Carillion and Public Sector Outsourcing

Debate between David Lidington and Lord Spellar

Wednesday 24th January 2018 Commons Chamber

[Mr Lidington]

As I have already said to the House, these are not political appointments so there is no political intervention in them. It is quite right that donations to all political parties are made public. That is what the House has voted for and embodied in legislation, and it makes the situation clear to everybody.

Let me turn to Carillion’s liquidation. Along with all my fellow Ministers and, I believe, the whole House, I recognise that the collapse of Carillion has caused huge anxiety for the people who work for Carillion companies, the people in Carillion pension schemes, the suppliers and subcontractors and, of course, the people who use the public services provided by the company’s workers.

I reiterate the priorities that have animated the Government throughout the process. They have been: first, to make sure that public service delivery continued without interruption, which has been the case, as no public bodies have reported any major service disruptions; secondly, to reassure the workers employed on public service contracts that they will continue to get paid for their work; thirdly, to make sure that the right support is in place for pensioners; and fourthly, to protect taxpayers from an unacceptable bail-out of a public company, the risk of which is rightly borne by the shareholders and the banks that have lent to it.

The situation today is that the official receiver is now effectively running Carillion, and in the course of time his investigations will show exactly how the company ran into trouble. Although Carillion was under some financial pressure from three UK public sector construction projects—two hospitals and a road scheme in Scotland—it is already clear from the company’s statements to the stock market and from information that has become public since the liquidation that the problems it faced lay largely in its overseas construction projects and in the level of financial risk that it took on.

Within days of the first profit warning in July 2017, the Government retained legal and accountancy support and started an intense period of contingency planning. Preparing these plans involved considerable effort by officials from right across Government. The Department of Health and Social Care co-ordinated a similar exercise for NHS bodies, including trusts, and the Ministry of Housing, Communities and Local Government worked with local authorities that had exposure to Carillion. The key aim of all these contingency plans was to ensure that public services were kept running safely and smoothly in any possible scenario. The solution had to be specific to the contract in question, had to be affordable and had to be capable of being executed, if necessary, at short notice.

As a result of that planning, the work covered by the service contracts has continued with minimal disruption: the school meals have been served, the hospitals have been cleaned and the maintenance staff have continued to go about their work. With regard to the construction contracts, some infrastructure work, such as that on the Aberdeen bypass, now continues uninterrupted. Other construction sites where work has paused have been put into a safe state so that work can be resumed quickly. The official receiver is working hard to resume work on these sites at the earliest possible date. This work requires customers to find new project management firms that can oversee the completion of their projects.

[John Spellar (Warley) (Lab)]

I thank the Minister for giving way and for the information that he is providing to Members of Parliament. The Midland Metropolitan Hospital has a site management in place and a series of contractors. Given that those contractors are now locked out of the site, they will be going off to undertake other work, so increasing costs will have to be borne. There will also be disruption to the work from the delay on an already delayed hospital, which has nothing to do with the workforce.

[Mr Lidington]

The right hon. Gentleman makes a perfectly serious and reasonable point. It is crucial that we do all we can within our power to minimise the impact of delay on the public sector construction contracts, and to retain the knowledge held by the Carillion staff employed on those contracts who, in most cases, are undertaking a project management role, managing the work of a number of different subcontractors. In particular, the development of our future hospitals must continue. This is something that the Minister of State, Department of Health and Social Care, my hon. Friend the Member for North East Cambridgeshire (Stephen Barclay), is working on day by day.

--- Later in debate ---

[John Spellar]

rose—

[Mr Lidington]

May I come to discussing the particular hospital that the right hon. Gentleman cited?

We are working with the official receiver to ensure that Carillion construction staff working on the Royal Liverpool Hospital, the Midland Metropolitan Hospital and the Southmead Hospital in Bristol continue to be paid. This allows for a more orderly timeframe for the discussions to take place between the private finance initiative contractor and the lenders to ensure that new contractors can replace Carillion and that the work can resume at the earliest possible date.

I say to the right hon. Gentleman that we know that we have a lot of work still to do. We have, for example, to find alternative suppliers both for those hospital contracts and for other contracts, but I regard the hospital contracts as a particular priority. The exact structure of those contracts and the extent to which they are nearing completion obviously varies depending on which hospital contract one looks at. The precise solution will differ from Liverpool to Bristol to the west midlands. I assure him that we regard getting on with that job as a very high priority indeed.

