(12 years, 6 months ago)
Lords Chamber
To ask Her Majesty’s Government what representations they have made to the Government of Iran regarding the use of capital punishment against homosexual men.
My Lords, we have been extremely clear about the human rights situation in Iran and about Iran’s excessive and cruel use of the death penalty. We deplore Iran’s persecution of, and use of the death penalty against, homosexuals. This, like many other practices in Iran, is inconsistent not only with international obligations but with common humanity. The United Kingdom has been and will remain at the forefront of international efforts through the European Union and the United Nations to encourage an improvement in Iran’s very poor human rights record.
I am grateful to the Minister for that reply. What has been the response in Iran to all the objections that we have made over the years to these thousands of executions? Is Iran ready to consider complying with the United Nations declaration of human rights? Also, what co-operation do we have with Amnesty International in these moves?
We certainly have co-operation with all the major NGOs and international movements, which are equally concerned at the horrors in Iran. It is very hard to answer my noble friend’s first question as to what impact these comments and pressures have. My personal belief is that they do have some impact. After all, we have to remember that when the elaborate EU sanctions were discussed and formulated—they are now having, apparently, some impact on Iran—there were discussions about Iran’s human rights record and the horrific rate of persecutions and executions in that country. As far as we know, this includes over 600 people executed last year and 130 executed so far this year—indeed, 60 in the last week.
My Lords, when did Her Majesty’s Government last raise the issue of human rights with Iran? When they were in full diplomatic relations with Iran, did they discuss the execution of people for their sexual orientation, of others, such as the Baha’is and Christians, for changing their religion, and of women, who are regularly publicly executed for so-called social offences? Is this not something that we should at least be making a démarche about and certainly trying to draw the international community into full unison, not just on the security questions, which we regularly raise, but on these profoundly important human rights issue too?
The answer to the first part of the noble Lord’s question is almost continuously. However, we are constrained by the fact that our diplomatic relations with Iran are now at a very low level. As he knows, there are no ambassadors between the two countries because our embassy was attacked and had to be evacuated. So far we have not got any agreement from Tehran to our request for a protecting power to look after our interests and maintain contacts. However, that does not stop us almost continuously working with the UN special rapporteur to keep this kind of horror on the UN agenda and to keep up the international pressure in every way that we can.
My Lords, I recognise that it is difficult to exert direct pressure on and have a conversation with a country with which we no longer have, for understandable reasons, diplomatic relations. I welcome the Minister’s mention of the European Union sanctions. I wonder whether, in any of the discussions, the list of things being provided by the European Union to the Iranians, alongside all the issues about the development of their nuclear capability, has been included and whether there has been any response from the Iranian Government on those items. If there has not been, would it be a moment to perhaps urge the European Union to make the discussion more comprehensive?
The discussions with Iran are going on continuously at this moment in Baghdad. They have not yet stopped; they were due to do so yesterday but the Iranian team, as I understand it, is still in Baghdad this morning. Those discussions are, of course, focused on Iran’s nuclear programme and its weaponisation ambitions, but behind them is the obvious point that the EU sanctions—and particularly the oil embargo—clearly concern the Iranians. They keep raising the issue, which is a good sign that they are worried. As to the other items to which the noble Lord referred, these will come in at the right opportunity. I cannot assure him at the moment on everything that he referred to—I am not sure whether his full list is included—but he can be sure that, within the present climate of trying to get Tehran to make some sensible concessions and to comply with the IAEA, these issues will all come up.
The figure for the executions that my noble friend gave the House is positively horrific. When did we last initiate a United Nations resolution on this subject? Could we perhaps initiate another one very soon?
There have been successive UN resolutions. We are limited by the fact that not every member of the UN Security Council is agreed on how far we should go in these affairs. I cannot answer my noble friend precisely on when the last resolution came through—I do not have it in front of me—but I shall certainly write to him giving the details that he wants.
My Lords, following the welcome judgment by the UK Supreme Court in 2010 that overturned the previous Government’s refusal to grant asylum to homosexuals from Iran, what are the UK Government doing to work with other Governments, such as that of Australia, who bizarrely still believe that it is acceptable to argue that it is possible to hide one’s sexuality?
Our position is quite clear. As my noble friend is aware, we regard all these abuses and attitudes as offensive against human rights and we would like to see them changed. We are working both bilaterally and at the United Nations on all these issues and I assure my noble friend that every opportunity is taken to make known our views and to press them on the countries concerned.
My Lords, following on from the question asked by the noble Baroness, Lady Brinton, is the Minister aware that there is a Private Member’s Bill before the Parliament in Uganda to introduce the death penalty for homosexual acts? Is he further aware that at the recent IPU Assembly in Kampala, the British delegation, of which I was privileged to be a member, had a difficult but none the less very hard-hitting meeting with the Speaker of the Ugandan Parliament, making clear how unacceptable we regard this proposal? Now that we have come home, we hope that our high commission is continuing with those representations.
Yes, I am aware. We have made it quite clear that we deplore this proposal in Uganda, as indeed we deplore attitudes taken in other African countries, including Nigeria. The answer to the noble Lord’s question is yes.
(12 years, 6 months ago)
Lords ChamberMy Lords, in bringing this Bill before the House, I am very much aware that I do so at a time when the spotlight is on the eurozone. As the Prime Minister said last week, it is vital for Britain’s interests that the eurozone resolves its problems. I do not underestimate those problems. On Monday, a number of noble Lords gave their very expert views on the broader issues during the debate on the report of the European Union Committee on the euro area crisis. It was a very interesting debate.
However, this Bill is simple and straightforward. It provides solely for the parliamentary approval of an amendment to the Treaty on the Functioning of the European Union. The proposed amendment makes explicit the ability of eurozone countries to set up a financial assistance mechanism. In other words, it confirms that the eurozone can support fellow eurozone members in financial difficulty.
Although the United Kingdom is not in the eurozone, the treaty amendment is nevertheless important to us. The eurozone is in the process of setting up the European stability mechanism—or ESM. I apologise for these endless initials. The ESM will play an important role as eurozone countries work towards stability, which obviously we hope they will do. Eurozone stability is important for our own stability. When the Prime Minister agreed to the treaty amendment, he also secured an important commitment. The UK will not be liable through the European Union budget for any future eurozone bailouts once the European stability mechanism comes into force. In effect, that is another way of saying that the European financial stability mechanism will be closed down and there will be no further disbursements from that source.
The Minister has stressed, as have other Ministers, that we are not liable to contribute to any future bailouts. Will he none the less confirm that if we judge that it is in our economic interest to do so, as we did in the case of Ireland for example, bilateral help can be available?
There is complete freedom outside the treaties to take any decisions we want. I will come in more detail to what I have just said in reference to the EFSM, and during the afternoon we can discuss what other mechanisms of support for economies, whether in Europe or the eurozone or not, are justified, but that is the position in relation to what we are discussing today.
It is not the first time that this treaty amendment has been considered by Parliament. Before the Prime Minister signed the treaty last March, a Motion in favour of signature was passed by both Houses, with no opposition in your Lordships’ House. At the time I committed to bringing the decision before Parliament again. Thus we are applying the more rigorous requirements for parliamentary control over European Union decision-making, as we committed to do in the European Union Act 2011. Parliamentary approval will enable the UK to complete its ratification process for this treaty amendment.
I recognise that 14 months is a long time in eurozone terms, so it may help your Lordships if I recap how the European Council came to decide to amend the treaty. In May 2010, in response to the first Greek crisis, two emergency instruments were established to respond to the financial crises. The first is the European financial stability facility. This is an emergency facility established intergovernmentally by euro area member states. It is used to provide loans to euro area member states in difficulty. The UK is not—I repeat, not—a member of the EFSF and has no exposure to the financial assistance provided by it.
The second is the European financial stabilisation mechanism, which I have already mentioned, which we inherited from the previous Government. Under this mechanism, the Council can agree, by qualified majority, to the Commission providing assistance using money raised on the financial markets, backed by the European Union budget. It therefore created a contingent liability for the United Kingdom, which is a very important point.
As uncertainty continued in financial markets, the European Council agreed in December 2010 to amend Article 136 of the Treaty of the Functioning of the European Union. The amendment confirms that member states of the eurozone may establish a permanent stability mechanism. This mechanism—the European stability mechanism, or ESM—which I have already mentioned, will provide a permanent means for dealing with events that pose a risk to the financial stability of the euro area as a whole.
Having gained Parliament’s approval in March 2011, the Prime Minister returned to Brussels to agree to the decision at the European Council. The decision must now be ratified by all 27 members before the amendment to Article 136 can come into force. The target date for entry into force, as set out in the European Council decision, is 1 January 2013.
As I have already mentioned, the Minister for Europe and I committed to further consideration of the decision under the terms of the EU Act 2011 when it came into force. Under the provisions of Section 5 of the Act, the Foreign Secretary laid a Statement before Parliament in October 2011. He indicated that in his opinion a referendum is not required to give parliamentary approval. The proposed amendment to Article 136 applies only to member states whose currency is the euro. Consequently it does not transfer further competence or power to the European Union from the United Kingdom. The statement was open to judicial review, but in the intervening eight months no one has sought to challenge it in the courts.
To comply fully with the requirements of the EU Act, I am now presenting this Bill to the House. Should Parliament grant its approval, the Government intend to ratify the European Council decision by the end of this year.
