The Work of the British Council 2008-09 - Foreign Affairs Committee Contents


3 Challenges

Russia

52.  The British Council has had difficulties with its operations in Russia for a number of years. Five years ago Russian police raided the Council's offices, claiming it was involved in illegal commercial activity on which no tax was paid. The Council was operating in Russia under a cultural agreement signed when it first entered the country in 1994. The Russian Government had indicated that it no longer considered the agreement to be an adequate framework, but the Ministry of Foreign Affairs had repeatedly assured the British Council that it would be able to negotiate its tax status with the tax authorities as soon as a new Cultural Centres Agreement was signed. The last assurance had been made in May 2004, but the Russian authorities carried out the raid nonetheless.[67]

53.  In 2005, the Council settled all outstanding tax claims, totalling £1.4 million, and registered itself as a regular tax payer. The case was formally closed in December 2005, but the investigation was reopened the following month, coinciding with a public attack by the Federal Security Service (FSB) on British diplomats allegedly involved in espionage and financing of NGOs in Russia.[68] Those tax disputes have now been settled in St Petersburg with a final settlement of approximately £7,000 of tax payable by the British Council, which is roughly 99.5% less than the original tax demand. The Council hopes that the case in Moscow will be settled shortly.[69]

54.  In December 2006 the Council informed us that it was closing down all language teaching in Moscow. This was due to the imposition of a licence requirement, which it had previously been told it did not need. The Council later also discontinued teaching in St Petersburg and in June 2007, the Russian authorities demanded that the Council vacate one of its offices in Ekaterinburg.[70]

55.  In December 2007 the Russian Foreign Minister made comments linking the UK Government's measures following the Litvenenko murder to Russia's treatment of the British Council. In the same month the Council decided that due to difficulties with its relations with Russia it would transfer nine regional centres and the Moscow Library to local partners. Then in January 2008, the Council took the decision to suspend all operations in St Petersburg and Ekaterinburg. Its 2007-08 report said that its staff had been "subject to intimidation and undue pressure from the Russian government" and that it had taken the decision "out of a duty of care".[71]

56.  In its submission to our 2007 inquiry into 'Global Security: Russia', the Council said that it was "continuing to seek agreement on a new Cultural Centres Agreement, working closely with the Foreign and Commonwealth Office to achieve this". In October 2008, Lord Kinnock told us that the Council had adopted a pragmatic approach, but that progress was slow.[72] In April 2009, the Government stated that there had been "no change in the situation on the Cultural Centres Agreement". In November 2009 Mr Davidson reported to us that he had no information about when it would be possible to obtain a Cultural Centres Agreement, which would allow the British Council to reopen in St Petersburg.[73] The Council states that it continues to undertake important cultural work from its Moscow office, and Mr Davidson noted that the atmosphere for cultural relationships with Russia had improved over the past 18 months.[74] By means of illustration, he noted the support the Council gave in arranging a major exhibition of JMW Turner's work in Moscow which ran from November 2008 to February 2009. It received over 100,000 visitors and was named the "Exhibition of the Year" by Russian critics. [75].

57.  We conclude that the lack of progress towards a Cultural Centres Agreement in Russia is regrettable, and recommend that the Government and the British Council continue to seek a resolution to this long-standing issue. We further conclude that the Council's success in pursuing alternative activities in Russia is to be welcomed and recommend that it is given a high priority.

Iran

58.  The Council suspended its operations in Tehran on 31 January 2009. In a statement to the BBC the Chief Executive said: "the safety and well being of staff were the British Council's prime consideration and the organisation has had no choice but to suspend all cultural relations activities until such a time that operations can be resumed with employees able to conduct their work without fear of intimidation or harassment". He added that the British Council was looking for the opportunity to discuss with the Iranian authorities an agreement that would allow the Council to resume work in Iran sometime in the future.[76] Martin Davidson expressed regret that "one of the saddest things of all" was that the opportunities for young people in Iran to develop links and connections with other parts of the world, have been closed down.[77] Mr Davidson told us, "we stand ready when it becomes possible for us to get back to work in Iran, but I have to say I'm not sanguine about that being very soon".[78]

59.  We recommend that the FCO take all steps necessary to support the British Council in its efforts to resume its important work in Iran.

Zimbabwe

60.  The British Council has operated in Zimbabwe since that country's independence. In October 2008, Martin Davidson told us that the Council remained committed to its work in Zimbabwe. He noted that in current circumstances the Council is unable to expand its operations there, but that it was poised to do so as soon as the political situation improved. Future plans include working with the diaspora communities in the UK and South Africa, looking at ways in which they might be encouraged to return to Zimbabwe, and continuing to work with young professionals within the country.[79] The number of young people going through the two offices in Harare and Bulawayo has risen to 60,000 over the year.[80] Furthermore, the Council cited the example of a conference it arranged with the Royal Commonwealth Society in Johannesburg in 2009, which was attended by representatives of Commonwealth organisations, including civil society, local government, human rights organisations and higher education. The conference had considered ways of engaging the Zimbabwean diaspora in the reconstruction of the country. This has led to a more serious Commonwealth focus on Zimbabwe. The organisations represented at the conference are individually working with their Zimbabwean counterparts.[81]

61.  We recommend that the FCO support the British Council's efforts to re-establish itself in Zimbabwe.


67   Foreign Affairs Committee, Eighth Report of Session 2005-06, Public Diplomacy, HC 903, para 92  Back

68   'Russia reopens probe of British Council', Financial Times, 24 January 2006 Back

69   Q 29 Back

70   'British Council ordered out', The Guardian, 15 June 2007 Back

71   British Council, Annual Report 2007-08, p.15 Back

72   Foreign Affairs Committee, Second Report of Session 2008-09, Foreign and Commonwealth Office Annual Report 2007-08, HC 195, Q 88 Back

73   Q 29 Back

74   Q 29 Back

75   Foreign Affairs Committee, Second Report of Session 2008-09, Foreign and Commonwealth Office Annual Report 2007-08, HC 195, p. 71 and DR 351 Back

76   'British Council statement on Iran', BBC News, 4 February 2009 Back

77   Q 32 Back

78   Q 30 Back

79   Foreign Affairs Committee, Second Report of Session 2008-09, Foreign and Commonwealth Office Annual Report 2007-08, HC 195, Q 92 Back

80   Q 33 Back

81   Ev 15 Back


 
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