Select Committee on Foreign Affairs Minutes of Evidence


Examination of Witnesses (Questions 100-111)

THE HON OSBOURNE FLEMING, DR THE HON LOWELL LEWIS AND DR THE HON MICHAEL E. MISICK LLB, MLC

3 DECEMBER 2007

  Q100  Andrew Mackinlay: And you are losing that battle, are you not? If you came back in five years' time it would be a higher figure, would it?

  Michael E. Misick: Absolutely. We are outnumbered already. We send 500 home and another 1,000 come. It is a revolving door.

  Q101  Chairman: May I ask you, Mr. Fleming, about problems that you face? The Foreign Office website mentions that the main focus of Overseas Territories expenditure in Anguilla is devoted to enhancing the capabilities of law enforcement agencies. Do you have a particular problem with crime?

  Osbourne Fleming: Yes. I have made a note here and I want the Committee to know that we are into tourism. The only industries that really propel Anguilla's development are tourism and construction. We have seen an unusual level of crime coming through the country, and most of it can be attributed to the fact that we have a number of foreign workers in Anguilla as well as Anguillans who may be involved in crime. We need some help to combat the criminal activity that is going on. We feel that if something is not done about it, and quickly, we could lose the industry by which we survive. We have come to London to make this plea and I hope that this Committee can help us. We need some help to combat the criminals; otherwise, we may be back on the grant in aid again. We never want to subject ourselves to that again. Tourism is a fragile industry—I know that I am speaking to the choir, here. It can be wiped away by criminal activities. Although we are doing fairly well, we need some help in that direction. Of course that presence is costing us, but we are better off sacrificing ourselves to keep some help from London in Anguilla than to lose the whole country.

  Q102  Chairman: What kind of crime are you talking about?

  Osbourne Fleming: We have had some murders this year, which were unprecedented. There is some stealing and some larceny. Luckily for us, this has not been against tourists over the last year and a half. It has been localised up to now, but the criminals will not stay in one spot. They will go where they think there is prey. It is not out of control, but we must begin to close the gap quickly.

  Q103  Chairman: May I ask all of you about your financial regulation systems? In a previous session we had evidence from the Cayman Islands and from the British Virgin Islands. What is the position in your Territories? Are you satisfied with the current situation?

  Osbourne Fleming: Unfortunately, I am not the Finance Minister in Anguilla.

  Q104  Chairman: You are only the Chief Minister?

  Osbourne Fleming: I am only that and I delegate and I leave the guys to themselves. However, we are doing well financially. When you consider our geographical position, we are edging up. Our offshore services are slowly coming up. I am glad that the Minister of Finance is here: sometimes I get tired of him over there. He has brought many measures to the House of Assembly that ensure that we run a clean operation. Anguilla's name cannot be tainted. So we try our best to put all the regulations and Acts in place. As you might know, Mr. Chairman, we sell high-end tourism. We want everything that we sell to be high end, even the financial services. To that end we go forward. We are going forward and ensuring that we deliver the best.

  Lowell Lewis: In Montserrat we have almost completed putting into place and enacting the legislation that brings us up to date with the rest of the international community. We have had expert advice and we have shared resources using legislation from the CARICOM and other countries. We are putting in place the legislation needed to allow us to participate in international financial services. In addition, our new draft constitution has a section on financial regulation, which will more or less provide all the necessary safeguards.

  On the issue of governance, there has to be some discussion about what is appropriate for small countries, as opposed to Britain. Your system of governance includes providing political parties with state funding, expenses for Ministers and so on. In the small Territories there is nothing like that. I am a doctor and people complain when I tell a patient that they do not have to pay today because they cannot afford it. The whole issue of how you deal with the financing of political activity and how you resolve conflicts of interests needs to be examined. The Foreign Office needs to recommend that the Territories adopt some sort of state support for political activity, to prevent the differences that occur between those who have and those who do not. I think that that answers your questions.

  Q105  Chairman: You have hit on a very topical subject, but we will not go there.

  Michael E. Misick: We have an independent financial services commission that regulates our financial services in the Turks and Caicos Islands. Instead of a boutique financial services industry, with luxury registry for yachts, aeroplanes and so on, we have brought our legislation in line with all the international requirements, including those of the International Monetary Fund, and we have a stringent know-your-customer policy for trust companies, banks and other practitioners.

  We recently introduced a series of laws, including proceeds of crime and anti-money laundering legislation, as we believe in running a clean and high-quality financial services industry. A lot of it is tied to the construction boom of condominiums and second homes, and the persons and trusts that use the jurisdiction for estate planning. We are pleased with how that has panned out in the last few years.

  Q106  Andrew Mackinlay: I want to ask one thing—it might sound small—about international bodies such as the Olympics committee. If you have an athlete, or a sportsman or sportswoman, your only conduit for them to get advancement is through the United Kingdom. There may or may not be anyone in that category—I do not know—but it is a matter of right or justice. Are you in the loop, as it were?

