Select Committee on Environmental Audit Minutes of Evidence


Examination of Witnesses (Questions 23-38)

MR IAIN ORR

30 JANUARY 2007

  Q23 Chairman: Good morning, Mr Orr. It is a pleasure to see you this morning. I apologise for the delay to this particular hearing from last week. Could you, too, briefly introduce yourself and where you think the importance of this issue lies, particularly with the FCO and the UK Government?

  Mr Orr: In introducing myself and what I have been concerned with, the main point is that I spent most of my diplomatic career dealing with China. Interestingly, when I started in China, China was being opened up to the world through ping-pong diplomacy. I was diagnosed at the age of 50 as being mildly dyslexic. That means that I am very keen not just to give oral evidence but visual evidence as well. With your permission, Mr Chairman, I would like to introduce some of things that I have been involved with through what one might call T-shirt diplomacy. I am very keen on that.

  Q24  Chairman: Could you give us just one example? If there are other things you have brought, perhaps they could be circulated later.

  Mr Orr: I did want to tell you that my last overseas post was in Accra where at one point, and this was a country where we were simultaneously accredited to Togo, I was involved as an EU election observer in Togo. The relevance of that to the FCO and the environment is that Togo then was an extremely ill-governed dictatorship, somewhere where biodiversity was suffering very badly. It is very much, if you like, the politics of good governance that, in my view, is the fundamental reason why the environment and biodiversity within it are important for good diplomacy. I worked, as I say, for a full career within the Foreign and Commonwealth Office with a primary interest in China, but latterly in one of my jobs I had a great deal to do with the Overseas Territories. I would agree with some of the evidence already given about the lack of sufficient attention being given to the Overseas Territories. As for the priority that the Foreign and Commonwealth Office has given to environmental issues, some encouragement can certainly be taken from what is said in the foreword to the Sustainable Development Action Plan 2007, which the Foreign Office has just printed. There is very good political guidance given in that in the foreword by Mrs Beckett. What I am a little more concerned about is the extent to which the Foreign Office understands how and why biodiversity and other environmental aspects are crucial to achieving the other goals of security and prosperity. I think the environment is not as fully integrated as it should be. I also think that there is a great deal more that needs to be done in terms of better liaison with other parts of Whitehall and certainly with civil society, with NGOs.

  Q25  Chairman: How does it filter down to our overseas posts, particularly with the senior officers there? Do you think they will be avidly reading the Foreign Secretary's foreword and revising any local practices, approaches or procedures?

  Mr Orr: It is difficult to say. These documents are meant to be guidance within an organisation for work. A great deal depends on the leadership. I have heard some of those giving evidence previously talk of very strong support on certain issues from ambassadors in post. In some cases that will be true. There are some very good sentiments within that document. In terms of delivery, it is important to liberate the enthusiasm that quite often you get on the ground. The extent to which people have mentioned getting support from embassies is quite striking. I think there is a slightly regrettable tendency for over-management from the centre. It is absolutely vital that clear political guidance is given, but within these guidelines it is very often posts that will themselves see opportunities that arise and make the most of it.

  Q26  Chairman: I can see that you have brought one exhibit which is on the table, quite a large one. Having made the effort, I guess it would be remiss if the committee did not see it. Explain it to us.

  Mr Orr: Let me explain one or two of the things that I have brought. I can make certain points on all of them. This print of penguins is a very easy one. I would urge you all to go to Falkland House and see a magnificent exhibition of art from the Falkland Islands. I certainly have a strong belief that the creative arts and the environment belong very much together. I do not know if any of you saw the exhibition at the Natural History Museum last year called Burning Ice: the Art of Climate Change. It is very important to have that whole creative spirit involved. I see three crises: climate change; huge global extinction in terms of biodiversity; and the crisis that is going to impact most quickly and directly on most people, water. I am particularly interested in water issues because of my time spent in China. The water table in Beijing has dropped in the time that I have been dealing with China something like 30 metres, which is quite extraordinary. Another of these displays shows something that I wish was in every embassy and I do not think you have perhaps heard enough about yet today. It is the trade aspect of your investigation: it is trade, development and the environment and the FCO. This magnificent book is the Eco-Design Handbook from Thames & Hudson. I have nothing to do with Thames & Hudson or with the author but it is a magnificent guide to good technologies. There are huge areas of environmental work where we need to integrate better the work between those who are involved in the political relationships with other countries and those who are involved with trade promotion work.