Carillion

Debate between David Lidington and Lord Spellar

Monday 15th January 2018 Commons Chamber

[Mr Lidington]

On my hon. Friend’s last point, I promise, on a “without prejudice” basis, to examine the case for doing so and to discuss it with ministerial colleagues. On his broader point, as I have said in response to a number of hon. Members across the House, there is a case for the Government to take a fresh look at the procurement process. However, I do not want that, in the next few days and weeks, to get in the way of our immediate responsibility to make life as easy as it can be made for employees, pensioners and others who are very worried about their futures.

[John Spellar (Warley) (Lab)]

I echo the concerns of my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman). The new Midland Metropolitan Hospital now towers over the terraced housing in the Smethwick part of my constituency. Despite a delay due to a design failure, work is now proceeding apace and it is two thirds completed. What will the Government be doing about ensuring the flow of funding and work so that the contract can be completed and we can look forward to the opening of this new, much-needed hospital?

[Mr Lidington]

Discussions are taking place with the trusts, with Carillion managers and contractors, with PwC—as a special manager in the liquidation on behalf of the official receiver—and with the lenders to the project companies so that in coming days construction activities can continue without material disruption on crucial projects that the Government strongly support.

Oral Answers to Questions

Debate between David Lidington and Lord Spellar

Tuesday 3rd March 2015 Commons Chamber

[Mr Lidington]

It is a cause of pride for this Government and this country that the FCO, particularly under the leadership of my right hon. Friend the Leader of the House, has for the first time got the international community to take seriously the scandal of the sexual abuse during war and conflict of countless numbers of women and, let us not forget, many men as well. We are now seeing the fruits of that, in the way in which countries such as Nepal, Bosnia, the Democratic Republic of the Congo and Kosovo are taking up the challenge to put right the wrongs of the past and amend their practices for the future.

[Mr John Spellar (Warley) (Lab)]

When this question was handed out, I was not sure that the Government would be aware that US General Ray Odierno would express concern about our defence capability, following Government cuts, or that the British General Sir Richard Shirreff would describe the Prime Minister as “a bit player” in the Ukraine crisis. When will the Minister recognise how much this Government have marginalised Britain?

[Mr Lidington]

I wish the right hon. Gentleman could talk to the leaders of countries such as Poland, Latvia, Lithuania and Estonia, who have been grateful for the resolute political leadership this Government have given, and for the very practical contribution we have made to Baltic air policing and NATO training exercises to defend their security. The—[Interruption.]

US-UK Mutual Defence Agreement

Debate between David Lidington and Lord Spellar

Thursday 6th November 2014 Westminster Hall

[Mr Lidington]

The hon. Gentleman takes me straight to the point that I was about to make about article I of the NPT, which touches on the transfer of nuclear weapons and devices between countries. The Government regard the MDA as compliant with our obligations under article I for three reasons.

First, nuclear devices or weapons are not transferred to the United Kingdom under the terms of the MDA. As I described earlier, what we receive under the MDA is a certain amount of nuclear technological know-how and some non-lethal elements, such as propulsion systems, that are not prohibited under article I.

Secondly, article V of the original mutual defence agreement—not including the amendments—quite explicitly states that the transfer of nuclear weapons is not permitted.

Thirdly, article I of the NPT refers in particular to transfers from the recognised nuclear weapons states to non-nuclear weapons states. However, the MDA refers to transfers of things other than nuclear weapons or devices from one nuclear weapons state to another, both of which are party to the NPT. I think that that answers the challenge that the MDA is in some way incompatible with article I of the NPT.

The other criticism made is that the mutual defence agreement is at odds with the obligation that we and the other four recognised nuclear weapons states have under article VI of the non-proliferation treaty to work towards multilateral disarmament. I have already described how the United Kingdom has significantly brought down its nuclear arsenal as a contribution to multilateral nuclear disarmament, but we have also been active and continue to be active in a range of multilateral disarmament initiatives.

We remain a strong supporter of the NPT. We signed and ratified the comprehensive test ban treaty as long ago as the 1990s and remain a strong supporter of the treaty both financially and technically, operating our own voluntary moratorium on testing pending the treaty coming into effect. We actively urge the remaining states that have not yet ratified the treaty to do so. We want an early start of negotiations in Geneva on the fissile material cut-off treaty and are an active member of the group of governmental experts that is working on those negotiations, which are currently blocked not by the United Kingdom or any of the recognised nuclear weapons states, but by Pakistan for national reasons.

