EU Referendum: Gibraltar

Jim Shannon Excerpts

Wednesday 20th July 2016 Westminster Hall

[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.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does my hon. Friend agree that the assurances are excellent? We are glad to see the Secretary of State for Exiting the European Union and other Government Ministers offer those assurances to the people of Gibraltar, but Gibraltarians and other regions in the UK want and hopefully will see more than just assurances post-Brexit. They want action to ensure prosperity outside and beyond the EU, so that those regions and Gibraltar in particular will benefit from the post-EU position.

[Jim Shannon]

I thank my hon. Friend and colleague for his comments. The debate clearly gives us all a chance to chart and look forward to how Gibraltar outside the EU can succeed even better than it has. It is good to have on record that those voting to leave the EU had a majority of 1.3 million. In Scotland and Northern Ireland, the vote was to remain, but the 1.3 million people who voted no—who voted for out— in Northern Ireland and Scotland made the difference in the whole United Kingdom. We have to keep it in perspective. We took that decision collectively as the United Kingdom of Great Britain and Northern Ireland. The decision has been made, let’s move on.

It is difficult to see an outcome where the UK would have regions staying in the EU and regions leaving the EU. Indeed, some of the most staunch remain campaigners are beginning to concede that fact at last. It is therefore now most important that the concerns voiced by all those in regions with specific relationships with the EU continue to enjoy the benefits that made the regions vote to remain in the first place. We have a task to do, but we can do that task. We can be positive and look forward with optimism to the future and how we can achieve those goals. Whether that means retaining, replicating or replacing, it is now the job of the Brexit negotiation team, the Department for Exiting the European Union and all those involved to make sure that any potentially negative outcomes are mitigated and reduced.

Gibraltar’s booming economy, which grew at more than 10% in the past year, relies to a large degree on the thousands of Spanish workers who cross the border every day. Some hon. Members in the Chamber today have attended Gibraltar events, where we had an opportunity to hear about some of the economic benefits coming to Gibraltar through their relationship with us in the United Kingdom of Great Britain and Northern Ireland. It is important that we focus on those things as well.

Thousands of Spanish workers cross the border every day. That needs to be factored into the Brexit process to ensure that Spanish people are not put off working in Gibraltar should there be a need for work permits. Christian Hernandez, president of the Chamber of Commerce on the Rock, said that the Rock’s thriving financial services sector is at risk, too. He claims:

“The whole way we’ve marketed the jurisdiction is as a gateway into Europe.”

There is a job to do, but we can look forward to it with confidence. Most industries will prove immune to Brexit. Roughly 90% of Gibraltar’s insurance and online betting business consists of transactions with Britain. Low tax rates will ultimately help keep firms in place. Again, there are many things we can do to ensure that that happens.

The reality of the economic situation in the neighbouring Spanish regions is likely to mute any real Spanish aggression. Gibraltar provides a whopping 25% of the economy of the neighbouring Spanish area of Campo de Gibraltar, and the region of Andalucia as a whole suffers 32% unemployment. The mayor of the border town of La Línea de la Concepción, Juan Franco, concedes:

“Our economy is completely dependent on Gibraltar.”

A 30-year-old resident of the same town, who commutes daily from La Linea to her waitressing job, has never been able to find a job in Spain. At 30 years old, it is staggering to hear her say:

“The only money I’ve ever earned is in Gibraltar.”

Some think the future will be brighter; let us be confident that it will be. With the support of the Government, we know that it can be. To give a couple of examples of major developments, a Shell-operated liquid natural gas terminal will come online by mid-2017, and a new secure data facility is housed deep within the Rock. The potential for Gibraltar is good. It is positive and we should be confident of where we are going.

The local Government hope to use their significant autonomy to forge tighter links with Morocco and other emerging economies in Africa and beyond. We all have to pay close attention to the Rock and give the people all the support that they need, but things are still certainly looking bright for Britain in the sun.