanding, that any money provided would simply be stolen. And so this president turned to Russia.

It was a key policy of the new Ukrainian Government under President Poroshenko to decentralise authority to the regions of this vast country. But this was not spelled out and acted upon sufficiently when they came into office, which might have pre-empted the rise of separatist sentiment. This still needs to happen, but in a way that does not dismember the country, which appears in some respects to be Russia’s objective. Does the Minister agree that the EU must encourage Ukraine to move forward on this decentralisation process as the opportunity presents itself?

The question we all ask ourselves is this: what is Russia’s objective? It seems quite clear to me, somebody who knows Ukraine very well, that it is to make Ukraine ungovernable and drive away any foreign investment to ensure Russia’s continuing dominance and influence.

The British Ukrainian Society is fully part of a process that is now under way in Vienna. The French philosopher Bernard-Henri Lévy, a hero of the Maidan demonstrations, called for a Marshall plan. In an echo of this, a small group of us, including him and my noble friend Lord Oxford, is helping in this process. It has a degree of support from President Hollande. In a remarkable demonstration of unity, but also of clear necessity, Ukrainian federations of employers and employees have come together to underpin this initiative. Work streams are being set up in such diverse areas as trade, health, EU association, anti-corruption and judicial reform, headed by distinguished Europeans, including from this country and including members of your Lordships’ House, who will analyse rigorously what is necessary to provide a wholly different constitutional and economic climate. We hope that in September we will be able to report on this. Depending on the level of stability in Ukraine, our clear intention is to launch a major reconstruction fund embracing private sector investors. Of course, the role of the IMF and others is crucial, but we are hopeful that the huge opportunities in Ukraine, not least in agriculture and in IT, will be attractive. We have been pleasantly surprised in discussions in Washington at the level of interest not least from those in the United States. Such a fund would help disconnect Ukraine from the massive current economic shadow of Russia which impacts it so directly.

One of the more troubling interplays has been the extent of involvement of politicians there with different business groups which so dominate the economy. I mention this because, in the fullness of time, more competition is crucially needed. However, confiscation, nationalisation or punitive tax rates, advocated by some, are not seen as a wise priority in Kiev in key government circles, although one oligarch in the last day or two, who appears to have had a private army, has challenged the state’s authority in a completely unacceptable way.

As we have heard, the aggressive behaviour of Russia has been well documented. Nevertheless, it is certainly unwise for some to call for NATO membership of Ukraine, which before the current tragedy was never a live issue. That simply gives Russia a self-justifying excuse to continue its aggression.

Ukraine is a European country that deserves much better than it has suffered. As the excellent report of the European Union Committee makes clear, there are potentially practical ways of trying to engage with Russia at a national and EU level while making it absolutely plain that there will be a heavy price if this offer is spurned. Yet for all the huge energy and commitment of the current Ukrainian Government to initiate much needed reforms, ultimately they will have to recognise that, however unpalatable, no country can escape the reality of its geography.

Exports: Government Support

Lord Risby Excerpts

Thursday 29th January 2015 Lords Chamber

[Lord Risby (Con)]

My Lords, it is a great pleasure to follow my noble friend Lord Cope, who has always been such an admirable advocate for small businesses over so many years. I also warmly congratulate my noble friend Lady Wheatcroft, who introduced this debate so effectively.

Our trade surplus, or more likely our deficit, has historically affected the fortunes of Governments from time to time. Happily, this is not the case today. Nevertheless, we have struggled to enjoy the export success of others over the years. The financial crisis that we suffered has been a real wake-up call. We as a country were particularly hard hit, but what the crisis told us loud and clear is that financial services had become disproportionately important as an engine for growth in our overall economic landscape, yielding substantial tax revenues which then vanished, with all the adverse consequences for us. What we suffered in the financial crisis left its mark on all of us in public life and in consequence, rebalancing and reorienting the economy has taken on a fresh and vital significance.

In fairness, successive Prime Ministers have for many years sought to promote exports and, more latterly, enormous efforts have been made to encourage exporting and finding new markets. However, by any objective standards, the personal role in this of this Prime Minister has been remarkable—as have the efforts of other senior Ministers, most notably the Chancellor of the Exchequer. Politicians are often criticised for having insufficient knowledge of the real world but we have been hugely fortunate with two exceptional Ministers in this House who have restructured and spearheaded UKTI to promote this export effort, based upon an incomparable personal understanding of how the private sector works, namely my noble friends Lord Green and Lord Livingston.

