Re-Export Controls Bill [HL]

Baroness Falkner of Margravine Excerpts

Friday 3rd December 2010 Lords Chamber

[Baroness Falkner of Margravine]

My Lords, I congratulate the noble Lord, Lord Alton, on bringing forward this Bill and on making such a compelling case for why its time has now come.

We know that the arms export business is one of the least transparent and most globalised businesses around. It is replete with brokers, middlemen, cover companies and offshore financial dealings. The line between it and the security services or military in many countries is extremely blurred. Above all, its business is death, injury and torture. Of the many millions who have died in armed conflict, many have died from the use of arms and related products that were not intended to be used in that manner or against those people.

We in the UK have much to be proud of. We have developed one of the most rigorous regimes for the export of arms and related weapons and goods since Sir Richard Scott's report on the arms to Iraq inquiry of 1996. We have built on the Export Control Act 2002 and we have had the legally binding EU Code of Conduct for Arms Exports since 2008. Yet, and despite a rigorous regime, we have story after story of how the controls have proved ineffective in preventing misuse of the exports or, even worse, we appear to have colluded in side-stepping our own controls, as this week’s leaks have shown in the case of cluster munitions.

Another example of misuse was seen in the Committees on Arms Export Controls report of March this year, which found that British arms exports to Israel were almost certainly used in Operation Cast Lead—the attack on Gaza. Its report states:

“This is in direct contravention to the UK government’s policy that UK arms exports to Israel should not be used in the occupied territories”.

CAEC went on to say that export licences to Sri Lanka were revoked after the arms delivered were used by the Sri Lankan military against the Tamil Tigers. These may have been used in some of the many thousands of deaths that occurred among the civilian population. I cite this just to illustrate that things can slip through even a relatively good export control regime.

But let me turn to the examples of where re-export controls would have had an effect. In 2009, we had the investigation ordered by the then Foreign Secretary when it became apparent that UK arms dealers had been buying Soviet weapons, including AK-47s, in Ukraine and then selling them to countries which are on the banned list. These arms were re-exported to Equatorial Guinea. That country regularly suppresses its population and has one of the worst human rights records in west Africa.

We know that the previous Government were reluctant, despite significant evidence, to introduce re-export controls. It is a modest step in the right direction if this Government go down this road. We know that they wish to increase arms sales as part of their strategy to increase the UK’s overall trade balance. While I broadly agree that we cannot prevent the arms trade unilaterally, as other countries would simply step in, I believe that we can improve the existing regime by unilaterally tightening our own rules. This Bill is not about tightening controls on where and when we export; it is about making sure that our arms exports do not end up in places where we do not want them to, where they may inflame conflict or even be used against our own troops abroad.

One of the arguments that has been made against introducing re-export controls is that it would be inappropriate for the United Kingdom to impose these restrictions on other countries, which the United Kingdom would not accept if they were imposed on us. However, this should not be seen as an imposition of our will on other countries; a licensing agreement is a contract which is entered into voluntarily. Furthermore, the UK already restricts what buyers are able to do with our exports once they have bought them by including a “no re-export to embargoed states” clause in end-user agreements. Therefore, the Government have already implicitly acknowledged that it is legitimate to use such controls.

It has also been argued that introducing re-export controls would create extra bureaucracy for government at a time when there is a move towards reducing bureaucracy. In order to reduce the amount of bureaucracy created for the Government in processing requests for permission to re-export, they could draw up a list of so-called safe countries. For example, a rule could be instituted whereby permission to re-export to other EU countries, plus selected other “safe” destinations, is granted without carrying out a risk assessment. This list would, of course, need to be kept under review and updated according to any relevant changes in circumstances . However, we do so in any event, in the case of embargoed countries, through the consolidated list. I hope that the Minister will be able to deal with this point when she sums up.

There is real concern internationally about what happens to old equipment once a state no longer needs it. There is also international and EU concern that when Governments upgrade their defence systems they may sell their old equipment to countries where it might be used to fuel conflict and undermine peace and stability. Germany is so concerned about this that, since 2003, it has instituted a policy of requiring states which import new small and light weapons from Germany to destroy or put beyond use an equivalent amount of their old equipment. This is not only to prevent re-export per se, as the Germans are asking for old stock to be destroyed regardless of whether it was originally supplied by Germany or any other country, or even domestically manufactured. However, it illustrates the seriousness with which other states regard the threat posed by arms which are no longer wanted being sold on to countries of concern.

In the brief time allocated to me, I conclude by noting that the noble Lord, Lord Alton, talked about the emerging international norm of moving towards re-export controls. It would be unworthy of this Government to resist this small step towards entrenching that norm. I sincerely hope that they will move positively in this direction.

--- Later in debate ---

[Baroness Falkner of Margravine]

Does the noble Lord accept that there is nothing inconsistent in the views of Mr Peter Luff in the report quoted by the noble Lord, Lord Bates, and this Government’s desire to balance and improve their record on exports? I think we have to be realistic and accept that increasing trade is a strategic objective that we sign up to, yet we might wish to improve the controls.

[Lord Young of Norwood Green]

I thank the noble Baroness. I was pointing out the two sides of his statement. On the one hand, we have the quotation from the noble Lord, Lord Bates, and, on the other hand, this one. I recognise, as did the previous Government, that the defence and armaments industry is a key part of our manufacturing base. Will this Bill make a reasonable contribution to our national security and ensure that the re-exported arms and weapons do not end up in the hands of those who would use them in a way that would harm the interests of this country? Will it introduce a regime which does not bring in further red tape and which can be managed in a way that certainly does not damage exports?

We are prepared to support the Bill and I look forward to the Minister’s response.