Conclusions and recommendations
Constitutional relationship
Constitutions
1. We
welcome the Government's approach of encouraging Overseas Territory
governments to take the lead in reviewing their constitutions
and making proposals for reform. We recommend that the FCO should,
as far as possible, hold negotiations and consultations with Territory
governments on such proposals within the individual Territory
concerned so that the process does not appear distant to the local
population. We believe that the modernisation of constitutions
could also be made more transparent if the FCO published criteria
for deciding the degree of self-government that is appropriate
for Overseas Territories and we recommend that it does so. We
also recommend that the FCO continues to send us draft constitutional
Orders in Council at least 28 sitting days before they are made.
(Paragraph 30)
2. We conclude that
Gibraltar's presence on the UN list of Non-Self-Governing Territories
is an anachronism. We recommend that the Government continues
to make representations to the UN about delisting the Territory
and that it makes clear that it is only sending the UN progress
reports on Gibraltar because it is obliged to do so. (Paragraph
41)
3. We conclude that
there is a strong moral case for the UK permitting and supporting
a return to the British Indian Ocean Territory for the Chagossians.
We note the recent publication of resettlement proposals for the
Outer Islands by Chagos Refugees campaigners. The FCO has argued
that such a return would be unsustainable, but we find these arguments
less than convincing. However, the FCO has also told us that the
US has stated that a return would pose security risks to the base
on Diego Garcia. We have therefore decided to consider the implications
of a resettlement in greater detail. (Paragraph 69)
4. On Diego Garcia
itself, we conclude that it is deplorable that previous US assurances
about rendition flights have turned out to be false. The failure
of the United States Administration to tell the truth resulted
in the UK Government inadvertently misleading our Select Committee
and the House of Commons. We intend to examine further the extent
of UK supervision of US activities on Diego Garcia, including
all flights and ships serviced from Diego Garcia. (Paragraph
70)
5. We recommend that
British Overseas Territories Citizenship should be extended to
third generation descendants of exiled Chagossians. We also recommend
that the Government should provide more guidance to those Chagossians
wishing to resettle in the UK. (Paragraph 74)
6. We conclude that
the FCO did raise expectations that rights of property and abode
would be granted to those who live and work on Ascension Island.
We recommend that the FCO must make greater efforts to restore
trust among the residents of the Island. In particular, we recommend
that it should try to re-establish the Island Council as soon
as possible. We further recommend that the FCO should work with
elected representatives to consider the potential contingent liabilities
of a permanent base on Ascension Island, and means of reducing
these liabilities, with the ultimate aim of granting rights of
property and abode to residents. (Paragraph 82)
Consultation and representation
7. We
recommend that Territory governments should be given an opportunity
to pass on their opinions of the candidates for Governor before
appointments are made. We welcome the appointment of local individuals
as Deputy Governors in some Overseas Territories, but urge the
FCO to ensure those appointed are not seen to be politically partisan
individuals. (Paragraph 87)
8. We conclude that
the annual Overseas Territories Consultative Council (OTCC) is
a valuable event. However, since it is intended as a forum for
Territory governments, they should be given more of a say about
the way in which the OTCC is run. We recommend that the FCO consults
Territory governments on the improvements they would like made
to the OTCC and implements their suggestions. We also recommend
that the FCO should consider ways of raising awareness of the
OTCC within Overseas Territories, including, as far as possible,
making papers tabled for the forum publicly available. We note
that Overseas Territories' representatives reported that those
issues raised in the OTCC which involved other Whitehall departments
were least likely to be followed up and we recommend that the
FCO continues to press other departments to take their responsibilities
with regard to the Overseas Territories seriously. (Paragraph
98)
9. We recommend that
the FCO urges Overseas Territory governments whose offices in
the UK are less active to consider ways of raising their profile.
The FCO should also encourage this by, when appropriate, making
more use of official Territory government representatives, as
well as Governors, to liaise with Territory governments. We recommend
that the Government also ensures that all new officeholders in
Overseas Territories appointed by or on the Government's recommendation
are briefed by official Territory government representatives in
the UK before they take up their posts. (Paragraph 105)
10. We conclude that
the FCO's guidelines on treaties applying to Overseas Territories
do not yet appear to be being followed by all of Whitehall and
recommend that the FCO writes to remind other Government departments
of their existence. We also recommend that the FCO should provide
more drafting assistance to Overseas Territories for transposition
of international agreements into local legislation. (Paragraph
111)
11. We conclude that
it is disappointing that the UK did not properly engage with the
government of Gibraltar about its concerns regarding the text
of the Lisbon Treaty. We recommend that the FCO must ensure it
takes Overseas Territories' interests into account in its relations
with the EU. We further recommend that in its response to our
Report the FCO sets out the mechanisms it has in place to ensure
the Overseas Territories covered by the Overseas Association Decision
are informed and consulted about EU legislation that affects them.