  Chairman: I think it must be true that raising questions of biodiversity might also raise questions of culture, but that is perhaps a little outside our remit. You have made an interesting connection.

  Q27  David Howarth: What you have said does come into the questions I am going to ask. There was a very striking phrase in your written evidence where you said that the FCO's instinct is to focus on the "traditional muscle-power" of diplomatic carrots and military sticks in its international work. The question is: how effective is that approach to advancing environmental objectives, and what are the other approaches that could and should be used?

  Mr Orr: In the case of many environmental issues, it is in a sense fairly obvious that people are in it together. In terms of, say, biodiversity issues, the Convention on Migratory Species, which I am involved in and doing some consultancy work for, is trying to bring China on board. One of the concerns with migratory species, looking at it from a sustainable use development point of view, is: whose birds are they? I have been at meetings where Cuba talks about what they are doing with "their turtles", and the Bahamas says, "Hey, now, they are our turtles, not your turtles". The same goes for birds and crucially also for marine species. There are disastrous developments in the world's oceans. You cannot regard it as yours, so it is not a question of using your political or military power to defend your territory. The earth's biodiversity, its climate and indeed its water are not any one country's territory. There has to be a different approach to understanding and certainly to working towards much greater justice in the relationship between countries at different stages of development.

  Q28  David Howarth: I was thinking of specific techniques. Is this a case where public diplomacy is very important as opposed to threats and inducements, for example?

  Mr Orr: Yes, I certainly think it is. The United Kingdom has shown itself quite good at that from time to time. That is very important. This phrase has been used elsewhere; it is a coalition of the willing and a coalition not just of countries. There are signs that the Foreign Office is showing a greater understanding of the importance of working with businesses and civil society. It is about the culture of how you approach environmental issues. Much of that, in my view, has to do with good governance. What concerns me in certain areas, both in the UK and in a variety of different countries overseas like China, is that in some of our Overseas Territories the issue is not to do with cuddly animals but with whether people have access to the information that they need. I was very disappointed to find last year that a decision was taken to disapply the Freedom of Information Act to St Helena and that at a time when there is major development work going on with the proposed first ever international airport for St Helena. It is not as easy now for anybody concerned to get information about that.

  Q29  David Howarth: You mentioned working in business, NGOs and civil society in general. You say that a start has been made on that. How far down the line has that reached? There is obviously a great deal of potential there. How much of that potential has been activated?

  Mr Orr: Nothing like enough has been activated. We have done quite good things. As I remember, the UK was one country at the World Summit on Sustainable Development in Johannesburg that really had quite a big role for NGOs within its delegation. We provided something of a lead on that. That is all right on the very big occasions. It is difficult to get that into the working psyche of day-to-day working. Certainly I had experience when working within the Foreign Office that one of the important things is not just working with NGOs but working across government with other government departments. I can remember being at many meetings where I thought that it was going to be useful to find out what the views were of a number of NGOs on an issue while we were taking some policy decisions but where the attitude quite often was within the FCO, because we have other departments in the FCO, and with other departments in Whitehall: yes, it is very important to consult the NGOs but first we have to get our act together. That is the wrong attitude. There is no point in consulting people unless you are ready, and this goes for how you conduct diplomacy with other countries. You are only going to influence people if you show that you are open to understanding their interests and being influenced by them. There is a great deal of expertise within not just the British NGO community but also the academic community in Britain. An awful lot of that expertise is not tapped into by the Foreign Office early enough in the process of policy formation.

