Letter to the Clerk of the Committee from
the Parliamentary Relations and Devolution Department, Foreign
and Commonwealth Office, 12 July 2004
GIBRALTAR
I write in response to the Committee's letter
of 22 June, requesting a detailed note on action by authorities
in Spain to ban ships which had previously called at Gibraltar
from Spanish ports, and related matters.
The Committee asked a number of questions. We
understand that the Spanish legal position is that, under EU law,
in particular Regulation 4055/86 BC, there is no obligation on
their authorities to grant access to vessels which are non-EU
flagged and which have non-EU owners. They therefore claim that
it is within their discretion to ban such ships from Spanish ports
if they have previously called at Gibraltar. We believe that this
action is illegal and constitutes an obstruction to the free market
in services for EU citizens both on board the ships and in the
ports affected.
Following the meeting between the Foreign Secretary
and Snr Moratinos on 20 May, Spain has introduced a moratorium
on such action. This is in itself welcome, but we want to reach
a permanent solution. We have therefore continued to raise this
issue at official and ministerial level with the Spanish authorities.
In addition, the UK Permanent Representative has asked the Commission
to investigate, and we understand that they have since raised
the matter with Spain. To support this investigation, we are working
closely with the cruise ship industry to establish details of
all instances of disruption. We hope to complete this work in
time to communicate it to the Commission before their summer recess.
We are fully aware of how serious the potential
consequences of this disruption are to the cruise ship industry
and to the wider economy in Gibraltar. But it is difficult, as
yet, to assess the full impact of Spanish action. Tourism constitutes
a significant proportion of Gibraltar's GDP. The cruise ship industry
requires stability to allow schedules to be prepared in advance.
A satisfactory resolution to this issue will need to allow Gibraltar
to play a full role in this market.
The Committee also asked for an update on the
pensions issue. We regard to the 1996 settlement, which ensured
that pensioners in both Gibraltar and Spain received 100% of their
accrued rights, as a permanent resolution. The Committee were
fully informed of this settlement at the time, along with the
Commission and the Spanish authorities. We remain ready to help
the Commission with further enquiries. But we do not accept that
there can be any meaningful linkage between this dossier and the
cruise ship industry in Gibraltar.
Matthew Hamlyn
Parliamentary Relations and Devolution Department
Foreign and Commonwealth Office
12 July 2004
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