Thursday 14th June 2012

(12 years, 5 months ago)

Westminster Hall
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Eric Joyce Portrait Eric Joyce (Falkirk) (Ind)
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I commend the hon. Member for Croydon South (Richard Ottaway) on his excellent report. I am not a member of the Committee, and I will not detain the Chamber for long, but I was interested in the recommendation in paragraph 27 of the Government’s response:

“We conclude that the Government should not pay or assist in the payment of ransoms but”—

crucially—

“nor should it make it more difficult for companies to secure the safe release of their crew by criminalising the payment of ransoms.”

As the hon. Gentleman said, the Chamber of Shipping sent a strong briefing to hon. Members here and elsewhere. There are many acronyms, concepts and ideas involved in the debate about using armed guards, the payment of ransoms and so on, and there have been recent examples of people being taken captive for a ransom elsewhere in the world on land and at sea. It is self-evident that if someone demands a large amount of money for a loved one, and that they will be killed or executed if it is not paid, everyone would want to avoid that.

The taskforce’s general direction of travel on ransoms, announced on 31 May, was to reduce or constrain payment—although I may be wrong, and a Minister may correct me. It is most unlikely that anyone could convince foreign Governments not to pay, and not to assist or facilitate payment. Indeed, there are examples of foreign Governments—it is probably best not to say which ones—possibly making payments, and certainly of Governments facilitating payments. Even if the UK obtained agreement from some members of the taskforce, it is most unlikely that the payment of ransoms would stop. Pirates would still be attacking ships and taking people hostage. They would not be taking people hostage on the basis that their country was one that would facilitate a ransom payment. The risk is that we could end up with a two-tier situation, and some people would be released eventually. As the hon. Gentleman said, Judith Tebbutt was released after payment of a $1 million ransom, and it was reported that someone, perhaps even a news agency, helped to pay £500,000 for the Chandlers. A sad recent example was a Scotsman, Khalil Dale, who was kidnapped in Pakistan. There was evidently and clearly a financial imperative in the demands of the people who kidnapped him, and his employer, the International Committee of the Red Cross, said that its policy, as the Government suggested, was not to pay ransoms.

There is a distinction between a Government who make a political policy decision not to pay ransoms, and an employer. For many different reasons, and given the scale of their work, the Government’s exposure to risk is far greater than that of any employing organisation, and seafarers belong to the latter group. It therefore seems quite improper to constrain employers who may have seafarers at sea from paying ransoms in cases when they could get someone released.

People are held in Somalia, having been captured off the coast. For example, MV Iceberg 1 is still being held; two people are dead and others have been held for more than 800 days. We know that the longer it takes to get a ransom paid the longer people are held in captivity, and that when a ransom is paid, they are likely to be released. Few UK citizens have been affected.

Martin Horwood Portrait Martin Horwood (Cheltenham) (LD)
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The hon. Gentleman goes to the heart of the knotty moral problem of paying ransoms. Is not the problem that although paying a ransom may well save the life of an employee or a loved one, it encourages the taking of hostages and the risking of other people’s lives? Indeed, it pays for that to be facilitated. Surely we must encourage shipping companies, and others, to take a firm stand against the payment of ransoms.

Eric Joyce Portrait Eric Joyce
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The hon. Gentleman describes the point that we all regard as central to the question. Paying ransoms may encourage pirates, but my instinct is that pirates in Somalia are looking not at the policies of international Governments but at the fact that it is possible to get a ransom payment. I greatly doubt that Governments across the world will agree not to facilitate ransom payments. Indeed, I can list—we all can—the Governments who are highly likely to encourage the facilitation of ransom payments. Therefore, if we say that we will discourage such payments, British citizens will be affected but no one else. It is true that the UK has considerable influence because of its importance in the maritime industry and the presence in the UK of the International Maritime Organisation, but it is highly unlikely that other countries would agree not to pay ransoms.

If there was a billionaire whose daughter had been captured and was about to be shot, and there was a £2 million ransom, would they pay it or would they say, “No, I don’t think I will because it’s just going to encourage others.”? Of course they would pay it. If people are discouraged from taking up kidnap and ransom insurance, the risk is that we will end up with only rich people being able to secure their safety. We know of one or two cases, including that of Judith Tebbutt who luckily was able to secure a large amount of money—$1 million—to secure her freedom. If no kidnap and ransom insurance is paid, other employees will be at considerable risk of exposure.

