Cyprus

Baroness Scott of Needham Market Excerpts

Tuesday 23rd October 2012 Grand Committee

[Baroness Scott of Needham Market]

My Lords, in 2014 it will be 50 years since United Nations troops started peacekeeping in Cyprus. Despite their best efforts, not only has there been a lack of progress but resolution is further away than it has ever been, as public attitudes harden and the economic disparities increase. The international view is that this is entirely a matter for Cyprus. Indeed, the main victims of this failure of political leadership are the Cypriot people. We owe it to them to think about whether it is time to approach this differently. There is also a much wider set of strategic issues that make progress imperative. There is the whole question of Turkey’s membership of the EU and what that means for where Turkey sees its future alliances, and the growing instability in the eastern Mediterranean and how Cyprus plays into that, particularly since the discovery of offshore gas.

Of course, the solution cannot be forced on anyone and nor can you make people undertake fruitful negotiations. However, I believe it is possible to change some facts on the ground, and here are a few possible thoughts. There is currently a proposal to expand the port of Limassol and no doubt an EU grant will be sought to do the work. However, as an alternative, real consideration should be given to developing the port of Famagusta. There is a viable option that would see it operating under the auspices of the European Union and open to all trade. The economic benefits would be significant and it could help unlock the ban on Greek-Cypriot trade using Turkish ports.

Secondly, the EU must turn its attention to meeting the commitment it made to introduce the direct trade regulations that will free up businesses in the north to trade directly with EU countries. The Turkish Cypriot Chamber of Commerce told me two years ago that direct trade would go a long way to bridging the economic gap with the Republic of Cyprus. At the very least, the EU should ensure that barriers are not placed on the transit of goods from north to south under the Green Line regulations.

Thirdly, regional agreement needs to be reached on the development of the offshore gas resources. Currently, the Republic will struggle to develop the fields because of the political uncertainty, and because the cost of liquefying the gas and sending it by sea is unlikely to be economically viable. On the other hand, a gas pipeline through Turkey is a completely different matter. News came from Ankara last week that work has started on a water pipeline from Turkey to Northern Cyprus, to which an electricity pipe will be added. Either the EU or the UN should act as a broker for a deal that develops these new infrastructures for the benefit of the whole island.

Finally, we should build on the work that has been carried out by the UN and EU to build civic society and foster links between the communities. Strengthening these communities, and creating cultural and sporting links on both sides, across the border and internationally, would over time help to change the terms of the debate on the future of Cyprus.