Security in the Western Balkans
Stephen Doughty Excerpts(6 months, 4 weeks ago)
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Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
I thank the Chair of the Foreign Affairs Committee, the hon. Member for Rutland and Melton (Alicia Kearns), for securing the debate and all hon. and right hon. Members for their insightful and considered contributions. I recognise in particular the speeches by my friend the right hon. and gallant Member for Beckenham (Bob Stewart) and the hon. and gallant Member for Tiverton and Honiton (Richard Foord), who have direct experience of both Bosnia and Kosovo and the region more widely. There were also excellent contributions from my hon. Friend the Member for Slough (Mr Dhesi), the hon. Member for Strangford (Jim Shannon), the right hon. Member for Elmet and Rothwell (Sir Alec Shelbrooke) and, of course, the hon. Member for Congleton (Fiona Bruce), and the hon. Member for Glasgow North (Patrick Grady) on behalf of the SNP.
I draw attention to my declarations in relation to my role as a shadow Minister and visits to the region. I, too, welcome the presence today of the two ambassadors from Kosovo and Bosnia. It is always a pleasure to meet and work with them.
We heard poignant tributes to the late Lord Ashdown and the late Lord Stunell, to which I add my remarks. I also pay tribute to my former colleague Tony Lloyd, who is deeply missed in this place. He played a key role on the western Balkans in the last Labour Government and continued to take a keen interest in the security and stability of the region.
We are all too aware of the crises we currently see in the middle east and Africa and, of course, the terrible war in Ukraine, but we must not lose sight of the strategic importance of other key regions, and indeed our historic diplomatic, military and other obligations to them. Of course, the western Balkans is one such region. I am pleased that, despite the many political differences in this place, the debate has underscored that there is cross-party support and concern for maintaining the values of democracy, security and stability in the region, a commitment to the prevention of conflict and atrocities, and the defence of fundamental human rights.
As a Parliament, and indeed as a country, we must recognise the continuing tensions across the region and—this warning has been made many times in the debate—their capacity to destabilise the countries and peoples in the region, with potentially dire consequences not only for the peoples of the region but for European security more widely. The destabilising role that Russia is playing has been rightly recognised and referenced many times.
Sir Alec Shelbrooke
The hon. Member for Glasgow North (Patrick Grady) also made that point. He was about to sit down so sadly I could not intervene on him. The hon. Member for Cardiff South and Penarth (Stephen Doughty) is absolutely right about the consequences for the rest of Europe. Dodik is not just talking about Republika Srpska as it stands; he is talking about a greater Republika Srpska, with parts of Serbia, parts of Kosovo, and parts of Montenegro, which is a NATO ally. With Russia’s help to cause disruption—in history, that has happened in similar ways—all of us could easily be dragged into a war if we allow this nationalistic fervour to take the route that he is preaching.
Stephen Doughty
The right hon. Member is absolutely right to highlight some of the deeply irresponsible rhetoric we have heard in recent weeks as well as over longer periods. We all know the risks posed by that from the historical conflicts we have seen in the region. The concerns raised are indeed shared by NATO as well as by our colleagues in the EU, the United States and others. I emphasise that the region is a priority for me and our shadow foreign affairs team, as it would be for any future Labour Government. Indeed, over the past two years, I have personally met diplomatic, parliamentary and governmental representatives from every country in the region as well as our excellent envoy, Lord Peach. I pay tribute to our excellent ambassadors in the region, and our Foreign, Commonwealth and Development Office teams for all their work. Just last week, I met colleagues from Albania, the Bosnian ambassador, delegations from Kosovo and other envoys across the region. As has been referenced, it is crucial that we work together with key allies and partners.
The horrors of the 1990s are ingrained in the minds of many people across this country and the House, including armed forces personnel from my own family. I have powerful memories of visits, particularly to Bosnia with the right hon. Member for Beckenham, and to Kosovo. We all know the terrible consequences that can happen if ethnic hatreds are allowed to devolve into identity-based violence. I think of the young man my own age whom I met, Nedžad Avdić, a survivor of Srebrenica, and the horrors that he went through. I was a young lad enjoying a beach holiday in south Wales while his family and others were slaughtered around him. Those examples will never leave my mind.
No dynamic underscores the need for our collective engagement more than the enduring challenges in the relationship between Kosovo and Serbia. The Opposition remain strong supporters, along with the Government, of Kosovo’s independence, sovereignty and security. Earlier this month, it was disappointing to see many in northern Kosovo boycott the local referendum. Only 100 out of 46,000 registered voters cast ballots in the predominantly Serb municipalities. That comes despite the Government in Pristina agreeing to annul last year’s local elections and hold new ones.
I have had the pleasure of visiting Kosovo, as I mentioned, and meeting members of all communities. It is clear that there can be a positive future for Kosovo, involving Kosovan Albanians, Serbs and other minorities. It was pleasing to see the Kosovan delegation recently visiting Northern Ireland and learning from our examples of different communities coming together and living in peace despite their differences, finding ways forward and political solutions. We should all want to support those efforts.
We are proud of our historic actions in relation to Kosovo, but it is crucial that we play our part now. I pay tribute to the UK forces who have gone in to reinforce the existing UK forces in KFOR, particularly after the incidents that have been referred to in Banjska and elsewhere. It is crucial that those responsible for destabilising are held to account and brought to justice. We must work closely with all colleagues to ensure that those tensions do not develop in any further devastating direction.
It is also crucial that we support the decisions of people in the region and note the decision of the Parliamentary Assembly of the Council of Europe to approve its recommendation for Kosovo to become its 47th member state. It is crucial that any tensions are not escalated. Kosovans must be free to determine their own paths.
I welcome the UK Government’s recent statements on this matter. I hope the Minister can outline what recent discussions he has had with EU counterparts, the United States and others about the ongoing tensions, how we can work to prevent further destabilisation and how we can ensure that contribution to KFOR continues. Where does he see the diplomatic dialogue going to normalise relations between Belgrade and Pristina?
Reference has been made to the internal dynamics within Serbia. I have heard from many figures across the Serbian political spectrum. It is very important that we support democracy, inclusion and stability within Serbia, and that people are allowed to take part in political processes there. I also recognise that there are tensions in a number of other countries, which we do not have time to go into today. The situation in Montenegro and North Macedonia—both key NATO allies—has been particularly fragile over recent years. I had the pleasure of visiting Skopje and meeting political figures across the spectrum. What are we doing to ensure that those countries continue on a path of democracy, stability and the rule of law?
We have had extensive discussions today about the situation in Bosnia. As I said, I met the ambassador recently. We have all joined today in raising concerns about the rhetoric of Milorad Dodik and others. We have joined the Government in supporting sanctions against those who seek to undermine Dayton. When it comes to recognition of the past atrocities and otherwise, it is about identifying those responsible, not going against a people or a whole community, as the Chair of the Foreign Affairs Committee pointed out. We have also seen concerning steps in Republika Srpska towards a so-called foreign agents Act, mirroring developments elsewhere and again removing democratic transparency and the ability of human rights organisations to hold Governments to account. It is a hugely worrying step, and I would appreciate the Minister’s comments on that.