The case of Khalil Dale in Pakistan is relevant, if perhaps only tangentially. The non-governmental organisation in question was described as “brave” for taking a decision that led inevitably to Khalil Dale’s death. I did not regard that as brave. I thought it was a businesslike decision that, in the worst case, saved the organisation money because kidnap and ransom insurance is expensive. Commercial companies can build insurance into their expenditure and planning assumptions, and it seems a bit too easy for employers to say, “Well, the Government say that this is the best thing to do.” If someone who works for an NGO is unfortunate enough to get captured and a ransom is not paid—imagine, for example, someone on land in Somalia—they are much more likely to be held for many months, or even killed. If they are lucky enough to be employed by an organisation that has paid kidnap and ransom insurance, there is a strong chance that they will be released. That is the realpolitik of the matter.

In conclusion, we should be cautious about assuming that just because we say, “This is a jolly good thing”, everybody else will agree. If we decide to discourage, or in the worst case, make it unlawful to pay kidnap and ransom insurance, employees—the people about whom organisations must be concerned—will be exposed to much greater risk. That is why in this dilemma I come down strongly on the side of paying kidnap and ransom insurance, and I think NGOs ought to do that as well.

--- Later in debate ---
Martin Horwood Portrait Martin Horwood (Cheltenham) (LD)
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I congratulate the hon. Member for Croydon South (Richard Ottaway) and his Committee on securing this timely and important debate and the whole Committee on the report, which is an authoritative and important contribution to British policy making in the context.

The problems associated with piracy are well understood by everyone here. It is conducted on a staggering scale in the Indian ocean, and I think that the report suggests that between 1,500 and 3,000 pirates are operating there. It affects trade through the Gulf of Aden worth hundreds of billions, if not trillions, of dollars to the global economy. Any disruption of that trade certainly affects not just British companies, but companies all over the world, and the insurance and other markets that support it. There are disturbing trends, which the Select Committee drew attention to, including—and probably most worryingly—increasing violence against hostages, which was not a particular characteristic of Somali piracy a few years ago. On top of that, there is the fact that such piracy has been going on for decades. The international community despite, I think, nine United Nations Security Council resolutions and three multinational naval operations, has not remotely cracked the problem. As we have heard, the amount of ransom that is being paid is on the increase.

That is not to say, however, that there are not some positive signals. In Somalia, the situation on the ground seems more promising than for many years. That is partly due to the courage of African Union and other international forces, which have secured more territory than for many years. There is some evidence that progress is being made against forces such as al-Shabaab, although it continues to control huge swathes of the country.

Rory Stewart Portrait Rory Stewart (Penrith and The Border) (Con)
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Will the hon. Gentleman reflect on how serious or sustainable the progress in Somalia is? Is he confident that in three years’ time Somalia will be significantly better than it is today?

Martin Horwood Portrait Martin Horwood
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I cannot predict the future, but the fact that Mogadishu is now an overwhelmingly secure city, which was far from true only a few years ago, and that the Foreign Secretary and International Development Secretary can visit cities such as Mogadishu with a degree of confidence about their personal security is a quite dramatic shift, as I am sure that the hon. Gentleman would acknowledge. I do not say that securing a military solution is the only path forward, but the fact that African Union troops and others have made enormous sacrifices, displayed great courage and secured a large amount of territory should not go unnoticed.

There is also progress in the sense that areas of the internationally recognised territory of Somalia—mainly, in practice, self-governing areas such as Somaliland and Puntland—have achieved a reasonable degree of peace and security. The Government have shown wisdom in promoting a flexible attitude to territories such as Somaliland. The creation of the Somaliland Development Corporation, which the Government supported earlier this year, is a positive development. Trying to exploit the economic potential of the relative peace of areas such as Somaliland is a practical contribution to the provision of an alternative economic model to the chaos and piracy prevalent in other parts of the Somali territory. It is exactly right that the Department for International Development is prioritising development on the ground and the provision of economic alternatives to people in Somalia.

The convening of the London conference earlier this year was an important step, not just in relation to tackling war and conflict in Somalia and getting a co-ordinated regional approach, which the Select Committee asked for, but in making concrete contributions to progress on anti-piracy initiatives, including some things that have been mentioned: the taskforces on ransoms and the wonderfully named—let me get it right—Regional Anti-Piracy Prosecutions Intelligence Co-ordination Centre. I am sure that Hansard will report that I got that fluently right. The substantial financial commitment that the Government have made to RAPPICC is welcome, and we have provided its first director, Garry Crone. That support is welcome and exactly the kind of lead in international co-ordination that the Select Committee asked for.