  Q30  David Howarth: That is the important point. You also say that the FCO lacks in its Sustainable Development Strategy strategic vision, which implies that you also think they ought to get their original lines straight. I was wondering if you could elaborate on that and say how that could be improved, especially since your previous answer shows that it is also important to consult more widely with civil society, the academic community, NGOs, and so on.

  Mr Orr: That is a big question. That is very difficult to do. It is a bit like telling people to give up smoking or to go on a diet: the motivation has to come from within. To some extent, the difficulty is how to get motivation within the culture of the Foreign Office to understand. I do not think there is yet a sufficient understanding—it is gradually developing—of the nexus in the trade development environment. How do you bring it all together? I have considerable admiration for the perspective that is set out in the FCO's Sustainable Development Action Plan, and indeed within that there are some very good sentiments. One of the earlier witnesses talked about support for lobbying on whaling issues. That is built into the Sustainable Development Action Plan. It is much harder to do that if some of the important posts are not there. This should be dealt with on a regular and strategic basis so that people realise that it matters to them if the UK, along with other countries, does not want the moratorium on commercial whaling to come to an end. They need to have that at the forefront of their minds. The FCO needs to talk a lot more to people at very senior levels within NGOs, ministerial and also permanent under-secretary directors. You only achieve results with leadership, and that means that the politics have to be decided at the national level and secretaries of state and ministers should have that as a priority. That really has to feed into the top levels and then permeate the culture. It is a tough job.

  Q31  David Howarth: You were specifically critical in your written evidence of the introduction of targets and objectives into the FCO. You say these can actually hinder the FCO's work. I suppose the question then arises about how could sustainable development priorities be better delivered without targets?

  Mr Orr: It is not that anyone wants to get rid of targets; they do not want to be driven by them. I think this is related to the tensions between accountability and trust. Excessive targets mean that you are just not filling somebody with a vision of what their job is about. You would imagine that by the time somebody becomes an ambassador or high commissioner, if they do not know what their job is about and they need it to be written down as 20 targets to reach by the end of the year, then you have appointed the wrong person. The people who need to be given targets are those who are work shy, and I do not people in the Foreign Office are work shy, or people who need to be kept going. Sometimes that will apply in business. There will need to be one or two crucial targets. We have seen evidence of this in plenty of areas in the National Health Service and elsewhere where your life and indeed the amount of money you get from the Treasury is judged by how well you are hitting particular targets. Often they are interrelated and you cannot hit more than one interrelated target at the same time. It is like fundamental physics. You have a range of things that you want to achieve and there have to be trade-offs as you go along. You have to be guided by a strategic vision of what you have to achieve. There will be targets or things to remind you that you are not doing as well as you might be. As with sustainable development, you do not just stick a label on it saying, "We achieved that target". You have to understand why it was a target and make good use of it. One area that applies to is the project work with which the Foreign Office is becoming increasingly involved. You will be aware of their Global Opportunities Fund. My experience of the FCO's work on projects is that it fills a very important gap. The overseas development work of DFID is in many ways understandably geared to huge targets where money needs to be well spent. DFID now finds it very difficult to spend money that is less than several hundreds of thousands of pounds, whereas very often, particularly when you come to influence countries, small amounts of money to support little projects of £5,000 to £20,000 can be very useful indeed. You do not want a philosophy of having a great fund and needing to be able to tick off how it has all been very well spent in accordance with a set list of priorities. Yes, you need overall guidance, but you need to be able to respond flexibly when opportunities arise and you need to trap the value of the projects. Very often when they have been completed, that may, in the country concerned, be only the start of the project's value. I have certainly seen example of embassies and high commissions forgetting and somebody complaining that the embassy is not doing very much with them, only to find that the minister may not be aware of a pretty important project carried out only three years before. I think the FCO has a real problem keeping alive a good collective memory.