Regrettably, the performance of the eurozone economy has been anaemic. If we were to look at our top 10 markets, the USA would lead the way but if we take out China and the UAE, the seven remaining export destinations are all in the eurozone, which still accounts for nearly half of our exports. In December, UKTI published its 2020 Export Drive, focusing on new sector and country opportunities. It has the objectives of doubling our exports by 2020, embracing a series of key tasks to help our exporters, and building on the immense success that we are seeing in sectors as diverse as car and food production, both of which offer products of the highest quality and are brilliant success stories.

In 2013, I was appointed as one of the Prime Minister’s trade envoys: a cross-party group of 14 from both Houses of Parliament, most of us with private sector experience. I have therefore seen at first hand the high levels of professionalism and support which UKTI now offers. In recent years there has been a considerable change and the Department for Business, Innovation and Skills now works very closely with the Foreign and Commonwealth Office to promote exports and attract inward investment. There certainly was a time when some of our diplomats may not have endorsed this part of their role; now it is the reverse. I pay unreserved tribute to the two ambassadors I have worked with in my role in Algeria and to the UKTI support there. All my trade envoy colleagues would express the same sentiments. As it happens, we have increased business in Algeria, but other trade envoy colleagues cover areas as diverse as South Africa, Vietnam, Indonesia, Tanzania and Mexico. These are countries with which, in the past, we have had either insubstantial or insufficient commercial contact but where new opportunities most certainly lie.

In Algeria, there is a massive $280 billion social and infrastructure programme in place. Any day now, we will sign a double taxation agreement and finalise a hospital contract worth some $1 billion. What has become a really important force in this new bilateral partnership is the most welcome and much enhanced role of UK Export Finance, which can offer guarantees in support of export projects. In Algeria alone, there is currently a capacity of some £1 billion to support such investments and this is truly transforming. Also, Ministers fully understand the importance of these new country relationships and I am most grateful to Foreign Office Ministers, from the Prime Minister downwards, who have made the time to go there and welcome their ministerial counterparts here. This is where the cultural and organisational change is clear, with BIS, the FCO, UKTI and UKEF working together in export promotion.

Despite the financial crisis, this country has the finest brains in the world engaged in insurance, banking, the law and accountancy and not only in the square mile. Our Stock Exchange, with its outreach programme, is very much part of this but I also acknowledge the positive role played by the City of London Corporation and the sheer energy and commitment of successive Lord Mayors—which I have seen myself—in promoting UK plc abroad. Our reputation and competence is enormously admired internationally. Our financial services and their ancillary activities are increasingly part of our export topography. It is said that we benefit from our time-zone position, and we do. We are also in an open society and much has been done to encourage business start-ups which are so attractive to young people from many countries, as we see in Tech City, for example.

Additionally, we have something precious that the world really wants: the English language. At the British Council’s Hammamet conference in Tunisia last year—at which the noble Baroness, Lady Prashar, played a leading role—I learnt that the intense desire to learn English extends beyond Algeria to its neighbours. It is said there that this is a window on the world of modern business activity and technology, and it is. I applaud the British Council for responding so positively to this. Huge numbers of young foreign students and adults simply want to learn English. Training programmes for this for civil servants, teachers of English and others are now in place. So many want to study here and this cements irreplaceable personal relationships and contacts which are all, ultimately, in our business interest.

Recently, President Obama generously said of the British economy that we must be doing something right, but our export performance has insufficiently contributed to that perception. However, the structures, objectives and priorities have now been firmly put in place to change that. All of this is now well recognised by our business community and fully supported by the Government, as I have seen. As comprehensive new support and awareness strategies have been introduced, I am confident that our export performance will improve markedly in the years to come.

Middle East and North Africa

Lord Risby Excerpts

Thursday 30th October 2014 Lords Chamber

Moved by

[Lord Risby]

To move that that this House takes note of the current situation in the Middle East and North Africa.