Now I turn briefly to the European stability mechanism itself. The ESM is a stability mechanism funded by eurozone countries to provide financial assistance to eurozone countries. The intention is that it will replace both the EFSM and EFSF. It is being set up under an intergovernmental treaty that was signed on 2 February by eurozone member states. It must now be ratified by all 17 member states and is expected to come into force in July 2012.
The treaty amendment does not establish the ESM. The UK, of course, will not ratify the ESM as we have not signed up to the intergovernmental agreement, and the amendment certainly does not commit the UK to contribute to any bailout fund. However, let me make it clear what the decision does. The treaty amendment that we are asking Parliament to approve will put beyond doubt the ability of eurozone countries to set up a financial assistance mechanism. It does this by adding a third paragraph to Article 136, which states that eurozone member states may establish a financial stability mechanism to assist other eurozone member states in financial difficulties. Article 136 applies solely to member states whose currency is the euro. Therefore, the provisions of Article 136 do not apply to the UK.
Alongside the agreement to enshrine the legal basis for the mechanism in the EU treaty, the Prime Minister secured an important agreement. Once the ESM is established, Article 122(2), on which basis the EFSM was established, should no longer be used for such purposes. Our liability for future euro area financial assistance programmes under the EU budget will be removed. This is strongly in the UK’s national interest.
The intensification of the crisis has led eurozone member states to agree to bring forward the introduction of the ESM to July 2012. When they announced this decision in January, we carefully considered the implications that it would have on our handling of the treaty amendment. Would it need to be ratified sooner, and was it still needed at all? We decided to proceed as planned, as it has always been the Government’s opinion that without the agreement to amend the treaty there would be no European stability mechanism. The clear message from eurozone member states is that they still need this treaty amendment.
That brings me back to the central point of why this Bill is important.
I am most grateful to the Minister for giving way. He said that it was the intention that the ESM should now enter into force next month. Indeed, we support the urgency of that, as I understand it. Therefore, why are we taking so long to ratify this? If we really support the initiative and recognise its urgency, why cannot we ratify it as soon as Parliament has approved this Bill?
My Lords, I do not think that it has been the usual practice of this House to interrupt Ministers in the middle of their opening speeches, when they are also winding up and when the interrupter has his chance to take part in the debate afterwards. These are questions that the Minister can answer in his wind-up speech.
As I have sought to explain, the ESM treaty is an intergovernmental affair between eurozone members, and they are going ahead with it—and they want to go ahead with it—in July. Nevertheless, the individual eurozone members have said that they would want the comfort of cover via an amendment to the European Union treaties, and we are pressing ahead with that as best we can in our own time. The two things are not ultimately dependent; it is just that the changes that we are proposing give comfort, support, reassurance and legal reassurance to the eurozone members so that they can go ahead. Therefore, those who say, “You are not doing anything to play your part in contributing to orderly developments in the eurozone”, are wrong. We are playing our part in doing so, although there are considerable benefits for the UK in making this move, which I have already outlined.
This brings me back to why this Bill is important. It represents Parliament giving a simple yes or no to amending part of the TFEU that does not actually apply to the UK at all. However, as I have made clear, by giving approval to this decision the UK avoids liability for future eurozone bailouts under the EU budget and gives the eurozone the legal clarity—this may reinforce the point I have just made—that it wants to back the European stability mechanism. We also uphold the commitment made by both the Prime Minister and the Chancellor to help the eurozone to get itself out of a crisis. Whichever way the situation goes, that must be to the advantage of us all.
If we were to refuse to agree the decision, the impact on our trading partners in the eurozone would not be positive, to put it mildly. We are under no illusion that the ESM alone will resolve the eurozone crisis, but, as the Prime Minister said last week, an effective firewall is part of the solution. It is safe to assume that markets would not view favourably any uncertainty about the eurozone’s ability to establish a permanent support mechanism. That is just what would arise if we failed to ratify this decision.
As the Prime Minister, my right honourable friend the Foreign Secretary and the Chancellor have repeatedly made clear, a stable Europe is directly in the UK’s interests. That must be so. We rely on the eurozone states for over 40% of our trade. London is Europe’s international financial centre. Stable progress in the eurozone states is vital to stable progress in the United Kingdom.
Therefore, agreeing to this treaty amendment is in our best interests. As I have said, it means that the UK will not be exposed to any future programmes of financial assistance for the eurozone through the EU budget, specifically the European financial stability mechanism—that will be closed—and it helps our neighbours in the eurozone in their search for financial stability in the currency area. Your Lordships have already agreed that the Prime Minister could sign this treaty amendment, as he has done. I hope that we can now take the necessary steps to allow us to ratify it. I beg to move.
My Lords, the House is indeed fortunate to have present in this debate two former Chancellors of the Exchequer, who were able to impart their considerable experience over a wide area of matters, particularly in regard to the setting up of the eurozone. I am grateful to them for their speeches today.
Why are we hurrying this Bill? Why are we introducing it just a couple of weeks after the Queen’s Speech? There is no rush for it. Unless I am mistaken, the Irish are to have a referendum on the matter at the end of this month. The Germans will not ratify this policy until the autumn. I even noticed in today’s Financial Times that Geert Wilders has applied for an injunction to block ratification until after the September elections.
I heard the statement made by the noble Lord, Lord Howell, and others that a,
“healthy eurozone is important for the UK’s long-term growth”.
I put in there that that does not hold water, but that clearly was not robust enough because the noble Lord, Lord Lawson, described it, in much more stark terms, as “nonsense”. I think that that is a better description of it.
The issue of whether I was talking nonsense or not seems to have rattled through the debate. I think that we will all listen with fascination to the noble Lord’s speech, just as we listened to the excellent speech of my noble friend Lord Lawson. However, there was an error in that perhaps they did not hear my actual speech. I made it absolutely clear that stable progress in the eurozone states is vital to stable progress in the United Kingdom. That is not quite what the noble Lord seems to be accusing me of saying.
It was not an accusation because I thought that I was quoting him. I am most obliged to the Minister for clarifying what he did say. I really do not like getting across the noble Lord, Lord Howell, because I respect him very much and think that he is perhaps the only statesman that the Government have among their ranks.
For the sake of clarification, I was not quoting what my noble friend said in his opening remarks, which were rather more careful. What I explicitly quoted is what appeared under his name on the Foreign Office website, and I quoted that correctly.
I appreciate that he was relying on a press release, but I had hoped that, as he is sitting here, he might also have listened to my speech.
Now that we have that out of the way, perhaps I can get on with my speech. There is no doubt, as other noble Lords have said, that the eurozone was a political construct, not a financial one, to create a single European state. Because it was made up of nations with diverse economies, it was bound to fail, as it now has. The noble Lord, Lord Radice, accused those of us who gave pause when the project was starting up of gloating because it has now patently failed. I do not gloat, and I do not think that others who warned of the consequences do so because the eurozone is now in difficulties. We believed that it was always going to be in difficulties; and for trying to point that out, we were derided and insulted. Indeed, the former Prime Minister, Mr Blair, said that we were unpatriotic. There is no gloating about this. We are extremely sad that the present situation has arisen.
As I understand it, the Bill allows the eurozone to further integrate and consolidate a failed system by attempting to shore it up through fiscal, economic and political union under central control by the large countries. I believe that the claim that the ESM cannot and never will apply to the United Kingdom is spurious and quite untenable. Article 16 expresses the aim that within the five years the treaty will be incorporated into the EU treaty framework, which presumably will include this country. Furthermore, we have heard all this before. Let us remember the famous Blair “red lines” over the EU constitution. All of them were eventually crossed and incorporated into the Lisbon treaty. We have to be careful when we are given assurances that certain things will not apply to this country.
I really must comment on the behaviour of the Prime Minister. He does not inspire confidence that the United Kingdom will not be sucked into this system. He seems to be suffering from EU schizophrenia. On the one hand, he opposed the setting up of the eurozone and has said that the UK will never join it; but on the other hand, he wants to dictate policy from the outside and has threatened the Greeks that if they do not vote in the right way, they will be thrown out of the euro. No wonder he is seen by the eurozone countries as a bully-boy shouting from the sidelines. He claims to be a Eurosceptic, yet demands more power for the centre.
I would like the Prime Minister to understand that the influential and decisive voices of the EU—for example, Mr Jose Manuel Barroso; Mr Herman Van Rompuy; Mr Wolfgang Schaeuble, the German Finance Minister; and Mr Olli Rehn, Commissioner for Economic and Monetary Affairs—and the shadowy group of Foreign Ministers and many others are calling for complete political integration under a European Government and the destruction or the sidelining of the nation states.
Why is the Prime Minister not shouting that very famous, “No, no, no”? Perhaps he is afraid of being stabbed in the back by the Deputy Prime Minister. The Prime Minister says that we will never join, but I remind him that others want the whole system to be extended into a single European state. This Bill will help those who wish to create a country called Europe, in spite of some voices this afternoon and in other debates who do not wish to see that happen.
My Lords, I congratulate your Lordships on the sweep of your comments and magnificence of oratory in addressing this very modest Bill. I have listened with something verging on pleasure to the expositions of the noble Lord, Lord Liddle. They were very eloquent, but whether they related precisely to the policy of Her Majesty’s Opposition I am not so clear, and whether they related much to the Bill I am not so clear about either. But it was good stuff and I thank the noble Lord for his contribution.
