EU Referendum: Gibraltar

Bob Stewart Excerpts

Wednesday 20th July 2016 Westminster Hall

[Jack Lopresti]

I thank my hon. Friend for his intervention and I would put it more strongly than that. “Ironic” is too polite a word; the fact that Spain harasses Gibraltar and constantly seeks to undermine its status when, as he says, it has overseas enclaves of its own is tantamount to hypocrisy.

Gibraltar is the only British overseas territory that has a land border with mainland Europe. Given Spanish politicians’ continued use of Gibraltar to distract from their own failed policies and the dire economic situation in their own country, Gibraltar has a right to feel nervous about leaving the EU and Spain’s potential response.

Gibraltar is a fantastic economic success story. It has impressive economic growth, with GDP for 2014-15 having increased by more than 10.6% in real terms on the previous year, and I understand that the forecast for 2015-16 is for a further 7.5% increase. Gibraltar has a higher GDP per capita than the UK and Spain as a whole, and one that is greatly higher per head than in the neighbouring Spanish region of Andalucia. GDP per capita for Gibraltar is forecast to be £54,979 in 2015-16, which is a long way above that of Andalucia, whose GDP per capita was £12,700 in 2015, and even above that of Madrid, which was £23,400 in 2015. Therefore, it is unsurprising that up to 10,000 Spaniards a day cross the border to work in Gibraltar.

There is a feeling in Gibraltar, however, that leaving the EU will risk the current economic model and expose Gibraltar to new threats from Spain. Gibraltar faces a clear time imperative, as established businesses consider what to do next if they require access to the single market on an ongoing basis. The Gibraltarians’ large vote to stay in the EU is seen as a reflection of the fact that the EU provided a legal framework that drew red lines on how far Spain could go in imposing heavy-handed border controls and other sanctions before being called to order for breaching the law. However, international law and the UN also arbitrate on these issues, and as Spain’s NATO ally, we may actually have more strength in direct negotiations than we would otherwise.

[Bob Stewart (Beckenham) (Con)]

I congratulate my hon. Friend on securing this great and very appropriate debate. He referred to NATO. Spain is our NATO ally, and as a NATO ally, it is utterly disgraceful that it does not allow our Royal Air Force aeroplanes to overfly its territory, while allowing Russian warships to rebunker at Ceuta. It is about time that our Foreign Office got a grip on this issue and explained very harshly to Spain that that approach is unacceptable, and I hope that message will also go out from this debate to the Spanish authorities.

[Jack Lopresti]

I thank my hon. Friend for his customarily robust intervention, and of course he is absolutely right. As he says, it is astonishing that a NATO ally should do that. It costs the British taxpayer several thousand pounds extra every time there is an RAF flight to Gibraltar, because the RAF does not have overfly rights with Spain, so its planes have to take a slightly longer route. It is also astonishing, given what is happening in the world with Russian aggression, that the Spanish are not only content to receive Russian warships but encourage them to refuel in their Moroccan territories. Those of us on the NATO Parliamentary Assembly are working towards getting that message—loud and clear—up the chain of command, because the current situation is appalling.

The people of Gibraltar should be reassured that my right hon. Friend the Member for Witney (Mr Cameron) said on his last day as Prime Minister that there would be no talks on sovereignty—joint or otherwise—against the wishes of the people of Gibraltar. I was extremely pleased that the new Foreign Secretary said last weekend:

“I was delighted to meet Chief Minister Picardo. I reassured him of both our steadfast commitment to Gibraltar, and our intention to fully involve Gibraltar in discussions on our future relationship with the EU.

The people of Gibraltar have repeatedly and overwhelmingly expressed their wish to remain under British sovereignty and we will respect their wishes.”

Importantly, he went on to say:

“We will never enter into arrangements under which the people of Gibraltar would pass under the sovereignty of another State against their wishes. Furthermore, the UK will not enter into any process of sovereignty negotiations with which Gibraltar is not content. We will continue to take whatever action is necessary to safeguard Gibraltar, its people and its economy”—

and crucially he concluded:

“including maintaining a well-functioning Gibraltar-Spain border.”

Not only does Gibraltar wish to remain British—that is a right that we will always fight for—but it is a vital strategic military asset for the United Kingdom. It is one of our key forward operating bases in the Mediterranean and commands the straits. I look forward to the day when one of our new Queen Elizabeth-class aircraft carriers visits Gibraltar.

There are two key issues for Gibraltar: the freedom to provide services, and a free-flowing frontier. Therefore, when the Minister sums up, I would like him to assure us that Gibraltar will not be a side-discussion that is left to the end of the negotiations on Brexit and therefore allowed to be bargained away, but that it is a red line that any bilateral treaty must include. Britain will need to be robust in the EU and the UN and in its lobbying of other countries to counter the consistent lobbying of them by Spain, as it presses its own sovereignty claim on Gibraltar. Importantly, the EU must not be allowed to take sides against the UK and Gibraltar on this issue in any way. We should increase our efforts in the UN to remove Gibraltar from its list of non-self-governing territories, as Gibraltar is clearly self-governing.

