Brexit: Gibraltar

Lord Suri Excerpts

Tuesday 21st March 2017 Lords Chamber

[Lord Suri (Con)]

My Lords, this report made for fascinating reading. So often in the debate that has engulfed this place and another place, we are told of the importance of keeping a soft border on the island of Ireland. However, Gibraltar is, as the Under-Secretary of State in DExEU said, “part of the British family”. I was gladdened to see the Under-Secretary travel over to Gibraltar recently to restate his commitments.

Ensuring the softest possible border between Gibraltar and Spain must remain a priority of the Government, and I am pleased to see them take it seriously. The Spanish Government have used Brexit as another opportunity to call for joint sovereignty over the Rock, but I repeat again the words of the Treaty of Utrecht, which cedes to the Crown,

“the full and entire propriety of the town and castle of Gibraltar, together with the port, fortifications, and forts thereunto belonging; and he”—

the Catholic king—

“gives up the said propriety to be held and enjoyed absolutely with all manner of right for ever”.

This report covers a number of important points. I welcomed the submission by the Government that EU funding commitments would be guaranteed by the Treasury until 2020. However, given that the final deal, if there is one, will come into force at roughly the same time, I would wish to see a more long-term commitment, perhaps until 2025, in order to start, post Brexit, with a clearer base and offer more certainty.

As I have called for before in relation to arts funding here, this report is refreshingly clear on the risks faced by Gibraltar especially from any cliff-edge removal from the single market. This should further focus minds on the importance of having a short-term transitional deal, about which both the Secretary of State for DExEU and the Prime Minister have signalled in favour. The fundamental point is that Gibraltarians were given a vote in the referendum and are being brought out despite being the most pro-remain voting district. The ultimate responsibility for ensuring that Gibraltar does not suffer lies with the Government. If its access to the single market is limited and prosperity is threatened, the Government should be prepared to further open up the British single market to ease financial pressure. In any case, the vast majority of Gibraltar’s business in the single market is with the UK.

The border with Spain is already fairly hard, given that Gibraltar is out of the Schengen zone and the customs union. It should be borne in mind that people having the freedom of movement to work in industries such as financial services and online gaming remains an abiding concern. If Spain were to make it harder for Spanish citizens to go to well-paid, secure jobs in Gibraltar, that would be an act of extreme pettiness, but it should not be ruled out. However, it would be surprising, given the ameliorating tone that Spanish diplomats and their Prime Minister have taken, calling for “calm” and “good negotiations” with reference to Article 8 of the Treaty on European Union.

Overall, I welcome the assurances given by the Government on funding and keeping sovereignty with the Crown, and I think that the focus of this report on negotiating as a single state with no bilateral Spanish talks is sensible, as is the rejection of a microstate-style status. The Government ought to bear in mind their responsibility to Gibraltar, and I have all confidence that they will.