UK and Sri Lanka: Bilateral Trade

Lord Naseby Excerpts

Thursday 11th December 2014 Lords Chamber

[Lord Naseby (Con)]

My Lords, it is a particular pleasure to join this debate and I thank my noble friend for instigating it. I go back 50 years with Sri Lanka, having worked there in 1963 for the Reckitt and Colman Group as a marketing manager, visiting every conceivable market in the year I was there. When I came back, I wrote a pamphlet in 1967 called Helping the Exporter. It even had to have a reprint, although there are not too many copies left nowadays. Before I came to the House I was a director of one of the major advertising agencies specialising in overseas trade, so I think I have a reasonable heritage to comment on trade between two countries.

The first thing I want to say is that Sri Lanka is very relevant to our country. The population is roughly 30% of the size of our own. I will not cover the same areas as my noble friend, but it is right to re-emphasise that growth since peace in 2009 has been roughly between 6.5% and the 8% at which it is currently running. I congratulate Her Majesty’s Government on the trade mission that was put together at the end of November. I think our high commissioner, who I know is on his last few months there, put together a really good programme, and the feedback from the chamber of commerce in Colombo was very positive. Indeed, I shall quote one sentence from the welcome. Thankfully the high commissioner has put “Ayubowan” which is the traditional welcome in Sri Lanka. He says:

“With a Free Trade Agreement with China to be signed shortly adding to the existing FTAs with Pakistan, India, South Asia and Asia Pacific, Sri Lanka could act as a regional hub to over 3 billion potential customers”.

That is what it is all about.

I also inevitably did some research into, for me, a relatively new area, looking in some depth, not at the political scene, which I think I know backwards, but at the trade and commerce side. An excellent article appeared by a man called Jon Springer of Forbes Asia. He picks out a number of key determinants why Sri Lanka has such good opportunities for the UK to export there.

First, he picks out government stability. It is true that in 2009, once peace was there, there was stability on the ground. Added to that, there is now a railway system all the way to Jaffna. There are new roads, both up to Jaffna and down to the south-west. There is electricity, without permanent cuts, which was the situation for many years and certainly when I worked there. There is good electricity on tap. I would call that a rising peace dividend.

My noble friends mentioned the stock market. No wonder Sri Lanka is proud if our stock market is using software from Sri Lanka. I would be jolly proud if that happened. A friend of mine, a Tamil, is a director of one of the major companies, MAS, a major clothing manufacturer exporting all over the world. It exports here to Marks & Spencer and other retailers. I went round not only his factories, but the housing developments for some of their people. They are extremely well done. Yesterday, I went to Human Rights Day in the Foreign Office, where there was talk about the need for the corporate sector to show a proper response to its workers and others for whom it is responsible. In passing, I say to my noble friend that I thought yesterday’s initiative, Human Rights Day, was very good indeed.

John Springer also picked out a comment that I had also seen from Ceylon Asset Management, which, I admit, is at the far end:

“We expect 25% growth in the equity market on average per year for the next five years. If you think about it, that isn’t that much space on 7 to 8% growth in the economy annually. What people don’t realise is that on a per capita basis, Sri Lanka is twice as rich as India”.

I think that is probably blowing a trumpet a bit, but nevertheless, there is positive note there.

Then, of course, next door there is a big brother, but a very much changed big brother. Modi’s India is there with a link for Sri Lanka to be the hub for goods and services on their travels eastward to drop in to the brand new port at Colombo city. There is the additional new port down at Hambantota and the revitalisation of Galle harbour, by kind permission of the Dutch. All that means that this is a real opportunity for growth.

I have been a tourist in Sri Lanka on a number of occasions. I was a tourist in the very early days when if you were on the shore you ate fish curry and if you were up country you ate chicken curry. Today, there are wonderful hotels. I looked at the figures, which are astonishing. This year, it is estimated that there will be 1.6 million tourists and there has been a steady increase in the amount of money that tourists spend.