Finally, it has been a pleasure to meet colleagues from Albania, another key NATO partner, in recent weeks. It is good to see increased co-operation with Albania on migration and trade. The British Council is playing a crucial role, particularly on the future for young Albanians, which was rightly raised by my hon. Friend the Member for Slough. I hope the Minister can say a little bit about the positive steps being taken in our bilateral relationship with Albania.
The United Kingdom has crucially important relationships across the region. We must strive to play a positive and engaged role through our ambassadorial teams and through international forums. Crucial elections are taking place in the region over the coming weeks. We must ensure that security and stability in the western Balkans remain a priority, particularly given the warnings in relation to Kosovo and Bosnia. I hope the Minister will say what steps will be taken at the upcoming European Political Community summit, which we will be hosting in July, not only to bring together parties but to promote peace and stability in this crucial region.
Nagorno-Karabakh: Armenian Refugees
Stephen Doughty Excerpts(8 months, 1 week ago)
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Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
It is a pleasure to serve under your chairpersonship, Ms Elliott. I thank the hon. Member for Glasgow North West (Carol Monaghan) for securing this crucial debate. We have heard typically powerful speeches from across the House, including from my hon. Friends the Members for Newport East (Jessica Morden) and for Ealing Central and Acton (Dr Huq), the hon. Member for East Worthing and Shoreham (Tim Loughton), the right hon. Member for Maldon (Sir John Whittingdale) and the hon. Member for Strangford (Jim Shannon).
With such an unsettled global landscape, we must be absolutely clear not to lose sight of enduring geopolitical hotspots with the potential to lead to further human suffering and risk the escalation of wider tensions. Tensions in the Caucasus are a key example of that, and I am pleased that we are able to debate that today.
The situation in the region remains very serious. I remain in regular contact with both the Armenian and Azerbaijani ambassadors to the UK, and I have met the Foreign Ministers of both Azerbaijan and Armenia in recent times. We all want to see peace and stability in the region. Any return to the full-scale conflict of recent years would be an absolute disaster for the region and for all peoples. It is fair to say, as we have heard today, that this has been a profoundly challenging year for the people in the region and more broadly.
Last September, Azerbaijan launched a military incursion into Nagorno-Karabakh, which, at the time, was home to an ethnic Armenian population of 120,000 people. That was preceded by the nine-month blockade of the Lachin corridor, leading to shortages of food, fuel, medicines and basic provisions, which completely undid the social fabric of the enclave and led the UN to declare a humanitarian emergency in August 2023. I have raised that issue regularly with the Minister, publicly and in debates in the House.
We saw gas supplies cut off and electricity and communications damaged; I know that that was a concern to Members across the House. Nagorno-Karabakh became unreachable to the world and the implications of that period of such unimaginable insecurity and uncertainty continue, understandably, to reverberate throughout the population, now displaced, with lives altered irrevocably. No people should have to live in such conditions.
Last September, Nagorno-Karabakh came under direct Azeri control, and the ethnic Armenian population has now had to flee into Armenia. Although the ICJ issued provisional measures in November 2023, ordering Azerbaijan to allow ethnic Armenians to return
“in a safe, unimpeded and expeditious manner”,
they remain in Armenia.
I am pleased that efforts have since been made by both countries and by global interlocutors, include the EU, the United States and ourselves, to find peace and normalise relations. The situation remains very precarious. Any further deterioration would only compound the suffering experienced by the people, especially the refugees located around Yerevan and Syunik.
From reports in recent days, peace seems closer than ever, publicly at least, but we have to remain cognisant that, given the recent history, we will have to go much further to bring tensions down and to ensure that the territorial integrity of both Armenia and Azerbaijan is maintained. We have heard powerful testimony from colleagues who went on the recent IPU visit, and we must remember that there is always a tragic human face to conflicts such as these.
As Action Against Hunger highlights, Armenia now faces an extensive refugee crisis. One in 30 people in the country is a refugee. More than half of those refugees are women and girls, nearly one third are children, and nearly one fifth are elderly. Their whole lives have been uprooted.
There is a mental health crisis, too. Nearly 22,500 of those refugees are estimated to be living with a mental health condition. Clearly, it is beyond the capacity of any one Government to manage this crisis. Despite the many global crises we face, which we debate regularly in this place, including in the main Chamber, we cannot allow the Armenian refugees to endure the challenges of 2024 without adequate support and without a clear means of beginning to rebuild the lives that they lost in September last year.
I have a number of questions to the Minister, and I hope he will be able to provide some clarity. First, will the UK Government continue to play a constructive and substantial role in brokering lasting peace between Armenia and Azerbaijan? What recent discussions has he had with counterparts from both countries and other interlocutors? What were the outcomes of those discussions?
What discussions has he had with French and American officials, particularly about dealing with the impact on individuals who have been displaced from Nagorno-Karabakh? How can we work together to provide critical support to those refugees? We simply cannot return to the violence of 2020, when more than 6,500 people lost their lives and civilians had to live under the perpetual threat of conflict and violence. We need to work, of course, with European and regional partners to secure a return to dialogue more broadly and a peaceful settlement.
I hope that the Minister can provide some further clarity on the funding issues that colleagues have raised. In September last year, he and the Government announced £1 million for the ICRC to support its humanitarian response for those refugees. The FCDO said in February this year that it continues to liaise with the UN, ICRC and other NGOs to assess humanitarian needs in the region.
What have the results of those assessments been? What has that money been spent on? Indeed, has it all been spent? Is it the view that the £1 million payment is sufficient? In comparison, France announced in December that it was taking its total contribution to emergency appeals to €27.5 million. The EU has provided €17.5 million in humanitarian aid to assist those displaced in Armenia. I hope the Minister can provide clarity on the sufficiency and the assessments that have been made of our support.
An important issue was raised around the protection of cultural and religious heritage, not only in Nagorno-Karabakh but more broadly. What assessments of that has the Minister made? what discussions has he had with the Azeri authorities and with UNESCO and other bodies? The issue is of critical importance, and reference has been made to Armenia’s critical role, particularly in the history of Christianity.
Nagorno-Karabakh and the wider region may seem remote to many, but I am afraid that it contains men, women and children who have been successively let down for years, and they need and deserve our focus and support. Will the Minister say a little about alleged extrajudicial killings, torture and abuse of prisoners of war? What assessment has he made of the individuals who are still held in prisons? Has he discussed the issue with his counterparts in Azerbaijan and elsewhere?
Will the Minister set out a wider strategy for the Caucasus, spanning diplomacy, aid and trade, and, crucially, atrocity prevention, humanitarian support and the upholding of human rights? Also, what assessment has he made of UK corporations in the region? That is an important point. We have a significant presence, and with that come particular responsibilities in relation to ethical practices.
