Ministers: Overseas Travel

Viscount Waverley Excerpts

Tuesday 1st February 2022 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, my noble friend speaks with great insight about the serious decisions taken at the heart of government. Just for noble Lords’ interest, the Royal Air Force—as I said, this is government-wide, including planes provided for the Royal Family—has one A330, one commercially operated A321 and one BAE146. The United States has two VC-25s, eight C-32As and two C-40 Clippers. France—the list goes on. In the United Kingdom, the decisions taken on travel for every Minister of course take value for money into account. However, the Foreign Office, the Department for International Trade and a number of other departments undertake vital work internationally, and sometimes, as I have already said, when the Prime Minister or the Foreign Secretary travel, they not only travel with security but conduct business on those planes. This would not be possible on any commercial flight.

[Viscount Waverley (CB)]

My Lords, do government planes carry chargeable payloads to offset costs, thereby giving extra value for money to the taxpayer, and if not, why not?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I have already talked about the issue of the carbon footprint. In terms of the specifics, security assessments are taken. The schedules of these planes and flights can change very quickly. Indeed, when my right honourable friend was visiting Australia, she had to make adjustments to her schedule because of the crisis situation in Ukraine. These are not normal commercial flights; they have to adapt to ministerial needs and government priorities—and I know there are many noble Lords across this Chamber who know that.

Climate Change: COP 26

Viscount Waverley Excerpts

Thursday 18th November 2021 Lords Chamber

[Viscount Waverley (CB)]

My Lords, the Government’s export plan, published yesterday, expressed commitment to safeguarding the environment, fostering high-value jobs in a low-carbon economy and fuelling technological innovations that can be exported around the world. A section entitled “Modernising trade” went on to present a vision of

“an enhanced EDG that will allow for longer-term financing for clean growth sector exporters”.

I join in the concerns regarding the Treasury and FCA recognising these lofty ambitions. There is concern that the UK is lagging in the ability to implement such change across the economy. Failure to raise capital for deployment in green projects has now only just begun to be addressed. Even if the Government’s green bonds should be raised, how will this money find its way down for projects? What has been done to combine green projects with the important financing agenda?

Growth by SMEs crucially depends on accessing export finance. UK industry can make an impact to the goals by providing world-leading solutions and products, with entrepreneurs filling the gaps left by banks by being allowed to access finance with less scrutiny from regulators.

Free from European rules, the Treasury and the FCA must encourage capital flows with innovative solutions, not constrain markets with wider regulatory powers. The result of doing so is the growth of the non-bank alternative finance industry and is a reflection of the inability of banks to finance SMEs. Financing for high-input projects, accessing the funding needed, will be hampered unless policy changes are introduced. Companies that cannot get funding in the UK will simply leave, with the resulting brain drain of technology further impeding delivery of COP 26 targets. Many UK companies have already gone to the Frankfurt stock exchange to raise capital, putting pressure on the image of the City as a hub of financial services innovation.

The UK has some of the most innovative alternative financing businesses in the world. The rise of alternative finance, which started with consumer lending, has succeeded in bridging the financing gap but these businesses have seemingly come under attack from the FCA. Policymakers must allow for the flow of capital down to the innovative mid-sized private companies by investing heavily in future technologies through grants and subsidies. Employment, innovation and rebalancing trade require capital and the internal market should be allowed to grow without overreliance on bank financing.

Afghanistan: Food Shortages

Viscount Waverley Excerpts

Tuesday 9th November 2021 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, I have not minced my words. I do not believe the Taliban has changed; I have always sustained that belief. However, with every dark cloud there is a glimmer. For example, we have recently seen the Taliban supportive of the continuation, or restart, of the polio campaign, and we need to take encouragement from that. But logistics are a challenge, and that is why we must work with trusted partners which have the established networks. The ICRC, UNICEF and the Aga Khan Development Network are three organisations which have such structures in place.

[Viscount Waverley (CB)]

My Lords, would the Minister care to look at and reflect on the experiences learned from the early days of aid distribution in Afghanistan, which quite frankly were a total mess even from the aid community and the head of the whole body? Maybe there will be some lessons learned going forward.