[Lord Risby (Con)]

My Lords, some years ago while still in opposition, my right honourable friend William Hague said to a group of us, “Get to know the Middle East because it’s going to be the epicentre of the world’s attention”. Nobody could ever have forecast the sheer tragedy and drama that has overtaken the region in the intervening years. Of course, in our western societies we have had a backwash, with increased radicalisation, increased alienation and also the repellent rise of anti-Semitism.

In the Arab world we are viewed with considerable ambiguity. There are those who believe that we should have no involvement in Muslim countries because of religious belief and that this is unacceptable or simply counterproductive. This is why President Obama made it clear that the US cannot take the place of Arab partners in securing the region. Others believe, on the other hand, that western firepower is absolutely essential to contain and destroy extreme radicalism. But now, at least ultimately, most people believe that there has to be a political track in the end to resolve these extremely difficult problems.

In Iraq there is a more consensual Government, which has been welcomed both by Iran and Saudi Arabia, both of whom have good, but very separate, reasons to fear ISIS. In the last few years, the Kurdish region has been very stable, but it has had an influx of almost biblical proportions of Syrian Kurds, Christians and Yazidis and others to deal with. It must continue to be supported generously with humanitarian aid and, indeed, armaments. Turkey’s reluctance to be involved in containing ISIL has been disconcerting, as we saw in its reluctance specifically to get involved with Syrian Kurds in the battle in Kobane; however, it did not want to get involved because it believed that they were fighting under a banner of a terrorist organisation. But the Turks have spent $4.5 billion in feeding and housing the enormous influx of people who have come into Turkey. What they greatly fear, of course, is terrorist activity in Turkey itself, which would undermine not only its security but also its immense and hugely important tourist industry. It has called for a security zone and a no-fly zone as well, not only to protect themselves from the security point of view but to stop the potential huge flow of additional people coming into the country. We should note that fragile Lebanon has now said that it cannot and will not take any more refugees; and getting into Jordan is also very difficult too.

Ten million people have been displaced in the region, 3.2 million Syrians have fled their country and 200,000 have been killed. It is a truly, truly terrible modern-day tragedy. Both the Turks and the Saudis explicitly want to see the removal of President Assad. More moderate anti-Assad elements are now being attacked by him even more remorselessly, leaving ISIS, which controls 35% of the country, to be dealt with by the Americans and others, as he seeks to project himself as the enemy of radical terrorism. However, it is absolutely plain that even if they have frustrations with him, the Iranians and Russians will continue to support and sustain him. Yet as Ban Ki-moon warned last week, using only military means to fight the threat of Islamic State in Syria could radicalise even more Sunni armed groups and create greater violence. The long-term strategic objective in Syria remains a political solution, he said. As somebody who has met President Assad on many occasions and attempted to help the opposition, particularly at the early stages, it pains me to agree. There appears to be no other viable alternative on offer, but once again to try to pursue a political track.

We are all products of our own experiences in life. As a young child I went into a shop one day with my mother. It was a hot summer’s day and the man behind the counter had rolled up his sleeves. I was transfixed by some numbers on the inside of his arm. Of course, I extracted an explanation from my mother. It was my first insight into the horror of the Holocaust and what it meant for the Jewish people, and it has never left me.

However, recently, my noble friends Lord Lamont, Lord King, Lady Morris and I wrote an open letter calling for the formal recognition of Palestine by the United Kingdom. Now, of course, this should ideally be part of a comprehensive peace settlement but, frankly, there is none in sight. There is now a unity Government under Mahmoud Abbas. However imperfect that is, the Israelis are most unlikely to find a more moderate Palestinian leader—whose position and credibility is constantly being undermined by the continuing construction of illegal settlements in the West Bank.

However, there is now a new potential opportunity for Israel to be encouraged and to view a more formal two-state solution more concretely. The new Egyptian Government are working with the Israelis to banish terrorism from the Sinai. They are closing down the tunnels and have made it absolutely plain that the wholly dangerous, provocative and counterproductive firing of rockets from Gaza into Israel has to stop.

The Arab peace initiative of 2002 involved a clear pathway to the recognition of Israel by its neighbours. It should be revisited. As President Sisi said at the United Nations last month:

“The continued deprivation of the Palestinian people of their rights is undoubtedly exploited by some to inflame other crises, achieve hidden goals, fragment Arab unity, and impose control on Palestinians under the guise of realising their aspirations”.