We are clear, and I think there will be unity in the House on this, that Russia should have no place in the region’s future and that it would actively seek—indeed, it is actively seeking—to impede progress towards peace, security and good governance. The last few years have demonstrated that Putin’s vision for the region is for one that is less secure, less cohesive and weakened so that it remains in Russia’s sphere of influence. What assessment has the Minister made of Russia’s engagement in the region, and what steps are being taken in concert with our partners to counter Russia’s malign influence?
I note that Armenia has frozen its membership of the CSTO and is apparently considering leaving. What is the UK Government’s view on that? Also, how can we support all countries in the region, and indeed across Europe, that are seeking to extricate themselves from Russia’s malign influence? Finally, what is the official UK Government position on the right to return for ethnic Armenians removed from Nagorno-Karabakh? I referred earlier to the ICJ provisional judgments. I hope he can provide a clear answer on that issue.
The people of Nagorno-Karabakh cannot be forgotten. They are the human face—the huge human face—to this tragedy. The impact on individual lives, which many hon. Members here have heard about directly, has been immense. I hope the Government will continue to support those people in their plight, as well as working to bring about a lasting and enduring peace in this troubled region. The view of the official Opposition is that the UK has a critical role to play in the Caucasus, and I hope the Government can demonstrate that they are ready to meet the challenges.
Leo Docherty
The hon. Lady is absolutely right: it is a contradiction in terms to refer to Russian peacekeepers. They are nothing of the sort, and we see the Russian role across the region as nothing but extremely unhelpful meddling; I may dwell on that at the end of my remarks. To answer the question posed by the hon. Member for Cardiff South and Penarth (Stephen Doughty) about our approach in the context of Russia’s historical role in the region, it is clear that practical experience has revealed Russia to be an unhelpful and unreliable ally.
It is clearly incumbent on countries such as ours—I say this conscious that His Excellency the Ambassador is in the Public Gallery, and I am very glad to see him there—to offer the hand of friendship and partnership to Armenia. I am very pleased that during my last visit we undertook the first stage of the strategic dialogue that now exists between our two countries. It represents a thickening and deepening of an increasingly meaningful bilateral relationship that is good for both sides and for the region.
On the peace process, in calls with the Foreign Ministers of Armenia and Azerbaijan last September, I urged both sides to return to dialogue and ensure unfettered humanitarian access to the vulnerable people and communities affected by events in Nagorno-Karabakh. The then Foreign Secretary reiterated that message last October when he spoke to various Foreign Ministers. As I mentioned, I visited Yerevan and Baku last November, where I met the leaders and Foreign Ministers of both countries, and I urged them to engage meaningfully in internationally mediated negotiations to reach an agreement and secure a lasting peace for the region. I was delighted that President Aliyev and Prime Minister Pashinyan met in Munich last month at the security conference, and that their Foreign Ministers quickly followed up with a meeting in Berlin at the end of February. We continue to engage energetically on the diplomatic front.
I am encouraged by both sides’ openness to continuing their discussions and to recognising and welcoming the offers of international support. We, in concert with our allies in Europe and across the Atlantic, continue to stand ready to support them at every step of their journey towards peace. I again refer to the comments of my right hon. Friend the Member for Maldon: there is a realistic recognition of the opportunity that lies ahead for both leaders to achieve a meaningful and sustainable peace, and we should be quietly optimistic about that. We will continue to offer support through our diplomacy as they do that important work in a bilateral context, which is something we should be quietly encouraged by.
Stephen Doughty
The UK will be hosting the European Political Community summit. Does the Minister see that as another key opportunity for the UK to play a role in finding peace?
Oral Answers to Questions
Stephen Doughty Excerpts(8 months, 2 weeks ago)
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Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
Our defence, security and foreign policy relationship with Germany is critical, not least in relation to our united and mutual support for Ukraine. I will meet German counterparts about those issues in Berlin this week. Will the Minister give us more detail on the discussions he and the Foreign Secretary have had with German counterparts on three issues: urgently speeding up and expanding the delivery of weaponry, bolstering our diplomatic coalition and, crucially, using frozen Russian state assets across Europe to pay for urgent needs to support Ukraine?
Leo Docherty
The hon. Gentleman asks a characteristically intelligent and pertinent question. We are working together to increase defence industrial capability. Some new ideas have come out of the French summit about increasing domestic capability for our Ukrainian friends. A lot of diplomatic support goes into that. On frozen assets, he will have seen recent thinking from the European side about using the interest payments from those funds, which we will consider. We need to find a reliable legal route, if that is to be sustainable.
Gibraltar: UK-EU Negotiations
Stephen Doughty Excerpts(8 months, 2 weeks ago)
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Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
I thank the hon. Member for Stone (Sir William Cash) for securing this urgent question. I draw attention to my declaration as a shadow Minister and a member of the all-party parliamentary group on Gibraltar.
Let me be clear that Labour’s commitment to Gibraltar and, indeed, our wider family of overseas territories is unwavering. Since I have been in this role, I have had the pleasure to meet Chief Minister Fabian Picardo and his Ministers, and with other Gibraltarian parliamentarians. I have visited the Rock and the Campo, and I have discussed these matters in Madrid, too.
Gibraltar is integral to the UK’s history and future, and it has robust democratic institutions and a dynamic economy. It also remains an important base for UK forces, so I make it clear that there would be no change if there were a new Government in the UK. The sovereignty and self-determination of Gibraltar are not up for debate. We believe in the right of the people of Gibraltar to choose their own future, as they have made clear, and this must be the bedrock of any negotiations with Spain, which is equally a close friend and ally of the UK. It is also a critical partner in NATO and in many other respects, so we hope and believe that an agreement can be reached to the mutual benefit of Gibraltar, Spain, the UK and the EU.
These negotiations have gone on longer than anticipated, and it is critical that the Government now work hard to get a good deal over the line that provides the people, businesses and communities on both sides of the border with the clarity and stability they need.
I have a few short questions. Can the Minister explain in a little more detail where the negotiations are on some of the key issues in relation to the movement of goods, law enforcement and citizens’ right? Secondly, can he give us a little more detail on the Europe Minister’s visit to Gibraltar today, and indeed on any recent discussions he has had with Spain and the EU on outstanding matters? It would be helpful if the Europe Minister made a statement on his return from Gibraltar.
Finally, what support are the Government giving to Gibraltar on NNO contingency planning? However much we do not want to see a non-negotiated outcome, it is important that we are prepared for all outcomes. Gibraltar has a distinctive and proud place in British history, and I hope the Government and all parties can get a deal that works for Gibraltar’s people.
David Rutley
I thank the hon. Gentleman for his comments. We agree that we need to stand steadfast in our support for Gibraltar. I say again that we will not agree to anything that compromises sovereignty. It is important that today’s conversations are taking place between the Minister for Europe and the Chief Minister, setting out the future discussions and looking at what might be—we hope not—a non-negotiated outcome. We will be working closely with the Government in Gibraltar and we will continue to see what support they might need in any scenario that might arise, but we are working in good faith towards a deal.