COVID-19 Pandemic in Latin America

Viscount Waverley Excerpts

Wednesday 20th October 2021 Lords Chamber

[Viscount Waverley (CB)]

My Lords, I am grateful to the noble Baroness, Lady Coussins, as I, like others this evening, have an affinity with Latin America.

The situation is dire, which is supported by a depressing collection of facts and numbers. The pandemic has had a devastating social impact. Poverty—and extreme poverty, as has been mentioned—has dramatically increased, with inequality having grown throughout the region. The only question I can muster is: what is we can we do to help?

While international trade contracted globally in 2020, it contracted more severely in Latin America. The only light at the end of the tunnel is that there has been a more considerable drop in imports than exports, which has reduced the region’s trade deficit. However, the prospects for recovery are not good. Companies are recording significant losses as commodity prices fall. Generally, exports have fallen by 10% and imports by 13%. Unemployment has risen and businesses have been closed. Public accounts have deteriorated. The pandemic has caused the closure of a staggering 2.7 million Latin American companies, equating to 19% of all companies in Latin America.

The differences between the countries are high. Peru, Argentina, Ecuador, Panama, El Salvador, Mexico and Colombia have been the most affected countries, with small businesses and low-skilled workers struggling the hardest. It would be inappropriate not to record that a staggering 600,000 Brazilians, including a disproportionate number of indigenous citizens, have perished. Venezuela has felt the effects of a break in its relationship with Cuba, with doctors emigrating. Women and the youth are among the most affected.

The majority of countries have established instruments of direct help to households, such as the emergency family income in Argentina, the Covid-19 voucher in Chile, the solidarity income in Colombia, the proteger voucher in Costa Rica and the emergency voucher in Brazil. Some countries have been able to take advantage of the boost in their exports of medical and agricultural products. Guatemala and Honduras have benefited from the sales of masks and Costa Rica from those of medical equipment, mainly destined for the United States market.

The all-important remittances from Latin American workers outside the region fell by 19.3% in 2020, according to the World Bank. These incomes are particularly important in Central America. The worsening environment for migrants during the pandemic means that their basic needs are unmet and their social and economic capabilities not realised. In short, Covid-19 has illustrated the urgent need to support the impoverished with aid from overseas.

--- Later in debate ---

[Viscount Waverley (CB)]

The Minister spoke about the need to approve a certificate from Colombia. Is he able to say whether the UK does that in isolation from others around the world, or is it that we are part and parcel of a global approach in approving, for example, the certificate specifically from Colombia?

[Lord Goldsmith of Richmond Park (Con)]

I thank the noble Viscount for his question. I hope I am not wrong in saying that the UK has now recognised the vaccine certificates for Colombia; that has happened. Colombia remains on the red list, but this means that when it comes off that list, it ought to be a relatively smooth transition. I hope I will not have to correct the record on that, but I do not think I will.

I was amazed by some of the projects that are happening in Colombia, which combine efforts to raise living standards and reinforce the peace process by involving those people who are very much involved in conflict in this global endeavour to restore and protect nature, and which are doing so in an extraordinarily successful way. I really hope we will be able to step up our efforts in that region and beyond in support of a series of truly world-leading initiatives.

Increasing trade in the region is also essential to overcome the unprecedented economic challenges caused by the pandemic. Opening up markets, unlocking business opportunities and sharing British business expertise will benefit both the region and of course the UK. The UK has negotiated continuity trade agreements in the region with Peru, Colombia, Ecuador, Mexico and the countries of Central America.

In Mexico, we will soon be starting negotiations on a new ambitious free trade agreement to support jobs, opportunities and prosperity right across the UK in industries that will shape the future of the global economy and secure better access for British goods and services. Our ambition to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership is also important for UK interests in the region.

The UK is acutely aware of the devastating impacts that the pandemic has had on the lives of many individuals and the economies of countries across Latin America. It has widened inequalities and pushed back—

Iran

Viscount Waverley Excerpts

Tuesday 19th October 2021 Lords Chamber

[Viscount Waverley (CB)]

My Lords, this short debate is a helpful opportunity to attempt to offer an insight into the complex world of Iran. Some are of the view that modern-day Iran, which is now pivoting towards the East, is of the West’s making. The corrupt leadership in Iran does not represent its people, who should not be punished with policy failures and requiring long-term planning.