I want to emphasise that many of the issues have given us a marvellous opportunity to air in your Lordships’ House the bigger issues surrounding the whole story of the eurozone and how it fits into the European Union, as well as how the European Union is or is not evolving to meet the challenges of the 21st century. I am not going to take the centre stage about Europe, much as I would love to do so, but will merely concentrate on aspects of the Bill.
There is no illusion about this Bill and we do not see it as magic medicine. We simply believe that it will help to bring order rather than disorder whichever way things go, and who can tell? Experts say they know the answer. We have been told by my noble friend Lord Lamont that it has all been priced into the market, which is wonderful if that is the case, but sometimes the market can get things terribly wrong. We believe that the Bill can make a net contribution, perhaps quite a substantial one, to the pattern of order rather than disorder. I put it no higher than that and make no greater claims for it.
Perhaps I may remind noble Lords of why we have a Bill before us at all. It is because of the increased public and parliamentary control over EU treaty changes that we committed to in the coalition agreement—it was the coalition that put that forward—and delivered through the European Union Act 2011. Therefore, this treaty amendment requires primary legislation. The amendment has already been considered and was debated by Parliament and passed by both Houses last March; there was no opposition in the House at that time. The arguments for the treaty amendment were relevant then and, in a sense, as the bigger crisis has grown and the uncertainties confronting us have magnified, the case for making a move of this kind as a contribution to trying to steady the situation and stabilise an unstable pattern is stronger than it was even when we debated it 14 months ago.
As I explained at the beginning, in return for agreeing to the treaty amendment the Prime Minister secured that once the ESM is established, Article 122(2), on which basis the EFSM was established, should no longer be used for such purposes. Therefore, our liability for future euro area financial assistance programmes under the EU budget will be removed, and that is directly in our interest.
My noble friend Lord Lamont asked just how solid this Article 122(2) decision is. He is right that it is a political decision and not a treaty agreement, but the decision itself, under Recital 4, says very clearly that Article 122(2) should not be used. That was a unanimous decision of all 27 members of the European Union and it would require a unanimous decision to undo it. My noble friend Lord Lamont can still say that is not as good as the absolute of being locked into a treaty, but it is almost impossible to imagine how we would proceed with undoing a unanimous decision, which very clearly has been made in very good faith and is underpinned by the unanimity rule of the European Union. I hope that reassures him. It probably will not reassure him completely, but that is a very firm and clear position.
Secondly, as the European crisis has gone from bad to worse, this is plainly having a chilling effect on the economy. I do not quite see how anyone can avoid that obvious fact. As the Prime Minister, the Foreign Secretary and the Chancellor have repeatedly made clear, stability in the eurozone states—and I choose my words carefully—is directly in the UK’s interest. If there was growth in the European economies rather than the stagnation and indeed the shrinkage that are now being predicted, that would be one of the keys to growth in the UK economy.
We rely on the eurozone countries for a very large part of our trade—40% is the estimate; it is more for the total of the European Union—and it is only part of the picture. Restored, confident stability in the eurozone states is directly in our national interest, and the resolution of the eurozone debt crisis would be a major boost to confidence in the British economy. I do not know whether it is priced into the market; some people say that it is beginning to be so.
Those are my broad comments. I have not gone nearly as far as some of your Lordships in discussing the whole history of the scene, and there have been some fascinating speeches from my noble friend Lord Dobbs and many others about the past, but those are the immediate considerations that we are looking at with this two-clause Bill.
I will now turn to some of the points made. If I do not refer to every speech, it is not because I do not think that some of the speeches were quite brilliant but because they perhaps did not raise precise questions but merely added their wisdom to the general debate.
The noble Lord, Lord Radice, began by saying that we should not stand aloof. I do not think that we are standing aloof. This Article 136 change alone is proof that we are not standing aloof and that we are providing not just comfort but a sound legal base for eurozone countries to go ahead with the ESM. Eurozone countries believe, although others would dispute it, that the ESM is one of the building blocks of the essential firewall to hold the eurozone together; or, as some speculate, if one country was breaking away, the ESM would hold it together even more firmly against further contagion.
I therefore do not think that the suggestion of aloofness stands, combined as it is with the more general view asserted by several of your Lordships that we are disengaged from our role in the European Union region. That is not true. My right honourable friend the Foreign Secretary and indeed the whole Government have argued, rightly, that the great growth is increasingly going to come in Asia, Africa and the emerging markets. We must therefore pay attention to those, but not to the exclusion of the fact that we live in a very vital and potentially dynamic area full of creativity and attractions, and that we must somehow see its revival.
I have before me a list here of some of the growth initiatives that the UK Government are currently pressing. For all I know, these things may be discussed around the dinner table at the informal European Council meeting tonight. We have pressed very hard on the completion of the digital single market, which we think would see a 4% increase in the EU GDP over a 10-year period, and want to see it completed. We want to see full implementation of the services directive, which could add a further 1.8% to GDP. We are pressing for the completion of all open bilateral EU trade deals, which would add another €60 billion to the EU economy. A deal with the US, if we can bring it off, would be bigger than any other free trade agreement. We want the Commission to commit itself to a much more vigorous, new programme to reduce the overall regulatory burden. Those are just some of the growth points we are pushing and I think we will make some progress on all of them. To talk in terms of aloofness is not to represent the situation as it truly is.
My noble friend Lady Falkner rightly said that the Greek default is not easy—people talk about the possibilities of Greek default perhaps a little cavalierly, without being entirely clear whether we are talking about a nation going gently downstream through some mild rapids or being pushed over Niagara Falls. It might be either, and one has to be realistically responsible in analysing that and understanding that possibility.
I have already mentioned my noble friend Lord Lamont in relation to Article 122 and pricing in the markets. He asked me a series of very important questions about the ESM, which I am not deliberately ducking. I have here some very elaborate notes answering those questions on the ESM treaty, but we are not talking about that tonight. That is an intergovernmental treaty between the eurozone countries. We are talking about the treaty change that we are undertaking in Article 136. I hope that he will forgive me, and that other noble Lords will understand, if I do not read out all the details about AAA securities and other aspects of the ESM treaty. I will write to him in so far as I can answer them, but they are matters for the eurozone and not for this Bill.
The noble Lord, Lord Giddens, whose speeches I always enjoy, came again to this familiar theme that somehow Britain is marginal. I must say that I find this whole concept of being marginal to the problems of the eurozone yesterday’s argument and very dated. Many people now see this island, the United Kingdom —or these islands—as a safe haven, into which money, investment and wealth are pouring at a considerable rate. What does he mean by marginal? One could argue that a harbour that is reasonably well protected is marginal to the storm outside. It is not—it is merely the safe place to which people are going to come. Of course, he is right that if we are going to see the new fiscal pact lead to major political developments in the eurozone—and there is obvious dispute in this Chamber as to whether it will lead that way or to further fragmentation—then we are getting an evolving and new kind of Europe. I hope everyone will contribute to the debate on how that new kind of Europe should be best organised to meet the challenges of the 21st century. That is what I would say to the marginalists who keep on about isolation and so on. I do not think that is a realistic view of the situation.
The noble Lord, Lord Lawson, and I had a good-natured hair-splitting about whether I was arguing one thing or another. I hope that I have made it clear that we are talking about the eurozone countries. The euro currency is another matter but he must concede, as I am sure that all your Lordships concede, that in the states that happen to be European states—including our great neighbours France and Germany—what happens to them and their economies clearly affects our country in a very big way. I do not think that that can be questioned.
My noble friend Lord Flight asked about the EFSM and whether it is cash. It is €48 billion of loans to Portugal and Ireland, at the moment, and the intention is that they will be repaid. We would be liable for 14.6% of anything that was not repaid but that would balloon up to the sort of figure referred to in the document that he mentioned only if every single one of the countries, except us, defaulted. It is technically true that we would then be liable but that seems to be so unlikely as to be on the verge of absurdity. Exposure to the ECB is only for a capital contribution for its operating costs, which is €58 million—not billions but millions. By the standards of these huge sums we are talking about, that is a fairly limited sum. Because we are a non-eurozone member, our liability does not go beyond that.
I think that my noble friend spoke about the EIB, which is a bank where there have been no defaulted loans at all. It has €43 billion of our capital and we would be in danger of exposure to that only if the bank itself was in danger, which it clearly is not. He may or may not have spoken about the EU balance of payments facility, which has been raised. It may have been raised in the document we talked about, but it is only for non-euro members. The liability arises with members who are not members of the eurozone, so it does not really arise in this case.
The noble Lord, Lord Stoddart, then made a speech which did not surprise me. He is a valiant trooper and worker in his own seam and of his own view, which he has put over the years. I admire valiance and courage even when I do not agree with it. He asked why we were not having a referendum when the Irish were. Of course, the Irish are having a referendum not on Article 136 but on the fiscal compact, which is somewhat different.
My noble friend Lord Dobbs made an excellent speech which I thoroughly enjoyed. The noble Lord, Lord Davies of Stamford, began by saying that he was very happy, which alarmed me, but he soon got on to the unhappy part and seemed to be asking why we were not more part of this system. The implication was, “Why aren’t we in the eurozone?”. I do not think we need argue that out at the moment. We are very glad that we are not in the eurozone.