Death of Alexei Navalny
Stephen Doughty Excerpts(9 months, 1 week ago)
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Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
I am grateful to the Minister for advance sight of his statement. This weekend, my right hon. Friends the Leader of the Opposition and the shadow Foreign Secretary attended the Munich Security Conference and heard Yulia Navalnaya, Alex Navalny’s wife, speaking with remarkable courage and conviction in a moment of utter personal grief. I share the Minister’s comments, and I am sure that the whole House will join us in sending our deepest condolences to her and her family.
The death of Alexei Navalny was shocking yet cruelly predictable. Let us be crystal clear: one person above all others bears the overwhelming responsibility for his death and should be held accountable. Alexei Navalny is yet another victim of the oppressive system that Putin has built, of which he was such a potent critic. He was not a saint but he fought relentlessly, optimistically and with good humour against the corruption and kleptocracy of modern Russia. The last few years of his life were a profile of courage. After an assassination attempt with a chemical weapon, there would have been no shame at all in seeking a quiet life. Instead, he chose to return not just to the fray but to Russia. He knew exactly what he would face, but Alexei Navalny believed relentlessly and indefatigably in a different Russia that could be, in his words, not only free but happy. He once wrote from prison:
“Everything will be all right. And, even if it isn’t, we’ll have the consolation of having lived honest lives.”
Alexei Navalny’s courage, his campaign against corruption and his dream of a democratic Russia will live on in those brave Russians who continue to speak up. Russia’s invasion of Ukraine is an illegal act of aggression. Navalny called it a stupid war built on lies. It has been devastating for Ukraine, but also for Russia, which edges further into darkness, propaganda and paranoia. Alexei Navalny challenged not just Russian autocracy and kleptocracy but past western hypocrisy and enablement. His campaign was about not just Moscow but London. We must deliver the changes that he campaigned for.
The reality is that we have still much further to go, and it is therefore disappointing that the Minister has shown up with nothing new to say in response to last week’s appalling news. Will the Government review further sanctions on Russia, including an assessment of the full Navalny list? Will the Minister launch a new effort to target those networks responsible for facilitating and enabling international corruption?
There has been little or no action against breaches of new Russian sanctions brought in since the full-scale invasion of Ukraine, so will he strengthen not just our sanctions regime but how those sanctions are enforced? Will he support calls to establish an international anti-corruption court? Will he turn rhetoric on frozen Russian state assets into tangible action? When will the Government get on with it? It is a source of shame that under successive Tory Governments, Britain became the money laundering capital of the world. Our tributes to Alexei Navalny must be more than just rhetorical and include tangible action at home to clean up the financial crime fuelling autocrats abroad.
Finally, I want to ask the Minister about Vladimir Kara-Murza. I have met his brave wife and mother and heard directly from them. Vladimir is another brave and vocal opponent of Putin, languishing in prison for his beliefs. He is also a British citizen. We know what Putin is capable of. What is the Foreign, Commonwealth and Development Office’s current assessment of his welfare, and what steps are being taken to support him and his family?
The tragic death of Alexei Navalny has reverberated across the world. It must serve as a reminder of Putin’s menace and underscore our responsibility to oppose him in Ukraine, on the world stage and here in London. I hope that the Minister can provide the House with some assurance that today’s statement will be accompanied with commensurate, bold and urgent action.
Leo Docherty
We will act. I thank the hon. Gentleman for the tone of his response. I endorse everything that he said about the heroically brave Mrs Navalnaya. Those in this House who watched her video early this morning will have been extremely moved by her fortitude and courage at this difficult time. He used the word “courage” with regard to Mr Navalny, which was absolutely appropriate. Those of us who watched the footage of Mr Navalny returning to Russia subsequent to the Novichok attack were humbled by his audacity and his bravery. His hope for a free and happy Russia must remain in the hearts of the many Russians who, despite extraordinary press censorship and repression, deserve to have the opportunity to live up to that promise.
It would be premature for me to comment on the prospect of future sanctions in addition to those that have already been put in place with regard to Mr Navalny’s poisoning, but I can assure the hon. Member for Cardiff South and Penarth (Stephen Doughty) and the House that we are working at pace and looking at all options in that regard. Of course, we will continue our active diplomatic work to crack down on the networks of corruption surrounding the Russian state and its kleptocracy. Sanctions evasion is a particularly important component of that and is something that our diplomatic teams around the world, in concert with our allies, are focused on.
The hon. Gentleman asked a relevant question about seizing versus freezing assets. We continue to work with G7 allies to look at all legal routes to ensure that frozen assets might be used to help the reconstruction effort by those who deserve them. We will keep the House updated as and when we make progress on that. We do seek to act in that regard, and that is how we can honour Mr Navalny’s memory and his legacy—by acting, not just making rhetorical statements.
The hon. Gentleman asked about Mr Vladimir Kara-Murza. Through our ambassador in Moscow, we continue to make representations inquiring after his health and wellbeing and seeking consular access to him. I can confirm that the Foreign Secretary remains in contact with Mrs Kara-Murza and continues to support the family.
Draft European Organization for Astronomical Research in the Southern Hemisphere and the European Space Agency (Immunities and Privileges) (Amendment) Order 2023
Stephen Doughty Excerpts(9 months, 3 weeks ago)
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Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Ms Fovargue. I thank the Minister for setting out the specifics of this SI in more detail. We will not seek to divide the Committee on this necessary measure.
We regularly discuss how immunities and privileges orders affect international organisations that the UK hosts, and many individuals present in the UK are covered by such immunities and privileges. I hope the Minister can explain how the Government keep those measures under review to ensure people are not abusing those privileges. We know of some cases—including a very tragic case in the past—regarding the immunities and privileges of foreign personnel who were in the UK for very legitimate reasons.
It is right that we put in place the measures to support the presence of key organisations in the UK, including in the space sector. Indeed, we have a proud history in space exploration, research and development; it is an excellent launchpad for future growth and investment into science, technology, engineering and maths sectors, and for inspiring the younger generation to go into those sectors. It provides huge opportunities for our economy, pushes our technological boundaries, and boosts our soft power for developing strategic inter-dependence with our allies, including those across Europe. In that regard, it is very important that the ESA has a robust presence in the UK, and that there are well-defined and open lines of dialogue and co-ordination between the UK space sector and that organisation.
The cluster at Harwell is very significant. A number of key programmes operate there, including the Advanced Research in Telecommunications Systems programme, and those of the European Centre for Space Applications and Telecommunication. There is also key work being done there, including the monitoring of major meteorological events and climate change research, and on making sure that data is shared with other researchers and institutions across the UK.
