Canary Wharf Bombing: Compensation Debate

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Department: HM Treasury

Canary Wharf Bombing: Compensation

Gavin Robinson Excerpts
Tuesday 23rd February 2016

(8 years, 9 months ago)

Westminster Hall
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Jim Fitzpatrick Portrait Jim Fitzpatrick
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I am grateful to the hon. Gentleman for that intervention. I know that this is one of the key issues that the Northern Ireland Affairs Committee is looking at, because evidence was given about the way the Americans secured compensation. That is why I am raising with the Treasury the question whether the frozen assets and the interest on them could be used to compensate the docklands victims, as well as the Harrods bomb victims and others from Northern Ireland. It is a key question.

The Canary Wharf bombing victims do not care which is best. All they want is to secure the justice that they have been denied for more than 20 years for them and for other victims. Victims are represented by other colleagues, a number of whom are here today. Just yesterday I had two emails about this. One was from the office of the hon. Member for Battersea (Jane Ellison) on behalf of Felicity Prazak, whose husband died on flight LN1103. The other email was from my hon. Friend the Member for Feltham and Heston (Seema Malhotra), who raised the case of Mina Jadeja, a victim of the Harrods bomb.

This is not, and has never been, about the money. However, media accounts of payouts for IRA members—for example, the reports on 30 January that £1.6 million was paid to a republican kidnap gang—can only add to and intensify the sense of injustice and frustration for the victims of the Gaddafi Semtex. Successive UK Governments have failed victims. I was a Minister in both the Tony Blair and Gordon Brown Administrations, and evidence to the Northern Ireland Affairs Committee suggests that the Blair Government were more interested in the glory of bringing Libya in from the cold, closing down its support for and sponsorship of international terrorism, opening up economic ties and securing UK business contracts.

Gavin Robinson Portrait Gavin Robinson (Belfast East) (DUP)
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Does the hon. Gentleman share my profound disappointment in the evidence given to the Select Committee on Foreign Affairs on 11 December by former Prime Minister Tony Blair, who said that he did not pursue compensation because, clearly, compensation was available? There was a scheme in Northern Ireland, but the same provisions were not available for the hundreds of victims in mainland Great Britain.

Jim Fitzpatrick Portrait Jim Fitzpatrick
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The hon. Gentleman makes a powerful point, and I am sure that will be a focus of the report of the Northern Ireland Affairs Committee, of which he is a respected member. I am not able to develop the powerful point as much as I would like to, but I am sure that the Committee will do so in due course.

--- Later in debate ---
Damian Hinds Portrait Damian Hinds
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I am conscience of the time, so if all three hon. Members will allow me, I want to ensure that I get through what I need to say. If time allows, I will of course be happy to give way.

Although the entities designated under the Libyan financial sanctions are generally ultimately owned by the Libyan Government, they are entities in their own right and are governed by boards of directors who make decisions about the use of their assets. If the Libyan Government came to an agreement with victims to pay compensation, and came to an agreement with individuals or entities that their frozen funds should be used to pay that compensation, the Treasury would be in a position to consider such an application for a licence under the current framework. However, depending on the licensing ground that applies, approval for granting the licence would also need to be obtained from the United Nations.

Although I very much understand and share the concern of hon. Members for the victims of the docklands bombing and other Gaddafi-sponsored terrorism, I am afraid that the legal framework relating to financial sanctions is focused on preserving the funds for the benefit of the Libyan people and does not allow the UK Government to use them as we wish, no matter how worthy or how important to us and to all hon. Members a cause may be. Indeed, the UN Security Council has repeatedly made clear its determination that, when sanctions are lifted, frozen assets must be made available to, and for the benefit of, the people of Libya. The Security Council has held that position in a series of resolutions going back a number of years.

The hon. Member for Poplar and Limehouse asked about the 2008 US-Libya compensation settlement. In May 2008, it became clear that the US and Libya were proceeding on a bilateral agreement to settle outstanding claims. The then Government made representations to the US and Libyan authorities to include UK claimants on the list of recipients. Unfortunately that proved not to be possible, mainly because international and US law does not allow the US to espouse the claims of foreign nationals. Furthermore, the Libyans made it clear that they had answered questions about their support for the IRA in 1995 and that they considered the matter to be closed.

Important questions have also been raised about the similarities and differences between this case and the case of the Lockerbie bombing, in which victims were paid compensation. I stress that there are important differences between the two cases. First, the Lockerbie bombing was an act of terrorism directly committed by agents of the Libyan state, not indirectly through IRA terrorists with Libyan supply.

Damian Hinds Portrait Damian Hinds
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If my hon. Friend will forgive me, I will continue.

Secondly, in the case of Lockerbie, the Libyans approached the US Government tacitly acknowledging their guilt for the atrocity. Thirdly, Gaddafi wanted something in return from the United States, namely readmission to the international fold, from which his actions had excluded him. Finally, the Lockerbie claims were supported by a UN Security Council resolution. Above all—this is important—it is highly unlikely that a future Libyan Government would acknowledge themselves as guilty in the same way as Gaddafi, the individual. The Libyans see themselves as victims of Gaddafi, not the bearers of his legacy.

We believe that the best approach in these difficult cases is to support and facilitate contact between victims and the relevant Libyan authorities so that claims can ultimately be settled directly. Unfortunately, the current political and security situation in Libya makes it difficult for victims, their families and representatives to pursue their claims. The Foreign and Commonwealth Office already provides facilitation support to victims, their families, legal representatives and campaign groups where it has been requested and is appropriate. However, it is a long-standing decision for the Government not to espouse private claims, so we do not provide funding for victims’ campaigns. As the hon. Member for Poplar and Limehouse may be aware, there has recently been important progress towards the establishment of a new Libyan Government. The Presidency Council has announced a revised list of Government Ministers, and the next step is for the House of Representatives to endorse that list and the Government programme. We urge the House of Representatives to do that without delay.

The hon. Gentleman may also be interested to know that the Foreign and Commonwealth Office Minister with responsibility for the middle east, my hon. Friend the Member for Bournemouth East (Mr Ellwood), raised the issue of redress for UK victims when he met the Prime Minister-designate in November 2015. I assure the hon. Gentleman that the Minister will continue to raise that issue in our engagement with the new Libyan Government, and he will encourage the Libyan authorities to engage with UK victims, their families and representatives, including those seeking compensation, once stability returns and our embassy reopens. The Minister will also meet UK victims in March, and I know that he will also be happy to meet the hon. Gentleman to discuss the issue in greater detail, if the hon. Gentleman would like to do so.

There is going to be time, so I will happily give way to the hon. Member for Belfast East (Gavin Robinson).

Gavin Robinson Portrait Gavin Robinson
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I thank the Minister for giving way, which I greatly appreciate. He has fairly outlined the restrictions associated with the asset-freezing sanctions. One issue with which the Northern Ireland Affairs Committee has wrestled is the representations made, at either EU or UN level, when the sanctions were imposed to advocate on behalf of victims, recognising that there were outstanding requests for compensation. I know he is not a Foreign Office Minister, so if he is unaware of the representations that were made, perhaps he could ask those questions and report back to the Chair of the Select Committee, the hon. Member for Tewkesbury (Mr Robertson), or to me.

Damian Hinds Portrait Damian Hinds
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I will have to write to the hon. Gentleman with the detail in answer to that question, but of course the sanctions regimes are not unique to the UK and are governed by international law and UN and EU conventions.

A great wrong was inflicted on innocent victims on that day in 1996, and a key part—