Sri Lanka is really becoming a middle-income country, although there are obviously poor parts of it; I think I know where they are as well. The real estate market is moving in Colombo and surrounding areas and that is a positive move. Are there risks? Of course, in every commercial world—and I was in it for quite a long time—there are risks. There is one simple thing that Her Majesty’s Government can take on board, which is supported 100%, I am pleased to say, by our high commission. If we want to do more trade with Sri Lanka, we have to speed up the process of issuing visas to those coming on a short-term visit to do business. Although the Foreign Office claims that it is to save money that visas have to be processed in Chennai, that is a nonsense. We even built a building in Colombo to do the processing. It is sitting there idle. What would be the net extra expenditure for a couple of officers to process the proper visas, maybe just for business visitors? That really needs to be looked at. That is my plea to my noble friend on the Front Bench.

There are some other handicaps. I will highlight three. One is the Small Business, Enterprise and Employment Bill going through your Lordships’ House. Parts 7 and 8 and Schedule 3 require that shareholders holding 25% or more, or having some control over a company ownership, have to be kept in a register and that register must be made public. Admittedly, this applies only to UK companies, but I have to tell my noble friend on the Front Bench, as one who has worked and lived in that part of the world, as far as the Middle East and south-east Asia are concerned, nobody wants to have their public or any other public look at a register. That leaves them open to creative journalism and, I am sorry to say, one or two creative NGOs. There is ample provision to check on fraud, money-laundering and other provisions. However, I think my noble friend will have to pass on a message to his noble friends that that will cause a huge problem for trade.

I am sure there are those in the Chamber who wonder why I have not even mentioned politics. I have to mention it on a couple of issues, though. Here in the UK there is a challenge from the part of the Tamil diaspora that just pours out propaganda. I must get one or two things a week, telling me that dreadful things are happening every day, and, more importantly, that Eelam is still on the agenda—that is, the independence of the north and possibly the east. Frankly, that does not help anybody. What I find so disappointing about the Tamil diaspora is that the amount of money and investment that is going into the Jaffna region is so tiny that it is almost embarrassing to record how low it is.

Add to that the news we had yesterday or the day before about torture in Guantanamo Bay. There are allegations of torture in Sri Lanka. On my last visit, I did my level best to check with all the independent authorities whether there was any evidence of torture, particularly the ICRC, which said that there was none. However, we keep getting the odd report, without substantiated evidence, that there is torture. We need to take all those with a pinch of salt.

There are also claims that there is religious intimidation. I say to my noble friend that there is not. There is diversity of faith there. Certainly the Sri Lankan Government are not stirring it up one way or the other. Should we not reflect that mosques were burned down in Luton, Bletchley and Birmingham? We do not know who perpetrated that situation but we know that it is wrong. I believe that the Government in Sri Lanka will be equally keen to find out who is responsible there.

Overhanging it all is the OHCHR situation in Geneva, which, frankly, is not recognised by the Sri Lankan Government. Perhaps more importantly, it is not recognised by a number of Commonwealth countries, including India and Australia. We will have to see how objective it is, but sadly the UN does not have a great history of objectivity in what has happened in Sri Lanka.

I conclude by saying that we have a new high commissioner going from here to Sri Lanka. I hope that he will have really good knowledge of commercial matters and will deal with that with energy. Sri Lanka has a presidential election on 8 January. I do not know who will win; I wish whoever does all possible success. I know those elections, as does the Opposition Whip; I am sure it will be a fair and full election. I thank those who have enabled me to take part in this excellent debate.

Piracy

Lord Naseby Excerpts

Thursday 16th October 2014 Lords Chamber

Asked by

[Lord Naseby]

To ask Her Majesty’s Government what plans they have to address the incidence of piracy off West Africa, particularly against oil tankers.