At the core of this evening’s short debate is the strategy to resolve the JCPOA. What is the Government’s strategy to bring this all to an end? What is made of Iran’s increasing implied threat of going military on its nuclear programme unless the world does this or the other? Is the regime trusted in negotiating in good faith?

Although the Revolutionary Guard is loyal to the regime, in practical terms the regime is more reliant on the Revolutionary Guard than the Revolutionary Guard is on the leadership, who consequently have become more assertive. Iran is in reality a de facto military Government, with all key positions controlled by commanders. They are in full control of the running of the economy of the country. The Iranian people, the West and the world are hostage. How long is the West going to allow this behaviour to continue?

Worryingly, Iran will more increasingly negotiate through hostage diplomacy; China has provided evidence just recently that it can be turned to an advantage. This is a dangerous turn of events, with the potential to get out of hand globally. A crucial question is: how will the Government respond if Iran, or any other state, continues to follow a policy of hostage-taking to achieve its goals?

I fear that the raising of dual citizens might play more into the hands of Tehran as there is an association with the return of money that is legally due for return. While the regime believes that it has right on its side, it will do nothing. I sincerely hope that I am proved wrong. The UK not returning the tank money plays into the hands of the leadership as it is an easy message to explain that it is the UK that is not abiding by the rule of law.

There still remains the recognition by Iran of Israel. It should not be forgotten that Israel also owes money from the days of the Shah, giving credence to an international coalition against it. Some are of the singular view that there is only one state that has the means to bring about resolution to the situation in Iran and the region: Israel.

In today’s climate, we should forget regional negotiations with the US at the table. We are entering a cold-war phase, with Iran having cut a 25-year deal to give first rights to Russia and China on construction, intelligence and military matters. Where does this leave us? There is, however, one core fundamental: the language of power is all that is understood. When faced with credible condemnation pressure, the leadership buckles. Will the Minister set out before the House where the Government perceive the regime’s weak points are so that we can all join in to make for a better world with Iran at the table?

Belarus: Elections

Viscount Waverley Excerpts

Thursday 22nd July 2021 Grand Committee

[Viscount Waverley (CB)]

My Lords, I am pleased to have the opportunity to speak in this debate. We have just been debating in Grand Committee matters relating to the democratic state of India—a country of 1.4 billion people and a far cry from what brings us together now.

I intend to broaden the debate. I fear that President Putin will not be persuaded by the question before us. Free and fair elections in Belarus would be followed by an increasing call for free and fair elections in Russia, presenting existential threats to the personal survival of both leaders. While it is to be applauded, therefore, I fear that the initiative of the noble Lord, Lord Balfe, is mission impossible in the short-term. However, he has presented us with a helpful opportunity for a road map in the longer term. The challenge was articulated in an interesting recent piece in the Financial Times, which said:

“Nationalist autocrats need enemies abroad to justify political repression at home, and the Russian president has long found his in the west.”


If perceived wisdom is correct, Moscow is targeting de facto absorption of Belarus into Russia. The situation in Belarus has now become, therefore, a test of autocracy over democracy, tyranny over decency, and self-preservation. The Kremlin’s gameplay of taking control of Belarusian security institutions—the KGB, the Ministry of Internal Affairs and the armed forces—is, in addition to the aim of ensuring that Lukashenko retains power, demobilising the protest movement through mass repression.

Messaging from Minsk or Moscow about constitutional changes and new elections will only ever be on Moscow’s terms. Any proposed constitutional changes will only ever be paving the way for greater economic integration with Russia, with the omnipresent risk of invasion—either under cover of darkness, or, more radically, in order to discourage all such countries from moving geopolitically westward.

How, therefore, can we support the people of Belarus while managing the relationship with President Putin’s Russia—recognising that the ploy of disruption is Kremlin gameplay, but still responding to it with a tough approach on ground and sea, not just with words? The recent Black Sea right of passage exercise is clearly a starter for things to come, as part of a grand strategy. We must be prepared to stand up for what we believe in, beating the drum with parallel savvy engineering and diplomacy. The principle of critical dialogue must on all accounts be maintained. We must be consistent, and address the fundamental lack of trust on both sides.