  Q32  Mr Caton: Like our previous witnesses, you have criticised the closure of the embassy in Madagascar. Does the Foreign and Commonwealth Office need to have a post in a country in order to have real influence?

  Mr Orr: It does if it has sufficiently important interests there. The point I make about post closures is important. There is certainly scope for working more closely with our European partners and more closely sometimes with Commonwealth partners in certain countries. If you are only visiting there are always going to be some penalties. The penalty is that very often the ambassador is simultaneously accredited to four countries and he will have to organise his life. He will have to make a plan for when he goes to a country. That is almost certainly going to be related to the interests of different government departments. Of course, embassies work for the whole country and they are tasked. In very many embassies the bulk of the work comes from outside the FCO; it comes from elsewhere in Whitehall. They will then target the right time of the year from their point of view to hit that country. That country becomes used to being visited when there is something that Britain wants out of them or wants to tell them to do or persuade them to do, but if they suddenly have an issue, yes, you can send an e-mail, yes, you can get on the phone. There may be language and other difficulties. You simply do not feel that you have the same ability to talk to somebody who understands your day-to-day background. There is always a penalty in being non-resident, wherever you are. I was in Ghana. I would not argue that we ought to have an embassy in Togo but I accept that there are certain penalties. In the case of Togo, no, we did not have a sufficiently great interest. The case of Madagascar was a shocking decision, I would say, and a stupid one because it was inconsistent with the Government's policy on development priorities for Africa. It was inconsistent with developing trade, given that the newly-elected Madagascar Government was sending out a very strong signal of wanting to move outside the Francophone world. There were plenty of UK companies and UK interests but the Foreign Office did not listen to any of them. In that particular case, the decision was not taken as a result of strategic thinking. It was a last-minute trade-off. They had to make certain closures. Somebody fought very strongly not to close the Gambia as a post, and you could argue about that, but then said that we cannot trespass on any of our other geographical areas; if we are going to keep the Gambia, who do we close down? They decided to close down Madagascar without any consultation with outside stakeholders. That is not the way to decide whether or not to close a post. I would say that before any post is closed, or indeed opened, that decision ought to be based on a serious consideration. It may take a lot of time. Obviously you know the stakeholders in that country and in the UK and very quickly, if you were doing your job at all, you could consult them.

  Q33  Mr Caton: Looking more widely, are you aware of moves to shift to a system of having regional ambassadors rather than single country ambassadors? If that is on the cards, can it work?

  Mr Orr: I am aware of it slightly. I have been alerted by reading some of the material sent to this committee. I am certainly going to look at that. It could work if you have a regional ambassador with real clout who can deliver in terms of our interests in particular countries and who has an effective relationship with those countries. I am pretty certain that if a government with which we want a good relationship has found under the present system that because it is not a priority country within the FCO's current list and it is not one where we have a sustainable development dialogue and therefore it is not managing to get the resources that it would like from the UK and somebody operating regionally could deliver, yes, but I would be a little sceptical about it. The resources are not necessarily aid or development resources but also questions of trade and investment that they would like to see coming from the UK. I would like to see the case made and tried out. It should be driven by a vision of how it is going to improve not just as a cost-cutting exercise but as an exercise in being more effective in influencing countries. I think there is still a great deal to be said for keeping the small posts relatively lightly managed from London and working within very clear guidelines. Relatively young diplomats can gain experience in small posts managed by three or four other UK-based staff, if they are lucky, but probably up to 20 local staff, and coping with really tricky issues like how to handle visa operations. That can be very good experience for a young diplomat and the costs of keeping small embassies open are really quite small.

  Q34  Mr Caton: In thinking about costs, the FCO, the same as every other government department, has had to make staff reductions as efficiency measures. At the same time, the role of the FCO seems to have spread to cover considerably more issues. Do you see those twin factors affecting the ability of the UK to influence the environmental and sustainability agenda on the international stage?