[The Minister of State, Foreign and Commonwealth Office (Baroness Anelay of St Johns) (Con)]

My Lords, the Government believe that the level of piracy off west Africa remains broadly stable year on year, but increased levels of reported kidnappings at sea have raised the profile of the issue. Piracy is one symptom of regional maritime insecurity. The UK is working bilaterally and multilaterally to address it through capacity-building initiatives in support of the 2013 Yaoundé code of conduct, which seeks to build and develop regional maritime security.

[Lord Naseby (Con)]

Is my noble friend aware of the estimates from the US maritime agencies that the incidence has increased by 80% between 2010 and 2013? That involved 1,200 vessels and no fewer than 279 kidnappings. In the light of that, should we not use the experience that we all had in Somalia: in particular, first, ensuring that vessels themselves have defensive methods on all ships and that transponders cannot be switched off; secondly, ensuring that when there is an incident, the navies of the nations are there to arrive on the scene in good time; and, finally, that UAVs are made available to locate all sorts of vessels?

[Baroness Anelay of St Johns]

My Lords, it might be helpful if I explain to the House that although we are talking about piracy, the matter falls into two legal capacities, and some of the figures amalgamate the two. Of the criminal attacks taking place at sea, some are in territorial waters—which is where the majority of the real theft is done, from oil tankers anchored off Nigeria—but outside those territorial waters there are also kidnappings and thefts of a much lower amount. Perhaps I may give a general answer to my noble friend’s three major questions. We do not believe that it would be appropriate to take from our experience internationally in Somalia and replicate it in west Africa. First, most of the crime in west Africa is in territorial waters, and in the area covered—from Senegal right the way down to Angola—there are a range of functioning Governments who can implement their own efforts to combat maritime crime in territorial waters. Outside territorial waters, maritime crime clearly has less of an impact. However, international discussions are going on. My noble friend raises the point, “Why not arm?”. The Government and the UK maritime industry have made it clear that they do not wish to see private armed guards on boats, because another difference between Somalia and west Africa is the level of sheer vicious assaults in the latter area. In west Africa they are not afraid to kill.

Sri Lanka

Lord Naseby Excerpts

Wednesday 2nd July 2014 Lords Chamber

[Baroness Warsi]

I note what the noble Baroness says. The violence in Aluthgama and Beruwala was deeply concerning, and she is right: there were not only fatalities but a huge amount of further damage. Of course we welcome the Sri Lankan Government’s assurances that they will investigate the attacks and prosecute those responsible. I am not sure what the latest situation is, but if there is any up-to-date information, I will certainly write to her.

[Lord Naseby (Con)]

My Lords, I declare an interest as chairman of the All-Party Group on Sri Lanka. Does my noble friend recognise that the imposition by the United Nations of an inquiry on a sovereign state—an imposition engineered by the US and supported by the UK—would not be likely to be well received in any country, particularly a country which has a democratically elected Government across all the ethnic groups? The vast majority of Sri Lankans supported the defeat of the Tamil Tigers. I urge my noble friend to think again and to encourage her Government to push the Sri Lankans on a one-to-one basis and to set aside a forced inquiry from the UN.

[Baroness Warsi]

I hear what my noble friend says, but this conflict ended in May 2009, which is more than five years ago. The internal inquiry reported in March 2011. The Sri Lankans have had enough time to deal with this matter if they had showed the political will internally to do so. They have not dealt with it, which is why we have taken this matter to the international forum.

Sri Lanka

Lord Naseby Excerpts

Wednesday 26th February 2014 Lords Chamber

Asked by

[Lord Naseby]

To ask Her Majesty’s Government, further to the remarks by the Prime Minister on 16 November 2013 that the United Kingdom would allow Sri Lanka until March to begin credible investigations into allegations of war crimes before taking steps through the United Nations, why they are already working to influence the United Nations Human Rights Council to call for an international investigation.

[Lord Naseby (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest as chairman of the All-Party British-Sri Lanka Group.