  Michael E. Misick: I am happy that you should raise that question. That is a point that I believe changed in the last couple of years. For example, the Cayman Islands has an Olympic committee, an Olympic team. I am not sure about others, but I know that Turks and Caicos Islands was interested in the past couple of years in having an Olympic team. However, because of the current position—I am not sure whether it is down to HMG or the Olympic committee itself—we are not able to have our own Olympic team. That is something that certainly needs to be addressed. Despite the fact that we have a constitutional relationship with the United Kingdom, all of our various Territories have their own distinct identities. The people have their own aspirations and national pride. Nothing in the world can instil national and identity more than sport. I believe that it is an injustice.

  Q107  Andrew Mackinlay: I fully understand that, but the Commonwealth games gives you an opportunity.

  Michael E. Misick: It is not the Olympics.

  Q108  Andrew Mackinlay: No, but when it comes to the Olympics—I am not sure of the sports—you might have handgun people, for instance, who might not be known in the UK by those making decisions about the United Kingdom team, of which you are entitled to be a part. That is correct, is it not? I note that the Montserrat representative is nodding his head. I do not know what athletes or sportsmen you have, but I am concerned that you are out of sight and out of mind.

  Lowell Lewis: Our athletes have tried out for the British Olympic team. However, I am glad that you mentioned sport, because that is something that I have to mention. In our recovery, we have had little or no financial support for any sporting facilities in our Islands, among many other things. If you are rebuilding a nation and a country that has been destroyed, resources have to be put into social services.

  Q109  Chairman: You have had significant support from the Department for International Development over recent years, since the disastrous consequences of the volcano nearly 12 years ago. In your opinion, how good are the arrangements now being made by the Foreign and Commonwealth Office and DFID to assist Montserrat?

  Lowell Lewis: I think that they have finally agreed that we need a lot more. The extent of the destruction was never really understood. The bottom line is that we lost 80% of our assets. We are rebuilding because the northern 17 square miles is safe. Many essential things are needed. We do not have a port. There is no courthouse. Many basic items are still not in place. Although we have had a lot of help, a lot more is needed. It is as simple as that. At the moment, 70% of our revenues are budgetary aid; we were once self-sufficient, with a surplus. All we need is to replace what we have lost—the hospital, the library and so on; essential infrastructure—and then we will be able to start again.

  Q110  Chairman: Finally, may I ask you all a question that we asked the previous panel? Are you satisfied with the relationship that you have with the UK Parliament?

  Osbourne Fleming: I have already reported this to the Committee and I want you to take the message forward because we need help on it: four of us cannot run the government of Anguilla. You are well aware of the problems taking place in that country. The situation is very hard for us. I want to push that point.

  Chairman: You made that point at the beginning and you are making it at the end.

  Osbourne Fleming: Other than that, we enjoy a good relationship.

  Lowell Lewis: I have just received a note from my colleague saying that I should make a plug for a Parliament building in Montserrat. The bottom line is that we have a relationship that can improve. We invite you to come to Montserrat, because only when you come there do you realise that we have a future and realise the devastation that we sustained and the additional help that we need.

  Chairman: Thank you.

  Michael E. Misick: There needs to be better relations between Parliament and Members of Parliament in the various Overseas Territories, so that people are better able to understand the dynamics of the different Territories. I think that most of us seek a modern relationship in which there is representation, just as Scotland and Wales have representation, whether it is in the House of Commons or elsewhere. I believe there was a Bill several months ago about possible representation from the Overseas Territories in the House of Lords. If we are to have a long-term marriage, the time has come for consideration of the Overseas Territories having direct representation in the House of Commons. Perhaps there could be a couple of elected Members as well as persons in the House of Lords. That is one area that has not been looked at properly and that can be improved if there is to be a long-term modern relationship. We can look at the United States and Puerto Rico, the Virgin Islands—

  Andrew Mackinlay: Samoa.

  Michael E. Misick: Samoa. There is also Guam. Hawaii is a state, but has representation in Congress—even Washington DC has it.

  Q111  Chairman: Even the French Senate has representatives for the Overseas Territories, so the point you are raising is well made.

  Michael E. Misick: Exactly. St. Martin and Guadeloupe and all those places have representation in the French Parliament. The situation is the same with the Dutch. The colonial days are over. We are talking about the remaining Territories and their citizens. There are probably fewer than 160,000 people and most of us are from the Caribbean region. The time has come for the United Kingdom to consider a modern approach whereby if most of the Territories want to remain British, there has to be a modern relationship. Otherwise, once Territories develop a certain degree of economic independence, they will probably sail off into the sunset. Today, when we are all interdependent, there can be a modern relationship with the remaining Territories.

  Chairman: Gentlemen, thank you for coming. Thank you for your time and your comprehensive answers. We hope you enjoy your Overseas Territories meetings in the next two days and we wish you all the best for the future.





 
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