1 Introduction
1. The Defence, Foreign Affairs, International Development
and Trade and Industry Committees began regular examinations of
the Government's strategic export control system in 1999. Through
this arrangement, which has become known as the "Quadripartite
Committee", we have conducted ongoing scrutiny of this complex
and controversial area of government policy.
2. This is the first Report in this Parliament. We
wish to put on record our appreciation of the work done by our
predecessor Committees in the 1997 and 2001 Parliaments, and we
are pleased to take over where the Committees in the last Parliament
left off. In their final Report the Committees in the last Parliament
left us a list of suggestions,[1]
most of which we have followed up. There are, however, as is inevitable,
some changes. First, the size of the quorum of the Quadripartite
Committee has increased from 12 to 15 members. This was a consequence
of the increase in size of the Defence, Foreign Affairs and Trade
and Industry Committees at the start of the Parliament which raised
the quorums of these committees from three to four; International
Development Committee remained at three. In our view 15 is too
large a quorum and we wish to propose to the House that its Standing
Orders should be changed to allow the Quadripartite Committee
to operate with fewer Members.[2]
Second, we decided this year to examine in detail the enforcement
of strategic export controls and the day-to-day operation of the
system of control run by the Export Control Organisation and HM
Revenue and Customs (HMRC). In contrast to previous years, we
have not been able to report on as many developments within the
European Union (EU) or on the international field as our predecessors,
largely due to the delays in completing the review of the European
Code of Conduct on Arms Exports[3]
and the focus by the Government on the proposal for an International
Arms Trade Treaty, which is at an early stage.
3. In the course of this inquiry, we held five evidence
sessions with: (i) the Export Group on Aerospace and Defence (EGAD),[4]
the UK Working Group on Arms[5]
and Mark Thomas; (ii) the Minister of State at the Department
of Trade and Industry with responsibility for the Export Control
Organisation and officials; (iii) the Minister of State at the
Foreign and Commonwealth Office and officials; and, for the first
time, (iv) officials from HMRC and the Revenue and Customs Prosecution
Office. In addition, EGAD provided an informative and useful briefing,
on the record, on the detailed operation of the export control
system on 25 April 2006. We also received various written memoranda
from the Government, those who gave oral evidence and non-governmental
organisations, including the Campaign Against Arms Trade. We are
grateful to all those who gave oral and written evidence and to
our adviser—Dr Sibylle Bauer—who helped us evaluate
that evidence.
4. As well as the process of taking oral and written
evidence on policy, we have continued to explore issues raised
by particular licences; we have, for example, assessed whether
there has been any inconsistency—for instance, in the issuing
and refusal of licences to Israel and Uzbekistan—and whether
other licence approvals or refusals for which the rationale is
not obvious have been determined in accordance with the EU Code
of Conduct on Arms Exports and the National Export Licensing Criteria.[6]
This process is detailed and, necessarily, confidential. We have
drawn on the information received to make points on policy issues,
and will keep certain cases under review.
5. We conclude that much has been achieved in
the area of strategic export control, but there is still a great
deal to do. It is now ten years since the Scott Report into
exports to Iraq[7] and
over two years since the Export Control Act 2002 was brought into
full operation. Drawing on the work of our predecessor Committees
and our own experience since the start of this Parliament we intend
to make a contribution to the review of the legislation which
the Government has announced will take place in 2007. We conclude
that this will be a good opportunity to take stock of progress
since the Scott Inquiry and the enactment of the Export Control
Act 2002. It will also be an opportunity to examine the effectiveness
of the legislation and whether changes need to be made to meet
the challenge of increased globalisation of the defence industry,
the fast pace of technological developments and the threat from
terrorists.
1 Defence, Foreign Affairs, International Development
and Trade and Industry Committees, First Joint Report of Session
2004-05, HMG's Annual Report for 2003, Licensing Policy and
Parliamentary Scrutiny, HC 145 Back
2
House of Commons Standing Order No. 124(2) (3) and (4) currently
provides that for deliberating and taking evidence the quorum
of each committee is two Members. Back
3
European Union Code of Conduct on Arms Exports, Council Document
8675/2/98 (henceforth "EU Code on Arms Exports") Back
4
Representatives of the defence industries, formerly the Defence
Manufacturers' Export Licensing Group. EGAD operates under the
auspicious of the Defence Manufacturers' Association (DMA), the
Society of British Aerospace Companies (SBAC), the Society of
Maritime Industries (SMI), the British Naval Equipment Association
(BNEA), the Association of Police and Public Security Suppliers
(APPSS) and intellect (the trade association for the UK hi-tech
industry). Back
5
The Working Group is part of an international coalition of non-governmental
organisations which includes Amnesty UK, BASIC, Christian Aid,
International Alert, Oxfam GB, and Saferworld. Back
6
HC Deb, 26 October 2000, col 203W and http://www.fco.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPage&c=Page&cid=1014918697565
Back
7
Report of the Enquiry into the Export of Defence Equipment
and Dual-Use Goods to Iraq and Related Prosecutions (The Scott
Report), 1995-96, HC 115 Back
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