[The Senior Minister of State, Department for Communities and Local Government & Foreign and Commonwealth Office (Baroness Warsi) (Con)]

My Lords, the Prime Minister said that we will use our position on the UN Human Rights Council to call for an international investigation if credible domestic accountability processes have not begun properly by March. As with any resolution ahead of the March UNHRC, we are discussing the Sri Lanka resolution with members. The UN High Commissioner for Human Rights said this week that there were limited and piecemeal domestic steps towards accountability and recommended an international investigation.

[Lord Naseby]

I thank my noble friend but, as we are still in February, will she recognise that three things have happened recently? First, on war crimes, will the Foreign and Commonwealth Office study the evidence of the new Tamil film, “The Last Phase”? Secondly, will the Minister read Professor Moorcraft’s new book? Thirdly, on the book, Corrupted Journalism, there is now conclusive evidence that that film from Channel 4 features two key independent female witnesses, so alleged, who were in fact fully paid up members of the Tamil Tigers? Will my noble friend now publish the dispatches from our military attaché from Colombo, who witnessed the final stages of the war? Finally, will she encourage the work that South Africa and Sri Lanka are doing to construct a truth and reconciliation commission?

Exports

Lord Naseby Excerpts

Wednesday 8th January 2014 Lords Chamber

[Lord Livingston of Parkhead]

The noble Lord is indeed correct that we are seeing much change in manufacturing capability. The Government are investing significantly and have ring-fenced a science budget to assist in many UK projects. We have the “eight great technologies” that we will be investing in, and we are increasing the links between companies and universities; I commend the universities on that. We are certainly supporting the advanced manufacturing capabilities as well as a number of other technologies that we believe will really help the UK to go forward, investing in the right industries that will grow in the future.

[Lord Naseby (Con)]

Is the Minister aware that the extra resources being put into exports are enormously welcome, but that the weakness is still the marketing of those resources and the facilities that they provide, particularly on export finance to the SME market in general? Secondly, the Queen’s award for exports is looking exceedingly tired and is long overdue a revamp. Finally, if we are sending and attending conferences overseas on exports, can we please appoint a Minister early in the process and not turn up at the last moment, as my poor noble friend Lord Marland had to do in Colombo? He still did a very good job, but it was late in the day.

[Lord Livingston of Parkhead]

There are a number of questions there. At this point, I am probably not looking to rebrand the Queen’s award for exports, as the Queen does seem to be the right person to award it. In terms of UK Export Finance, my noble friend does make a good point; UK Export Finance has predominately supported larger companies. We have, however, doubled the number of regional advisers for UK Export Finance, and we have launched a new product aimed at assisting smaller companies. In fact, I was at the meeting of the all-party parliamentary group on this issue, and I heard a number of small and medium-sized businesses commending the work of UK Export Finance, but there is more work to be done.

Commonwealth

Lord Naseby Excerpts

Thursday 17th October 2013 Lords Chamber

[Lord Naseby (Con)]

My Lords, as the House may know I am chairman of the All Party Sri Lanka Group, which I started in 1975. I try to go to Sri Lanka once a year. My very best friend is an active Tamil living in the south of the country, leading the campaign for the rebuilding of Jaffna hospital, so I do not take all my information from the high commission in London.

Let me say at the start that Sri Lanka is a founder member of the Commonwealth and a very proud member. It is even more proud to hold this CHOGM convention. There are four core values: democracy, freedom of the media, human rights and trade. Let us start with democracy. There always have been elections in Sri Lanka. Only once, under JR Jayewardene did the then president decide that, because he had done so well in the provincial elections, he did not need to rerun to be president. Nevertheless, the turnout embarrasses us. It is more than 80%, nearly 90% quite often. Its register embarrasses us—it is better than ours. No one, so far, in Sri Lanka has been prevented from voting, as happened in parts of the United Kingdom in our last general election. In addition, it has had two female presidents. So far, we have had only one female leader.