Harwell is home to a key space cluster that looks at how space technology and research can be applied to business, and at boosting investment in space technology—particularly satellite remote sensing technology. I know that particularly at Harwell they are looking at issues around communications from satellites and remote sensing down to the ground here in the UK. Therefore, it is important that the privileges and immunities, including those in the original order, are suitably updated.
The original order also refers to role of the European Southern Observatory—another a key organisation that we are part of—which has links to many institutions and sectors across the UK. In 2020, the ESO’s research potentially underpinned the discovery of phosphene—one of the key building blocks of life—in the atmosphere of Venus. It was actually a British astronomer, Jane Greaves at Cardiff University, who used the Atacama Large Millimeter/submillimeter Array telescope—part of the ESO—to try and confirm the detection of that element. That potential discovery is currently being hotly debated by scientists.
The ESO is linked to the facilities at Harwell and the University of Oxford in ensuring the construction of the High Angular Resolution Monolithic Optical and Near-infrared Integral field spectrograph for the Extremely Large Telescope. To do this, the observatory is working with the University of Oxford, the UK Astronomy Technology Centre and the ELT’s MOSAIC programme. There are many different collaborations around those programmes, and it is very important that the diplomatic and legal frameworks are in place to ensure they happen.
Again, we will not oppose the order as it is important that these measures are in place. I hope the Minister will say more in his concluding remarks about how we are seeking to further develop co-operation with our European and transatlantic partners—particularly in North and South America—in the area of space research. As we see an era of extreme geopolitical competition and risk to the United Kingdom, and indeed to our European and transatlantic allies, could the Minister explain why space technology, and ensuring that we have those collaborations, is critical—not only for business, technological and scientific research, but also for our national security?
Russia (Sanctions) (EU Exit) (Amendment) (No. 5) Regulations 2023
Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2023
Stephen Doughty Excerpts(10 months, 1 week ago)
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Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
It is a pleasure to serve under your chairpersonship, Mr Stringer. I thank the Minister for bringing these measures to the Committee and relaying their significance to us today.
We all know that it has been a profoundly challenging winter for the people of Ukraine, particularly those on the frontlines. Although we are confronted by a world in multiple crises at the moment, I am sure the Minister will agree that we must ensure that a Ukrainian victory remains at the forefront of our political and public consciousness, not only here in the UK but among our allies. He and I have had many conversations to that effect. There is unity in this House. He will have heard the clear statements made by the Leader of the Opposition in the Chamber the other day when responding to the Prime Minister.
We in the Labour Opposition stand resolutely with Ukraine and the Ukrainian people in their fight against Russia’s illegal and barbaric war. We know that Ukraine fights not only for its own liberation and victory but for the wider security of Europe, the principles of democracy, liberty and the rule of law.
I draw attention to my declaration in the Register of Members’ Financial Interests. In my capacity as a shadow Minister, I visited Ukraine last autumn, for the second time since the outbreak of this phase of the hostilities, and made clear our direct solidarity and engaged at the highest levels with President Zelensky and his Government, and with Ukrainian parliamentarians and representatives of civil society.
As the war continues and Russia’s barbarism against civilians continues, we need to step up our support now and for the long haul, and also set an example to allies about what is needed, whether that is materiel or sanctions, to ensure a Ukrainian victory, that Putin is defeated, and that there is reconstruction and stability in Ukraine as it charts a definitive course towards Europe, NATO and the democratic rules-based order.
We have resolutely supported the Minister on such measures before and will continue to do so—we do not seek to divide the Committee today. We have also challenged where we do not think measures are robust enough or go far enough. I therefore have questions for the Minister.
On the regulations relating to diamonds, which were the second set that the Minister addressed, we welcomed the Government’s commitment to prohibit the import of Russian-origin diamonds by the end of 2023, but I must ask again: why did it take so long to make that commitment back in May 2023? That was a year after this phase of the atrocious war started. The Minister mentioned that this is, as the explanatory memorandum states,
“the first step in implementing a broader ban”,
to be entered into force on 1 March. But that is two years on since the barbaric invasion. We know the types of commodities that Putin has been attempting to generate revenue from to fund his war machine. Why has it taken us two years to get to that? I have to ask again: what resourcing is being given to the Minister’s excellent officials in the Foreign, Commonwealth and Development Office and also in the Office of Financial Sanctions Implementation to ensure that there is not only legal rigour behind the regulations—we have already heard of one small mistake in them—but that we have the capacity to fully implement and enforce them when necessary?
Another potential challenge that the Minister highlighted is the continued importation of materials and commodities through third countries. We have seen clear allegations—I have raised them on multiple occasions with the Minister and his colleagues—about not only diamonds but Russian-origin oil and steel being refined and transited through third countries, and continuing to permeate the borders of the UK, Europe and the United States and reaching markets here. Does the Minister agree that that is completely unacceptable? Will he set out for us the steps the Department is taking to close loopholes not just in diamonds but in those other key commodities that fund the Putin war machine? Russian diamond miners generate about $4.5 billion in revenue each year, which is a huge sum of money, and we must ensure that that is not helping to fund Putin’s efforts against Ukraine.
Turning to the other set of regulations, we also welcome the commitment to banning the imports of Russian-origin aluminium, copper and nickel by the end of 2023. The explanatory memorandum states that these new trade restrictions also include:
“Prohibitions on the export, supply and delivery, and making available to, or for use in Russia of additional categories of goods with a potential for military and industrial application.”
As the Minister set out, that also includes a range of other components, including chemicals, electrical goods, metals, vehicles, machine parts, electronics and others, that could be used in Russian capabilities.
In November, a report in The Times brought to light that a British company had allegedly continued to ship semiconductors to Russia since the beginning of the war, and that they had been identified in at least one Russian tank deployed in the conflict against Ukraine. I brought the Government to the House over this very serious and glaring oversight, and other Members have raised concerns. It was also reported that the company stopped shipping to its Russian distributor only after the bank refused to process payments for those exports. That underscores that there have clearly been serious deficiencies in the implementation of our regime, and they must be addressed, despite what the Minister has said today.
I hope that the Minister can say a little more about what has happened in those investigations. I appreciate that there may be matters that he cannot go into, but can he provide assurance on reports that materials from not just the UK but our allies are finding their way into military applications that are being used by Russia against Ukraine? I have had this raised with me on a number of occasions by key senior Ukrainian officials. Given the fantastic support that we are giving—which is fully acknowledged—it would be absurd if there were loopholes and gaps through which we were unwittingly aiding and abetting the other side. Will the Minister tell us what steps are being taken?
Finally, these sanctions regimes need to be enforced and actions to be taken in order for them to be effective and to serve as a deterrent. Could the Minister update the Committee, or perhaps write to me as soon as possible, on how many prosecutions or actions have actually been taken under the Russia and Belarus sanctions regimes since they came into effect? I am afraid to say that my suspicion is that the answer is not many; that is certainly what I was told by the Minister’s officials recently, in a meeting with his colleague who covers the wider sanctions regimes. We must take action, as we have heard that hundreds of companies informally admitted, in their words, “involuntarily” breaching regulations, and reported this themselves. If we are not seeing action being taken, it will not act as a deterrent to those who are actively trying to bypass these sanctions we have before us today, or indeed the other measures we have debated.
