Falkland Islands

Lord Tordoff Excerpts

Wednesday 13th June 2012 Lords Chamber

[Lord Howell of Guildford]

I think, from memory, that the Foreign Affairs Council deplored the nationalisation of the Repsol-connected subsidiary in the Argentine. I will check on that to be 100% sure and if I am wrong I will contact the noble Lord. However, he is really making a broader, very profound point that there are all sorts of reasons, as have already been raised this afternoon, why responsible democracies, whether in the EU or elsewhere, should be concerned about the actions of various kinds being taken by the Argentine Government. The nationalisation of the Repsol subsidiary obviously greatly affects Spain. Any other measures interfering with free trade and trade with European Union powers affect them very greatly.

As far as the specific matter of the Falkland Islands’ wish to remain a self-governing territory under the United Kingdom is concerned, that is a bilateral issue. However, it is perfectly sensible that we should work with other EU countries on policy and general matters towards Argentina and towards hydrocarbon development off the coast of Latin America or anywhere else. It is certainly something that would become involved in our discussions. On the specific point of the last FAC meeting, I will check and confirm what I have said.

[Lord Tordoff]

My Lords, some years ago I had the pleasure of visiting the islands with the South Atlantic Council, under the aegis of the noble Viscount, Lord Montgomery. On that visit, there were a number of people from industry and the arts with various connections here. In particular, there were two colleagues of mine from the oil side of the Anglo-Dutch company which I served for many years. They made it very clear that political instability in that area was a real disincentive to exploration. Perhaps the Argentines can be reminded of this, with the things they have been doing recently. There is no great incentive for oil companies to go into areas like this which are difficult enough geologically, but are made worse by political instability. They are probably doing themselves a lot of damage.

[Lord Howell of Guildford]

My noble friend is entirely correct. This applies not merely to drilling for exploration. As those—including my noble friend—who are familiar with it know, then comes development, which is expensive, and after that production, which is also extremely expensive. Vast sums of money have to be invested and big investors will not move if there is a severe threat of political instability. He is quite right that it therefore affects the prosperity not just of the Falkland Islanders but of the whole area. In various ways it damages the interests of the people of Argentina and we should point that out.