In addition, we currently chair the forum of the permanent five nuclear weapons states and will be hosting the next annual conference in London in February next year. The purpose of the P5 process is to build transparency and mutual confidence to make it possible for all nuclear weapons states to engage in further rounds of multilateral disarmament. At the same time, we lead an informal working group at the United Nations, discussing the UN’s role in future nuclear security work. This country therefore has a good record of active work on multilateral disarmament that sits perfectly well alongside the arrangements that we have with the United States under the MDA.

[Mr Spellar]

I thank the Minister for giving way, and I want to highlight the fact that these developments have taken place under Governments of both parties. To what extent can we support, encourage or stimulate the key discussions between the United States and Russia on their agreement, to which the agreements of the other nuclear states are secondary, although important?

[Mr Lidington]

First, I happily acknowledge that the multilateral disarmament work that I have described has taken place under Governments of both political colours.

Secondly, I agree completely with the right hon. Gentleman that the prime responsibility for leadership in multilateral nuclear disarmament must lie with the two biggest nuclear powers: the United States and Russia. We encouraged the talks that led towards the second strategic arms reduction treaty, which will impose limits for each party of 1,550 deployed strategic warheads from February 2018. We need to see that target fulfilled and would welcome and support its implementation.

One could make a similar point about the talks on an intermediate nuclear forces treaty. There was a bilateral US-Russia treaty back in 1988, but each side now accuses the other of breaching it. For reasons relating to Russia’s conduct in Ukraine, there has been a significant erosion of trust between the US and Russia. It will therefore not be easy to get talks between Washington and Moscow back on course, but I agree with the right hon. Gentleman that it is in the interests of all of us that Russia and the United States are able to rebuild a sufficient degree of trust for meaningful negotiations towards multilateral nuclear disarmament to take place.

I want it to be clear that the United Kingdom is not using the amendments to the mutual defence agreement to upgrade its system’s capabilities. There is no move to produce more usable weapons or change our nuclear posture or doctrine. The amendments to the MDA that we are technically debating this afternoon do not in any way provide for an upgrading of the capabilities of the Trident system. That is a decision for 2016.

The hon. Member for Islington North asked a couple of detailed questions about plutonium tests at Aldermaston and the relationship between the mutual defence agreement and the planned replacement of the Vanguard-class submarine fleet. The Atomic Weapons Establishment has conducted sealed hydrodynamic plutonium experiments, which are sub-critical, do not produce nuclear yield and are fully compliant with the non-proliferation treaty. The experiments were described in a published article in the journal Nature in February 2002. Aldermaston and its experiments are also, of course, fully in line with the commitments we have undertaken in agreeing and ratifying the comprehensive nuclear test ban treaty. I am therefore advised that what has happened at Aldermaston is fully compliant with our international legal obligations.

Government Strategy Against IS

Debate between David Lidington and Lord Spellar

Friday 12th September 2014 Commons Chamber

[Mr Lidington]

As my hon. Friend the Member for Basildon and Billericay (Mr Baron) said, this is a subject that quite rightly arouses great interest, concern and debate in all parts of the House. The Prime Minister’s statement and subsequent answers to questions on Monday, the Foreign Secretary’s extensive evidence session with the Foreign Affairs Committee, of which my hon. Friend is a distinguished member, on Tuesday and then the Foreign Secretary’s speech and subsequent debate in this House on Wednesday has shown that we take very seriously our responsibility both to keep Parliament informed of the Government’s developing policy and to allow ample opportunity for Members of Parliament, both in the Chamber and in Committee, to question those Ministers responsible and to express their own opinions.

On that particular question about the role of Parliament in respect of any—at the moment hypothetical—military action by British forces, my right hon. Friend the Prime Minister set out the position in detail on Monday in answers to questions following his statement. I draw the House’s attention to his words in Hansard, column 663.

We want to see the broadest possible international coalition involving regional partners as well as European and American partners in combating ISIL, which is a threat to all of us, and not just to the United Kingdom and European countries.

My right hon. Friend the Foreign Secretary made it clear in answer to questions in Berlin that we are not yet at the stage in which decisions about any putative British military action have to be taken. His precise words were:

“We have ruled nothing out. We will look carefully at our options and decide how we will make a contribution but we are clear that we will make a contribution.”

Effective political, humanitarian and possibly military action by a broad-based international coalition will be necessary to meet the very grave threat that is posed to us all by ISIL.

[Mr John Spellar (Warley) (Lab)]

We welcome this opportunity, given that in recent days questions have been raised about how the Government have gone about setting out their approach to tackling ISIL. The hon. Member for Basildon and Billericay (Mr Baron) highlighted yesterday’s comments by the Foreign Secretary in which he ruled out British military action in Syria and the subsequent statement from the Prime Minister’s spokesman that all options remain on the table, so I am sure that the Minister will understand the House’s desire for clarification.