In June 2023, the House was unanimous in passing Labour’s motion to compel the Government to introduce necessary legislation to fully seize, sequester and repurpose frozen Russian state assets within 90 days. It is now more than 200 days since that motion was passed, but we have not heard anything further from the Government. I appreciate that it is a complex matter, but that is very disappointing given the loopholes, the lack of speed and the failure to seize, not just freeze, Russian state assets so that they can be put towards the very substantial needs of Ukrainian reconstruction.
In conclusion, we support these measures. There is unity across the House, but I will continue to hold the Government’s feet to the fire to ensure that these measures are as effective and consequential as possible. Ukraine needs that support, we need to defeat Putin’s actions in Ukraine, and we need to stay united around the world and across our allies.
Leo Docherty
I am grateful, as ever, for the measured approach taken by the shadow Minister, the hon. Member for Cardiff South and Penarth, in reiterating his support. He asked some very cogent questions, which I will seek to answer.
The hon. Gentleman asked why it had taken this amount of time to deal with the diamonds. He will know that subsequent to the invasion, a 35% tariff was immediately put on diamonds to reflect the change in circumstances. It took a bit of time to co-ordinate with allies, but we hope that this very forthright approach across the G7 will have a very big impact on the billions of dollars garnered by the Russian state on the sale of diamonds. Inevitably, it has taken some time to co-ordinate, but it will be very impactful now that it is in place.
The hon. Gentleman also asked about the resourcing of OFSI. I assure him that it is well resourced and that it has been an active part of the Government since 2016. Additional resource and effort have been committed since the Russian invasion. He asked a good question about the risk of sanctions evasion through third countries. That is something that we are keenly aware of. Day in, day out, we seek to close loopholes using our diplomatic network, our intelligence network and our alliances around the world to ensure that countries are not hosts to sanctions evasion behaviours. Often, they can be without their willing or knowledge. We are keenly aware of that risk, and a huge amount of institutional effort goes into preventing it.
Stephen Doughty
Could the Minister provide specific updates on the issue of the refined oil loophole—or, at least, write to me on that? It has been raised multiple times publicly. I have raised it privately and publicly with the Minister and his colleagues. There are also concerns about steel. These are very real. I am sure British people would be very concerned if they thought that any products that were aiding or abetting Russia were being used in this country.
Leo Docherty
I am very grateful to my hon. Friend for raising that. This Committee, and indeed the whole House, will remember the late hon. Member for Rochdale with fondness and admiration. His work as a parliamentarian was tremendous, specifically on this specific issue of Belarus. Of course, our sympathies are with his family at this time.
Stephen Doughty
I thank the Minister for that, and the House will have a wider opportunity to pay tribute tomorrow. We have been contacted by many people from the Belarus opposition, Ukraine and places in the western Balkans who were deeply affected by the work of the late Member for Rochdale. He was a friend and a great inspiration to me and many others in this place, and he was also a predecessor of the Minister as Minister for Europe.
Leo Docherty
I am grateful for those interventions.
The measures will of course be meaningful. Our sanctions continue to have a damaging impact on Putin’s war machine and efforts. Without sanctions, we estimate that Russia would have had more than $400 billion more with which to fund its war machine. On the UK Government side, we are committed to keeping up the pressure until Putin ends this brutal and senseless war.
Citizens’ Rights
Stephen Doughty Excerpts(11 months, 2 weeks ago)
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Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
I thank the Minister for advance sight of his statement. We welcome engagement between the Government and the European Union on these issues. Maintaining an open, constructive and consistent dialogue is critical to the mutual welfare and rights of all those affected by the withdrawal agreement. We also welcome the work of the Independent Monitoring Authority, the specialised committee and bodies such as the EU-UK Parliamentary Partnership Assembly.
We will always stand up for the rights of the British in Europe, but we recognise that these issues must be addressed in a spirit of mutual and constructive co-operation. As the Minister outlined, the joint statements made in the light of the specialised committee on citizens’ rights appear to show important progress. Fewer issues relating to healthcare, benefits and housing were relayed to the IMA in 2022 than in 2021, but it is clear that some challenges persist. The Minister has outlined a number of those, and we need to work pragmatically and constructively to address them. One of the issues that he mentioned is whether data is fit for purpose. There is not consistency in the data provided by individual countries—it is incomplete and variable. I hope the Minister can say a little more about what he is doing with his European Union counterparts about the data missing from certain member states, in order to achieve baseline parity.
It has also been relayed to Labour that there are continuing problems with the process of issuing residence cards—an example often cited is Portugal. I understand that that process is now under way, but problems are being reported with family reunification, as people struggle to obtain appointments and QR codes. We have also heard about problems with payment systems and delays in printing and issuing cards, which can have an impact on other rights under the withdrawal agreement. What discussions has the Minister had about that?
Concerns have also been raised about the number of refusals in a number of member states and the varying approach to late applications across many countries. British in Europe, an important advocacy group on behalf of citizens, has stated that late applications and the prevalence of refusals are causing consternation and anxiety for many. There is also concern about the lack of communication and information on these issues. Concerns have been raised in the past in relation to Sweden, Denmark, Finland and Belgium, although again the situation has improved, for example with the Danish Government’s decision to extend the deadline for British citizens to apply for status to the end of 2023. Can the Minister update us on the concerns raised in that regard?
Particular concerns were raised about the situation in Sweden, where the refusal rate and the order to leave are statistically higher than in equivalent countries. I have heard some very concerning cases, including one relating to an elderly lady with dementia. Again, can the Minister say what discussions he has had specifically with the Swedish Government on those issues and what he is doing to improve communication with British citizens?
There are concerns about absences and the impact on ordinary and permanent residents. We need a clear statement from the European Commission on the position in the light of recent legal cases. There are concerns about fees. For example, I understand that citizens are being charged €200 to upgrade their status in countries such as Latvia. There are also concerns about cases—thankfully, a very small number of cases—where families have unfortunately been split up due to inconsistencies. Does the Minister have an assessment of how many cases there are in that regard?
Many citizens affected are raising questions about equal treatment and non-discrimination under articles 12 and 23 of the withdrawal agreement. Can the Minister say a little about how we are ensuring equality of treatment in all areas—tax, property, school and university access, health access and so on?
Finally, there is a more general issue about where UK citizens turn when they need advice on enforcing their withdrawal agreement rights—there is a lack of specialised lawyers in this area—and about funding for advice and advocacy services, although I recognise the importance of the work being done by schemes such as Your Europe Advice.