To reassure Gibraltar and its business community, I ask the Minister to act immediately and take one initial and hugely supportive step: establish a common single market between Gibraltar and the UK. It is within the British Government’s remit to do so. It is an entirely domestic matter that can be agreed by Her Majesty’s Government and the Government of Gibraltar bilaterally at any time without any EU involvement. It will give our Government some of the tools they need to stand ready to robustly defend Gibraltar if Spain exerts pressure, such as introducing heavy-handed frontier controls, during the future negotiations with the EU.

We must seek and promote the opportunities that Brexit presents to the people of Gibraltar. Gibraltar is building its own world trade centre, and unshackled from the EU, it will be able to maximise its ability to trade globally and to seek and secure bilateral deals with its nearest neighbours and worldwide. As part of the Great British family, Gibraltar and the UK will thrive and prosper out of the EU. The United Kingdom is the fifth largest economy in the world. We trade globally. We are the biggest defence spender in Europe— the fourth biggest in the world—with the world’s best armed forces. We are one of the five permanent members of the UN Security Council. We have one of the best diplomatic services across the world. We have a unique relationship with the United States and the Commonwealth.

Unshackled from the European Union, we will thrive and prosper as a nation even more. We will be free to make trade deals all over the world without the increasingly restrictive practices of the European Union. Gibraltar, as part of the Great British family, will also gain great advantages from being unshackled from the European Union and being free to trade with the world. The fact is that Gibraltar is British and will stay British as long as it wishes.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, and I congratulate the hon. Member for Filton and Bradley Stoke (Jack Lopresti) on securing it and on setting the scene so well. We look forward to hearing the new Minister. I wish him well in his new position. We missed him in Belfast at the credit unions international conference, but his name was held in high esteem. He will know that anyway, and we look forward to his deliberations on this matter.

The hon. Member for Filton and Bradley Stoke has always been a friend of Gibraltar and I welcome his commitment to the Rock as we embark on our new relationship with the EU as a nation, including Gibraltar. Clearly, what he and the rest of us will do in our contributions is set the scene for Brexit and say how we can look forward positively to securing our future and that of Gibraltar outside the EU.

To give a bit of background on Gibraltar’s relationship with the EU—I am sure Members are aware of this—in 1972 the UK Act of Accession to the European Economic Community applied the EEC treaties to Gibraltar, with the crucial exception of the customs union, the common commercial policy, the common agricultural policy, the common fisheries policy and the requirement to levy VAT. Gibraltar has been in the EU since 1973 as part of the UK’s membership and applies EU law except in those four areas. If the exemption has worked, there is more that can work to the advantage of Gibraltar in how we move forward. The exemption from those areas means that potential difficulties in Gibraltar leaving the EU may be averted. The debate gives us all a chance to challenge the Minister, and I know he will clearly hit upon those things in his response. It is nice to have some people in the Gallery who have a particular interest in Gibraltar. Some are former Members of this House, and we are pleased to see them here today.

Importantly, Brexit will not alter Gibraltar’s constitutional status in relation to the UK—a relationship most of us are very proud of and very loyal to, as this debate will outline. Many will remember that the border between Spain and Gibraltar was closed between 1969 and 1985, before being reopened around the time that Spain joined the EEC. EU free movement rules have meant that the border has remained open ever since, despite the Spanish obstructions, of which we are all aware—they are well documented, and the hon. Gentleman referred to some of them in his introduction. When the UK leaves the EU, if we do not apply to stay in the European economic area, the free movement principle will no longer apply. That will need to be addressed as part of the Brexit negotiations.

I had a chat last night to the Secretary of State for Exiting the European Union. He indicated some of the problems that there would be, some of the ways forward and how his staff will work on that. Spain will be able to close the border and establish border and passport controls, and the Spanish Government indicated in May 2016 that it might do so if the UK voted to leave the EU. Spain has been obstructive, regardless of EU principles. The reality may well be that the operation of Gibraltar’s frontier with Spain will be determined by the relations between the United Kingdom and Spain.

Within hours of the result, the Spanish Foreign Minister, José García-Margallo, crowed:

“The Spanish flag is now much closer to the Rock.”

The Chief Minister of Gibraltar, Fabian Picardo, responded in his usual manner to all these sorts of threats over sovereignty by saying:

“Another day, another stupid remark.”

The Foreign Office insists it will not even discuss the issue. Perhaps the Minister can give some indication of that in his response. I welcome the position the new Foreign Secretary has adopted so far.

[Bob Stewart]

I am extremely disappointed with the way that the Foreign Office pussyfoots around on this matter. It spends its time summoning the Spanish ambassador and giving him a wigging, and he goes off and nothing changes. It is about time our Foreign Office had some courage and did something, and represented the people of Gibraltar better.

[Jim Shannon]

I thank the hon. Gentleman for his comments. This debate will give us all a chance to show that commitment and that eagerness to have the Foreign Office respond more robustly to any deliberations that come from Spain.

We need to strike the right balance between defending Gibraltar and the United Kingdom’s interests and developing an understanding relationship with Spain to succeed in securing Gibraltar’s stability. The Chief Minister of Gibraltar, Fabian Picardo, has held talks with the Scottish First Minister, Nicola Sturgeon, where the suggestion was made that they, along with my home nation of Northern Ireland, could maintain the UK’s membership of the EU, while England and Wales leave the EU. Let us be clear: the referendum has spoken. The majority of the people of the United Kingdom of Great Britain and Northern Ireland have indicated that they wish to leave the EU. That decision has clearly been taken.