My noble friend Lord Dundee talked about co-ordination between the Council of Europe and the EU. His work on the Council of Europe has been marvellous and I see what he was getting at, but it does not directly arise from the actual Bill.
The noble Lord, Lord Hannay, is right that I was surprised and delighted—I think that is the phrase—that he gave support. I was all set to debate with him something he said the other night: that he did not understand the concept of network power. I will take him aside on another occasion and explain to him that this is a very important concept. I would like brilliant minds such as his to engage with it to realise how we handle the positions of this country in the future, which is not entirely by relying on the blocs and alliances of the 20th century but by moving on.
There were other excellent speeches, which I must be forgiven for not commenting on in detail, from my noble friend Lord Risby and from the noble Lords, Lord Anderson and Lord Reid. The noble Lord, Lord Reid, particularly echoed a fundamental view put so trenchantly by my noble friend Lord Lawson that this can never fly: that the eurozone is fundamentally flawed and will do nothing but bring more division and difficulty. That is a view but it is not the view of the Government, because we are not sure how things are going to work out. Anyone who claims that they are sure is misleading. We would like to see the eurozone system stabilised in one way or another. We think that there are great dangers for us all in not doing so. How that will be developed and what Mrs Merkel and the German Government will decide about the short-term question of their flexibility in relation to the Greek bailout terms are questions hanging in the air that I cannot answer from this Dispatch Box; and nor, I think, can anybody else. We believe that current events have demonstrated the importance of credible policy action to attempt to maintain and restore market confidence, which is clearly weak. We think now is the time to act. The eurozone has to take some kind of concerted action to sort itself out, and this legislation allows it to take a step in the right direction.
The treaty amendment is very much in this country’s interest. The establishment of the ESM by the eurozone member states will remove the UK’s liability for future euro area financial assistance programmes under the EU budget. Establishing the ESM, with the support of this Bill, will help eurozone member states find the path to the financial stability that in the end they must have. If they fail to have it, it will damage us all. That path to stability will have benefits for the UK and beyond. The ESM is only part of the way forward out of the eurozone crisis, but it is an important and valuable one. I therefore hope that your Lordships will share my views on this legislation.
(12 years, 6 months ago)
Lords Chamber
To ask Her Majesty’s Government what diplomatic representations they have made to the Government of Bangladesh about the disappearance and alleged kidnapping of Mr Ilias Ali and other opposition politicians.
My Lords, I am not going to have much time for any chillaxing today.
We are concerned about the disappearance of Mr Ilias Ali. On 9 May, our High Commissioner to Bangladesh and ambassadors of eight other European countries called on the Bangladesh authorities to conduct thorough investigations into disappearances, including that of Mr Ali. In meetings with the Prime Minister’s Office and senior officials in the Ministry of Foreign Affairs, we have urged the Government to do all that they can to locate Mr Ali and investigate the circumstances of his disappearance.
I am grateful to the noble Lord for that reply and for the expressions of concern by the British Government, but is he aware that there are a series of similar cases, including that of Mr Nazmul Islam, a local leader of the Bangladesh Nationalist Party, who was abducted and murdered last December, and that according to the BBC 30 people have disappeared in that way in the past year? There are allegations, too, that the police’s Rapid Action Battalion is involved. In those circumstances, do Her Majesty’s Government accept that this reflects very badly on Bangladesh and its obviously fairly fragile democracy? What support can be given to ensure that the individuals concerned are rescued and restored to their families and that this sort of occurrence stops?
The noble Lord is right that this kind of development reflects badly on the political culture of any society in which opposition leaders are arrested or worse. He asked what can be done. The EU had a heads of mission visit in February to Bangladesh and stated its concerns very clearly. We are fully behind that. In addition, our senior Ministers, including my right honourable friend the Foreign Secretary, have been in direct personal contact with senior officials, including the Foreign Minister of Bangladesh, and we take every opportunity to express our worries. It is a concern for us. People may ask why we are worried about Bangladesh. It is an important nation and the destination of one of DfID’s largest programmes, with £1 billion due to go to support Bangladesh development from this country over the next four years. It is a nation that we want to see stable and prosperous and to build on its economic achievements, which are beginning to show dividends. That is the rather encouraging side of an otherwise bad story.
My Lords, I had the opportunity to meet Mr Ilias Ali in Luton when he visited the United Kingdom a few months ago and raised human rights issues in Bangladesh with him, as I have with the Minister concerned. Sadly, we hear that Mr Ali has disappeared, along with his driver. However, this is not an isolated case. The New York-based Human Rights Watch has expressed concern over the disappearance of at least 22 people this year. A Dhaka-based organisation says that more than 50 people have disappeared since 2010. Security agencies, including the—
A whole range of concerns have been expressed by my noble friend. I understand his feelings. This is not a good story at all. He asks whether we will press for impartial and transparent investigations into these disappearances. We do so, have done so, and will continue to do so. In some cases, we will be pressing at an open door and there will be investigations, but in other cases we may not be so successful. However, one has to accept that the drive for ending this dark atmosphere over Bangladeshi politics must come from within that nation. We support Bangladesh in its efforts to stabilise its politics, to move towards the best kind of elections at the next appropriate time and to develop and lift its people out of poverty and the appalling environmental challenges that they also face and with which, sadly, we are all too familiar.
My Lords, will my noble friend ask the Bangladesh Government whether they will issue an invitation to the United Nations working group on disappearances, which is the proper body to investigate not just the recent disappearances mentioned in the Question but those going back a long way, most of which are attributed to the RAB?
That sounds like a very positive thought. I will certainly consider it and discuss it with my colleagues.
(12 years, 6 months ago)
Lords Chamber
To ask Her Majesty’s Government what their principal objectives will be in the negotiations for an arms trade treaty at the United Nations in July.
My Lords, the United Kingdom is firmly committed to securing a robust and legally binding arms trade treaty to regulate effectively the international trade in conventional arms. The final treaty should have a demonstrable humanitarian, security and development impact, and be capable of implementation in practice to ensure the broadest participation of states, including major arms exporters. This should be achieved without creating an undue additional burden for the legitimate defence industry.
I thank the Minister for that helpful reply. I am sure he agrees with his right honourable friend the Minister for Overseas Development, who, when speaking to the International Institute for Strategic Studies last week, said that the Government’s principal objective between now and the negotiations in July is to “raise the profile” of the arms trade treaty. Does the Minister not agree that the two steps that the Government could best take to do that would be, first, to announce immediately that the Foreign Secretary will attend the opening of negotiations at the UN in July; and, secondly, for the Prime Minister to give his full support in a speech between now and the opening of the conference? Will the Minister lend his support to those two measures?
To be fair, I say to the noble Lord, who obviously has been very much at the centre of these things, that the full support is most certainly there. All along, from the time that this initiative began in 2008, the British Government, under the previous Labour Administration and under this Administration, have given very full support to this and we want it brought to the point where we can get a draft treaty. However, as he knows, it is no use being too starry-eyed about overcoming all the difficulties. As to ministerial attendance or ministerial speeches, we will have to look at that. I know that this is a high priority. Of course, my right honourable friend the Foreign Secretary has many high priorities and this most certainly is one of them, so we will have to take a decision on attendance in due course.
My Lords, does the Minister accept that the Government and civil servants should be warmly congratulated on their hard work and consistent commitment to achieving this treaty? Does he agree that it would be better to have no treaty than an inadequate, weak treaty? In that context, does he further agree that talk of taking into account the criteria, such as human rights, end-use and the rest, is simply not enough? There must be an absolute refusal of permission where these matters are in any kind of doubt.
The noble Lord is on to something, which he has been on to before. He has been second to none in arguing the case for a robust treaty. Indeed, it is the Government’s view that this treaty should be robust and that a weak treaty which would have the effect of legitimising lower standards of arms control, arms export, arms import, arms trade and arms transport would be no addition at all. He is entirely correct that this needs to be a robust treaty. We have aimed for that. We believe that certain things are in reach. Countries which appeared to be extremely negative to start with are now taking a more positive and constructive attitude, and we aim to make substantial progress on a robust treaty.
Perhaps I may say how very welcome the reply of the Minister has been, as was the speech by the Minister for International Development in the past few days. Given that 153 of the 193 member states of the United Nations have strongly supported the arms trade treaty, will the Minister say whether in the last analysis we would be prepared to walk away from an agreement based on a weak consensus?
I am not totally clear of my noble friend’s question. She supports what has been achieved and, as she rightly says, a considerable number of countries have signed up. However, countries which we thought might be much more reluctant have not done so. Certainly, there are key issues yet to be finalised on weapons to be covered and export criteria. These are difficulties. If my noble friend’s question was whether we would walk away if it looked like too weak a treaty, I say that we do not intend that to happen. We intend the treaty to be at least where it is now, with broad agreement discussed on many crucial issues and out of which we can produce a robust treaty.
My Lords, we have long been supportive of a robust attitude to such a treaty. Can the Minister offer any advice as to whether the Government are able to help and support some of those fragile nations which are emerging from conflict or are still in conflict to be able to take part fully in these negotiations? They have so much to gain from a robust treaty.
