Future of the Commonwealth

Lord Soames of Fletching Excerpts

Wednesday 21st March 2018 Westminster Hall

[Richard Graham]

The hon. Lady makes an interesting point. The question of standards and regulatory resource capacity and implementation, which ultimately boils down to the rule of law, is critical. If we say, as we often do, that among the shared values of the Commonwealth are those of democracy, language, the rule of law, accounting standards and so on, we should not be complacent about assuming that they are all the same in every Commonwealth country and that they are equally well implemented. That comes back to one of the issues from the report by the Eminent Persons Group in 2013, which the Minister will remember well because he was in the Foreign and Commonwealth Office at the time. A commissioner was going to be appointed to look at the quality and the implementation of democracy in its widest sense, including—in my interpretation anyway—the rule of law. The business of standards is absolutely critical. The Minister may want to comment on that when he speaks.

We are hearing from across the Chamber an enthusiasm for more business, and not just for business’s sake but as a catalyst for improving living standards for millions of people across all continents. We in the United Kingdom may want to look at what more we can do with our resources. It was mooted in a recent House of Lords debate that perhaps we should have more trade envoys with Commonwealth member responsibilities. I think there are seven of us at the moment who are trade envoys for the Prime Minister with Commonwealth countries, but there may be a case for increasing that number, to see whether the team would benefit from further recruits, especially from those with close links to the Commonwealth countries to which they might be appointed.

There could also be a real effort by the United Kingdom to open doors and opportunities through our large, thriving financial sector. For example, we have great fund managers such as Standard Life Aberdeen or Schroders, but I am not aware of any investment opportunity into a Commonwealth-branded fund. That would be an obvious potential opportunity. Perhaps it should be done by one of our smaller and nimbler venture capital or private equity outfits, but a Commonwealth fund could have real emotional appeal and could attract a large amount of funding that, if focused on venture capital, could encourage a resurgence of Commonwealth entrepreneurs.

At the same time, with our new and invigorated UK export finance, where we have announced huge sums of money available, particularly for the region of the Association of Southeast Asian Nations, where I have trade envoy responsibilities, surely there is an opportunity at this CHOGM to make an announcement that UK export finance will provide a large fund of perhaps £2 billion to £5 billion of finance available as insurance credit for business partnerships around the Commonwealth. That would be a good start and would demonstrate our commitment to promoting greater intra-Commonwealth trade.

Behind that, there are what I might call the two step-brothers that are critical to every country across the Commonwealth: cyber and FinTech. In these sectors, the UK can offer a huge lead for, and partnership with, other Commonwealth countries. We already do so, particularly with Singapore in the far east, but there must be greater opportunities for doing so with Commonwealth partners, particularly in Africa.

I recommend that the Foreign Office—the Foreign and Commonwealth Office, rather; let us not forget the C—proposes to the Commonwealth secretary-general, my former fellow trade envoy, Baroness Scotland, that she considers setting up a new Commonwealth cyber body as soon as possible to bring together expertise from the UK and other member states, and considers ways of increasing capacity for the protection of all digital facilities, Government and non-Government, in member states.

[Sir Nicholas Soames (Mid Sussex) (Con)]

I congratulate my hon. Friend on securing this important debate. I am sure that he already knows this, given that he is trailing heavily with his tailcoat, but I understand that the cyber proposal he mentioned has already received considerable support, and that a large number of our fellow Commonwealth members will take it up during CHOGM.

[Richard Graham]

In fact I did not know that, but it makes logical sense. If that work is already under way, I am delighted. Perhaps the Minister can say more about it, because that is exactly the sort of initiative we need. I am grateful to my right hon. Friend for his intervention.

