Arms Exports and Controls

Debate between Ann McKechin and Tobias Ellwood

Thursday 30th October 2014 Westminster Hall

[Mr Ellwood]

I do not want to move into hypothetical situations. We will continue to review matters, but I have explained the situation as it stands. If events move forward and circumstances change, we will review that and react responsibly according to criterion 2.

The Export Control Organisation has continued to perform efficiently over the past year in spite of various pressures. The ECO has maintained its performance targets despite an increasing volume of licence applications, with standard individual export licences up 3% on last year, and ECO’s high priority advice service to Her Majesty’s Revenue and Customs on the licensability of goods stopped at ports and airports up 30% in the same period. Together with extra work caused by the Russia sanctions, that has meant increased pressures on the ECO, which has worked hard to maintain both service levels for its customers and the robustness of our export controls, as the objective of giving applicants a decision as quickly as possible cannot outweigh the need to give every application very careful consideration.

The ECO has two main targets for processing export licence applications: a primary target to process 70% of applications within 20 working days, and a secondary target of completing 99% of applications within 60 working days. Year-to-date performance to the end of September on the primary target stands at 76%. We have now had a full year of working towards meeting the new ambitious secondary target of 99%; the target previously stood at 95%. The new target was introduced to improve the efficiency of the licensing system further. As of the end of September, I am pleased to announce that we are now meeting the new target for the year to date.

My right hon. Friend the Business Secretary decided last year that it was appropriate to look at the proposal for a pre-licensing register of arms brokers; that has been mentioned in the debate. The Export Control Organisation made a public call for evidence this year to help to gather the necessary evidence to allow the Government to decide whether to introduce such a register. Our emphasis when looking at the proposal has been on the relative costs and benefits, and the likely effectiveness. The feedback from the call for evidence is being analysed and discussed. We intend to publish the results as soon as possible, most likely towards the end of the year.

The Government remain committed to greater transparency in export licensing, as demonstrated by the transparency initiative announced last year, which expanded reporting activity under certain open export licences. As has been explained to the Committees previously, in making the final preparations for the initiative, it became apparent that we may not have had the right balance between the twin objectives of increasing transparency and avoiding unnecessary bureaucratic burdens. In particular, my right hon. Friend the Business Secretary became concerned that the proposed reporting would put UK exporters at a disadvantage in relation to exporters from other countries. That is why he decided that users of certain open licences would be required to make reports on their usage of those licences on an annual basis, rather than quarterly as originally envisaged.

It is important to reiterate that we have not reduced the overall level of reporting; we will publish considerably more information about the usage of open licences than we do now. All such initiatives are subject to review, but the new reporting requirements came into place at the start of this year, and the data for this year are due to be published in 2015. It is important to allow sufficient time for the new measures to be established before we can consider whether further changes are necessary. We therefore intend to commence a review of the initiative towards the end of the year.

I want to touch on the arms trade treaty. I had the privilege of participating in a number of decisions at the UN General Assembly in September. I am delighted to say that 54 countries have now ratified the treaty, which will enter into force on 24 December—Christmas eve. The successful conclusion of the arms trade treaty was a significant achievement for the UN, but also for the UK, which has worked tirelessly with the co-authors group, and bilaterally. We are, as has been requested, encouraging other nations, in the course of regular contact with them and via the EU ATT outreach project, to sign and ratify it. The UK places a great deal of importance on as many nations signing up as possible; and I believe that we are heading in that direction.

The hon. Member for Glasgow North (Ann McKechin) spoke about the spread of conflict in Libya and Syria, and that is a massive concern for the Government—and for others. We are concerned about the flow of weapons systems, and the loss of control over what is happening spilling down to Mali, and so forth. The situation reflects the changing circumstances that we must deal with. The hon. Lady also spoke about intrusion software. The pace of the technology that we are aware of can sometimes run ahead of legislation, so the work of the Committees and the Government to keep pace with changing technology is always important.