These fragile nations certainly have much to gain and we want to see their participation. Like all nations, they have a legitimate desire to defend themselves. One must be realistic: if one wants to protect people and nations, some hard-power defence—in other words, weaponry—is needed. There has to be support for sensible, non-repressive arms supplies across international barriers, which can support the proper protection of young nations as they struggle to establish themselves and achieve stability against incursions from outside.
My Lords, in their vision for Britain’s economic future, do coalition Ministers foresee us earning our living to a diminishing extent by contributing to the saturation of unstable areas of the world with weapons? In the process, we tie ourselves into long-term relationships with unsavoury regimes while committing disproportionate amounts of resources that would otherwise be used to construct a more balanced and responsible economy.
The noble Lord paints a bad picture of the international arms trade, and it is bad—largely because of illegal arms trading, with blind eyes being turned by Governments. In our case, we have one of the most rigid supervisions of criteria applications for arms export in the world. We operate on a very close case-by-case basis, and it is generally agreed looking back over the last two tumultuous years in the Arab spring that very rigid controls have broadly operated. Certainly, we have received no evidence to the contrary. But his broader picture of a world awash in arms is precisely the one that must cease and to which this arms trade treaty, if we can get it in the form we want, will make some contribution. It will not cure all the problems but it will make some contribution.
Will my noble friend make available the current draft of this important document so that we can all express our views on it?
I will have to see whether there is a draft at this stage. The next stage of conferring in July is aimed at creating a draft, upon which thereafter a treaty could be built. If there are documents that can be usefully circulated, I will certainly look and see what can be done.
(12 years, 6 months ago)
Lords Chamber
To ask Her Majesty’s Government what representations they have made to the Government of Israel following the recent order to Palestinian farmers in the West Bank to uproot their olive trees.
My Lords, the Government are aware of the recent order by Israeli authorities to Palestinian farmers in the West Bank village of Deir Istiya to uproot 1,400 newly planted olive trees. On 8 May, our embassy in Tel Aviv raised our concerns with the Israeli authorities responsible for the Occupied Palestinian Territories. We encourage and expect Israel to adhere to its obligations under international law.
I thank the Minister for his reply. Given that the Israeli Government seem to be changing the rules about land ownership on the West Bank at whim, what further pressure can the UK Government bring to bear on the Israelis to cease this illegal activity immediately and to allow the farmers to continue the cultivation of their trees, which is also their principal economic activity?
I understand the concerns of my noble friend, who has direct personal experience of the situation in this area. There are difficulties in that there all kinds of different rules governing the ownership of land—layer after layer of them arising from the different status of this area over several decades. This causes confusion and difficulty, and my noble friend is right to identify it. These are the problems. We keep raising them with the Israeli authorities. Obviously, if the trees were mature and established, it would be even worse, as ancient olive trees are of great value, but even with these newly planted trees, there remains a constant dispute about whether the area is a nature reserve, as the authorities suggest, or an area where planting can properly take place. We shall keep monitoring the situation very closely indeed.
Is it not the case that Battir village, one of the villages in which the olive trees are slated to be removed, is the still the subject of a legal battle and no final decision has been taken on it? Is it not also the case that the economy of the West Bank is growing quite markedly—at the rate of 6% to 7% per annum—productivity is going right up, towns that used to be the centres of terrorism are now centres of economic development and large numbers of the barriers and checkpoints have been removed?
The noble Lord is quite right to bring forward the good news to balance the bad news. Unfortunately, there is a slice of both. He is right that in Ramallah and related areas industrial activity has increased and major orders are fulfilled, not least for the British market, thanks to the efforts of the noble Lord, Lord Stone, and others in this House. That is a very encouraging side of the West Bank, but there is a discouraging side, of which I am afraid this constant friction about what the Palestinian farmers may do and—if I may raise an even more controversial point—what the settlers are allowed to do, is the negative aspect of an otherwise potentially good story.
My Lords, in addition to the problem of trees being uprooted, many Palestinian communities on the West Bank are finding their water sources being diverted to illegal settlements. What are the Government doing to persuade the Israeli Government to take action against illegal settlers, especially when essential resources, such as water, are being diverted?
I think my noble friend is well aware, because I have said it many times in your Lordships’ House, that the British Government regard the settlements policy and the expansion of settlements as illegal. We also deplore the recent tendency, which seems to be going against previous trends, of legalising previously illegal settlement outposts. These are again matters that we raise again and again with our opposite numbers in the Israeli Government. We believe that the policy of settlements is one of the barriers to the higher purpose we all want to achieve of reopening negotiations and getting a long and lasting settlement of the Israeli/Palestinian situation.
My Lords, I am sure that the House will fully understand and sympathise with the difficulty that the noble Lord, Lord Howell, has in answering Questions of this sort. It has been the case for many Ministers from both major political parties over the years. Basically, they have to express concern about what is happening, which is the profound and fundamental illegality of one country occupying another country’s land. It seems to everyone who looks closely at these things that all we seem able to do is express our concern and raise the matters with the Israeli authorities. Surely, the question should be: at what point do the Government of Israel face any disadvantage whatever—at the moment, there seems to be none—from continuing with the illegal settlement activities?
I am grateful for the sympathy of a former Chief Whip for a Minister when there are two sides to these questions and an element of balance is essential in assessing the realities and prospects. There is more that this country can do and seeks to do, collectively with our allies such as United Nations colleagues, within the EU and bilaterally. We can press on the various points that may yield some progress towards reconciliation and settlement. Israel’s security has to be considered. The noble Lord says that there is nothing to lose but always at the back of people’s minds are questions of Israel’s security. At the same time, these are occupied territories. We want to see an end to that process and a two-state solution that is not undermined by the settlements. These are all aspirations towards which we can and do work, beyond being concerned day-to-day about specific issues such as the one we are discussing now.
My Lords, I declare an interest as a producer of olive trees. I have only 200 but I assure your Lordships that an olive tree takes a long time to grow. It has much significance, not least because of Gethsemane and the Mount of Olives. There is politics in this as well. Will my noble friend tell me what the economic deficit is here? What cost is being incurred by uprooting these olive trees and what is their value?
As we are dealing with newly planted trees, their value is all in the future. However, I am grateful to my noble friend for his reminder of the significance of the olive tree. I am full of admiration for his growing them because I was told that you could not grow olive trees with decent olives north of Valence in France.
(12 years, 6 months ago)
Lords Chamber
That an humble Address be presented to Her Majesty as follows:
“Most Gracious Sovereign—We, Your Majesty’s most dutiful and loyal subjects, the Lords Spiritual and Temporal in Parliament assembled, beg leave to thank Your Majesty for the most gracious Speech which Your Majesty has addressed to both Houses of Parliament”.
My Lords, first, your Lordships might like to know that this summer, which will be a very busy one in this nation, we expect to welcome and look after about 120 foreign leaders and Prime Ministers and their entourages for the Olympic Games, as well as some 40,000 foreign media personnel. I hope that there will be no doubt in your Lordships’ minds that we at the Foreign and Commonwealth Office will be working hard to look after that lot.
On Tuesday last, my right honourable friend the Foreign and Commonwealth Secretary set out the Government’s two principal foreign policy aims: first, to respond to urgent challenges and crises in a way that promotes Britain’s national interest and our democratic values; and, secondly, to equip our country to be a safe, prosperous and influential nation in the long term, in the service of poverty reduction and conflict prevention, and in the upholding of human rights, religious freedoms and environmental safeguards.
To do this successfully, our nation needs to adapt. Wealth and power are shifting globally, so once again in our history we need to look beyond our traditional partners of recent decades to the new and emerging economies of Asia, Latin America and Africa. The world’s pattern of energy resources and energy powers, too, is being transformed by new gas discoveries and low-carbon aspirations. To make the most of the enormous opportunities that these shifts offer, we must move to reinvigorate and refocus our diplomatic network and our policy priorities.
Of course, that does not mean forgetting old friends. The United States of America will remain our strongest ally; our relations with our European partners will remain an essential pillar of our foreign policy; and we should recognise the growing importance of the Commonwealth, which is evolving into one of the most relevant networks in the changing world, embracing some of its most dynamic economies. I have called it the necessary network of the 21st century. It is certainly one of the key gateways to the great and rich new markets of the future, in which we must succeed.
I will say a word about the Arab spring and the developments of the past 18 months. Obviously, 2011 was a momentous year. Already, the Arab spring has brought huge changes to the Middle East and north Africa. Significant challenges remain, but the Government are optimistic about the road ahead. This summer, Libya is set to hold its first democratic elections in more than 40 years. Egypt’s citizens are about to choose their next President, and we hope that this will be an important step towards building a prosperous and stable future for the Egyptian people. Bahrain has committed to a reform process and has made some progress, although there is a good way to go. Peaceful reform is under way in such nations as Algeria, Jordan and Morocco.
However, there is still much to do. The region now needs to consolidate and build on these gains, taking further economic and political measures to entrench stability. The events of the Arab spring have also made ever more pressing the need for a two-state solution to the Arab-Israeli conflict. We urge both sides to avoid any steps that would undermine the prospect of successful negotiations. In this House on Tuesday, I welcomed the news of the Egypt-brokered deal on the Palestinian hunger strikers.
The Government will continue to support the process of reform that is under way in the Middle East and north Africa. In February last year we launched the Arab Partnership Initiative, which aims to support long-term political and economic reform in the region. We committed £110 million over four years through the initiative. Last year the joint FCO-DfID Arab Partnership Fund funded more than 50 projects in 11 countries in the region. We intend to intensify that work over the coming years.