The next stage, which brings me back to what my hon. Friend the Member for Filton and Bradley Stoke (Jack Lopresti) said, is the whole business of training and skills. For everything I have mentioned—standards, fund management, export credit, cyber and FinTech, and promotion of development causes—we will need more skills, and not just in this country but throughout the Commonwealth. Training courses and the handover of skills through higher education and vocational qualifications are critical to the way the Commonwealth moves forward. The UK has a huge amount to offer in that context through organisations such as TVET, but specific sectoral skills also need to be passed on, and there is arguably no sector more important than the armed forces and the police. Widening our security links with Commonwealth countries and improving their security will be crucial to the success of those sovereign states and to ensuring that there is less volatility in governance than there has been in some of them in the past few years.

--- Later in debate ---

[Sir Nicholas Soames (Mid Sussex) (Con)]

I congratulate my hon. Friend the Member for Gloucester (Richard Graham) on securing this important debate and making an excellent speech. This is a timely debate at a moment of importance in the affairs of our country, as we face a crossroads following our decision to leave the European Union. Britain is in a state of flux as we work out how we are to play effectively our global role in a new world. This is therefore an extraordinarily good moment to have this debate and to look forward to CHOGM and all that it will mean for the future of the Commonwealth and for its presence in this country.

We maintain a truly excellent but rather reduced diplomatic service, which, incidentally, must be properly resourced for its new duties, and a still highly effective military—I endorse entirely the point made by my hon. Friend the Member for Gloucester—on whom we will need to spend more money in the years to come to cope with the myriad threats. But one of our most important positions is to be at the very heart of the Commonwealth with our Queen at its head. The organisation has tremendous possibilities for its members and as an institution in the years to come. It comprises 53 nations and there are more than 100 Commonwealth institutions in London alone.

The bonds of history, language and political and other institutions shared by Commonwealth members are matters of celebration and could indeed represent great opportunities for Britain in a post-Brexit world, but they should never be taken for granted. Britain should be aware that in the 45 years since we joined the European Union, the world and the Commonwealth have both changed markedly in their perception and action towards the others. Finding areas of common interest in free trade across highly sophisticated and developed economies such as the UK, Canada and Australia will be a serious challenge.

I congratulate my noble friend Lord Marland, my right hon. Friend the Member for East Devon (Sir Hugo Swire) and others who have driven forward the visionary work of the Commonwealth Enterprise and Investment Council. I very much look forward to working with them over CHOGM.

Above all, in respect of the Commonwealth or any other trading organisation, we need to put flesh on the bones of global Britain, which at the moment is a slogan in pursuit of a strategy. It remains the case that there is a Commonwealth advantage. With its shared values, regulatory systems and language, there is no doubt that it has the potential to greatly increase intra-Commonwealth trade by possibly up to 20%, and could substantially cut the cost of doing business between member states. However, we need to keep a proper sense of proportion.

In 2015, 44% of our total UK exports of goods and services went to the European Union, while 9.5% went to the Commonwealth. This is a very big ask and a very important one. The biggest trade challenge for post-Brexit UK is not to get better trade deals with the rest of the world, although that would be good, but to get deals that are as good as those that now exist, most of which are multilateral and regional. We must remember that geography trumps history. This will be fiendishly difficult. Trade agreements are not something that happen at the drop of a hat; they take a lot of time and are complicated and deeply transactional.

I endorse very strongly the words of my hon. Friend the Member for Gloucester about India, which is interested in doing more trade with the United Kingdom. We have a long-standing and important relationship, but India will have its own demands on how many migrants are able to come here and the ease of getting visas to work. Surely to God we can work that out.

I wish to conclude and not take up my full time, but I wish to endorse again what my hon. Friend the Member for Gloucester said in an outstanding speech about the great debt that the Commonwealth and this country owe the Sovereign for her work in keeping together the Commonwealth through thick and thin and some very difficult times indeed. I hope that the gathering of the Commonwealth family will recognise that astonishing work and will see to it that, as my hon. Friend said, the succession is passed in good order. Finally, I hope—may all of us hope—that at a correct and goodly time Zimbabwe will return to the family of the Commonwealth.