Turquoise Resort (UK Property Owners)

David Lidington Excerpts

Wednesday 22nd February 2012 Commons Chamber

[The Minister for Europe (Mr David Lidington)]

May I start by thanking the hon. Member for Belfast East (Naomi Long) for bringing this subject to the House’s attention? Anyone who heard her speak will have no doubt that her constituents have a formidable champion in her. I also pay tribute to the hon. Member for Strangford (Jim Shannon) and my hon. Friend the Member for South West Wiltshire (Dr Murrison), who brought their constituents’ concerns to the House in their interventions. The way in which Governments around the world encourage foreign property investment in their countries and subsequently support those who invest is a subject in which everyone in the House has an interest. In the United Kingdom, the Foreign and Commonwealth Office in particular has a responsibility to ensure that where necessary we are delivering high-quality consular services to our nationals as part of their overseas experience.

Before I come to the specific issues concerning Turkey and the particular site raised by the hon. Lady, I want to put this issue in the broader perspective of the Government’s consular policy with regard to overseas property issues more generally. The Institute for Public Policy Research reported in a paper that it published in 2006 that more than 5.5 million British citizens were living overseas permanently. Its most recent analysis, which was published in 2010, showed that the number had grown to 5.6 million, with another half a million of our fellow citizens living abroad for part of the year. In comparison, our overseas missions confirm that only a very small percentage of British nationals abroad contact them about property disputes in their chosen country of residence. I do not want to sound complacent, but I think that suggests that the majority of British nationals who live overseas do so with relatively few property problems. However, I acknowledge from the start that those statistics do not reflect the distress suffered by those who do come across such property problems and the potential loss of large sums of hard-earned and hard-saved money.

I want to assure the House that the British Government do everything they properly can to offer practical assistance. In those countries where a large number of British nationals buy property, our missions now provide guidance about the local housing and property market. That is achieved mainly through our embassy websites, which are the most effective way of reaching a wide audience, but also through ad hoc media opportunities. The information on our embassy websites aims to raise public awareness of the potential pitfalls of buying a property in a foreign country and also offers advice on steps to take before buying a property. Naturally, the information on websites varies from country to country and is tailored to reflect the relevant local and national circumstances. In some cases, we include contact details for organisations that might help those with property problems or recommend where specific complaints can be directed. In other cases, the websites provide contact details of relevant Ministers or information about local legal aid that is available.

We will continue to monitor local property markets; that is a duty of our mission heads in all countries where large numbers of British citizens choose to live. Our mission heads are also responsible for updating the advice hosted on their websites accordingly. Where we are aware of more systemic property issues that affect our nationals in particular, such as national property laws that exclude British property owners from benefits, our officials raise the subject with the authorities in the relevant country, and we do that at all levels of government, from Ministers to local police forces. During my most recent visit to Spain at the beginning of February, I discussed some of the problems experienced by British citizens buying property in Spain with my Spanish opposite number, Mr Mendez de Vigo. I also discussed the property issue with the Bulgarian Foreign Minister, Nikolai Mladenov, in Sofia earlier this month. About 15,000 British nationals own property in Bulgaria, and its Ministry of Justice works closely with our officials at the British embassy in Sofia. They are constructing a new website, which has been designed to take account of the kind of complaints that have been received in order to help foreign property investors better in future. I will continue to raise property issues during my meetings with Ministers and senior officials of foreign Governments.

In recent years we have also devoted more resources both in Britain and abroad to understanding the nature of property problems in the countries to which I have referred, and we now have a dedicated property issues team at the Foreign and Commonwealth Office in London, as well as a large number of consular staff overseas with relevant expertise, who all work closely on the subject. We are starting to see foreign Governments respond positively to our efforts. For example, in Spain there have been significant changes to the property laws. In addition, the Andalucian regional government is preparing a decree to legalise or recognise the majority of properties, many foreign owned, which had previously been declared illegal.

Another way in which we seek to raise awareness with the British public is through an FCO presence at a variety of property road shows. For example, we host a stand twice a year at the “A Place in the Sun” property exhibition, and information on Turkey was included in that exhibition last year.