It is worth mentioning that the controls on monitoring equipment were agreed in the 2011 Wassenaar arrangement, and implementation through the EU dual-use regulation amendment is expected by the end of 2014. There will be a publication, and a journal put forward, in due course.

[Ann McKechin]

Will the Minister confirm—or, if he cannot do so today, write to confirm—whether his Department or fellow Ministers are assured that implementation will occur by the end of this year? If not, are alternatives being considered?

[Mr Ellwood]

That was going to be my next point. I cannot give the hon. Lady an answer today, but I had written down “timetable”. I will certainly get in touch with her to provide more information.

The hon. Lady and others mentioned the Defence and Security Equipment International exhibition. I have visited it many times and find it a little bizarre that one can buy things that are illegal in this country. The Government are reviewing their response to DSEI 2013 to consider any improvements to the processes that can be made before next year’s event. Officials from across Government will continue to work closely with Clarion Events to ensure that exhibitors comply with export and trade controls and understand their obligations.

The hon. Member for Islington North (Jeremy Corbyn)—I almost called him my hon. Friend—and I have met four times in debates or meetings over the past few days. I will be astonished if we meet tomorrow at the Conservative party away day, but he is always welcome. I join him in paying tribute to the late Robin Cook, who pioneered much of the work that we are now taking forward. That is his legacy. Members on both sides of the House remember him for that, pay tribute to the work that he did in ensuring that Britain plays a more responsible role in arms exports, and encourage other countries to do the same.

The hon. Gentleman also mentioned Gaza and the cycle of destruction. The matter came up at the UN General Assembly; Ban Ki-moon, the Secretary-General, was almost in tears when discussing whether destruction, reconstruction, destruction, and then reconstruction is what now happens. I digress slightly, but Britain must play its part with the EU and the international community to try to break that cycle.

The hon. Gentleman also raised concerns about Bahrain. There is no evidence of UK equipment sold to Bahrain being used in breach of the EU or national consolidated criteria on export licensing, but we have refused licences to Bahrain for internal security forces, where we are not satisfied about the risks around internal repression. If he has anymore thoughts on that, he can write to me and I will be delighted to respond.

I do not have the details to respond to the hon. Gentleman on Sri Lanka, but he mentioned the Prime Minister’s visit. It was bold to go out and make a case about the Tamil people’s concerns. I will write to him regarding our position on arms exports and Sri Lanka.

Finally, the hon. Gentleman mentioned the Vienna conference, which we discussed at Foreign and Commonwealth questions. The trouble is that it is unclear what the conference wants to achieve other than the removal of all nuclear weapons. It is Britain’s long-term intention to reach that position, but if we drop our guard before other hostile countries with nuclear weapons do, we will leave ourselves vulnerable. We share the long-term ambition, but differ on how we will get there.

The shadow Minister mentioned brass-plate companies and enforcement action. Existing legislation would, in certain circumstances, allow such action to be taken against brass-plate companies and their officers. However, any action must be justified by sufficient evidence. With other relevant agencies, the Government continue to pursue the possibility of using other legislation to discontinue the UK registration of such companies on public interest grounds. As he will appreciate, the issue is complex and raises difficult questions about the nature of the evidence that might be disclosed in any proceedings. We will update the Committees and the shadow Minister when any firm conclusions have been reached.

In conclusion, I again thank my right hon. Friend the Member for Tonbridge and Malling and other hon. Members for their attendance today. I reiterate my thanks to the Committees on Arms Export Controls for their report and work. The Committees’ scrutiny remains an important aid to the licensing process, and I continue to look forward to their contributions and continuing dialogue over the coming year.

