European Union (Withdrawal) Bill

Mike Wood Excerpts

Report stage: First Day: House of Commons
Tuesday 16th January 2018 Commons Chamber

[Mike Gapes]

No, I do not agree that it is a perfectly adequate mechanism. The report published by the Government of Anguilla’s London office last summer, “Anguilla and Brexit: Britain’s Forgotten EU Border”, points out how we do not give sufficient attention to the needs and requirements of our overseas territories. Let me quote just one example: the position with regard to overseas development assistance. Since 2014, we have virtually stopped giving Anguilla any overseas development assistance through the Department for International Development budget, in contrast to some other overseas territories such as Montserrat and elsewhere, and yet it is receiving assistance from the European Union. There is a big concern, which I will come to later, about what will happen to the continued assistance that goes to Anguilla once we leave the EU. That assistance accounts for about 36% of the capital expenditure of the Anguillan Government. That huge amount comes as a result of assistance from the European Union, and it goes to Anguilla by virtue of UK membership of the EU, but once we stop paying into EU development assistance, does anybody think that the EU will continue to finance a British overseas territory when there is no longer any relationship between the UK and the European Union? These are very complicated questions.

[Mike Wood (Dudley South) (Con)]

I thank the hon. Gentleman for giving way and for treating us to the shorter version of his speech. Does he welcome the communiqué signed by the Government and the territories, which said that the UK acknowledged

“the importance of EU funding for sustainable economic development in some Overseas Territories and committed to ensuring that these interests were fully reflected in the UK’s negotiating position”?

Does he not think that that will be of great assistance to Anguilla and other overseas territories?

[Mike Gapes]

No, I do not; it is just words. It is all about what will happen in the negotiations. How much money are we prepared to put in? Will there be a payment into the EU budget in order to continue EU assistance to Anguilla, which does not come directly from DFID at this time? Those are interesting and complicated questions.

Like the UK, Anguilla lies outside the Schengen area, which also does not apply to French St Martin. Under EU Council articles 349 and 355 of the Treaty of Lisbon, French St Martin is classified as an outermost region of France, while Dutch Sint Maarten, Sint Eustatius and Anguilla are classified as overseas countries and territories of the EU. In 2017, in a factsheet entitled “Outermost regions”, the European Union’s Parliament stated:

“Regardless of the great distance separating them from the European continent, the outermost regions are an integral part of the European Union, and the acquis communautaire is fully applicable in their territory. However, owing to their specific geographical location and the related difficulties, EU policies have had to be adjusted to their special situation.

The relevant measures concern, in particular, areas such as customs and trade policies, fiscal policy, free zones, agriculture and fisheries policies, and conditions for supply of raw materials and essential consumer goods.”

The outermost regions of the EU are specifically mandated by the EU and, as such, will require specific negotiation in the context of Brexit to take account of their needs. The problem that I face is that the Government have not given us any detail either in the written answer that I have secured or on any other basis as to what they will do to protect the interests of Anguilla. Unlike Gibraltar, Anguilla does not have an effective big lobbying operation, because it does not have a relationship with City financial institutions in the same way. It is very much dependent on tourism. One of its problems is that, because it does not have an international airport, flights go into St Martin, and, at present, at 10 o’clock at night, there is no means of transit from Anguilla to St Martin. Consequently, people have to stay in St Martin and not go across to Anguilla because of those difficulties in communication.

We need to be able to help Anguilla help its tourist industry, and the best way to do that would be within the framework of the European Union, but of course the referendum decision and the way that it is being implemented by the Government mean that that will not be possible. As a result, Anguilla faces some real difficulties and dilemmas: 95% of its access for tourism and other economic measures will be subject to deliberations between EU member states during the course of the Brexit negotiations. Its fuel and desalination capacity will be exposed to negotiations on whether tariffs are to be added to oil imports from the Dutch island of Sint Eustatius.