On the media, there was censorship during the war; of course, there was. We had censorship in the United Kingdom during the war. When I went there just over a year ago, I saw every leading editor in the English language press, including from the Sunday Leader, which is every bit as strong as Private Eye, the New Statesman, or any other publication. When asked, individually, in a room that was not bugged, not one said that they suffered from censorship. There is no censorship. Yesterday I telephoned the Sri Lankan Government and asked about CHOGM. The statement that I was given was that all accredited media will be given access to CHOGM. I believe that that is absolutely fundamental, and I hope that my noble friend on the Front Bench makes a note of that.

Human rights are a challenge; of course they are. After 26 years of war that decimated the top half of Sri Lanka, it is as bad as Germany was in 1945. There are huge problems of infrastructure that are now being addressed. I hope that everybody who goes there will look at the way in which it is being rebuilt. There are new homes, new schools, the reopened railway line, and so on. We can travel up and down Sri Lanka, as the cook of another friend of mine did all the way from Jaffna by bus, without being stopped once or needing papers. People can go where they like and every member of CHOGM can go wherever they like or see whoever they wish. There are still challenges. The LLRC, which was boycotted by the human rights groups, has gone quite a long way and makes further progress each month.

Of course, other areas have still to be addressed. There are two outstanding: one is alleged war crimes. We are beginning to get the answers from the census—the first census done by Tamil teachers in the Tamil area showing that in the last days of the war somewhere between 7,000 and 9,000 people were killed. That confirms what the in-country UN report says—not the external report that is being advised by the Global Tamil Forum and other parties; it is what the in-country report says about the same figures. So we are beginning to get somewhere there.

As to the Chief Justice, all I can say to my noble friend is that I am not a lawyer. However, I have now checked the constitution and there is provision in it for the Chief Justice to be removed, and that provision has been followed. We should remember that the Motion to remove her was initially moved by the Opposition.

There are problems still but they are being worked on. Trade will provide a wonderful opportunity.

The members of CHOGM will be very welcome in this beautiful country where, thankfully, they nearly all speak English and foreigners will find it much easier. The delegates will be able to go anywhere and see anyone they like and they will be greeted by just one word, “ayubowan”, which means “welcome” in Sinhalese.

Shipping: International Maritime Law

Lord Naseby Excerpts

Monday 4th February 2013 Lords Chamber

[Lord Naseby]

Is not the reality that the NATO navies cannot cope on their own? The reduction now has come about because of a combined effort from the navies of NATO plus the private sector. Therefore, are the Government not right in the way in which they have approached this, working with the private sector and the merchant marines? It is not the first time that that has happened—and godspeed to those who work together to ensure that this scourge on that part of the world is brought to an end.

[Baroness Warsi]

My noble friend makes an important point. I add that it is also important that we work in the region to make sure that these pirates are captured, properly prosecuted and subsequently sentenced. That would send out a strong method that there is not a culture of impunity in this matter.

Somalia: Piracy

Lord Naseby Excerpts

Wednesday 11th January 2012 Lords Chamber

Asked By

[Lord Naseby]

To ask Her Majesty’s Government what naval contribution the United Kingdom will make towards, and what advice they will give to British-registered vessels on, combating piracy near Somalia after the current monsoon season.

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, the Government continue to provide support to the multinational naval operations off the coast of Somalia. For example, we provide the operational commander and headquarters for the European Union’s counterpiracy operation and we will provide a ship to the combined maritime forces throughout 2012 for counterpiracy tasking as part of the forces’ wider operation. The Government urge all shipping transiting the high-risk area to comply with the industry’s best management practice. The Department for Transport has also published interim guidance on the use of armed guards in exceptional circumstances to defend against pirate attacks.

