Turks and Caicos Islands Debate

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Department: HM Treasury

Turks and Caicos Islands

Andrew Rosindell Excerpts
Friday 3rd December 2010

(13 years, 11 months ago)

Commons Chamber
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Andrew Rosindell Portrait Andrew Rosindell (Romford) (Con)
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I refer the House to my entry in the Register of Members’ Financial Interests.

The Turks and Caicos Islands are a territory of the Crown for which we in Parliament have ultimate responsibility. During the past few months, I have spent considerable time dealing with the multitude of issues relating to the Turks and Caicos islands, in my capacity as chairman of both the Turks and Caicos Islands all-party parliamentary group and the British overseas territories all-party parliamentary group, as well as in my capacity as a member of the Foreign Affairs Committee. I am thus extremely grateful for the opportunity to address the House this afternoon on this most pressing of subjects.

The Turks and Caicos Islands are a territory of some 26,000 inhabitants situated just south of the Bahamas on the cusp on the Atlantic ocean. They have been British in one form or another for several hundred years and were a dependency of Jamaica until 1962, when they became a Crown colony or British overseas territory, as we now call them. The islands that encompass the territory are well known for their award-winning beaches, world-class hotels and spectacular climate. Indeed, the tagline of the islands, “beautiful by nature”, could not be more appropriate. These aesthetic factors, coupled with a prime location for tourism, an English-speaking populace and a British constitution and judicial system made the islands one of Britain’s most successful territories.

However, the Turks and Caicos Islands of the present set a far more sombre scene. Endemic corruption, economic turmoil and violent crime are rife. The people of the Turks and Caicos Islands are currently hard pressed for optimism. Sadly, these previously dynamic islands have been in more or less perpetual stagnation for the past 18 months. The questions we all have to ask are: how has that been allowed to happen under the British standard, and why is so little being done to rectify that unacceptable situation?

The issues stem from the previous Administration, who presided over systematic corruption, selling off vast swathes of Crown land and running the islands as a personal fiefdom, despite the protestations of the resident populace, who fruitlessly whistle-blew to the UK Government. Finally, on 18 March 2009, after almost seven years of systemic corruption and on the advice of her UK Ministers, Her Majesty the Queen issued an Order in Council, giving the Governor the power to suspend the constitution. In August that year, the order was enacted.

Many saw the UK Government’s intervention as a necessity, and on the day of the suspension people walked down the street waving Union Jacks, with every faith that, in true British spirit, Her Majesty’s Government would restore the territory to its former glory. So, where has it all gone wrong? How has this proud and loyal British territory found itself in an arguably worse position than before the UK Government took direct control? I am sure the Minister will tell us shortly.

I intend to outline the issues facing Turks and Caicos, the root causes of those problems and how I feel Her Majesty’s Government can address the urgent matters at hand. Let me preface that by paying tribute to the current governor, His Excellency Gordon Wetherell, and his team. I have seen at first hand the terrific challenges that they face, and I do not envy their task. They do a sterling job, and given the conditions we could not expect more of them.

There are, however, failures, and they are the fault not of the interim Government but of the completely insufficient support that they have been afforded by Her Majesty’s Government and, moreover, the previous Labour Government, in particular, who grossly under-resourced the Administration and expected the impossible.

In August, I was fortunate enough to visit the Turks and Caicos Islands, where I met hundreds of local people, businessmen, politicians, Government officials, community workers and church leaders. All of them were desperate to have their voice heard, frustrated by the lack of action and deeply concerned about what the future might hold for them. The islands are truly in crisis.

On one afternoon during my stay at the Governor’s residence, “Waterloo”, on Grand Turk, there was an armed robbery only a stone’s throw from the property. Violent crime has completely spiralled out of control; guns and illicit substances are being smuggled over on sloops from Haiti, and there is no way to enforce the borders or territorial waters. There is, however, a $2.5 million radar system that would significantly alleviate the problem, but for more than 18 months it has sat in a crate deteriorating, while sheer bureaucracy prevents its installation. Already, the storage fees exceed $50,000, and that is a disgrace.

Meanwhile, the once sound infrastructure of the islands is crumbling, education is declining and illiteracy is rampant. Schools and teachers have their limited resources stretched to capacity, and there is no meaningful approach to vocational training, with only 2% of students going on to college.

The prison on Grand Turk is desperately overcrowded, with minors and adults sharing cells, and it was called little more than a “training college to harden criminals” by some of the community leaders I met. That problem is compounded by a severe backlog in the justice Department, with courtrooms in meltdown and the local magistrates simply unable to deal with the backlog. I believe that many problems can be attributed to the civil service of Turks and Caicos, which needs to be completely rebuilt. There have been no audited financial records since 2006, and there are an untenable 2,300 people on the payroll. A large proportion of the civil service has been compromised by corruption, yet there is little attempt at reformation. It currently takes about six months to process a driving licence and 11 months for a work permit. The level of “pay to play” bureaucracy is utterly unbelievable. At the same time, the islands are, as one resident put it, “being micro-managed into oblivion”. Layer upon layer of legislation is bottlenecking the last vestiges of enterprise. Until the civil service is reformed, the work of the interim Administration will continue to be undermined. That must be a priority.