(Paragraph 118)
12. We recommend that
the Foreign and Commonwealth Secretary should consider with the
Leader of the House and with representatives of the Opposition
parties whether improvements can be made in the ways in which
the views of those resident in the Overseas Territories can be
made known in the UK Parliament. (Paragraph 126)
13. We are concerned
that witnesses from Overseas Territories cannot at present be
guaranteed protection against legal action or even intimidation
or other abuse arising as a consequence of their giving evidence
to select committee inquiries in the UK. We recommend that the
Government should introduce legislation to extend the Witnesses
(Public Inquiries) Protection Act 1892 to Overseas Territories,
or as an alternative, that it should urgently require Overseas
Territories to introduce equivalent legislation as a matter of
good governance. (Paragraph 131)
14. We conclude that
it is wrong for some Overseas Territories to have access to the
benefits of International Olympic Committee (IOC) recognition
while others do not. We recommend that the FCO should make representations
to the IOC about recognition for all the UK Overseas Territories.
(Paragraph 136)
15. We recommend that
Overseas Territory government representatives from Bermuda, Gibraltar,
the Falkland Islands and any other Territory wishing to do so
should be permitted to lay a wreath at the Cenotaph on Remembrance
Sunday. The Foreign Secretary should continue to lay a wreath
on behalf of other Territories. (Paragraph 141)
16. We recommend that
the Government should give consideration to whether it would be
appropriate to support wider participation of Overseas Territories
in Commonwealth meetings and conferences, including the Commonwealth
Heads of Government Meeting. (Paragraph 144)
Governance
Allegations of corruption in the Turks and Caicos
Islands
17. We
are very concerned by the serious allegations of corruption we
have received from the Turks and Caicos Islands (TCI). They are
already damaging TCI's reputation, and there are signs that they
may soon begin to affect the Islands' tourism industry. There
is also a great risk that they will damage the UK's own reputation
for promoting good governance. Unlike the Cayman Islands, where
the Governor has taken the initiative in investigations, the onus
has been placed on local people to substantiate allegations in
TCI. This approach is entirely inappropriate given the palpable
climate of fear on TCI. In such an environment, people will be
afraid to publicly come forward with evidence. We conclude that
the UK Government must find a way to assure people that a formal
process with safeguards is underway and therefore recommend that
it announces a Commission of Inquiry, with full protection for
witnesses. The change in Governor occurring in August presents
an opportunity to restore trust and we recommend that the Commission
of Inquiry should be announced before the new Governor takes up
his post. (Paragraph 196)
18. On 20 May we held
a private meeting with Meg Munn to express our concerns about
the allegations we had received during the course of our inquiry.
(Paragraph 197)
Other Overseas Territories
19. We
recommend that the Government should encourage the Anguillan government
to establish an independent inquiry into allegations that Anguillan
ministers accepted bribes from developers in the Territory. We
also recommend that the Government should urge the Anguillan government
to use the opportunity of constitutional review to introduce stronger
anti-corruption measures in the Territory. (Paragraph 203)
20. We recommend that
the Government sets out in its response to this Report the steps
it has taken to ensure that allegations of corruption at the Bermuda
Housing Corporation, in the issuing of contracts, and of electoral
fraud in Bermuda are properly investigated. We also recommend
that the Government should encourage the Bermuda government to
strengthen its transparency measures, including by establishing
an independent Electoral Commission and ending the practice of
Committees of the House of Assembly sitting in camera.
(Paragraph 214)
21. We recommend that
the FCO should strongly encourage all Overseas Territories which
have not yet done so to introduce freedom of information legislation.
We also recommend that the FCO should review with Overseas Territories
what steps they might take to improve their public accounting
and auditing capability. We support the Public Accounts Committee's
recent recommendations that the FCO should explore how Overseas
Territories might make better use of UK expertise and that it
should also explore whether those Territories with Public Accounts
Committees could make more use of ex-officio members. (Paragraph
233)
Rule of law
22. We
conclude that the FCO must ensure there are sufficient measures
in place to prevent interference from either the Governor or the
local government in judicial decisions in Overseas Territories.
