European Union (Withdrawal) Bill

Lord Callanan Excerpts

Committee: 10th sitting (Hansard): House of Lords
Monday 26th March 2018 Lords Chamber

[Lord Collins of Highbury]

To be clear, the Opposition believe—as do I personally, as someone who has worked in Gibraltar over the years—that the position of Gibraltar should be a matter for the Gibraltarians. There should be no doubt about that, and we are committed to it. They have had a referendum and we will completely stick to that.

I was about to come on to my comments relating to what the noble Lord, Lord Luce, said. At the end of the day, we want to ensure that we make economic relationships and economic development a high priority. I do not think we should restrict this to comments about the viability of Gibraltar; we should be focused on how we can support a friendly country in developing an economy in the south that has been so difficult to establish over many years. British tourism has been very important to that, but it is also in terms of new industries and finance sectors that could be expanded and developed. I like the proposal by the noble Lord, Lord Luce, that we should be talking positively about economic development in relation to Gibraltar and to how important that is.

To be frank, we cannot rely on Madrid. We should understand the nature of the Spanish psyche here: no matter what the terms of the Treaty of Utrecht were, there is a claim by the Spanish nation over sovereignty and, whichever political party is in power in Spain, socialist or conservative, this issue unites them across the political spectrum. I do not think we are going to resolve that—we cannot tell the Spanish what their views should be—but we can give very clear commitments to Gibraltar and its people, and we should maintain those commitments. What we need to hear from the Minister today is that it is not simply about commitments regarding Gibraltar’s relationships with the UK but that the Government are committed to ensuring that Gibraltar can have a positive economic relationship with the rest of the EU, and that in any final appendix or agreement to the transitional period Gibraltar’s needs are properly considered and there is a positive case. Not only would closing the border be a disaster for Gibraltar but, as people have said in this debate, it would be an incredible cost to this country as well.

In the 1960s we had a very big MoD base in Gibraltar and there was employment. That is not the case any more. It is a different sort of industry and employment that we have to address.

Will the Minister answer the question of the noble Lord, Lord Hannay, about what is next under the transitional agreement? What will Gibraltar’s relationship economically be with the rest of the EU? To take up the point made by the noble Lord, Lord Luce, what commitments will we give for a positive relationship with Spain to ensure the economic future of Gibraltar and its people, and the people of Andalusia?

[The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)]

Let me first agree with the noble Lord, Lord Collins: it has indeed been an excellent debate on an extremely important topic. I also thank the noble and learned Baroness, Lady Butler-Sloss, for raising the issues, but we do not believe that the new clause is necessary. It posits the need to protect the rights of persons and businesses either from or established in Gibraltar operating in the UK, but none is directly affected by the Bill.

As I begin, I say that we are steadfast in our support for Gibraltar, its people and its economy. Let me directly address the issue put to me by the noble Lords, Lord Hannay and Lord Luce, and by the noble Baroness, Lady Northover, about the implementation period.

The territorial scope of the draft withdrawal agreement, including for the implementation period, explicitly includes Gibraltar. That is right, and consistent with our view that we are negotiating on behalf of the whole UK family. We want to get a deal that works for all, including for Gibraltarians. The noble Lord, Lord Hannay, asked me to be specific, and it is in Article 3, section 1, paragraph (b) of the draft agreement.

In legislating for the United Kingdom, the Bill seeks to maintain, wherever practicable, the rights and responsibilities that exist in our law at the moment of leaving the EU, and the rights in the UK of those established in Gibraltar are no exception to that. We respect Gibraltar’s own legislative competence and the fact that Gibraltar has its own degree of autonomy and responsibilities. For example, Gibraltar has its own repeal Bill.

We are committed to fully involving Gibraltar as we prepare for negotiations to leave to ensure that its priorities are taken properly into account. As has been mentioned, we are working closely with Gibraltar, including through the dedicated Joint Ministerial Council on Gibraltar EU Negotiations.