We also need clarity on how we are addressing the concerns of EU citizens here, many of whom have lived here for decades, have contributed and paid taxes, have marriages and children, and so on. The Minister outlined the number of people who have applied to the EU settlement scheme. Where are we on the progress on determining remaining cases and making determinations? We are aware that the scheme has faced serious issues, with hundreds of thousands of late applications, long delays on decisions, delays for those with pre-settled status, and a lack of clarity on their move to settled status. EU citizens over here also deserve clarity and certainty over their status and that of their loved ones. It is vital that the Home Office addresses those concerns, so I wonder if the Minister could update us on what conversations he has had with his colleagues in the Home Office.
One issue that is often raised with us is school trips. How can we address some of the problems that have emerged and may emerge around that important contact between our countries?
Finally, reconnecting Britain starts with Europe. They are our neighbours, partners and allies, and a Labour Government would prioritise building a new ambitious partnership with the EU and European member states. We will not rejoin the EU, the single market or the customs union, or return to freedom of movement, but it is in our mutual benefit to ensure tangible improvements in the experience of citizens on both sides under the withdrawal agreement, recognising the depth of our people-to-people connections.
Leo Docherty
I am grateful to the hon. Gentleman for his questions and for his warm endorsement of a statement that, I think, reflects the overwhelming success of the scheme on both sides. He made a welcome reference to the UK-EU Parliamentary Partnership Assembly, which I was pleased to address last week in Parliament. That shows the practical utility of the exchanges between parliamentarians, both from the EU and the UK, and how they can serve as an important platform for an exchange of views. The warm tone of that meeting reflected the health and positivity of the relationship.
There are, of course, some challenges. The hon. Gentleman asked a good question about data. We do need consistency across member states and we continue to work both with the Commission and bilaterally to encourage greater granularity in the data coming from member states. Bilateral work continues, for example on the issuing of residence rights. It is a particular issue in Portugal, but we have been very grateful to the Portuguese Government for their positive approach. We have raised it at the highest level and we continue to do so. The Foreign Secretary discussed these issues with Vice-President Šefčovič very recently. When I travel as a Minister, I am constantly engaged with these sorts of citizens’ rights as a routine part of my engagement across European capitals.
The hon. Gentleman asked a very good question about Sweden and Denmark. We continue to work bilaterally to resolve those specific issues. He asked a specific question about fees in Latvia. I will write to him on that and on his question about the number of family members involved in cases that are yet to have a satisfactory outcome.
The hon. Gentleman asked a very good question on where people should turn when they need help. In the first instance they should access help online, whether through the Independent Monitoring Authority in the UK or by approaching the EU Commission if an individual is resident in the EU. We have a very wide and comprehensive consular network in British missions right across Europe, with expertise that is deployable to help those concerned. I was very pleased to meet the group he mentioned, British in Europe. I had expansive discussions with that group, which does a terrific job of making British residents in Europe aware of the help available to them.
The hon. Gentleman asked a good question about the duration of a determination. Clearly, the Home Office is doing a terrific job in driving forward a high volume of applications. It is receiving and processing 1,000 cases per day. My understanding is that the average processing time is six months, but we should be very clear that no individual will ever miss out due to any kind of timeline. No one’s fundamental rights will be undermined. Settled status is guaranteed whether or not a certain timeline has been missed, and that was the basis of the recent extension.
In conclusion, the hon. Gentleman was right to point out that we are neighbours, partners and friends to the European Commission and to the member states. That warm tone and collaborative working dictates everything we do on citizens’ rights and beyond.
Oral Answers to Questions
Stephen Doughty Excerpts(11 months, 2 weeks ago)
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Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
As you know, Mr Speaker, our global British family in the UK overseas territories contains 94% of all the unique species that the UK is responsible for. These huge marine areas throughout the world’s oceans are hugely vulnerable to climate change, yet are negligible contributors to it. It has been great to see more OTs sign up to the blue belt initiative, work with groups such as Great British Oceans and attend the recent COP. What is the Minister doing to encourage more overseas territories to join the blue belt and to assist overseas territories to get access to strategic international funding for conservation, adaptation and resilience?
David Rutley
It is an important question. Our need to tackle climate change extends widely to the OTs. We have done significant work on the blue belt programme, and we have engaged a large number of OTs at COP28 this year so that we can help push forward their work and give greater access to this funding. It is vitally important.
Beneficial Ownership Registers: Overseas Territories and Crown Dependencies
Stephen Doughty Excerpts(11 months, 3 weeks ago)
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Richard Thomson
Lib? Well, it shows that there is perhaps a future for progressive alliances of one kind or another, Mr Deputy Speaker.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
Maybe on cups of water.
Richard Thomson
Yes.
We are regularly invited to believe that the greatest threat to our public services and our quality of life comes not from a lack of resources, but from immigration. Indeed, the governing party is tearing itself to bits today over the difficulties that it has set itself in pursuit of the votes of those they believe might be influenced by such sentiments. I cannot help but feel that we would be in a significantly better place if only the Government put half the effort into clamping down on the opportunities for tax avoidance, evasion and lack of transparency as they put into telling us that there is a problem about boats.
The three countries that ranked highest in the corporate tax haven index 2021, compiled by the Tax Justice Network, were the British Virgin Islands, the Cayman Islands and Bermuda, which is not an accolade to be proud of. Where a score of 100 is the most permissive system and zero is the least permissive, the UK itself scored a less than clever 69. Greece scored 46.4, but seven of the eight territories that scored a perfect 100— I use the word “perfect” advisedly—are British overseas territories or Crown dependencies.
The UK Government and the territory Governments held a joint ministerial council in November, but there has been no statement. Will the Minister update the House on the progress that has been made? How will that affect the December deadline?
In 2014 the Foreign Secretary, who was then Prime Minister, made a number of strides forward in addressing this issue. We on the Opposition Benches are struggling with many things, including my voice, but we can see the benefits that come from Lord Cameron’s appointment. On these matters, we very much hope that he is able to pick up where he left off when he demitted office as Prime Minister.
If not the clock, certainly my voice is telling me that it is probably time to wind things up.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
This has been a hugely useful debate on the implementation of public registers of beneficial ownership in the UK’s overseas territories and Crown dependencies. I thank my right hon. Friend the Member for Barking (Dame Margaret Hodge) for securing this crucial debate and for her tireless and unrelenting work on combating illicit finance, fighting for transparency and opposing corruption. As shadow Minister for the overseas territories, I draw attention to my declaration of interest.
We have heard some important, passionate speeches, not least from my right hon. Friend. The campaigning motivations behind her speech have been clear and transparent in what she has attempted to achieve over many years, as many hon. and right hon. colleagues have reflected on.
Important points have been made, including by my hon. Friends the Members for Mitcham and Morden (Siobhain McDonagh) and for Hackney South and Shoreditch (Dame Meg Hillier), on one of the key reasons for transparency, which is understanding who owns buildings, for example, and in what way they own them. I have had the same experience in my Cardiff South and Penarth constituency, with many residents affected by fire and building safety issues having difficulty establishing who is the freeholder and how the ownership is structured.