As President Obama continues to set out further detail about his strategy for combating ISIL, it is crucial that the British Government also recognise the need to provide reassurance to the British public about their approach. The Opposition have made it clear that we support the targeted air strikes authorised by President Obama in Iraq and we strongly support the UK Government’s provision of arms and assistance to the Kurdish peshmerga forces that are the effective front line against ISIL. Of course, as the situation develops and the international community agrees its common approach to the threat, we will continue to seek assurances from the Government that if there is any change in their approach to Iraq, Syria or the wider region they will seek the appropriate endorsement of this House.

We welcome the lead taken by French President Hollande in setting up an international conference in Paris on Monday. Will the Minister confirm which regional partners will be attending and will he also set out whether Iran has been invited and what the UK’s position is on that? Given that the United Kingdom currently holds the chair of the United Nations Security Council, what more does the Minister believe that the UK can do to help co-ordinate these efforts?

What assurances can the Minister give that Iraq’s new Government recognise the need for a truly inclusive approach that addresses the needs of all of Iraq’s diverse communities? In addition, what can the Minister tell us about the support that will be provided by the countries in the region, not just the Arab League but Turkey and Iran, and what steps are now being taken to ensure that any international efforts to tackle ISIL are co-ordinated by the international community and that there is a clear regionally led approach to such a strategy? Furthermore, can the Minister now give any further detail about whether there are any discussions about how to restart the Geneva II process, which surely still offers the best hopes of long-term stability in Syria?

President Obama has rightly said that left unchecked ISIL extremists pose a threat not only to security inside Iraq but to countries outside the region, so will the Minister provide the Government’s latest assessment of the number of UK nationals who they believe are currently actively part of ISIL’s campaign?

Finally, will the Minister confirm the commitments made by the Prime Minister and the Foreign Secretary about the need for ongoing debate to ensure that this House is kept fully up to date?

[Mr Lidington]

I am grateful to the right hon. Gentleman for his broad support for the Government’s approach to dealing with ISIL. I shall try to respond to the detailed points that he made. The estimate—one can never be absolutely certain about these things—is that a few hundred have travelled out to the region and my right hon. Friends the Home Secretary and the Foreign Secretary have explained at length to the House the measures that the Government are taking to deal with the potential threat those people pose. I would add that this is not a challenge that is in any way unique to the United Kingdom. When I attended a meeting of European Foreign Affairs Ministers two weekends ago, this was a theme coming from Ministers representing many Governments within the European Union. This is a challenge that almost every European country faces.

The question of attendance at the Paris meeting is, for self-evident reasons, primarily a matter for the French Government rather than for us. I can tell the right hon. Gentleman that 10 Arab countries, including Saudi Arabia, have now publicly announced their support for the United States and international efforts so this is by no means an enterprise confined to what one might regard as traditional western allies. As my right hon. Friend the Foreign Secretary made clear in his evidence to the Select Committee on Tuesday, we hope that the Government of Iran will choose to play a constructive role, but I believe that the House will understand why, in the light of Iran's nuclear programme and its history of very active support for the Assad regime and for Hezbollah, we are proceeding cautiously in our relations with Tehran while hoping that we will see the kind of improvement that both the right hon. Gentleman and I would wish to see.

As for the United Nations, I gently correct the right hon. Gentleman: we do not hold the chair of the Security Council at the moment. We had the chair last month and it is held by the United States this month. My right hon. Friend the Prime Minister has spoken personally to Ban Ki-moon about how the United Nations could be used to shape an effective international response to the challenge posed by ISIL and when the Prime Minister goes to the United Nations General Assembly later this month, he intends to use that opportunity to try to build and widen this international coalition.

Diplomatic Relations (Spain)

Debate between David Lidington and Lord Spellar

Wednesday 27th November 2013 Commons Chamber

[Mr Lidington]

I think the Spanish authorities are in no doubt about the Government’s resolve and, I believe, the resolve of the House as a whole that there should be no transfer of the sovereignty of Gibraltar to any other country, unless that were freely consented to by the people of Gibraltar. I reiterate that we will not engage in any process of talks or negotiations about sovereignty with which Gibraltar is not content. I hope that that reiteration will be some assurance to my hon. Friend.