The Bill, however, is not the place for legislation about Gibraltar. The Bill does not extend to Gibraltar, except in two very minor ways: that, by virtue of Clause 18(3), the powers in Clauses 7 and 17 can be used to amend the European parliamentary elections legislation, which of course covers Gibraltar; and the Bill repeals some UK legislation that extends to Gibraltar.

However, we understand the concerns being expressed through the amendment tabled by the noble and learned Baroness, Lady Butler-Sloss. In response to those concerns, I hope that I can reassure the Committee that access to the UK market for Gibraltar is already protected by law, and my ministerial colleague at the Department for Exiting the EU, Robin Walker, agreed a package of measures at the last Gibraltar JMC on 8 March that will maintain, strengthen and indeed deepen UK-Gibraltar ties.

In financial services, where UK-Gibraltar trade is deepest, this is granted by the Financial Services and Markets Act 2000 (Gibraltar) Order 2001 on the basis of Gibraltar’s participation in EU structures. We have agreed that the UK will guarantee Gibraltar financial services firms’ access to UK markets as now until 2020, even in the unlikely event of no deal being reached. We will design a replacement framework to endure beyond 2020 based on shared high standards of regulation and enforcement and underpinned by modern arrangements for information-sharing, transparency and regulatory co-operation.

Obviously, I always hate to disappoint the noble Lord, Lord Foulkes, but when it comes to online gambling, the UK has provided assurance that gambling operators based in Gibraltar will continue to access the UK market after we leave the EU in the same way as they do now, and we are working towards agreement of a memorandum of understanding which will enable closer working and collaboration between gambling regulators in Gibraltar and the UK. This work is already under way, so we consider that the amendment is unnecessary.

In this way, we will deliver on our assurances that Gibraltar will enjoy continued access to the UK market for Gibraltar business, based on the Gibraltar authorities having already agreed to maintain full regulatory alignment with the UK.

We will of course keep Parliament informed of progress. Gibraltar is regularly discussed in Questions and in debate: for example, in Oral Questions on 30 January and on Second Reading of this Bill on 31 January.

I hope that I have addressed the noble and learned Baroness’s concerns, and I urge her to withdraw the amendment.

[Lord Cormack]

Before my noble friend ends, could he assure the Committee that it will be an absolute aim of negotiations to ensure that Gibraltar continues to enjoy commercial intercourse with the rest of the European Union?

[Lord Callanan]

I am very happy to assure the Committee of that. As I said, we are working closely with the Government and people of Gibraltar. They are at the forefront of our consideration; they are our fellow citizens and our allies. We are working with them, we are co-operating with them and of course, alongside the rest of the negotiations, that will be one of our priorities.

[Lord Foulkes of Cumnock]

Perhaps the Minister will give way. He mentioned online gambling and financial markets, perhaps looking after the interests of people who are already quite well off. What about the workers who travel across from Spain to Gibraltar and vice versa? What about the tourists? What about ordinary people? There seem to be no guarantees. It all seems to have been done to look after the financial interests of the gamblers and the financial markets.

[Lord Callanan]

I am sorry that the noble Lord has a retrograde opinion on these matters. It may shock him to know that many ordinary people take part in online gambling and indulge in financial services. In fact, many of the workers that he refers to work in those areas, so perhaps he should not apply to everyone else the same prejudices that he has. They are successful industries that employ a lot of people. They are perfectly legal and people have a right to engage in them.

[Lord Foulkes of Cumnock]

I do not know whether the noble Lord sits in on any of our debates other than those on the Bill. I have been sitting in at Question Time and other debates—it is good to see three Bishops here today—where concerns have been expressed about online gambling and the effect that it has on ordinary people who get caught up in and become addicted to it. If the noble Lord does not understand concerns about that, he is missing an awful lot of the debates that go on in this House.

[Lord Callanan]

Of course I understand those concerns and why the industry needs to be properly regulated. That is being done and we are working with Gibraltar to ensure consistent regulation across the two territories. But of course that is not a matter for the Bill, I am pleased to say.