The help that we can give to individual British citizens is appropriate to the individual circumstances of each case. As the hon. Lady acknowledged, our advice to those caught up in a property dispute overseas is that they should seek independent legal counsel, who would be best placed to advise on their rights in that country and the correct methods of legal or other redress in the country where the property is located. I will be straight with the hon. Lady. Our consular policy is very clear: we cannot give formal legal advice. We do not have the expertise to judge the legal right in any dispute or the funding to pursue it. For those reasons we cannot get involved in individual cases.

Additionally, property laws are in the end the competency of individual sovereign states. The British Government have no authority to intervene in another country’s domestic legislation, in the same way as those Governments have no authority to intervene in the making of legislation or individual court cases here.

Bearing in mind those overall points, I shall now talk about the case that the hon. Lady raised. If I am unable to complete my remarks, I will write to her in further detail after the debate. I want to stress how sorry I was to hear about the experience of her constituents and their fellow property owners. Although about 34,000 British citizens have bought properties in Turkey without such difficulties, there is, we believe, a small but regrettable number of British and other foreign citizens who have faced problems.

My officials in London, our embassy in Ankara and our consulates in Turkey are aware of the case, and I received a dossier from those affected last year. We have been in contact with a number of concerned parties, including individual owners and Members of Parliament in the United Kingdom. Our proconsul in Bodrum was approached by at least one of the British nationals associated with this case, a member of the Turquoise supervisory committee—a group established by those affected.

Our proconsul offered advice in line with our consular policy, suggesting that those affected seek legal advice, contact Turkish authorities and, if necessary, consider taking legal action in Turkey. I should say in response to the hon. Lady that although we offer on our websites or from our consulates and embassies lists of English-speaking Turkish lawyers whom we know to be available, we cannot judge the competence of a particular lawyer or firm of lawyers in Turkey or any other foreign country.

Our proconsul proposed to the gentleman to whom he spoke that he—the property owner—should return if further help was needed. In that case, the British national concerned did not ask for further assistance. Following those initial approaches to our officials in Turkey, our officials have not been asked directly for follow-up assistance by any of the concerned parties since early in 2011.

None the less, our ambassador and his officials in Turkey have raised the systemic problems of property purchasing in Turkey with the Turkish authorities, at both central and local government levels. As a result, property laws are being revised—for example, on the need for foreign nationals to obtain military permission. I give the assurance that our embassy will continue to raise these issues at future meetings, but I must repeat that we can lobby only on systemic property issues. In the case we are debating tonight, the grievance concerns the individual management of the Turquoise resort complex and the alleged intimidation of apartment owners. The management of the complex is a private dispute and, as I have said, those affected should seek legal advice on how this can be addressed in Turkey.

[Naomi Long]

I thank the Minister for giving way; he is very generous. There is a systemic issue over who checks that the management plan is legally valid when it is lodged with the local authority. Will he raise that matter with the Turkish authorities?

[Mr Lidington]

I am certainly willing to consider whether that issue can be described as systemic. I will want to reflect on the points that the hon. Lady made in her speech, but if we judge it to be something that has wider application than to one individual case, in principle I see no objection to our raising it in our conversations with the Turkish authorities.

We take the safety of British citizens in Turkey seriously, as do the Turkish authorities. Any allegation of intimidation or violence against a British citizen should be reported to the gendarmes, who would be expected to take action in line with Turkish procedures. If a British citizen is concerned that the gendarmes are failing to take legitimate concerns seriously, they should contact our consular team in Turkey so that they can make the appropriate representations to the Turkish authorities. If requested, we will certainly consider making further formal representations once all due legal processes have been exhausted, and especially if there is evidence that due process has not been followed.

On the point about advertising, anyone who considers themselves to have been a victim of fraudulent advertising should present evidence to Action Fraud, the UK’s national fraud reporting centre, which provides a central point of contract for information on this subject. That service is run by the National Fraud Authority.

I know that hon. Members will have examples of overseas property disputes individual to their constituents. Where they are indicative of systemic property issues, we will raise them with the relevant Governments. I assure the hon. Lady, and the House, that the British Government will not let up in our efforts to pursue this subject in those countries where, sadly, some of our citizens continue to face the distressing difficulties that she has described.

Question put and agreed to.