Meanwhile, Iran’s stance and influence remain dangerous. We have yet to see any firm indication that it is willing to take concrete action to address concerns about the potential military dimension of its nuclear programme. We want Iran to take steps to build confidence in its nuclear activities, and we will maintain the pressure until genuine progress is made, including through sanctions and the current EU embargo on oil imports.
In Syria, the situation clearly remains completely unacceptable. More than 10,000 people are estimated to have been killed and many thousands displaced or detained. While we welcome the deployment of UN monitors in Syria in accordance with Kofi Annan’s six-point plan, which is already having an impact, it is deeply concerning that the violence continues. The Annan plan remains the best chance to find a way through Syria’s crisis, but we will not hesitate to return to the UN Security Council if rapid progress is not made.
I turn now to the broader pattern and the rise of Africa and the emerging powers. The positive developments in north Africa reflect a broader trend on the continent as a whole: that is, the gradual realisation of Africa’s enormous potential. Significant challenges, of course, remain in sub-Saharan Africa, as we all know. We are very concerned, for example, by the rise in military tensions between Sudan and South Sudan, and urge both parties to comply with the African Union’s action plan. In fact, al-Qaeda in the Islamic Maghreb and associated groups in Africa remain a threat, particularly across the Sahel. We have seen an increase in terrorist attacks in Nigeria, and the Sahel and the Horn are suffering food and water crises.
These developments, however, should not dilute the broader message: it is a time of significant change in Africa. Many commentators need to catch up with that new reality. Infant mortality is down; foreign investment is up. The IMF forecasts that the African economy will grow by 5.8% this year, which sounds a lot from our perspective here in Britain. The continent has an increasing presence on the international stage. South Africa, a member of the G20, is playing an increasingly active role globally. Angola, Mozambique, Tanzania and Ghana are the new potential stars. I visited Ghana the week before last. Nigeria, with its wealth of natural resources, is unlocking its potential as a considerable regional energy power. Even in Somalia there is new momentum in the political process following the successful London Conference on Somalia. It is right, therefore, that we develop and strengthen our relations with Africa.
Equally, we need to raise our game in the emerging and already advanced economies of Asia, particularly in China and in Latin America, but also with the Korean and Japanese giants and world leaders. We have already increased our efforts to promote trade in these markets. In 2011, UK goods exports to Columbia increased by 35%. In India the figure is 37% and Indonesia an impressive 44%. We believe that we can do even better and will intensify our efforts. We have to recognise and work constructively with massive Chinese involvement and investment right across the globe, including in the UK, and not forgetting our continuing ties with Hong Kong.
In doing so, we will not lessen for a moment our focus on human rights, which remain at the core of Britain’s values. In particular, discrimination and violence against women and girls remain among the most widespread human rights abuses. Tackling these issues is a priority for the UK and central to our work to advance gender equality and empower women.
It is Britain’s leadership, supported by our international partners, that has helped to secure tangible, real reform in countries such as Burma, where we are finally seeing a hopeful path forward and which my right honourable friend visited only recently. Meanwhile, nearer home, Europe is seeking to recover from the biggest financial crisis for generations. In Chancellor Merkel’s words, we are in a period of great uncertainty. That is very apparent.
Europe faces two big economic challenges: resolving the eurozone crisis, if that is possible, which remains a major obstacle to our economic recovery, and responding to the relative shift of economic power to the east and south—all predicted by some of us 15 years ago and to which rather slow-learning commentators have at last woken up.
While it is for each eurozone member to decide how to handle the crisis, particularly the immediate Greek crisis that fills our newspapers, we continue to believe that control of public finances and structural reform to increase productivity and competitiveness are the only realistic ways forward. We have just introduced a Bill to approve an amendment to the EU treaties and confirm the compatibility with the treaties of the eurozone-only European stability mechanism. We have ensured that the UK will not be liable through the EU budget for any future EU eurozone bailouts once the ESM comes into force.
We share common values and interests with our EU partners, and can use the collective weight of the EU in the right situations to increase our impact on the international stage. But the European Union must reform as well, and we will play a strong part in that. The EU must support peace and stability in the western Balkans. We look forward to Croatia’s accession to the EU, due in July 2013, and will bring forward a Bill to approve this. We will also continue to develop our co-operation with Russia.
On Afghanistan, my noble friend Lord Astor will have more to say on this issue and on our defence dispositions when he winds up this evening. However, I would like to pay a very strong tribute to all the British personnel who have lost their lives or been injured serving their country there. The process of transitioning security control to Afghan forces is on track, and we expect the ANSF to take a lead on security responsibilities across the country by mid-2013, with ISAF moving to a supporting role.
The Chicago summit later this month will focus on the size, make-up and funding of the Afghan national security forces. My right honourable friend the Defence Secretary has already announced that Britain will contribute £70 million a year from 2015 to fund the ANSF. As the transition in 2014 approaches, it is more important than ever that we engage with Afghanistan’s neighbours, including Pakistan and the central Asian states, and this we are most certainly doing.
A common theme in what I have outlined today is the role of networks in the modern, globalised world. States are increasingly organising themselves into networks, ranging from the political—I have already mentioned the European Union—to the economic, social and cultural. Let us take one of the world’s greatest networks, the Commonwealth. This Government are committed to making more out of the Commonwealth, an organisation uniquely placed to advance our foreign policy and trade objectives. This is why Commonwealth Heads of Government agreed in Perth last year—a meeting I attended—to some of the most significant reforms in the organisation’s history. More than ever, now is the time, as we celebrate Her Majesty’s Diamond Jubilee and welcome the world’s leaders here, to make the most of our Commonwealth connections.
We will in due course publish the Government’s new White Paper on our relations with the UK’s overseas territories, another important network. Their future welfare forms part of our larger determination to assist small island states, not least those in the Commonwealth in the Caribbean, which face major challenges; for example, climate issues and crippling energy costs. I stress that we remain absolutely committed to the rights of the people of the Falkland Islands to self-determination and to develop their own economy.
That brings me to the network of the Foreign and Commonwealth Office itself, my own department. Over the past year we have taken steps to substantially reinvigorate our diplomatic network. We have put the Foreign and Commonwealth Office back at the heart of government in the making of British foreign policy. By the end of this Parliament, we will have deployed 300 extra staff in more than 20 countries around the world, and we will have opened up to 11 new British embassies and eight new consulates or trade offices in the emerging nations. We are achieving this while making £100 million per year in savings in the Foreign Office budget, as required by the FCO’s spending review settlement.
At this point I would like to pay a warm tribute to the FCO’s committed staff across the globe, often operating in very difficult conditions, and those of the Department for International Development and Ministry of Defence, who work tirelessly in support of our country around the world.
In security terms, the same kind of attitude and priority shift as on the economic and trade fronts is warranted. There is no dispute that America remains the most powerful hard-power military nation and ally, but in a world of dispersed power, cloud information stores and e-enabled, non-state threats, new instruments and techniques of influence and persuasion are required to underpin security and prevent the exercise of hostile force against British citizens and interests. We need, if I may quote Her Majesty’s own words, the,
“camaraderie, warmth and mutual respect”,
of other countries, which our overidentification with past policy and approaches failed to deliver and, in some cases, repelled.
Instead, we need to rely on new network and soft-power intimacies through: local government links; educational links; language links; cultural links such as our museum activities branching out from the UK; the BBC World Service and the British Council; parliamentary links; common judicial practices; common law similarities; common professional standards in medicine, science, accountancy and advanced research of all kinds; civil society networks, religious and faith ties; and the enduring power of ideas and innovation in all fields and every kind of service and design package that our creative and original thinking can generate. Alongside all this, we have become, in the words of the former Prime Minister, Sir John Major, a “development superpower”. It was good that, last year, no fewer than 143,710 Commonwealth students sought to come here. More British students should be encouraged to go to the great new universities of modern Asia.
Sixty years after Dean Acheson’s jibe about Britain having lost an empire and not found a role, we are now finding a role, despite misplaced American comment to the contrary. Britain is emerging as an agile new network power, positioning itself consciously and effectively in line with the new global patterns of economic power, trade flows, markets and influence. We are becoming a safe haven for the world’s investment and wealth.
Europe is our region and neighbourhood; America is our ally and friend; the Commonwealth is our family; and the changing world is our stage. If we are clever, wise and patient, we have every chance on this stage of maintaining and building on our prosperity and contributing decisively, as we must and should, to world stability and peace.
(12 years, 6 months ago)
Lords Chamber
To ask Her Majesty’s Government what is their assessment of political developments in the eurozone after recent changes of Governments.
My Lords, the eurozone crisis is having a real impact on economic growth across the European continent as well as in Britain. Eurozone leaders have to do whatever is necessary to stand behind their currency and resolve the crisis. However, these decisions must be made in conjunction with the democratic wishes of people across the eurozone.
I thank my noble friend for that reply. Does he agree that conditions in several eurozone countries—huge rises in unemployment, particularly youth unemployment, and significant falls in living standards—are resulting in the rise of right-wing parties in particular, as seen in the most recent democratic elections, and putting democracy under strain? Will he tell the House whether the Prime Minister, when he next goes to the European Council, will support pro-growth measures, including additional funding for the European Investment Bank if necessary, so that European countries, as well as the UK, can get back on the right track?