I hope that, with those reassurances, I have addressed the noble and learned Baroness’s concerns—

[Lord Hannay of Chiswick]

I am most grateful to the noble Lord for giving way, but he has left us—and, through us, the Gibraltarians—in a degree of uncertainty. I imagine he will have difficulty replying to this, but presumably he does not think we can negotiate better terms for Gibraltar’s access to the EU 27 than we negotiate for ourselves. That would be a pretty startling victory for the Government, which might just be beyond their powers. If that is so, and as the Prime Minister admits that our access to the European Union 27’s market will be less good after the end of the transitional period than it has been while we are a member, presumably Gibraltar will have to take a hit too.

The second question, which the Minister has not addressed at all, concerns the movement of people across the border between Gibraltar and Andalusia. What does he envisage for that? Presumably, the immigration Bill, which may one day cease to be a mirage floating out there, always several months away from us but never quite attained, will one day be sitting on our Order Paper and will have to regulate how Gibraltar treats migrants or other people crossing that border who currently and during the transitional period are covered by free movement. What are the Government’s plans for that?

[Lord Callanan]

I will give the noble Lord the answer that I have given when he has asked similar questions previously. This is a matter for the immigration Bill. Of course, we will need to discuss the matter of the frontier between Gibraltar and Spain with the Spanish authorities, which we will do in full consultation with the people of Gibraltar. We will be sure to let the noble Lord know when we have an outcome to those negotiations. I hope that the noble Baroness will feel free to withdraw her amendment.

[Lord Elystan-Morgan]

Have Her Majesty’s Government given any consideration to a matter that I understand was raised about 15 years ago—granting dominion status to Gibraltar? Dominion status is so supple, varied and wide that it could legitimately and properly encompass the constitutional aspirations of Spain, the United Kingdom and the Gibraltarians themselves.

[Lord Callanan]

I am not an expert on the legal ramifications of dominion status, so if the noble Lord will forgive me, perhaps I may write to him on that.

[Baroness Butler-Sloss]

My Lords, I thank all those who have taken part in this debate and the Minister for his partial reply. I recognise that nothing is decided until everything is decided. I concentrated on the business arrangements between the UK and Gibraltar because they are one of the major concerns. Of course, there are many other major concerns for Gibraltar, which is stuck in a very difficult position, but the one thing it has is good trade relations with the United Kingdom and a lot of business. That needed to be in at least the first stage of what would be done. It is not just gambling; it is also education, tourism and the other things that the noble Lord, Lord Luce, set out in his speech today.

It is good that, at least as between the United Kingdom and Gibraltar, there are clear guidelines and Gibraltar has protection. We know—I am very grateful to other speakers for having raised these issues—that the position of Gibraltar is extremely precarious vis-à-vis the EU. In relation to migrants, I understand that Gibraltar wants as many as come across the border daily, mainly from La Línea, to work. It is up to Spain whether it lets them come through. It is not up to the Gibraltar Government, who welcome them. As has been said, I think by the noble Lord, Lord Luce, 13,000 people a day go through, 10,000 of whom are from Andalusia and are Spanish workers. It is very much to the detriment of Spain if it does not allow them through. It was, of course, La Línea and the southern part of Andalusia that really suffered when Spain closed the border for some 15 years.

So, there are reasons why Spain might be sensible. One hopes that the positive discussions that go on may have a good effect. However, as the noble Lord, Lord Luce, and I have said, there are dangers of the threat to Spain. All of us enjoy Spanish holidays and many of us have Spanish relationships, as the noble Lord, Lord Collins, has, so we want to be fair to Gibraltar. Gibraltar is part of us but we want to continue to have good relations with Spain. I very much hope that, having got to the first stage—business relations, education and other relationships between Gibraltar and the United Kingdom—we will continue to battle on behalf of the whole of the United Kingdom, including Gibraltar, in whatever arrangements happen during Brexit. Having said that, I beg leave to withdraw the amendment.