On ransoms, Her Majesty’s Government’s instinct is exactly right. Briefings from non-governmental organisations such as Saferworld, which has talked to civil society in Somalia, make it clear that the economic model of piracy brings, in some cases, the most effective wealth provision into the local economy. If we can disrupt that business model and suggest that a peaceful, normal economy and society would be a more profitable way to develop—as we would obviously hope—we will have some chance of defeating the root causes of piracy. If we continue to fuel the ransom economy and pay money, that will be a massive incentive for Somalis to continue with piracy and to allow it to spread. If, as the right hon. Member for Tonbridge and Malling (Sir John Stanley) said, risk and reward are so imbalanced, why would piracy not spread down the coast of Africa? Why would not that model be emulated in other parts of the world?

Eric Joyce Portrait Eric Joyce
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Does the hon. Gentleman not think that the thing for a responsible employer to do, if two dozen employees are captured and a ransom is demanded—they may well be executed—is to pay it, as opposed to the view of NGOs, which appear on the whole to want to leave them to die?

Martin Horwood Portrait Martin Horwood
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No. I think that paying is profoundly irresponsible. There are even more extreme cases than that of an employer. It is difficult to tell someone whose loved one has been kidnapped—it would be difficult for me if one of my loved ones had been kidnapped—and other members of the family, “You should not pay.” That is a terribly difficult thing to say to someone, face to face. However, in the bigger picture, people are kidnapped because other people have paid ransoms, which paid for the boats and mother-ships and the lifestyle of the pirates that makes future ransoms, kidnaps and piracy much more likely. We must try to disrupt that business model. Trying to find a simple military solution is only half the answer. I am afraid that I think that the Government’s instinct is right.

Richard Ottaway Portrait Richard Ottaway
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What does the hon. Gentleman think would have happened to Judith Tebbutt and Mr and Mrs Chandler if no ransoms had been paid?

--- Later in debate ---
Martin Horwood Portrait Martin Horwood
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As I said, it is a horrendously difficult thing to say to an individual family or a company, “You should not pay,” but Governments must consider the larger picture and the fact that ransoms fuel the whole situation and that every payment of a ransom supports future piracy.

Richard Ottaway Portrait Richard Ottaway
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To use the illustration of a mugger, does the hon. Gentleman think that the best advice to give a mugging victim is, “Don’t hand over your wallet, because that will stop mugging in the future.”?

Martin Horwood Portrait Martin Horwood
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That is the police advice—[Interruption.] The police advice is to co-operate, I know, but that is where someone is at imminent risk themselves. The right hon. Member for Tonbridge and Malling set out the situation: it is a balance of risk and reward. The Government and the international community are addressing the risk element, because they are stepping up self-defence measures, and there is greater international co-ordination and increasing provision of private armed security forces and armed guards. The risk element is therefore increasing slightly, but the rewards are stupendous—hundreds of millions of dollars—and we must try to reduce the rewards or the economic model behind piracy will thrive.

I am afraid that this situation is the classic philosophical prisoner’s dilemma, where the individual action may be difficult to take, but the result on a larger scale is clear. Saferworld says clearly in its briefing, from its research on the ground in Somalia, that the continued payment of ransoms fuels and exacerbates the problem. We want to tackle those things and want people to be safer.

The hon. Member for Falkirk (Eric Joyce) asked what would happen to British ships in that situation and whether British hostages would be more at risk. I suspect that Somali pirates are quite good business men and can spot a red ensign, a white ensign or whichever British flag happens to be flying. If Britain acquired a reputation for not paying ransoms, it would balance out the risks and rewards of attacking a British vessel and they might think that it would be better to attack somebody else’s.

The principle has been established in other fields. It used to be more common practice for ransoms and payments to be made when hostages were taken in international terrorist situations, such as airfields. There was a concerted international drive to stop any hostage payments being made in those situations, and that form of terrorism has largely disappeared. It has sadly been replaced by many others. It is critical that we disrupt the business model of piracy. That was not the only issue that I was going to address; I will move quickly on.

