Tuesday 24th February 2015

(9 years, 2 months ago)

Westminster Hall
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Tobias Ellwood Portrait Mr Ellwood
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We will make an announcement shortly on where the new embassy will be located; once that happens, the normal processes will then apply. However, the right hon. Gentleman makes an important point and, if I can, I will write to him with more details.

The Friends of Yemen brings together many countries around the region, and Britain is proud to co-chair that organisation. It met at the UN General Assembly in September last year, and all the countries involved were committed to encouraging the Houthis to enter into dialogue with the other stakeholders. My hon. Friend the Member for East Worthing and Shoreham talked about the slow pace at which funds are being released, such that they are not coming through, even though I understand they had been pledged in 2012 at a previous UN General Assembly. Money is available but it needs to be unlocked, and the institutions need to be in place in the capital of Yemen, so the money can be transported and spent in a transparent and appropriate way. Those aspects of the process have broken down, but we should not forget that those pledges, which amount to about $10 billion, were made in 2012. I understand that less than $5 billion was actually committed, as such, so there are international funds available, but they will only be used once the political situation in Yemen has indeed improved.

Alistair Burt Portrait Alistair Burt (North East Bedfordshire) (Con)
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I apologise for missing the earlier part of the debate. While my hon. Friend the Minister is addressing this issue, may I ask him a question? The placing of funds from the Friends of Yemen into Yemen crucially depends on the commitment of Yemenis themselves to having the means to deliver money to the poorest people, to ensure that jobs exist. In the past, too many states have put money into Yemen and found that it was not being used effectively, because of problems within government. Is the Minister more assured now that that point is really understood, so that this money can be unlocked? Not only political will but economic competence in delivery is necessary and key to ensuring that that money is used effectively.

Tobias Ellwood Portrait Mr Ellwood
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I am grateful to my right hon. Friend for that intervention, and I pay tribute to the work he did in the region as a Minister in the Foreign Office. He makes a powerful point. The unique position Britain finds itself in, compared with other countries, and the leading role it should play has already been mentioned. Part of that role has been to communicate with the Houthis and, indeed, with the other stakeholders to make them all aware not only of the wider consequences of civil war but of the positives. Once the structures are in place and there is stability, then we can unlock these funds.

However, an indication of the instability in Yemen is that Britain had to evacuate its embassy, along with the Americans and indeed others; the EU has evacuated its base as well. Until those embassy officials are able to return to Yemen, I am afraid the process of releasing and appropriately spending these funds, which are much-needed to help those caught up in the war, will be much slower.

The regional implications of instability in Yemen are serious, as hon. Members have mentioned. The increasingly sectarian nature of the conflict between the Shi’a Houthis and the Sunni tribes in the south will play into the hands of Al-Qaeda. We must work closely with allies such as Saudi Arabia and the Gulf states to ensure that there is a co-ordinated and multinational response to the situation in Yemen.

A number of hon. Members mentioned the important role Iran can play in the situation we face. We are in dialogue with Iran and we need to ensure that it understands that it has a constructive role to play, to make sure that we do not see a further degrading of the situation in Yemen into civil war.

We also continue to work through our embassy staff, the UN special envoy—Jamal Benomar, who has been mentioned—and key allies to encourage all factions to work together to agree a political solution within the framework of the Gulf Co-operation Council initiative, including a clear timetable for constitutional reform and indeed elections. We remain concerned by the continued house arrest of Prime Minister Bahah and other members of the Cabinet, and we are actively calling for their immediate release.

No country can tackle terrorism alone, and Yemen is no exception. The scale of the challenge is huge and in the longer term continued instability in Yemen may mean an increased risk of al-Qaeda in the Arabian Peninsula launching external attacks, including here in the UK. AQAP remains a major part of the global, multimillion-pound kidnapping trade, which directly targets the UK, the EU, the US and nationals of other western countries. Through its extremist propaganda, AQAP also seeks to radicalise Muslims around the world and incite extremist violence. That was illustrated, as hon. Members have mentioned, in the horrific attack in Paris on 7 January.

Addressing the underlying instability in Yemen and the country’s political and economic problems is essential to countering the AQAP threat effectively. We have temporarily suspended counter-terrorism capacity-building activity with the Yemeni security forces, but we are exploring ways to re-engage with them in such activity, in a human rights-compliant manner. Members will appreciate that, for operational reasons, I cannot comment in detail on this activity.

We know that the majority of Yemenis want the same things people elsewhere around the world want: a say in how their country is run; an education for themselves and their children; the chance to have a good job; and the chance to live in a peaceful and prosperous state. Therefore, economic stability is as critical as political stability. Sadly, however, the economic situation in Yemen is deteriorating fast, with almost zero growth, debt at 50% of GDP, rapidly declining foreign reserves and growing fuel shortages.