We recommend that the FCO should consider transferring the responsibility
for Chief Justices' terms and conditions of employment to the
Ministry of Justice. We also recommend that the FCO should consider
whether judges in Overseas Territories would be less vulnerable
to interference if they were on longer non-renewable contracts,
with appropriate safeguards in case of incapacity, rather than
on renewable short term contracts. (Paragraph 242)
Human Rights
23. We
recommend that the Government should take steps to ensure that
discrimination on the basis of sexual orientation or gender status
is made illegal in all Overseas Territories. (Paragraph 260)
24. We recommend that
the Government should closely monitor the conditions of prisoners,
illegal immigrants and migrant workers in Overseas Territories
to ensure rights are not being abused. (Paragraph 268)
25. We conclude that
although extending voting rights to non-Belongers will be politically
difficult for Overseas Territory governments, the Government should
at least encourage local administrations to review this issue
with regard to non-Belongers who have resided in an Overseas Territory
for a reasonable period. We recommend that the Government should
propose that non-Belongers' rights be an agenda item for the next
OTCC. (Paragraph 275)
26. We recommend that
the Government should encourage the Bermuda government to move
away from conscription and towards the Bermuda Regiment becoming
a more professional organisation, with voluntary and paid elements.
We conclude that this could make serving in the Regiment more
attractive, giving it the staffing resources required to extend
into maritime duties. (Paragraph 285)
Environmental governance
27. We
agree with the Environmental Audit Committee that the Government
does not appear to have carried out any kind of strategic assessment
of Overseas Territories' funding requirements for conservation
and ecosystem management. We conclude that given the vulnerability
of Overseas Territories' species and ecosystems, this lack of
action by the Government is highly negligent. The environmental
funding currently being provided by the UK to the Overseas Territories
appears grossly inadequate and we recommend that it should be
increased. While DEFRA is the lead Whitehall department responsible
for environmental issues, the FCO cannot abdicate responsibility
for setting levels of funding given its knowledge of Overseas
Territories' capacity and resources. The FCO must work with other
government departments to press for a proper assessment of current
needs and the level of the current funding gap and then ensure
increased funding by the Government through DEFRA, DFID or other
government departments is targeted appropriately. (Paragraph 295)
Contingent liabilities
Regulation of offshore financial services
28. We
recommend that the FCO should encourage Bermuda, the British Virgin
Islands, the Cayman Islands, and Gibraltar to continue to make
progress in improving financial regulation, in particular in arrangements
for investigating money laundering. (Paragraph 311)
29. We are concerned
by the National Audit Office's finding that the FCO has been complacent
in managing the risk of money laundering in Anguilla, Montserrat
and the Turks and Caicos Islands, particularly since these Territories
are those for which the UK is directly responsible for regulation
and therefore most exposed to financial liabilities. We agree
with the Public Accounts Committee's recent recommendation that
Governors of these Territories should use their reserve powers
to bring in more external investigators or prosecutors to strengthen
investigative capacity. (Paragraph 312)
30. We also recommend
that the FCO should continue to work with DFID to introduce a
financial services regulatory regime in St Helena that is appropriate
to its local economy and development. (Paragraph 313)
Economic diversification in the Falkland Islands
31. We
recommend that the FCO works with the Falklands Islands government
and the Ministry of Defence to ensure that the future air service
allows the Islands to develop their tourism industry. We also
recommend that in its response to this Report the FCO states clearly
what, if any, it considers the UK's entitlement would be in respect
of potential oil and gas revenue from the Falkland Islands and
from other Overseas Territories. (Paragraph 322)
32. We conclude that
there are a number of issues to be considered, including cost,
practicability, safety and environmental impact, before a decision
can be taken on whether to carry out de-mining in the Falkland
Islands. We therefore welcome the Government's announcement that
it has sought an extension of the deadline to meet the UK's obligations
under the Ottawa Convention. We recommend that the Government
should discuss the results of its recent feasibility study with
Falkland Islanders before coming to any decision about landmine
clearance. (Paragraph 328)
Budgetary aid
33. We
conclude that the building of an airport and related infrastructure
on St Helena could be a significant step towards self-sufficiency
for the Territory. However, we are concerned about the potential
capital and maintenance costs of the project and we recommend
that in its response to this Report the Government provides us
with figures to demonstrate that it has selected the most cost-effective
option for bringing St Helena off dependency on aid. We also recommend
that the Government encourages St Helena's government to include
affordable housing in its Sustainable Development Programme and
that it sets out in its response what action it has taken with
regard to allegations of poaching in St Helena's territorial waters.
(Paragraph 342)
34. We recommend that
the Government should focus funding on infrastructure in Montserrat
on those areas that are most likely to assist the development
of tourism on the island. (Paragraph 348)
35. We recommend that
the Government should ensure that Pitcairn residents are informed
and consulted on proposals for the Island's economic development.