President Macron and Chancellor Merkel—with her somewhat conflicting messaging—suggest that a culture of automatically blaming Russia for everything is wide of the mark, and a consequence of the current relationship. They are making heavy weather of it. News today that the United States and Germany have reached a truce over the Nord Stream 2 pipeline has sent shock waves through energy security concerns. This could conceivably put Ukraine back on a journey into the Russian fold, notwithstanding a surety from Berlin to impose sanctions on Russia if Moscow threatens Ukraine on energy security. If I were President Putin, I would see this as a potential chink in the armour, with the West undermining its position.

I do not profess an immediate solution to the desperate Belarusian issue, other than to publicly urge President Putin to support ideals built on decency and accountability, which could be turned into a quick win for Russia and lead to a more constructive relationship throughout.

Global leaders must learn from history. The time has come to understand what has happened to put us in the situation in which we now find ourselves, based on the many examples that exist—Myanmar being just one current example—and to devise whatever channels that, with strict conditionality, could be best made to work, including, if necessary, a surety of freedom from prosecution in return for free elections.

The international community should then enact a “citizens first” global charter with a courts-based system to adjudicate when leaders clearly demonstrate failure to uphold their responsibilities to their people. We must not give up on this, but the time has come for like-minded actors to up their game and to be more smart—but not Machiavellian—about it. A fundamental reset is required. Now is the time for a new world order, supported by actions, not words. Let Belarus be the test. Failure will spell trouble.

[The Deputy Chairman of Committees (Lord Lexden) (Con)]

My Lords, the noble Lord, Lord Dubs, whose name is next on the list, has withdrawn from the debate, so I call the noble Baroness, Lady Northover.

British Council

Viscount Waverley Excerpts

Wednesday 9th June 2021 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

I am sure that I will always agree with my right honourable friend the Defence Secretary, and I agree with him about the important role of the British Council. Where I disagree with the noble Lord is in his assessment. We are a major power when it comes to soft power, and the British Council is part and parcel of Britain’s continuing presence in that area across the world.

[Viscount Waverley (CB)]

My Lords, following the theme of everyone else this afternoon, how can this country be a global Britain with an insular approach? How secure is the Minister that the Treasury fully understands the strategic contribution of the British Council in establishing networks and information gathering, the cultivation of future leaders around the world, and the creating of links for trade and export promotion, thus offsetting the demoralised Foreign, Commonwealth and Development Office?

[Lord Ahmad of Wimbledon (Con)]

My Lords, again, I am a Minister in Her Majesty’s Government and I would argue that we remain very strong in the area of soft power, including through our work in the British Council. I would draw the noble Lord’s attention to the fact that the UK ranks consistently well ahead of many other leading countries when it comes to soft power assessments; indeed, we are second in the Portland Soft Power 30 index, second in the Anholt Ipsos Nation Brands Index and third in the Brand Finance Global Soft Power Index. These are assessments of our capacity in soft power around the world.

Integrated Review: Development Aid

Viscount Waverley Excerpts

Wednesday 28th April 2021 Grand Committee

[Viscount Waverley (CB)]

My Lords, fiscal criteria and for what purpose we apportion two key elements of aid assistance go to the core of my remarks. Humanitarian ghastliness in Yemen, Syria or Iraq is apart from strategies for countries in poverty. This enforced reduction could be an opportunity.

Making trade work for everyone must become our mantra. As a bonus for doing so, emigration would be stopped in its tracks. The UK must lead by example and move the dial on the world stage.

What we never debate is what we are prepared to give up. Governments should consider what is needed and what is not working. Throwing cash at the problem for our new-look world is not the solution.

Resolving the major contributory factor to trade reform by failing to implement the WTO Doha round offers a lifetime opportunity. Reductions in government spending on subsidies and agribusiness, which were held hostage by the United States and the European Union to the detriment of developing economies, ended the Doha round. That was regrettable.

First, we must prioritise the issues that erode developing countries’ tax bases as a means of improving the overall effectiveness of international development and tax co-operation. International tax rules, especially manipulation by multinational companies to avoid paying their appropriate level share of taxes to the right quarter, should be prioritised, with a taxed-at-source mechanism.