If Israel looks ahead, demographic changes in Israel and Palestine point to the necessity of moving this process on to a final acceptance of the Palestinian reality. It is, quite simply, in Israel’s interests to pursue this. As Henry Kissinger wrote in his latest book,

“the Palestinian issue will have to be faced sooner or later as an essential element of regional and, ultimately, world order”.

No country can escape the reality of its own geography.

The whole House will be looking forward to my noble friend the Minister’s response to the two areas of enormous concern to which I have alluded. However, let us cast our eyes towards the Maghreb, specifically Algeria. In the early 1990s, there was an Islamist takeover there and 150,000 people were killed. It was a foretaste of the horror of ISIS. Since then, however, Algeria has been remarkably stable and the memories of that terrible time have become embedded in the collective consciousness of the Algerian people. In 2006, President Bouteflika came on an official visit here and in January 2012 our Prime Minister went to Algeria. In less than three years our commercial exchanges have soared. Algeria is a reliable energy supplier. The country is rapidly expanding its physical infrastructure and upgrading its education and health services, in which we are fully participating.

With its unstable neighbours and a vast and porous border, we now have a strategic security partnership with Algeria. A double taxation agreement will soon be signed, and we look forward to the visit of its Prime Minister to London for a major conference in December, “Algeria: Open for Business”. The demand for the English language is infinite, and we are actively responding through the British Council and our own educational establishments. It has indeed become a remarkable and problem-free partnership, which is welcome to both sides. In conclusion, it is quite simply and unambiguously a good news story for us both.

--- Later in debate ---

[Lord Risby]

My Lords, I say in all humility that it was the greatest privilege for me to be able to introduce this debate because of the quality of the contributions we have heard today, which have reflected such astonishing knowledge, interest and passion about the region, to which we are all committed. As I listened to the speeches, I wondered how many parliamentary Chambers in the world could have held a debate in this way and so effectively. It was remarkable.

In terms of expertise, we heard contributions about Iran, Egypt, Iraq and other countries which reflect this so admirably. I pay tribute also to our diplomats, who have to work in very difficult circumstances sometimes, and to those engaged in humanitarian relief in different countries in the region. Our history dictates, whether it was the Balfour Declaration, Sykes-Picot or our colonial experience, that we will continue to have involvement, because this is such an important part of the world.

On the Israel and Palestine situation, wherever we come from, all we want is for the security of the Jewish people in Israel to be assured and the dignity of Palestinians to be recognised. Once again, I thank noble Lords for their magnificent contributions, not least the Minister, who summed up so brilliantly and comprehensively and is destined richly to contribute to all our debates on foreign affairs in the months to come.

Motion agreed.

Syria and the Middle East

Lord Risby Excerpts

Thursday 27th February 2014 Lords Chamber

[Lord Risby (Con)]

My Lords, I compliment the Minister, but perhaps I may be permitted initially to mention one Arab country, rather distant from the eastern Mediterranean, namely Algeria, which will be having a presidential election in April.

In January last year, our Prime Minister visited Algeria—the first British Prime Minister to do so—and I accompanied him as his trade envoy. After the horrors of its war of independence, that country suffered a brutal Islamist takeover more than 20 years ago. Some 150,000 people were killed amid scenes of unspeakable depravity, and this has scarred the memories of Algerians collectively. Today, quietly, we have a remarkable bilateral relationship, and a security and defence compact. A massive desire exists there to learn English and our trade has increased appreciably. Because of its energy wealth, Algeria is spending heavily on both its physical and social infrastructure, and I hope that British business will benefit from this. EU monitors will be present for the elections. It is an enormous, diverse country with extremely porous borders. We can only hope that the remarkable stability of Algeria will continue and that our partnership will flourish.

Exactly a month ago, I visited Egypt with the Conservative Middle East Council, following a great number of previous visits over the years as a governor of the Westminster Foundation for Democracy. We had a wonderful opportunity to meet a cross-section of Egyptians—not, of course, the Muslim Brotherhood, but including the enthusiastic and optimistic Amr Moussa, who wrote their new constitution, and very senior generals.