[Mr John Spellar (Warley) (Lab)]

I congratulate the hon. Member for Ribble Valley (Mr Evans) on securing the urgent question. I reiterate the Opposition’s growing concerns, and those on both sides of the House, about this latest event in a series of events around Gibraltar’s borders.

We heard yesterday that two diplomatic bags were opened by Spanish police at the Gibraltarian border. It has been reported that the bags were taken from Gibraltar to Seville airport in Spain. As the Minister has rightly said, that represents a serious interference with the official correspondence of Her Majesty’s Government, and a serious breach of both the principles underlying the Vienna convention on diplomatic relations and the principles of state immunity.

In the written statement before the House today, the Minister says he has received an explanation from the Spanish Government—he reiterated that just now. I am sure Members on both sides of the House would welcome hearing the specific details of that explanation, which were missing from the Minister’s written statement. Will he therefore set out the details of that explanation and say whether they came in writing? Will he agree to lay them before the House by placing them in the House of Commons Library? Will he also set out how long it took to receive the explanation from the Spanish Government once he had become aware of the incident? Will he be clear for the House on whether the British Government have a taken a view that the explanation was sufficient? If it was not sufficient, will he set out what further assurances the Government will seek from Spain on the matter, and how such incidents can be prevented from happening in future?

Will the Minister tell the House whether the Prime Minister has been in touch with his counterpart in Spain to discuss not just this matter but the series of recent incidents at the Gibraltarian border? Will the Minister also make it clear whether it is the British Government’s view that this was a case of Spanish officials locally failing to follow due process, or whether it was an intentional provocation authorised by the Spanish authorities?

Following the EU Commission’s observation mission to Gibraltar in September, from which it concluded that there was “no evidence” of Spain’s infringing rules of the border controls, will the Minster call on the Commission to carry out an urgent further mission and investigate any further incidents as they arise?

Finally, it is vital that the Spanish Government today hear a united statement from the House that such provocative and unlawful acts are not acceptable to this Parliament or to the British people. They cannot be ignored.

[Mr Lidington]

I thank the right hon. Gentleman for his overall support for the Government’s position. I shall try to answer his questions.

As I have said, we were alerted to the incident over the weekend, and we made representations to the most senior officials we could reach in Madrid over the weekend. We also ensured that the Spanish authorities at all levels were well aware of the gravity of our concern about the incident.

The explanation that the Spanish have given to us—it arrived late yesterday—was that there was an error at junior operational level at the crossing point between Gibraltar and Spain, and that the more senior Spanish official present put a stop to that interference with our official correspondence as soon as he realised what was happening.

As I have said, we have had assurance that such action will not be repeated. We trust that Spain will live up fully to its obligations under the Vienna conventions and international law.

Falkland Islands Referendum

Debate between David Lidington and Lord Spellar

Wednesday 13th June 2012 Commons Chamber

[Mr John Spellar (Warley) (Lab)]

I thank the Minister for his statement, and also for allowing me early sight of it, which was a clear indication of his natural courtesy. As he said, it has been plain to all but the most obdurate that it is the will of the Falkland Islanders to remain a self-governing British overseas territory, especially as the economic picture for the Falklands is improving, with both fishing and oil exploration prominent. He rightly highlighted the outrageous aggressive actions of the Argentine Government. Will he tell the House what action we are taking in international bodies to overcome them?

As the Minister said, the Argentine Government still quite wrongly claim that the islanders would be happy to live under Argentine rule. A referendum with international observers would put that claim to rest once and for all. Will the Minister reassure us on the clear legal authority under which the referendum will be held, and can he assure us that the conduct and the question will meet appropriate standards so that there is a clear and unequivocal outcome?

Today we also need to send a clear message of reassurance to the Falkland Islanders, and a warning to the Argentine authorities that our resolve in support of the Falkland Islands remains as firm as it was 30 years ago. Then, we faced an unprincipled and cowardly attack by the vicious Argentine military junta, an action that ultimately and fortunately led to the end of that regime. Our military responded heroically and successfully, and it is in honour of their memory as well that the House, on behalf of the country, should signal our continuing resolve. We welcome the assistance given by the Ministry of Defence to enabling veterans to attend the ceremonies in the Falklands. However, that resolve must also be backed by capability. The Minister rightly spoke of

“maintaining a defensive military posture on the islands”,

but can he reassure us that the cuts in the armed forces have not undermined our ability to deter any rash and irresponsible action? Aircraft carriers without aircraft do not send the right signal.

We greatly fear that the stepping up of the aggressive rhetoric and actions of the Argentines which the Minister described is part of a wider campaign by an Administration who face considerable domestic problems. That pattern, unfortunately, is not unprecedented in a country blessed with great resources, fine people and, too often, dysfunctional politics.