On the military front, the moves towards international co-ordination are good. I note the existence of the European naval force. We ought to agree between these four walls not to tell the hon. Member for Stone (Mr Cash) about it. It is very effective, and a British operational commander is in place. The rejection of the catch-and-release approach was rightly highlighted by the Foreign Affairs Committee. It is important that that approach is abandoned, so increasing the risk that pirates face. We need more effective action to prosecute, using every available international or national legal jurisdiction that we can find. The British Government are taking a lead in that.

The report highlighted other issues, rightly including the disappointing progress to date in tracking financial flows—tens of millions of pounds are being trafficked. The Government and, indeed, the international community have been slow to provide ways to track it down and disrupt the flow. It is an important step in disrupting the pirates’ business model. It will be interesting to hear the Minister’s view.

The Foreign Affairs Committee is a little inclined always to want Britain to be the country taking the lead. These are global problems. Likewise, it insists that Britain plays the leading role in the naval operation. Although Britain is an important naval power, perhaps given our financial situation and the fact that it is a global problem affecting global business and threatening the lives of nationals of all countries, it is not absolutely necessary to have at least one British naval vessel on operation all the time. This must be done through international co-ordination.

On the prosecution of pirates when they are visible, the report says:

“Gathering evidence to secure a successful prosecution for piracy is clearly challenging, but when pirates are observed in boats with guns, ladders and even hostages, it beggars belief that they cannot be prosecuted.”

That is exactly right. I will be interested to hear the Minister’s comments on progress on the international front.

I think that the right hon. Member for Tonbridge and Malling was a little uncharitable in his comments on the use of force by private armed security forces. The UK legal situation is pretty clear. The Library briefing quotes an international law firm called Ince and Co., which says that

“the use of force in deterring or preventing what is a criminal act”

is justified. It continues:

“In the UK…lethal force is normally only allowed where there is serious and imminent threat to life. The decision to use lethal force must be reasonable and the force used proportionate.”

Further clarification on the exact definitions and terms will be obviously welcome whenever it arrives through the door today, and Government are working to provide that. Ince and Co. goes on to make the point that rules on the use of force need to be internationally agreed and as standardised as possible. That is required internationally. The IMO ought to be taking a lead, but it is possibly the slowest organisation in the world at doing almost anything.

In deference to other Members, because we were distracted, I will move swiftly to a conclusion. It is imperative to tackle the situation on the ground and provide different economic models. We should use the example of Somaliland positively to look at fisheries and try to present an alternative way of providing prosperity in the longer term for the people of Somalia, so that this appalling trade does still not offer the attractions that it does now.

Rory Stewart Portrait Rory Stewart (Penrith and The Border) (Con)
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The whole debate is a tribute to the astonishing attention currently being paid to Somalia. In fact, the increase in African Union troops from 12,000 to 17,730, and indeed this whole discussion, show how important Somali piracy is. I would like to sound a note of caution, however. The most important thing in the debate is not to get dragged in too deeply, or to be too ambitious in what we feel we can achieve on the ground in Somalia.

There are very grand theories going around about the importance of Somali piracy and linking it to theories of state building, economic development, regional stability and terrorism. The hon. Member for Cheltenham (Martin Horwood) made a number of those arguments. They are powerful, partly because a powerful industry supports them, trying to draw us ever deeper into Somalia. The components of that industry are various, but there are four.

The first is what I call the “forward school”, represented by people like my father, who quite like the idea of grand naval operations and keep talking about sending out Q-boats and remembering Julius Caesar attacking the shoreline. That is the naval “use it or lose it” approach, where a military complex likes to expand its area of operations to justify its existence.

The second is, of course, the Somali Government themselves, who find it very convenient to use Somali piracy to attract international attention and resources. They are increasingly adept at manipulating international sentiment on human rights and terrorism to attract more resources into their Government.

The third component is think-tanks. There is now a major industry, particularly focused on Islamic radicalisation and counter-terrorism, that is keen to connect Somali piracy with the obsessions of Washington think-tanks with the proliferation of al-Qaeda.

Finally, as the previous speaker pointed out, there are the aid agencies, which find it extremely convenient to use Somali piracy to argue for more investment in development operations in Somalia. Connections are perpetually made, and were made by the hon. Gentleman, with governance, failed states, economic development and alternative livelihoods, as they are in Yemen, Congo, Chad, Afghanistan and Sudan.

Martin Horwood Portrait Martin Horwood
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I recognise the hon. Gentleman’s long and genuine experience in the field, but having worked for a development NGO I think the suggestion that the NGOs are in some way fostering an image of Somalia in particular for the benefit of their business model and to encourage spending on development is rather extraordinary and, indeed, really offensive.