[Lord Naseby]

Is my noble friend aware that despite the welcome news that he has given today the situation remains extremely worrying as the geographical area of the ocean covered by the pirates gets ever wider? Is my noble friend further aware that already 10 per cent of shipping is being rerouted around the Cape at a cost of £3 billion and it is forecast that that may rise to 30 per cent? Against that, should we not confront the pirates in two further ways: one by deploying UAV aircraft to pinpoint exactly where the mother ships are that support the pirates; and, having pinpointed them, surely the naval operations should go on the front foot and sink them rather than just react to situations?

[Lord Howell of Guildford]

My noble friend is quite right that this is a very serious situation spreading of course not only to the Gulf of Aden area, but out into the Indian Ocean and the west of Africa. He perhaps would accept that the statistics show—maybe because of diversion of shipping but for other reasons as well—that successful attacks fell dramatically last year. There were 127 attacks in 2010, 47 of which were successful, and by 2011 there were more attacks—150—but only 25 were successful. The success rate for the pirates in achieving their ugly objectives has been much reduced. Nevertheless, my noble friend is absolutely right that very firm action is required. The matter of UAVs is under consideration but there are difficulties, even for UAVs, in covering such an enormous area. We are talking about somewhere twice the size of Europe. On the question of vigorous action when these pirates are encountered, the Government believe that interim guidance is a strong first step, as initiated by my right honourable friend the Prime Minister, in his discussions on these matters in Australia a few months ago. The details laid down are definitely an advance in dealing with pirates in a most vigorous manner, and rightly so.

Human Rights: Kashmir

Lord Naseby Excerpts

Tuesday 12th July 2011 Lords Chamber

[Lord Howell of Guildford]

The noble Lord has boldly and bravely raised this question a number of times. It is one that I am ready to call to the attention of my colleagues and it has been noted. There is clearly a backlog problem; there may be other problems as well. Those are a matter for close concern.

[Lord Naseby]

Will my noble friend confirm that Her Majesty’s Government will resist the temptation to put pressure on the three who have been appointed to investigate and give them sufficient time, without external pressure, to come up with their findings?

[Lord Howell of Guildford]

Yes.

Shipping: Piracy

Lord Naseby Excerpts

Tuesday 15th March 2011 Lords Chamber

Asked by

[Lord Naseby]

To ask Her Majesty’s Government what action they are taking to mitigate and eventually eradicate the hijacking of United Kingdom shipping by Somali pirates.

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, Her Majesty’s Government contribute warships to multinational counterpiracy operations and command the European Union operation. We work with industry to implement best management practice by ships to minimise the risk of a successful hijack, but the long-term solution lies on land with the rule of law and increased stability. The United Kingdom is leading international action in the Contact Group on Piracy off the Coast of Somalia to deliver a comprehensive response to Somali piracy.

[Lord Naseby]

Is my noble friend aware that the situation gets ever more serious? Two major tankers have been hijacked in recent days, nearly 800 hostages are being held, and now no less than 10 mother ships are extending the amount of ocean in which the hijackers can operate. Since we as Her Majesty’s Government are in the lead role, is it not time that in conjunction with our partners we use some of the UAV planes to pinpoint where these mother ships are and, if necessary, either sink them by an armed UAV or find some other means of sinking them? After all, the Tamil Tigers’ navy was put out of action only by the Sri Lankan navy sinking the mother ships.

[Lord Howell of Guildford]

My noble friend is absolutely correct. The situation is getting more serious every week. More and more ships are being attacked by the hijackers and the piracy operation is growing, so he is completely right to recognise the seriousness, as do Her Majesty’s Government. We are, as he says, in the lead on the Contact Group on Piracy off the Coast of Somalia. We are seeking to develop more substantial facilities to meet and track the pirates. The question of the UAVs is difficult. We have none, but of course our American allies do. A great many of these are currently deployed elsewhere, but my noble friend can rest assured that we intend to develop a more robust response in relation to these and other kinds of maritime air patrol because it is certainly needed.