It will be no consolation to the Falkland Islanders to know that they are not alone in facing this attack. Spain is incensed by the forcible nationalisation of the Spanish stake in the oil company Repsol. We welcome the robust response from not only the Spanish Government but—as the Minister will be well aware form his portfolio—the EU foreign policy representative, Baroness Ashton, who rightly said that this created

“legal insecurity for all European Union and foreign firms in the country.”

She also said that the EU was considering “All possible options”.

Can the Minister tell us what discussions have taken place with Spain and our other EU partners on how they will ensure that the Argentine authorities uphold their international commitments and obligations? What discussions has the Foreign Secretary had with Baroness Ashton about the co-ordination of the European response across international forums? Although Repsol has indicated that it plans to take its case to the World Bank arbitrations court, it is reported that Spain may also raise the issue at the World Trade Organisation, the International Monetary Fund and other international bodies. What support will we be giving it in those bodies? In that context, we welcome the crucial support for Spain’s case from the United States and urge the Foreign Secretary to work closely with Secretary of State Clinton to bring this sorry episode to a successful conclusion. This issue is crucially linked to the Falklands question, because those who show cavalier disregard for the norms of international behaviour in one area will behave badly elsewhere. What will the Foreign Office be doing to make clear the link between these issues?

In conclusion, as I have said, the Minister for Europe is a thoroughly likeable and decent Minister, but the future of the Falklands is of huge concern not only to the Falkland Islanders but to this country and, frankly, this statement should have been made by the Foreign Secretary, or by the Minister with responsibility for south America, who on this important occasion is actually—and properly—in the Falklands, along with the Opposition spokesman on south America. Surely it would have been better to await his return to give a report from the ground, or to have the Foreign Secretary give the strategic overview?

[Mr Lidington]

I thank the right hon. Gentleman for his broad overall support for the statement and the Government’s policy on the Falklands and the Falkland Islanders. Thirty years ago the official position of the Labour party was to support Margaret Thatcher and her Government in standing up to Argentine aggression, and I know that the right hon. Gentleman personally represents the best of the Labour party’s patriotic tradition today. I shall chide him slightly for his final remarks, however. As I said in my statement, the timing of the announcement and the decision to hold a referendum were the responsibility of the Falklands Islands Government. My right hon. Friend the Foreign Secretary is on an important visit concerning vital British security interests abroad. He would have liked to have given this statement in person, but we felt—and he felt—that the correct thing to do was for Parliament to be informed as soon as possible after the Falkland Islands Government had made their announcement about the referendum that they have decided to hold. I make no apology for the fact that I have come to the House today. I fear the Opposition would have criticised the Government had we held off a statement on the referendum.

Let me try to respond to some of the more detailed points the right hon. Gentleman raised. Yes, we are confident in the legal authority of the Falkland Islands Government to carry out the referendum. We want it to be conducted to the highest possible standards, and we will be encouraging the Falkland Islands Government to look at things like our own Political Parties, Elections and Referendums Act 2000 in order to see what best practice can offer. As I said in my statement, the Falklands Government, with our support, intend to invite independent foreign observers to ensure that the world can see that this election is being carried out to those high standards.

In regard to military capability, I reassure the right hon. Gentleman and the House that all our analysis tells us that we have the right mix of military assets in the Falklands and the surrounding area and, critically, that they can if necessary be reinforced rapidly. The state of our military preparedness was reviewed by senior Ministers earlier this year, and their conclusion was that the right things are being done to ensure we can defend the Falklands in the way the House would expect.

The right hon. Gentleman asked about Spain and the Repsol case. We have made our position very clear to Spain; my right hon. Friend the Foreign Secretary did so when he met Spanish Foreign Minister Garcia-Margallo a couple of weeks ago. We support its stance in protesting against Argentina’s action against Repsol, and we will continue to give Spain diplomatic support both bilaterally and in the appropriate international forums.

The right hon. Gentleman asked what representations we have made and what actions we have taken on behalf of the Falkland Islands through international bodies and more generally. We have made, and we will continue to make, all appropriate representations. For example, at the time of the controversy over access to ports in the region, we talked to Governments of other countries, particularly Chile, Brazil and Uruguay, which have all continued to allow into their ports vessels flying the red ensign. Trade is continuing normally, and countries in the region have made it clear to us that they have no wish to take part in any kind of trade boycott or blockade of the Falkland Islands.