Secondly, Governments should support broader economic goals with market reforms, the promotion of private sector investment and industrialisation by revamping incentives and development agreements for a broad range of countries. Major benefits would come from freeing economies with a package of zero-tariff regimes that would create wealth in developing and impoverished nations, and much-needed employment. This would provide a range of new participants to the supply-chain cycle, providing new sources of supply from the developing world.

Integrated Review of Security, Defence, Development and Foreign Policy

Viscount Waverley Excerpts

Thursday 22nd April 2021 Lords Chamber

[Viscount Waverley (CB)]

My Lords, I noted the carefully crafted messaging in the integrated review with regard to China. I had it in mind to offer a contribution today that addressed the challenges and opportunities, strategic and otherwise, with that state. However, for reasons that have been well rehearsed in this session, I should delay further consideration to the autumn. Suffice it to say at this stage that I believe the review struck an apt approach.

I do not automatically espouse the theory that the reduction in development aid funds necessarily presents a doomsday scenario. What is required more than anything is a combination of realism and innovation: a new-found approach incorporating zero tariffs and the opportunity to trade with the developed world to the benefit of all; and a phased adjustment in current tax and payments to source, rather than for ever having taxes paid by a corporation where they are tax-resident is worthy of consideration. A Cross-Bench debate next week will provide an opportunity to expand on that theme.

Many noble Lords have rightly referred to science and technology. It is my pleasure therefore to offer the Minister some potential low-hanging fruit. This would normally have been the gift of the noble Lord, Lord Browne of Ladyton, but he has focused our minds elsewhere, so I shall run with the baton.

The Government are not eligible to be a party to the International Science and Technology Center—ISTC—headquartered in Kazakhstan, due to the circumstances of Brexit. Association, however, would bring the benefit of having an oven-ready partner in the arena of non-proliferation in chemical, biological, radiological and nuclear threats, in addition to being a useful mechanism to implement the Government’s defence and security policies overseas. Its DG can add to the storyboard; renewed association would enable the UK to be a party to an existing international organisation for the exercise of non-proliferation and against world hybrid threats. The ISTC had several MoD projects that were being implemented and I understand that funds are still on account.

Countering state nuclear and security threats, in addition to having access to over 100 countries’ facilities, including a worldwide database of institutes and scientists, with their expertise, would be a useful asset to the United Kingdom. It would include access to antimicrobial resistance and disease surveillance, and other endemic medical and related threats, nuclear forensics, biosecurity experience and a useful mechanism to further R&D and S&T co-operation. Multilateral agreements, at the diplomatic level, are in phase for member countries that, when translated, would mean it not being necessary to negotiate separate bilateral agreements when wishing to implement a project in any country. The alternative would be to fund projects that meet our international non-proliferation and security objectives on a case-by-case basis.

[The Deputy Speaker (Baroness McIntosh of Hudnall) (Lab)]

The noble Lords, Lord Hannan, Lord Berkeley and Lord Desai, have withdrawn, so I call the noble Lord, Lord Bilimoria.

Latin America: Future Foreign Policy

Viscount Waverley Excerpts

Wednesday 21st April 2021 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, I agree with my noble friend and assure her about the agreements being signed. The full implementation of trade agreements with Andean countries and central America, Chile, CARIFORUM and Mexico, and the negotiation of new agreements with CPTPP and Mexico this year, have paved the way for a UK-Mercosur FTA in the future. We will continue to work closely with the region.

[Viscount Waverley (CB)]

My Lords, the Minister referred to economic growth and trade opportunities. Some say, I think rightly, that prioritising a trade-corridor strategy is optimum. As it has the current presidency of the Pacific Alliance, have we sat with Colombia to determine how best to maximise opportunities for the UK? If so, what might they be and what is the best mechanism to achieve them?

[Lord Ahmad of Wimbledon (Con)]

My Lords, we work very closely with Colombia on a range of priorities, as we do with other Latin American countries and partners. We are looking to strengthen our ties across the region, as he rightly points out, by creating the trade corridors that we require and are in the interests of the region, as well as the United Kingdom.