  Mr Orr: I agree that the agenda is widening and some of that is apparent. We are now much more aware of the fact that degraded environmental conditions can sometimes be a factor in causing refugees and conflict. We have terms like "environmental security" and "climate security". These are new terms but they relate to something that is not entirely new. One way in which you can get better results out of the same or smaller resources is by working more effectively throughout Whitehall. There is scope for that by understanding other cultures. I would like to see a good deal more in the way of both inward and outward secondments in the Foreign Office. You can achieve better results if you put together the right team to work on something; it may well be led by Defra or by DFID with an FCO component. I do not think that is done enough. You can put forward particular strategic objectives if you have a cross-departmental team that really gels and operates. I know there is an inter-ministerial group on biodiversity. If that does better work in giving guidance to Whitehall as a whole, then you will need possibly to have a better co-ordinated approach between DFID, Defra and the FCO. One particular area, which it is important to mention, is the Foreign Office and its responsibilities in respect of the Overseas Territories. I have a great deal of sympathy with the view in the Foreign Office that the Overseas Territories are British. They are not part of the Foreign Office. They are not like embassies or high commissions. They are not even countries that we are seeking to influence in particular. They are part of the British family, if you like. Undoubtedly, the point that was made in your committee's review of the UN's Millennium Ecosystem Assessment that Defra should have a much bigger role is very important. To that extent, the FCO will much better fulfil its responsibilities in relation to the Overseas Territories by dealing with good governance and freedom of access to information. At the moment, in St Helena there is the problem of the one independent newspaper coming under a lot of pressure from the government in St Helena, partly because it sometimes publishes things they do not like. There is huge value in having a free press.

  Q35  Mr Caton: I would like to come back to the Overseas Territories in a moment. Can I ask you a broader question first? You identified what you called three crises: biodiversity, water and climate change. The Government and the FCO have clearly prioritised the latter, climate change. Are they right to do that?

  Mr Orr: They are certainly right to prioritise it. It is very important. They should not do it at the expense of the other crises. At the moment, these three crises are interrelated. Even if you have the magic technological solution to climate change, and that still seems to be the Holy Grail of some people in the United States who say that you will be able to have a big shield, I find it very hard indeed to imagine equity between different countries. If you manage to reduce global temperatures by putting up these great umbrellas of one sort or another, that is presumably going to affect different countries to a different extent. How do you compensate those that do better or worse out of that? The danger lies in saying that climate change is causing the crisis and that there is no point in spending anything on biodiversity if you are going to get climate change. All these crises have all to be tackled. Please do not make climate change the only priority. You have to look at the environment pretty holistically.

  Q36  Mr Caton: Coming back to the Overseas Territories, we understand that you were involved in the original negotiations on the Environment Charters signed with the UK Overseas Territories. In your view, how successful has that proved to be in protecting the environment in those places?

  Mr Orr: It has been successful up to a point. It has certainly given those, as much within government both in the Overseas Territories themselves and in the UK, something on which to base their requests for resources for priorities. The Environment Charters followed from the 1999 White Paper. That solidified some of the values and changes of attitude in that White Paper. If that had not been there, even the small amount of funding that is presently available for the environment would have been lost in cuts or it would have been subsumed in much larger projects. The delivery is patchy and that is very largely because a lot of the environmental issues in the Overseas Territories demand resources. Some governments in the Overseas Territories are quite well off per capita but, like the Cayman Islands, may not have all the capacity needed to deal with difficult environmental issues. The Cayman Islands is an interesting example. You can argue that they have done very well in recovering from the devastation of Hurricane Ivan. There are things that we in the UK can learn from the Caymans about preparing for natural disasters. There are not enough resources. Policy comes first. There are not necessarily the right policies. Sustainable tourism is something of a joke in some places. There can be conflict when a company is developing a marina; they may be able to take a lot of sand or attack some mangroves. The development could be made a bit more expensive if it carries out the necessary mitigation measures. There is no doubt at all that if HMG is to fulfil its responsibilities in respect of environmental issues in the Overseas Territories a real step change is needed to fund the hard choices that need to be made. If you were given £10 million and asked what you could do to meet the 2010 biodiversity target by spending it in metropolitan UK or in the Overseas Territories, you will get infinitely better value for money out of that £10 million when you spend it in the Oversees Territories.

