Satellite Information Services

Debate between Gerry Sutcliffe and Laurence Robertson

Wednesday 11th September 2013 Westminster Hall

[Mr Sutcliffe]

I am grateful to the hon. Lady for intervening because this is not about partisan party politics but about a company that did great work for the UK in its ambassadorial role to the Commonwealth games. We are all pleased with the successes of the Olympics and the Paralympics and what they mean to our great nation. The Government, through the Minister and his colleagues in the Department for Business, Innovation and Skills, need to help the company. SIS has been caught up in a situation that I found embarrassing. Having been Minister for Sport, I did not think that those sorts of things could happen, but clearly they have.

On 31 July 2012, the CBI investigation filed its report in court. Although the report is not yet public, it is known that the CBI has comprehensively dismissed all the allegations made against SIS by Shunglu. The Shunglu committee is now widely discredited. Most encouraging in that respect is a recent statement from the Indian Government that describes the central allegations in the Shunglu report as being based on the wrong premise and the wrong facts. However, under the Indian legal system, a criminal investigation is not formally closed until the CBI court makes its ruling following receipt of a CBI report and, unfortunately, although a date for considering the report has been set on no fewer than 15 occasions, each time there has been an adjournment to a later date. That is obviously a matter of great frustration for SIS, and it represents a continuing and unfair slur on what, as the hon. Member for South Derbyshire (Heather Wheeler) said, is a fine and highly respected British company. I do not think that any of us in the House would want external involvement in the Indian legal system, but the number of delays must surely create credibility issues for the company.

I think that the real reason SIS has remained unpaid is not the existence of the criminal investigation but because Prasar Bharati has refused settlement, and is locked in dispute with SIS over a range of contractual matters. As with any project of this scale, understandably there are areas of disagreement and dispute, but the contractual matters were not central to the delivery of the contract. Those peripheral issues are now subject to arbitration, and would have no obvious bearing on the payment of the greater part of the outstanding debt. Sadly, there seem to be few signs of any wish to expedite or facilitate fair payment. Indeed, since the games, SIS has continued to be the subject of a range of hostile initiatives from various agencies and, in the arbitration process, of a highly aggressive approach by lawyers acting on behalf of Prasar Bharati.

Although few would argue that the core contract was performed in anything other than spectacularly successful fashion, Prasar Bharati has seized a £3 million performance guarantee provided by SIS before the games and, arguing that the entire contract should be considered voidable, has even demanded the refund of the partial payments paid to SIS. As I have said, the court case is a fig leaf of justification. The real area in which the Government might offer assistance is in encouraging Prasar Bharati to engage constructively in the arbitration process and to settle the issue amicably, fairly and soon.

Not only have Prasar Bharati lawyers had SIS in their sights; at times, it has almost seemed as though one Indian Government agency after another has been lining up to take shots at the firm. I will give one example. In a sensible move to enable the necessary participation by foreign contractors in the Commonwealth games, the Indian Government passed a regulation to allow duty-free temporary imports of equipment for the games, but the Indian customs authorities have sought to exploit every possible loophole to seek payment of duty. One claim against SIS, which was thrown out, suggested that because SIS might have used some of the equipment, it was technically second-hand equipment and therefore subject to duty, as second-hand goods were not specifically mentioned in the Government’s duty waiver.

SIS’s achievement in delivering a quality product for global audiences under the most adverse circumstances—we all remember the preparation issues and problems of the games—has been applauded by client broadcasters all over the world. In most countries, SIS would be seen as a hero, but instead it has been persecuted as a criminal.

As I said earlier, I had the honour of serving the country as Minister for Sport when India was awarded the Commonwealth games. I shared the widespread view that that was a fine and well-deserved decision, and I still hold that view. There were many heart-in-mouth moments and nerve-jangling worries during the run-up to the games. On one occasion, I met Commonwealth games officials who were concerned that, three months before the games, things were not in place. However, the good news was that they were, and it was a great pleasure for me to see the success of the games, as it was to see a company such as SIS working with the Indian Government and showing national broadcasters that it was in an effective partnership.

It has also been a joy, over the past decade or two, to see India increasingly taking its place at the high tables of the world: with its economy and as a great, vibrant democracy, it has been playing its part in the world.

[Mr Laurence Robertson (Tewkesbury) (Con)]

I raised this issue in Foreign Office questions just last week. I, too, want to speak highly of the company. I know many of the executives quite well. They are generous in supporting charity events and many other things, for which I commend them. The hon. Gentleman is discussing India’s reputation, on which I do not wish to cast any doubt, but will he suggest to the Minister that he might look carefully at India’s record on such issues, because other companies have experienced questionable delays?

[Mr Sutcliffe]

I am grateful for the intervention of the hon. Gentleman, whom I will call my hon. Friend: he and I have been involved in many issues concerning great sports in the world. I would go back to the Olympics and Paralympics in London, which were the pride of our country, and India should have pride in the fact that it staged the Commonwealth games, but Governments should and must look at the people who have helped them to achieve such distinction.

I am involved in the issue because I believe that the company has been unfairly treated. We have tried to push the interests of British companies in the world of sport in relation to the next Olympics in Rio in 2016. British companies have brought fantastic expertise to the world of sport, and companies such as SIS should not, for the reasons that I have outlined, be in this situation.

I am not making an attack on India, which is a nation of great resolve that can do fantastic things, but its reputation is being impugned. I hope to go to India in the next few weeks, as part of a delegation to promote sport and its wider benefits, and to have an opportunity to speak to the Indian Minister for Sport to try to resolve the matter, because the very unfair situation has impacted on the country. Having been a Minister, I know that it is not for Ministers to involve themselves in the legal situation, but we need to send a strong message that the company has been treated badly, which has had an impact on the reputation of the country, and that the matter needs to be resolved as quickly as possible. I have mentioned the delays arising from the number of times that it could have been resolved and, quite frankly, that does not show positive input in relation to what the Indians should do.

As hon. Members will know, the Commonwealth games next year are in Glasgow. Such games are a massive part of our sporting environment and our sporting legacy. It is great to have the opportunity for people from the Commonwealth to come together. India showed its mettle by applying for the games and by, in the end, holding a successful games. All I ask is that it honours its commitments to companies such as SIS and stops the in-fighting, and that the Minister and his colleagues give people working in the sector the necessary reassurance that we are doing everything we can to resolve the issue.

I look forward to hearing what the Minister might be able to say today. I understand the problems about his and other Departments working together, but time has moved on, and we must ensure that he speaks to his Indian counterparts to express our concern and find a way to support this great British company, SIS, which through no fault of its own, has been put in a ridiculous situation. I hope that he can be positive in his speech, including if there need to be meetings with SIS or parliamentary colleagues. As I have said, this is not a partisan matter, but one on which colleagues from all parts of the House want to support the company and to see a successful end to the problem that it faces.