(Paragraph 353)
36. We welcome the
Government's swift provision of emergency assistance to Tristan
da Cunha following harbour damage and an outbreak of illness on
the Island. We recommend that the Government continues to provide
funding for projects on Tristan da Cunha, focusing on projects
that will promote greater self-sufficiency. We also recommend
that the FCO makes representations to China to try to open UK-China
trade agreements to the sale of Tristan lobster. (Paragraph 360)
Illegal immigration
37. We
recognise that immigration policy is a matter devolved to the
Turks and Caicos Islands (TCI), but we conclude that given the
scale of illegal immigration of Haitians into the Territory the
FCO should accept greater responsibility for tackling the issue.
We recommend that the FCO should provide a regular Royal Navy
presence in TCI's coastal waters to assist with patrols and that
it should consider with the Haitian government what further measures
could be taken by the Haitian and UK governments in cooperation
with each other to prevent Haitians leaving by boat to enter TCI
illegally. (Paragraph 374)
Regulation of civil aviation
38. We
agree with the Public Accounts Committee that the UK Government
should not fund aviation regulation in Territories that are able
to pay for this service. However, we recommend that the FCO must
ensure that it responds to Territory government criticisms of
the designated regulator before moving to charging for the service.
(Paragraph 377)
Sovereignty disputes
Falkland Islands
39. We
conclude that when the visit by President Kirchner to the UK is
rearranged the Government must use this opportunity to raise issues
of concern to the Falkland Islands. In particular we recommend
that the Prime Minister calls for an end to Argentina's obstruction
in relation to use of its airspace and that he also highlight
potential logistical issues if Argentine families are allowed
to fly in to visit graves. We also recommend that the Prime Minister
should press the Argentine President to agree to the establishment
of a Regional Fisheries Management Organisation for the South
West Atlantic and reiterate the Islands' right to develop a hydrocarbon
industry. (Paragraph 386)
Gibraltar
40. We
welcome the Cordoba Agreement and the progress being made on cooperation
between Gibraltar, Spain and the UK in the Trilateral Forum. We
note that the pensions settlement which was part of the Agreement
was costly for the UK, but we welcome an end to the "pensions
scam" and the removal of other potential liabilities on the
UK. We recommend that the Government continues making strong representations
to Spain and within NATO at the highest level about the unacceptability
of Spain's continuing restrictions on direct naval, army and airforce
movements or military communications between Spain and Gibraltar.
We further recommend that the Government continues to make strong
representations to Spain about its failure to recognise Gibraltar's
territorial waters and its objections to international conventions
being extended to Gibraltar. (Paragraph 414)
British Indian Ocean Territory
41. We conclude that any resolution to the
UK's sovereignty dispute with Mauritius over the British Indian
Ocean Territory must take Chagossians' wishes into account. (Paragraph
419)
Seabed claims
42. We
conclude that the Government was right to submit a claim to the
UN Commission for the Limits of the Continental Shelf for the
seabed around Ascension Island. We recommend that the Government
should submit a similar claim for the continental shelf around
the Falkland Islands and South Georgia and the South Sandwich
Islands. We also recommend that the Government should in its response
to this Report state its current policy on seabed claims in relation
to the continental shelf around the British Antarctic Territory.
(Paragraph 427)
HMG's overall approach to the Overseas Territories
43. We
conclude that the Government has acted decisively in some Overseas
Territories, for example in the investigations and prosecutions
that took place on the Pitcairn Islands. However, in other cases
which should also cause grave concern, in particular, allegations
of corruption on the Turks and Caicos Islands, its approach has
been too hands off. The Government must take its oversight responsibility
for the Overseas Territories more seriously - consulting across
all Overseas Territories more on the one hand while demonstrating
a greater willingness to step in and use reserve powers when necessary
on the other. (Paragraph 437)
44. We also conclude
that the choice of Governor for a Territory, and the levels of
training and support they are given, are crucial. We welcome the
recent upgrading of the Governor post in the Turks and Caicos
Islands. We recommend that the FCO should give consideration to
opening up appointments of Governors more frequently to candidates
outside the diplomatic service. We also recommend that the Director
of the Overseas Territories Directorate should become a more senior
post. (Paragraph 438)
45. Finally, the Committee
concludes it is deplorable and totally unacceptable for any individual
who has assisted the Committee with its inquiry to be subjected
to threats, intimidation, or personal sanctions or violence in
any form. If the Committee is informed of any such retaliatory
measures being taken against any person who has submitted formal
or informal evidence to this inquiry, it will take all appropriate
steps within its powers. (Paragraph 439)
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