Monday 6th July 2015

(9 years, 5 months ago)

Lords Chamber
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Lord Gold Portrait Lord Gold (Con)
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My Lords, I start by looking at what has been happening on the West Bank. It is estimated that there has been real growth there of more than 5% in 2014, mainly driven by exports and private consumption fuelled by bank loans. By contrast—and not surprisingly, given the 2014 war—the position in Gaza is far worse. The Palestinian economy has fallen into recession for the first time since 2006. Unemployment has risen to 43%, with yearly average unemployment increasing by 11% this year and youth unemployment reaching a staggering 69% at the end of last year.

Clearly the 2014 war has had a major impact on the economy and life in Gaza. However, the main reason for the economic decline, which started in 2013, was the destruction of the majority of illegal tunnels connecting Gaza to Egypt, which were a key feeder to Gaza’s construction sector. In addition to the war, economic problems have been exacerbated by the blockade, by the failure of foreign Governments to meet their commitments of financial support and by serious internal tensions.

Hamas has a big responsibility here. It controls Gaza and has refused to allow the Palestinian Authority the control necessary to implement reconstruction, so it has not been permitted to take security and civilian responsibility for the Palestinian side of Gaza’s borders with both Egypt and Israel. Hamas has also misappropriated construction materials for use in terrorist infrastructures. This has been a long-standing problem. We now know that over many years much aid was diverted from essential building works to construct the network of terrorist tunnels that have been so significant in allowing Hamas to carry out its terrorist acts both in Israel and in Egypt, hence the unity of approach by both countries determined to prevent Hamas rebuilding the tunnels.

Happily, a great number of these tunnels were destroyed in the last conflict. The blockade continues, while the risk remains of these tunnels being rebuilt—signs of which have already been seen, unfortunately. Indeed, in recent weeks the Egyptian authorities have discovered and destroyed more tunnels crossing from their land into Gaza. While the 2007 blockade certainly has an impact on economic growth and reconstruction, unless and until Israel feels confident that its security will not be threatened by lifting the blockade, it is understandable that it continues. Even the UN, not slow to criticise Israel at every opportunity, has accepted that the Gaza blockade is legal. The UN’s Palmer report determined:

“Israel faces a real threat to its security from militant groups in Gaza. The naval blockade was imposed as a legitimate security measure in order to prevent weapons from entering Gaza by sea and its implementation complied with the requirements of international law”.

Although security issues also have an impact on economic and business life in the West Bank, the constant threat of missile attacks was, happily, missing, and as a result the West Bank was not sucked into the 2014 war. There remain serious security issues in the West Bank and there are no open relations with Israel but, in contrast, life and the economy there are far better than in Gaza.

Why the difference? The key issue is the absence of Hamas. It has been a constant threat to Israel and peace in the region. It has been behind a reign of terror over the civilian population of Israel, constantly firing missiles across the border. It has used its tunnels to infiltrate Israel to kidnap and kill innocent civilians. It has controlled Gaza with a ruthless hand, unhesitatingly murdering opponents without trial. Indeed, we now know that, under cover of the Gaza conflict, Hamas summarily executed at least 23 of its opponents. The Guardian wrote that they were settling old scores.

However, there is reason for a little optimism, and I believe that we in your Lordships’ House can play an important role, whichever side of this debate we may be on. Recent newspaper reports indicate that Hamas is being threatened by Salafists and Islamic State jihadists in Gaza. This group has been responsible for recent rocket attacks in Israel, hoping to destabilise the present fragile ceasefire. Happily, Israel has not reacted to this, as its intelligence has identified exactly what is going on and, perhaps bizarrely, Israel and Hamas now find themselves with a common enemy. Better the devil you know, I suppose.

There are also reports of Israeli and Hamas officials secretly meeting in Qatar to see whether a five-year ceasefire can be agreed, and recently Efraim Halevy, former head of Israel’s Mossad intelligence service, has called for a direct dialogue with Hamas. Perhaps there is a connection between these two developments. Having a dialogue with a sworn enemy is a step that many would regard as too large to take but—as we have seen in Northern Ireland—without taking it at some stage, we cannot progress towards a peaceful solution.

The Hamas charter calls for the destruction of Israel. If progress towards peace is to be made, at some time Hamas will have to abandon that aim. I would hope that the Qatar meetings are a start towards that change. If that can be achieved, progress towards the two-state solution can also be made. Since its foundation, Israel has demonstrated that a true democracy can operate and thrive in the Middle East and be successful in all areas, not least economically. Palestinians have themselves demonstrated throughout the Middle East and in many other parts of the world that they have great business acumen and talent. We should see whether we can work together to achieve some sort of recognition that working together will be better for everyone in that region.