In an equally passionate speech, my hon. Friend the Member for Wallasey (Dame Angela Eagle) clearly exposed why this matters in so many different regards. My hon. Friend the Member for Hackney South and Shoreditch also explained the importance to the public purse of dealing with these matters. My hon. Friend the Member for St Helens South and Whiston (Ms Rimmer) made an equally passionate speech about why this matters to our efforts against Russia and its illegal and barbarous war in Ukraine, and in relation to our responsibilities elsewhere in the world, including in Africa and many other locations.
We heard strong comments from the Father of the House, as well as from my hon. Friend the Member for Huddersfield (Mr Sheerman), the right hon. Member for New Forest East (Sir Julian Lewis), my hon. Friend the Member for Hammersmith (Andy Slaughter) and the hon. Member for Hendon (Dr Offord). The Chair of the Justice Committee, the hon. Member for Bromley and Chislehurst (Sir Robert Neill), also made important points on the constitutional position of the Crown dependencies. I am no expert on the different legal opinions that have been expressed on that matter, but I have certainly had it put to me clearly by representatives of the Crown dependencies.
As Labour’s shadow Minister for the UK overseas territories, I want to begin by reiterating our unwavering commitment to each member of our global British family, their sovereignty and their right to self-determination. We are committed to a respectful but candid, productive but principled partnership between the UK and each territory, and the same is true in many respects of the Crown dependencies. It was a pleasure to meet the premiers, Chief Ministers and representatives of each overseas territory earlier this month during the week of the joint ministerial council and to hear their insights, concerns and perspectives on issues from security to sovereignty, climate change to infrastructure, and constitutional relationships to this very issue of financial services and beneficial ownership.
As I have said in previous debates, we need to be careful that we do not pursue misconceptions about the overseas territories and Crown dependencies. Each territory and dependency is distinctive and unique. Many of the overseas territories do not engage in financial services, and this debate applies less to them. We must also recognise that steps have been taken and that there has been progress in some areas. Indeed, reference was made to the public register of beneficial ownership in Gibraltar, to the exchange of notes agreement, which has existed since 2017, and to a number of other steps that have been taken. I also want to acknowledge— I have discussed this with them over the last two years—that a number of the overseas territories, and indeed Crown dependencies, have been integral to efforts on freezing Russian state and other assets since the onset of Putin’s illegal and barbarous war in Ukraine.
However, Labour believes that being part of the British family comes with clear responsibilities. We share common values, obligations and principles, including a robust commitment to democracy, the rule of law and liberty, and the protection of human rights. We also believe in the advancement of good governance and in ensuring proper democratic accountability and regulation, which of course includes transparency in financial services.
The 2018 Foreign Affairs Committee report was referred to, and I note the comments in it and comments made today about the interdependence between proper regulation and transparency and our wider national security and foreign policy objectives. That is why we must respond to the calls made by my right hon. Friend the Member for Barking and many others today for us to tackle these issues by urgently bringing about the full implementation of public registers of beneficial ownership in the UK’s overseas territories and, I hope, Crown dependencies.
Sadly, action on economic crime has been held back by years of Conservative delay and dithering. As has been referenced, we were first promised a register of overseas ownership by Lord Cameron in 2016, and it beggars belief that we are still debating how it should be implemented.
Section 51 of the Sanctions and Anti-Money Laundering Act 2018 required the Secretary of State
“no later than 31 December 2020”
to
“prepare a draft Order in Council requiring the government of any British Overseas Territory that has not introduced a publicly accessible register of the beneficial ownership of companies within its jurisdiction to do so.”
Yet here we are in 2023.
We should also remember the Economic Crime (Transparency and Enforcement) Act 2022, which was passed as emergency legislation in the light of the situation in Ukraine and the need to sanction Russian state entities and others involved in the invasion. Its primary purpose included setting up a register of overseas entities and their beneficial owners and requiring overseas entities that own land in the UK to register in certain circumstances.
We have repeatedly been clear that overseas entities should not be able to hide behind trusts, and it is important to explain why that matters. A recent article by Advani, Poux and Summers from the London School of Economics tells us that
“63 per cent of cases where beneficial ownership is not publicly reported”
involve “the use of trusts”. It also states:
“The Crown Dependencies and Overseas Territories are…heavily implicated here. Over 85 per cent of all trust arrangements come from…Jersey (32 per cent), Guernsey (25 per cent), British Virgin Islands (17 per cent) and Isle of Man (11 per cent).”
Russia’s invasion of Ukraine only highlighted why we need to see who owns what and in a way that is transparent and publicly available.
We have made clear time and again the need to bring forward much-needed reforms to Companies House, alongside a review of the register of overseas entities, to ensure that the right balance is struck between privacy and the public interest, including our ability, for example, to apply sanctions effectively. Here in the UK I am afraid we have been playing a game of catch-up. We need to move forward in that respect, working co-operatively with the overseas territories and the Crown dependencies, but taking action if it has not yet been forthcoming.
The views of the British public are clear. The results of a poll for the UK Anti-Corruption Coalition show that 72% of the British public believe that the Government should take more responsibility, working with offshore financial centres to tackle money laundering and tax evasion. That will require the opening up of corporate registries to public scrutiny, and for the end-of-year deadline to be met as a matter of priority. We are seeing, as never before, a confluence of the need to ensure good governance across financial centres and our own national security.
Let me ask the Minister some questions. First, will the deadline be met—yes or no? If not, what do the FCDO and the wider Government consider to be a reasonable deadline, and what will be done to meet it? Can he clarify the position in relation to the Crown dependencies in particular, given the comments that have been made today? Obviously I have seen the statement that they have made about coming forward with a public commitment—I think that was the phrase—in relation to their approach to access to information on registers of beneficial ownership by the end of December 2023, to replace the 2019 commitment.
I was pleased to read the Joint Ministerial Council’s communiqué, which said that
“the Overseas Territories and the UK…will be establishing a technical working group on beneficial ownership…and…the implementation of publicly accessible registers”.
What is happening about that, and what support is being given to smaller territories, in particular, to enable them to make progress? What is the group doing, and how will it move forward and actually deliver results? After the November JMC, the Minister pledged that he would report to Parliament before the recess on the progress toward the deadline. Is today that day, and can he provide a precise timeline? Could he also provide an update on the status of the draft Order in Council and the circumstances in which it would be invoked? Will he tell us what percentage of business covered by the 2017 exchange of notes agreement is being covered now? I understand that in 2019 it was 87%; is it now 100%, as promised? At what speed is the information being exchanged? The Cayman Islands has told us that it does it within 24 hours; is that timeline the same in every single territory?
I hope that the Minister can answer those questions today. We want to see progress as a matter of urgency, as part of a respectful, constructive but principled relationship with our overseas territories and Crown dependencies.
Mr Deputy Speaker (Mr Nigel Evans)
If the Minister can sit down by about two minutes to 5, that will allow Dame Margaret Hodge to sum up the debate.