Even with all those problems, the islands are primed for investors. I have it on good authority that there are businesses and individuals waiting in the wings to plough investment back into TCI. Turks and Caicos desperately needs to bring that business back. Business built the islands and it has been their lifeblood over the past three decades. To put it simply, if the Government continue to allow an unfavourable climate for private enterprise, the islands will not recover.

The people of Turks and Caicos have not given up; they will do everything possible to put their islands back on track and we have a duty to help them. The overwhelming majority of people want to create a climate of genuine partnership. The interim Administration and the Governor’s office can depend on assistance from the private sector in almost every aspect of restructuring. Those in the private sector have offered office accommodation, professional services and even their own money to assist, but they are continually met with barrier after barrier. Their frustration is completely understandable. They appreciate that finances and resources are tight, and that we live in a climate of austerity. They are looking not for handouts or bail-outs, but for stability and economic security. Her Majesty’s Government have a duty to provide that.

Hanging over all these matters is the remorseless task of discovery by Helen Garlick and her officers, who compose the special investigation and prosecution team that has spent the past 18 months uncovering the web of scandal, fraud, bribery and corruption that silently choked the islands into their current condition. Although I appreciate that their task is complex, there have been no prosecutions. Given that the cost of the investigation is about $500,000 a month and that it is funded exclusively by the Turks and Caicos interim Government, people on the islands are understandably in uproar. It is in everyone’s interest that there should be prosecutions imminently, that the uncertainty is cleared up and that a line is drawn so that the territory can move forward. Clear and concise parameters must be set. The people of Turks and Caicos cannot be expected to entertain open-ended speculation about when the problems will be resolved.

Finally, the constitutional reform process is one of the more emotive problems. It has been met with fierce hostility by the “belonger” population and the political parties, which have conducted their own review. All I will say is that the Government need to remember that a political system cannot and should not be imposed on an unwilling population. Such reforms must be conducted in conjunction with the people—there is no other way to go about it in a modern democracy. The next election in the Turks and Caicos Islands has been announced for 2012. That deadline must be met so that democracy is restored to the people of the islands by that time at the very latest.

The perpetuation of the current situation is unthinkable. Turks and Caicos is in crisis and if immediate action is not taken by Her Majesty’s Government, the territory will continue to deteriorate. A letter dated 4 February 2010 from the Foreign and Commonwealth Office to a resident on Grand Turk stated:

“Whilst UK Ministers are keenly aware that the TCI Government has severe difficulties in meeting the liabilities it has inherited from the previous administration and that significant challenges remain, they are of the view that it would be inappropriate for UK taxpayers money to be used to fill a deficit created by the financial mismanagement of the previous administration.”

That is an appalling and inexcusable stance. The people of the Turks and Caicos are British, too, and they deserve our support. The previous Government should be ashamed of how they handled the situation there, and of the relationship that they fostered with the overseas territories in general.

I can assure the House with certainty that the bill for the UK taxpayer will be far greater in the long run if urgent action is not taken now. I have every faith that our new Conservative-led government will do everything in their power to ensure that the current wrongs are righted and that the failings of the past are corrected. We need to deploy more civil servants from the UK to reform the TCI civil service and more police to crack down on crime, and we need to draw a line under prosecutions to ensure that the full weight of the law is brought down on those who were deceitful. We also need to ensure that more funds are made available to the TCI, and not simply to tide the islands over for a few more months. It must be enough to stimulate the economy back into action radically.

I speak frankly when I say that there is no use in a package of support that is aimed merely at maintaining the status quo. I recognise that in the current climate of austerity no decision on finance is taken lightly, but I put it to the Government that they have committed to giving millions of pounds in aid to foreign countries, and yet let poverty and despair be fostered on our very own soil. Her Majesty’s Government now have an ideal opportunity to change that in the Turks and Caicos, and with the right attitude and approach we can show our citizens overseas that they are not on the periphery of government and that no matter where one is in the world, British is British is British.

The Government need to show the global community that just because someone happens to live in a different time zone from London, it does not make them any less British. With that in mind, the people of the Turks and Caicos should be afforded the full support of the Government to ensure that they realise a secure and prosperous future. They will not be impressed by more rhetoric.

At this point, I wish to commend Her Majesty’s Government in Canada, who, despite having no responsibility for the Turks and Caicos, are sending over members of the Royal Canadian mounted police to help us rescue the situation. Should that not be our responsibility? It is, after all, a British territory, not a Canadian territory.

The people of the Turks and Caicos islands want to see fast and radical action from Her Majesty’s Government here in London to restore to their homeland the governance that one would expect for a British overseas territory, a territory of the Crown.