Global Poverty

Debate between Ann McKechin and Tobias Ellwood

Thursday 1st July 2010 Commons Chamber

[Mr Tobias Ellwood (Bournemouth East) (Con)]

I begin, like others, by paying tribute to three excellent maiden speeches. It was delightful to hear those speeches and I am sorry that the Members who delivered them are no longer in the Chamber to hear my speech. They are probably celebrating in the Tea Room, having got through the first milestone here in Parliament. I pay tribute to the hon. Member for Rochdale (Simon Danczuk), who spoke passionately and with great knowledge about his constituency; to my hon. Friend the Member for Stevenage (Stephen McPartland), who is clearly going to be a great contributor to the field of defence and, indeed, international development; and, last but not least, to my hon. Friend the Member for Wirral West (Esther McVey). Those of us slightly older in the tooth on the Government side—and that might include yourself, Mr Deputy Speaker—might recall her giving a passionate speech at the annual conference in Blackpool on the theme of “What is a girl like me doing in the Tory party?” That was a fantastic speech, and from her performance here again today, we can see why a girl like her is in this place. I am sure that she will represent her constituents well.

Before moving on to my main theme, I would like to respond to the hon. Member for Glasgow North (Ann McKechin), who made a passionate plea to keep funding based in the UK, which has been stopped by my right hon. Friend the Secretary of State. [Interruption.] Let me quote to that hon. Member—

[Ann McKechin]

rose—

[Mr Ellwood]

Let me finish the point.

[Ann McKechin]

It was my hon. Friend the Member for Glasgow Central (Anas Sarwar) who said this, not me.

[Mr Ellwood]

I stand corrected; I mean the hon. Member for Glasgow Central (Anas Sarwar). What it says on the tin—I presume that this was true from when the Department for International Development was created—is that DFID is

“the part of the UK Government that manages Britain’s aid to poor countries and works to get rid of extreme poverty.”

That is not in line with what the hon. Gentleman was pleading for—for funding to remain in his constituency—so perhaps he wants to see the definition of DFID change. I will come back to the definition and its importance later in my speech.

What do we mean by poverty? It is not just about an individual, a community or a country being poor; it is about being economically challenged. Poverty is multidimensional. It is lack of food and water, yes, and it is a lack of shelter; it is also the lack of health and access to medical support. Poverty is also about the lack of education and the inability to read, not having a job, and fearing for the future, living one day at a time. In essence, poverty is about powerlessness, lack of representation and lack of freedom.

I am pleased that we are having this debate so early in this Parliament in order to discuss the issues and the role Britain can play in the future. It is an important debate. I—like many other Members, I am sure—was challenged during the election about why we were ring-fencing funding for international development when there was so much economic pressure on all the other Departments. I am glad that my right hon. Friend the Secretary of State spelled out the importance of keeping aid working and of making sure that we are able to support the countries that need it so that they can help themselves. Otherwise, immigration issues and environmental issues will grow, and the problem will become much bigger in the long term.

The causes of poverty can be broken down, crudely, into two areas—the natural and the man-made. On the natural side, there is the swell of population in places like India, or crop failure in places like Sudan or indeed disease and epidemics such as HIV/AIDS in places like South Africa and southern Africa. On the man-made front, equally affecting, we have things like corrupt leadership as we see in Somalia, or civil war as we see right across Africa and particularly in places like Angola. Then there is economic failure or even the deliberate denial of funding to poor communities for necessary projects.

Climate change can also be seen to be man-made as well. If sea levels continue to rise, places like Bangladesh would be hugely threatened. What is called water stress would be the result, and the lack of drinking water is estimated to affect 1 billion to 3 billion people. These are issues that we in the developed world need to debate, even though they may affect more people in the developing world.

The yardstick for our debates is now the millennium development goals, put forward in September 2000 by the United Nations with eight clear aims. The first is the eradication of extreme poverty and hunger. Unfortunately, we are a long way from achieving our 2015 target in that respect. The second is the achievement of universal primary education. The number of children receiving primary education has risen to 89% in the developing world, but we are still short of our millennium goal target. The third is the promotion of gender equality and the empowerment of women. That remains out of reach, as, indeed, do the reduction of child mortality and improvement in maternal health, which are the fourth and fifth goals.