My noble friend is quite right: youth unemployment is a blight and a very serious issue everywhere, not least in this country as well as throughout Europe and many economies in the Middle East. The problem is general. My noble friend raised two points. She mentioned the European Investment Bank and the possibility of expanding its activities. This is a possibility and may well be discussed. As a broader point, she posed the question of austerity versus growth, as though they were opposites. The reality is that this polarised choice is a complete myth. Unless we can control our budgets effectively and run them with fiscal discipline, there will be no growth. There will instead be still further inflation, undermining the very growth that we want to see. A balance must be struck. It is not a choice; it is a balance.
On this side of the House we welcome what the Minister said about being open to increased resources for the European Investment Bank. However, will he tell us whether the Government broadly agree with the growth agenda being pursued by the new French President, François Hollande? Does he draw from the spate of election results that we have seen the conclusion that austerity in the eurozone is reaching its limits? Given that growth in the eurozone was larger than ours in the past year, will he draw that lesson for economic policy at home?
Neither the noble Lord nor I know how the discussions between the new French President and the German Chancellor will work out. However, he has read the newspapers, as I have, and it is fairly clear that some aspects of both arguments will have to be taken into account. That will demonstrate the very point that I just made to my noble friend. The picture that has been painted of either austerity or growth is completely unrealistic. The reality is that there will have to be the discipline on which the German people and Government have led very strongly, and in which they believe for strong reasons connected to their history, combined with the necessity to erode youth unemployment and to create and restore confidence in investment. This is a balance that must be struck. We certainly hope that the leaders of France and Germany will, in their wisdom, strike the right balance and maybe convey to the people of Greece the necessity for this balance, from which there is no escape. There is no unrealistic choice between going one way or the other—you cannot.
My Lords, given that we refused to join the euro because we believed it was an ill conceived project—
We, the British, refused to join the euro because it was an ill conceived project. Will my noble friend give an absolute assurance that not a cent of British taxpayers’ money will be spent on sorting out this shambles?
I can give an assurance that there is no intention of spending public money on precisely the eurozone problems that have to be sorted out by the eurozone Governments. Nevertheless, the world economy will be affected by the success or failure of these policies in Europe, and in supporting aspects of the world economy we are regular contributors to the IMF and have worldwide responsibilities. It may well be that we will contribute to maintaining those responsibilities.
My Lords, is it true that the Prime Minister said recently that the Government are committed to finding £1 billion, which would be very helpful in restoring confidence of some kind in the eurozone? Can the Minister confirm that?
I am afraid that I have absolutely no idea about a statement of that kind. I do not know where the noble Lord read it. Perhaps I may find it later. If it was said by the Prime Minister, I am sure that it is true but I do not think that it was.
My Lords, I thank the Minister for once again showing HMG’s resolute determination to help the eurozone leaders in solving this crisis and for ignoring the flimflam from the anti-Europeans. But, without giving instructions of course, would he give some friendly advice to the British press to restrain and reduce their hysteria on this subject of the eurozone crisis at a time when the United States 16 trillion dollar irreducible debt system, which is facing national default yet again, is totally ignored by the British newspapers?
It is not for me to advise the media on their priorities but clearly the eurozone crisis could have considerable impact on all economies in the region and certainly on the United Kingdom. We are right to be concerned about it and the media are right to examine it and to bring home—through their experts and commentators, in addition to the expertise already in this House—that if there are further difficulties and the problems in the eurozone are not resolved, it will certainly hurt the British economy as well. That is inevitable.
My Lords, as regards those who are pleading for not one single cent more of British money to be spent on sorting out the problems in the eurozone, will the Minister bear in mind what the consequences might be if a newly elected Greek Government after the next elections wish to tear up all the agreements made, which would almost certainly provoke an exit from the eurozone leading to extraordinary problems for Greece? But the most important point, which has not been much discussed, is whether we are prepared to consider seriously the impact of a failed state in the Balkans and the probability that this will provoke a resurgence of nationalism in the region. It is the Balkans that we need to think about and not just Greece.
The noble Lord is right that there are serious political implications. He mentions the Balkans. One only needs to think of the problems facing Cyprus, for instance, and the whole south-eastern region of the Mediterranean. Further instabilities there on top of all the existing instabilities would certainly be against our interest. These things must be examined very carefully. But that is a different question from who steps forward with the financing for a problem which is strictly for the European countries to sort out and on which they are working now. But at the political level we fully recognise, as I am sure everyone does in this House, that serious political developments are ahead if the whole stability of the eurozone is not secured one way or another.
(12 years, 6 months ago)
Lords Chamber
To ask Her Majesty’s Government what has been their response to reports that state-owned mining assets in the Democratic Republic of the Congo have been sold over the last two years to offshore companies for less than one-twentieth of their commercial value.
My Lords, we share the concerns about the DRC mining sector and the mis-selling of state-owned assets. We continue to press the DRC Government to improve governance in this area. The Secretary of State for International Development raised this with President Kabila when they met in March. The UK is funding the PROMINES programme, which aims to strengthen transparency in the mining sector. We also support the international efforts to set standards for all extractive industries.
My Lords, I thank the Minister for that reply. Does he share the widespread concern over the legitimacy of transactions that involve companies quoted on the London Stock Exchange and UK Overseas Territories such as the BVI? The Chancellor has turned his attention to these with regard to stemming personal tax avoidance but does not appear to have looked yet at corporate tax avoidance. Will the Government support the call by the DRC opposition parties for a full inquiry into the extent of what appears to be very widespread corruption in this field?
We share the concern about corruption and the need for major companies to observe the highest possible standards in their performance. The instruments through which this should be done are the EU transparency directive and the work of the Extractive Industries Transparency Initiative, which is excellently chaired by Clare Short and is currently planning to set up a strategic working group to look at extending EITI standards to require a much closer look at issues of the kind that my noble friend has raised.
My Lords, does the Minister agree that the extraordinarily rich deposits of minerals that are held in the DRC should be a blessing but have become a curse as marauding bands and the DRC’s neighbours have plundered those resources, leading to conflicts that have taken the lives of between 5 million and 6 million people, many of them children? Does he know that at present it is estimated that 40% of those working in the DRC’s mining industry are children? When the DRC review of mining practices takes place this year, will he use the extensive leverage that the Government have through their aid programme to ensure that at least children are removed from the mines and protected in the future?
The noble Lord is on to an excellent cause and a very good concern. Our view is that the PROMINES programme, which now will be launched in October and for which we have high hopes, will raise the standards and control better all activities of mining, including artisanal mining of the sort which employs children. That programme includes explicit activities to address the issues of child labour, including supporting initiatives to enable the artisanal mining subsector to comply with supply chain diligence standards which are increasingly being applied—for instance, in connection with the OECD due diligence guidance. We see the PROMINES programme as the avenue through which to increase the pressures and to overcome the appalling deprivations and dangers which are evident particularly for children in this sector.
My Lords, I accept of course that there are a number of transparency conventions in Europe and on a world basis, some of which have been useful in dealing with topics such as the illicit mining of diamonds in the past. Given the difficulties that have just been described, particularly in relation to children and the lack of transparency in supply chains, would there not be a good case for company reports in the United Kingdom to be candid and be required to say how transparency issues have been dealt with so that the legitimacy of their operations would be clear to everyone?
Yes, that is exactly the kind of proposal that Clare Short, as chair of the EITI, is examining in her strategic working group. Of course, not every company and certainly not every country has signed up to the EITI. Those that have are required to make certain reports, although those reports do not cover all the issues we are discussing now. Her idea, and that of the EITI, is to see whether the requirements for standards for signatories to the EITI can be increased and, obviously, for other countries—and the DRC being a candidate country—to sign up to the whole initiative.
My Lords, as I understood the Minister’s reply to my noble friend’s supplementary question, the rules of the EITI do not at present require candidate countries or full members to disclose accounts of the sales of mining assets. Will my noble friend press not only for sales to be disclosed but for countries that are candidates or full members to publish due diligence reports identifying the purchasers and verifying that they are fit and proper persons to comply with the EITI rules, and ensure that the rules are amended for that purpose?
I repeat that this is exactly what the EITI initiative proposes. Incidentally, this body was set up in 2002 by the previous Government. It has been a considerable influence and success, although it has a long way to go in certain areas. These are just the sort of proposals for an extended authority of the EITI that will be considered by the strategic working group. That aim should certainly be supported by the Government and all Governments who are full members of the EITI now. We recognise the need also for candidates to be required to move to higher standards in order to become full members.
My Lords, related to the questions we have just heard, how are DfID’s funds allocated to government programmes in the Democratic Republic of Congo being used to ensure that the DRC Government tackle corruption and non-transparency in the mining sector? Is the Minister’s previous answer related to that or are there other questions to be asked about transparency and corruption?
There is a lot more to be said because this is a major subject. DfID programmes are in operation. They are under review and therefore I cannot give a precise up-to-date answer on the size and specific focus of programmes. Generally, the aims behind the DfID programmes are to decrease corruption and to improve the social and educational conditions, and, thereby, conditions in the mining sector generally.
Can the Minister tell the House the extent to which the Government believe that British companies are involved in the offshore companies that are involved in this expertise?