I know that we can all agree that what happens in Egypt—as the mother nation of the Arab world and with its strategic importance—is hugely important. I very much welcome the positive comments of the noble Lord, Lord Stone of Blackheath. In the past, in discussing policy with the Muslim Brotherhood, we were assured of its commitment to attract investment, to root out corruption and to protect the minorities. As a force in Egyptian politics for more than 80 years, it appeared destined to win—which, of course, is exactly what happened. Many voted for it simply to achieve change, but felt in some instances that the powerful Egyptian army would continue to act as a balance. Unfortunately, despite being democratically elected, the new Government proved a massive disappointment, to say the least, as my noble friend Lord Marlesford observed.

Tourism, which comprises up to 25% of its economy, collapsed and attacks on Copts soared. Public debt and the budget deficit grew dangerously and many parts of Sinai became no-go areas because of terrorist activity. For us and all our allies, all of this has proved difficult after the heady days of the Arab spring. The recent outlawing of the Muslim Brotherhood may well drive it underground. Surely, there is a clear line to be drawn between those who commit criminal terrorist activity and those who support the Muslim Brotherhood and who could never be described as terrorists, but who now face potential and actual arrest and imprisonment.

Meanwhile, despite great efforts, much of Sinai remains off limits, even some tourist areas. The economy is being sustained with generous help from Saudi Arabia and most Gulf states. There will be presidential elections and then parliamentary elections, and at least the security of religious minorities has improved. We need, however, to point out clearly to our Egyptian friends during this period that ultimately, you deal with those who oppose you by securing their hearts and minds as a necessary prerequisite to long-term social, political and economic stability.

What is there new to say about Syria following the effective collapse of the Geneva discussions and the subsequent increase in the rate of slaughter? One thing is absolutely crystal clear: as things stand, President Assad is not interested in dialogue or in a transition process, and he will fight to preserve what is geographically and politically left of his power. In his terms, there is no alternative. It is worth noting that only 5% of Syria’s chemicals weaponry—a figure that I find very difficult even to believe—has been handed in thus far, despite cast-iron assurances that led to the avoidance of further actions against his regime. We need to reflect on the consequences of the breach of this highly important and high-profile agreement.

What is emerging is the splitting of the country in three ways. In the north, the Kurds are essentially and increasingly taking on administrative authority. I note in passing the surprisingly strong relationship that Turkey and Kurdistan have developed. There may be a common ethnic identity with Kurdish Syrians and those in northern Iraq, but there remain significant differences of outlook and Turkey is completely opposed to a future federal structure for Syria. By contrast, other parts of Syria are effectively being controlled by various Islamist groups imposing arbitrary justice and their view of how life should be lived. The stalemate is completed by the resilience of the rump of the Assad regime, supported by the army and, in varying degrees, by Christians, Druze, Alawites and secular Sunnis.

All of us must have pondered many times what Russia's objective is. Initially, it was declared to be the protection of the diversity and secular character of Syria. In practice, entirely the reverse has happened. President Assad, who sold himself as the protector of secularism and of the minorities, has actually brought about their destruction in many instances. The Russians have been offered continuing military, intelligence and commercial engagement, yet it seems that their position essentially remains fixed. I can only conclude that they wish to be seen to stick with their friends, and to make the contrast, fairly or unfairly, with other nations that have interests in the region.

We can applaud Secretary Kerry for his comprehensive involvement in the region. If, indeed, it is possible to come to some further understanding with Iran, echoing the comments of the noble Lord, Lord Williams, then surely discussion must lead to its continuing and substantial support for President Assad. He needs to be brought into a dialogue at some point, however unpalatable that may be, in the absence of any real moves for any resolution.

I conclude on this note. One of the tragic by-products of the invasion of Iraq was the decimation of its ancient Christian community, many of whose members fled to Syria. The Christian culture is now increasingly being marginalised at best, and destroyed at worst, in the region. Some years ago, my very dear friend the Archbishop of Aleppo and I were travelling in his car. He said, “Richard, do you think we will be here in 50 years’ time?”. I replied, “Sadly, and frankly, no”, to which he responded, “I fear you are right”. Last year he was captured—a wonderful and charismatic figure, and a good friend of the Church of England. His whereabouts are unknown. I fear the worst. His personal horror has been tragically replicated with thousands of his fellow citizens.

Of course, we can try, as we do, to give generous humanitarian aid, whether on a personal level or at a collective or state level—but, quite frankly, until countries such as Russia and Iran can be persuaded to bring pressure to bear for a genuine negotiation, this terrible tragedy will continue.