  Q37  Mr Caton: You mentioned the lack of capacity in some of the Overseas Territories to deal with environmental issues. That was certainly confirmed in the previous report we did that you have already mentioned. What can the FCO and DFID do to build that capacity?

  Mr Orr: It is simple. There is relevant expertise in a host of institutions but it is not in the FCO. The FCO does not need biodiversity experts or climate change experts; it needs people who understand the science and the politics of this. For a time in the FCO I was the FCO's lay expert on peaceful nuclear explosions. I had to understand a fair amount about the physics but that was as a layman and not as an expert. I had to understand it from a political point of view. A lot of expertise needs to be made available. I am concerned that there are people in Defra, in DCMS and in the other part of DFID, apart from DFID's Overseas Territories Department, for whom Overseas Territories do not figure in the list of issues they should be considering. I will give you one or two examples. One is to do with any of the important multilateral environmental agreements. There is a real need for engagement in these issues with the Overseas Territories. That is a huge in, say, something like the recent Albatross and Petrel Agreement, which is vitally important for several of the UK territories in the South Atlantic. Undoubtedly it needs experts in the UK who know about how to deal with the international fishing industry and what is involved. They have to translate that expertise, where necessary, to help the Overseas Territories develop the right sort of legislation and get the right sort of training. One concern of mine is that both in the Overseas Territories and in the UK there is a split between the natural environment and the built environment and heritage. There are some real issues about that. There is the current issue in St Helena to do with the Dutch East Indiaman the Witte Leeuw (White Lion) which is a historic wreck that needs to be handled properly. St Helena is being got at by a professional salvage company in the States whose main interest is in just leaving one or two little things with a local museum but making considerable profits from the wreck. There are people like the Crown Estate who have a maritime cultural heritage in the Code of Practice for Seabed Development and the Nautical Archaeology Policy Committee. I am pretty certain that no effort has been made to transmit the expertise that lies in compiling a document like that to guide the Overseas Territories for whom it is relevant, of which there is quite a number, so that they know the right sort of people to contact. Obviously, as well as the expert knowledge, there may well be the need for some agencies within the UK Government, not necessarily FCO, to give adequate support. I would like to see far more people in a variety in different government departments and other institutions in the UK with interests that can be vitally affected as applied to the Overseas Territories, particularly in the marine environment, building into their annual travel budget the fact that they need to visit some of them. You cannot really help properly those places that deserve your help unless you know something about it. You learn by going there. You have to know the politics as well. Nearly all environmental issues are fundamentally political issues. You do not get anywhere without getting the politics right.

  Q38  Mr Caton: That brings me on to my last question. Do you perceive any conflict or potential conflict between the UK's international responsibilities on something like biodiversity and the right of the Overseas Territories to determine their own solutions to some of these problems?

  Mr Orr: Yes, but really only in the sense in which you do not look at them as being foreign; do not look at it as being them against us. You get exactly the same thing in the UK. Talk to the Department for Culture, Media and Sport about some of the sites that they want to put forward as UK sites within the World Heritage list. Very often there is a tension about how a management plan will affect the rights of people living in that area. You will find that there is conflict when DCMS is waiting to get what seems a very worthy site on board and the fact that people are reluctant to put together the type of management structure that will pass muster with the demands of the very rigorous assessors from the UNESCO's World Heritage Centre. These issues will arise but it is within the family.

  Chairman: Thank you very much for coming, Mr Orr. You have given us a wealth of evidence and it is fascinating. I look forward to reading the transcript.





 
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