The sixth goal is the combating of HIV and AIDS; the situation seems to have stabilised in many regions. The seventh is the ensuring of environmental stability, and the eighth is the development of a global partnership for development, which involves developing open trading and financial systems. My hon. Friend the Member for East Hampshire (Damian Hinds) spoke passionately about his attempts to establish and promote such systems in Rwanda.

Those are the eight themes that we will use as our benchmarks. When the countries meet for the summit in New York in September there will be much to discuss and much food for thought, given the huge shortfall between where we are now and where we would like to be by 2015.

What is our role in all this? What can the United Kingdom do to tackle the problems, either individually or with other countries, and how should we contribute? I believe that there are many ways in which the UK can make its mark. We often put our hand up when other countries do not, and it is fantastic that we continue to be willing to step forward and encourage other developed countries that may be reticent.

As I said in an intervention on the shadow Secretary of State, the G8 and the G20 are new organisations that have been able to bring in many voices that may have been excluded in the past. They make decisions and agreements, and issue challenges. Older organisations such as the United Nations, the World Bank and the International Monetary Fund, which were created when life was very different during or just after the war, have to pick up the pieces and deal with the details of those challenges.

The older organisations are out of date, and are in dire need of modernisation. While we have renewed and are reinvigorating the methods with which we distribute aid to ensure that we receive value for money, I do not believe that the same can be said for those major organisations. That is why I am pleased that my right hon. Friend the Secretary of State has been hesitant about handing over money before he has guaranteed to ensure that it will be well spent.

[Ann McKechin]

Let me gently suggest to the hon. Gentleman that confusing Glasgow and Edinburgh is not a practice that he should try to repeat. However, he has made an interesting point about the current management of the World Bank and the IMF. Does he agree that we should try to ensure that donee nations have a much bigger say in management and decision making than they do at present?

[Mr Ellwood]

The purpose of the debate is to enable ideas such as that to be put into the pot. In this instance, we are not taking about minutiae, but about the need for a root-and-branch change in the way in which organisations both operate individually and interconnect. Afghanistan is a good example of the failure of huge organisations to co-ordinate their activities sensibly in order to assist with post-conflict reconstruction.

As long as conflict continues in developing areas, poverty will thrive. Only when it ends can peace flourish, which will allow support and investment to move in, and business and trade to flourish as well. That is our role. It is dual-faced. We can use what Joe Nye used to call soft and hard power, or soft and hard influence. On the soft side there are, for instance, the Fairtrade initiatives, and ensuring that we support businesses in developing countries in the knowledge that buying a product in the supermarket will genuinely help people in need rather than corrupt organisations. The setting of tariffs can also help, as can targeted investment and funding—which has already been mentioned—and choosing support responsibly.

Any of us who have travelled to African countries will have observed that China is taking full advantage of those countries’ desire for hard currency, but I am afraid that it is doing so in an irresponsible way. The Chinese are not allowing local skills to be developed. They bus in their own people, rob the country of its minerals, drain it dry and then go home or move on to another area. That is happening on a huge scale, and no one seems to want to challenge it.

I will finish my contribution by discussing conflict and the relationship between DFID and other organisations. For 10 years, DFID has been waking up to the fact that it has had to do something very different from what it was set up to do. It does tackle poverty well, and it has been congratulated on that, but it has had to develop a new role in working in insecure and dangerous environments. I am pleased to say that the stabilisation unit and the other work being done are working well, but we took an awful long time to get there. For the first year in Afghanistan the budget was £47 million but the current budget is £5 billion a year. Had we bothered to get the reconstruction and development right when there was a small window of opportunity to win over the hearts and minds of the locals, we would have been out of Afghanistan by then. I am pleased that DFID has moved forward, I am glad that the new management have pledged to ensure that there is better scrutiny, and I wish the new team well.