Rory Stewart Portrait Rory Stewart
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I am very happy to share endless statements from almost every major NGO and development agency that has attempted to draw links between their programmes on the ground in all the areas the hon. Gentleman and I mentioned and state instability, and indeed piracy itself. It is entirely normal. We have seen it all the way from Congo to Afghanistan. Somalia is absolutely no exception.

The problem with that kind of argument is twofold. First, there is a theoretical problem: the strong link between state instability, governance and developmental poverty and piracy is yet to be proven at any theoretical level. Secondly, the actual links, as Anja Shortland argued in a recent academic paper, are very fragile indeed. No link has so far been effectively established between the piracy and al-Qaeda, and very few substantial links have been established between piracy and the al-Shabaab movement itself. As for statements about development and state building, Anja Shortland argued that it is very doubtful whether the contribution of piracy to the Somali economy is anything other than marginally positive at the moment.

I am not saying that Somali piracy is not an evil in itself, or that poverty in Somalia is anything other evil. Both those things are true and important. Attempting to connect the two, however, draws us into a dangerous policy position. The solution is humility and context. Instead of endlessly inflating the problem of Somali piracy in order to draw in more resources, we need to acknowledge the reality of our situation.

We need to acknowledge first that, as many hon. Members have pointed out, we have made little progress on Somali piracy over the past five years. We have invested surprisingly little in the issue, despite an enormous amount of rhetoric. Despite nine UN resolutions and three multinational task forces, the reality on the ground is that there has been an increase in both the number of attacks and the amount of ransom money being paid. Moreover, despite an enormous amount of rhetoric and the idea that people read in The Daily Telegraph that this is the No. 1 priority of the British Navy, we have often only one ship or perhaps none at all in the region; in fact the matter does not actually classify at the highest priority level for our naval operations. Part of that may be due to mixed signals, influenced by the fact that the majority of the crews, unfortunately, are not citizens of OECD countries, and the majority of the ships involved have nothing to do with Britain itself.

However, there are much more fundamental limits constraining us and, unless we acknowledge those limits, we are going to get ourselves in trouble. Those limits are threefold. First, there is a limit of abstraction. Statements about governance, rule of law and economic development in Somalia are extremely vague and ill-focused. We have a poor understanding of governance and rule of law structures on the ground in Somalia, very little idea of what kind of country the international community could turn Somalia into, and few models to put forward. The isolated lives of our diplomats and other international officials, because of security issues and short tour lengths, and lack of linguistic expertise means that their understanding of what is happening at rural level in Somalia is extremely limited. All of that is disguised within a very optimistic language, which talks about a land-based solution, without any evidence that we have the knowledge, the power or the legitimacy to achieve that kind of solution.

Martin Horwood Portrait Martin Horwood
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I will resist the temptation to debate Anja Shortland’s conclusions, which I think demonstrate exactly the opposite of what the hon. Gentleman is saying, but on the specific point about the lack of a positive model, what about the example of Somaliland—he may regard it as a different territory, I suppose—and the British Government’s support of the Somaliland Development Corporation? Does not that look like a positive alternative model of development?

Rory Stewart Portrait Rory Stewart
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The problems in the al-Shabaab-controlled areas and in Puntland are completely different from those in Somaliland, and attempting to read from one across the other is highly misleading.

To conclude, the context needs to be put in place. The limited obligation that we have needs to be asserted: in other words, we do indeed have an obligation to the Somali people, as we have an obligation to the people of Congo, Sudan, Afghanistan and our own people, but the threat posed by Somali piracy and by Somali state instability to UK national interests is limited. It is a threat but it is one threat among many. Somalia is one of perhaps 40 countries in the world with which the United Kingdom and the international community needs to be concerned. We should not be raising the expectations of the Somali people through talk of our ability to deliver solutions that we cannot deliver.

This is not a recipe for pessimism. It is instead to suggest that we can make developmental progress, but we will not be able to achieve governance, rule of law, or state stability. We may be able to contain Somali piracy, but we are extremely unlikely to be able to eliminate it. Our objectives should be limited to ongoing counter-piracy operations, some development operations and an attempt to increase the likelihood of a political settlement and decrease the likelihood of civil war. Any attempt to claim that we can do more is likely to mislead the British people, disappoint the Somali people and draw us into a situation into which we should not be drawn.