We know that British companies are involved in the DRC and we know that certain deals have been made—some of them reportedly far below market prices. We support the EU transparency directive, and I urge all companies listed on the FTSE 100 to observe the highest possible standards and disclose their activities in the way we would expect of responsible companies. That continues to be the position.
(12 years, 6 months ago)
Lords Chamber
To ask Her Majesty’s Government what representations they have made to the government of Israel concerning the hunger strike taking place among Palestinian prisoners in Israel.
My Lords, the Government have followed closely the mass hunger strike by Palestinian prisoners. In the past week we have raised our long-standing concerns over Israel's extensive use of administrative detention and the treatment of Palestinian prisoners with the Israeli Vice-Prime Minister, the Israeli Foreign Minister and the Israeli national security adviser. We welcome the Egyptian-brokered agreement, which has brought an end to the hunger strike.
I thank the Minister for that reply and the Government for their efforts on the prisoners’ behalf, but this is Nakba Day—the “day of catastrophe” for the Palestinians, when the state of Israel was created—and I think that we should congratulate most of all those Palestinians who have reminded us of the power of peaceful resistance. The Minister will remember, however, that Israel reneged on its promise to ease the inhumane regime in its prisons after the release of Gilad Shalit. In fact, conditions got worse. Will the Minister therefore ensure that the seriously ill hunger strikers are given proper medical treatment immediately outside prison, and will he try to press for the new prison regime, which is still keeping administrative detention, to be monitored by an independent body such as Physicians for Human Rights-Israel?
As my noble friend knows very well from her expertise, these are very early days. We have only just heard about the deal being reached. Although it is true that it does not cover the ending of administrative detention for all but only for a limited number, it seems—together with the new arrangements for family visits from Gaza and the ending in most cases of solitary confinement—a very constructive move. We will be watching closely, as no doubt will the entire international community—and certainly the Palestinian authorities—to see that the deal goes forward. I shall look into the particular points that my noble friend raised. It is early days, and we do not quite know exactly how the arrangements that have been announced will affect the kind of categories that she described.
My Lords, will the Government congratulate the Government of Israel on their apparent intention to improve prison conditions? At the same time, will they urge the Israelis to end administrative detention, especially as far as it concerns democratically elected representatives?
Congratulations are certainly due to all parties concerned, and indeed to the Egyptian authorities that brokered the deal. As long as it can hold—and those who have all the details will know exactly what is implied—it sounds good news, and congratulation is in place. As to extending the proposal to the ending of all detention, that may be a phase that we could see in future. It is the sort of thing that we will certainly continue to raise, but first let us see the details of this new deal and hope that this is a foundation and open path for better things, including possibly even the reopening of negotiations.
My Lords, will the Government encourage the Palestinians to come back to the negotiating table in view of the recent offer by Mr Netanyahu?
That would be very good. The noble Lord is right—Mr Netanyahu wrote to Mr Mahmoud Abbas, and there is an exchange. Let us hope that the deal that we are talking about and other developments—as well as developments in the internal pattern of Israeli politics, which are not for me to comment on but are very interesting—together begin to provide the basis for a return to the negotiating table for both sides.
My Lords, is my noble friend advised whether it is the Government’s view that the new coalition in Israel, which includes the Kadima Party, makes less likely the risk of a lunatic attack on Iran?
The Government’s view is that we are watching closely to see whether there are going to be any changes. It is the comment of an analyst rather than an outside Government that the change in the party structure inside Israel obviously appears to reduce the powers of some wings of its political spectrum and to increase the influence of others, but so far, although we are watching carefully, there is not much sign of change. However, we will continue looking at the matter very closely indeed.
The Government are to be commended for the moves that they have made this week in helping to bring about a resolution of the current dispute. Does the Minister agree with me that it is comparatively easy to imprison a few thousand people but that it is not easy to imprison a whole nation or a whole people? Does he agree that if the Israeli Government decided to stop building more illegal settlements, the Palestinians would come to the table?
I do not know enough about precise cause and effect but I certainly agree with the noble Lord that the settlements issue is a really sore point—a really poisonous one, if you like. We regard the extension of the settlements as illegal and settlement activities that press into Palestine as unhelpful and illegal. I agree with the noble Lord that if that were to stop, it would certainly open some of the doors to a negotiation.
(12 years, 6 months ago)
Lords Chamber
To ask Her Majesty’s Government whether they discussed the issues of democracy, the rule of law and respect for judicial judgments with the Prime Minister of Pakistan on his recent visit.
My Lords, democracy and the rule of law were discussed with Prime Minister Gilani during his visit. We discuss these issues regularly with the Pakistan Government.
I thank the Minister for his reply. Is he aware that Yousaf Raza Gilani was convicted by the Supreme Court of Pakistan of contempt for failing to ask the Swiss authorities to reopen a money laundering case against the President? Is he also aware that his son, Ali Musa, is being investigated by the antinarcotics force for importing 10,000 kilograms of the controlled drug ephedrine, which is used for producing cocaine and other drugs? What message did Her Majesty’s Government give to the people of Pakistan when they invited a Prime Minister who is not even accepted by the opposition in Pakistan as the Prime Minister, and when there are allegations that he is corrupt, that his son is involved in drug production and that his President is involved in money laundering?
I am aware of the matters that the noble Lord raises, but I must emphasise that they are internal matters for the Government and people of Pakistan and are not matters in which we can be involved. The discussions which we hold are, in general terms, about democracy, the rule of law and the aspirations to see Pakistan develop in a stable, democratic way. Pakistan is a friend and a nation that has faced great difficulties. When friends face difficulties, you help them; you do not just walk away.
Did the Government raise the place of the blasphemy law in Pakistani life and its use to pursue personal vendettas against Christians?
Yes, we raised the blasphemy legislation, religious intolerance and evidence of it. These subjects were raised not just during these talks. They are raised constantly by our High Commission, by visitors and by Ministers. My noble friend Lady Warsi certainly raised them when she last visited. These are issues that are very much our concern, and we keep raising them.
My Lords, does my noble friend agree that the issue of contempt of court by the Prime Minister is dealt with very adequately in the Commonwealth Latimer House guidelines, which refer to the relationship between the Executive, Parliament and the judiciary? Pakistan is a signatory to those guidelines, which were agreed by the Commonwealth Heads of Government Meeting in 2003. Will the Minister tell the House whether the Government are assisting with judicial training in that regard, so that the Pakistani judiciary can be better apprised of its responsibilities?
Yes, we are assisting with judicial training and huge educational programmes. The Government’s overall training and aid programmes in Pakistan are substantial. If the path is smooth over the next two years, Pakistan will reach the remarkable level of being the largest recipient of British aid, training and technical assistance, with a sum of around £446 million a year being given if everything goes according to plan. Certainly, on the judicial side, yes, these are areas where we can help and which can be assisted and reinforced in a Commonwealth context as well.
My Lords, I understand the point that the Minister makes about the considerable difficulties and the fact that one needs friends to get through them. However, in a hard-headed sense, have the Government made an assessment of the extent to which Pakistan meets the unfortunately named Harare principles overall as a working democracy?
These are matters that are looked at in the Commonwealth context. We want to see Pakistan develop as a strong, stable, constitutional democracy with respect for the rule of law and judicial judgments, which are in the interests of all Pakistan. We constantly encourage all involved to act in ways that respect these principles. These are things that we do all the time. They are discussed in Commonwealth circles and are matters to which the people of Pakistan themselves recognise they must aspire. I cannot put it more precisely than that. Assessments of what occasionally goes wrong, and positive ideas about how to help, are made all the time.
My Lords, I declare an interest in that the diocese of Wakefield has a long and enduring relationship with the diocese of Faisalabad in Pakistan. Indeed, we recently brought people with different religious convictions to this country to talk about how we deal with coherence here. Following the question of the noble and right reverend Lord, Lord Harries, will the Minister tell us whether the Government have received any commitment from the Government of Pakistan on doing something about the religious atrocities that have been committed in the past few years?
I can say only that these are matters that concern us deeply. We raise them repeatedly with the Pakistani authorities and Government. We believe most strongly that religious tolerance of minorities and protection of their rights must be enhanced in ways that they clearly have not been in the recent past. We will continue to make the maximum effort on these fronts. Beyond that, I cannot be more specific.
My Lords, the other side seems to know what the Harare principles are but on this side we do not seem to know at all. Could we be enlightened?
I am sorry to hear that. The Harare principles, and another whole series of declarations, are those drawn up by the Commonwealth network—that is, the Commonwealth at its Heads of Government Meetings—over the years. The Commonwealth today is a completely modern network, which is engaged at this moment in developing an even more ambitious charter that not only asserts the commitment to democracy, the rule of law, good governance and respect for human rights, but sees that these things are effectively policed so that the Commonwealth is a network of nations that uphold the values that we admire most.
My Lords, will the Minister tell the House whether the Government discussed with the Pakistani Prime Minister the problem of young British Pakistanis—young men as well as women—who are taken to Pakistan by their parents for the purpose of forced marriage? If it was raised, what response did the Government receive?
I do not have that on a specific list of issues that were raised in the meeting to which I referred. However, it is certainly a matter that is on our desks and we raise it in dialogue with the Pakistani Government. I cannot be more specific than that, but if I can find a more specific answer I will convey it to the noble Baroness.