|
OT 414: Letter to the Chair of the Committee from Chris Bryant MP, Permanent Under-Secretary, Foreign and Commonwealth Office
Thank you for your letter of 16 December to the Foreign Secretary, in which you requested further information on the Overseas Territories, following your meeting with Territory leaders on 10 December. I am replying as Minister responsible for the Overseas Territories and as I attended the meetings with the Territory leaders between 7-9 December.
Contingent liabilities
Several Heads of Government raised the issue of contingent liabilities and the restrictions on the ability of Overseas Territories Governments to borrow, specifically Anguilla, the Cayman Islands and the British Virgin Islands. It was reported to us that Chris Bryant MP had given an undertaking to review the existing borrowing guidelines. Could you please notify us of the terms and proposed timescale for this review?
In the context of a discussion on public finances I proposed that the current borrowing guidelines be reviewed and updated. This was agreed. Our objective will be to ensure the borrowing guidelines better reflect the economic climate, each territory's ability to manage debt and other financial commitments, and the full range of financing options now available. In addition, we aim to introduce mechanisms to ensure clearer and earlier warning of Weakness in Territories' performance to help us prevent crises in public finances.
The timescale for the review has yet to be determined but we will begin consultation with the Overseas Territories Governments concerned early in 2010, with a view to completing the exercise as soon as possible.
St Helena Airport
The ongoing issue in relation to the delays in the provision of an airport for St Helena was raised. I previously raised this in correspondence in February 2009. It is unsatisfactory that this issue remains unresolved, and the seriousness of this issue for the future development and economic survival of St Helena means that progress is matter of urgency. Please find a letter to the Department of International Development attached.[1] I would also appreciate your comments.
You will by now have seen the Secretary of State for International Development's Written Ministerial Statement of 15 December 2009 on the St Helena airport and Douglas Alexander will be responding to your letter to him.
I should perhaps add that the Government remains committed to the partnership principles set out in our 1999 White Paper on the Overseas Territories. We will therefore continue to work closely with the St Helena Government and with DFID to seek a positive way forward.
Ascension Islands
The dispute between the MoD and Ascension Island Government (AIG) over the MoD's refusal to pay the assessed property tax was raised. It was identified that the MoD's refusal to pay is having a serious impact on AIG's budget (they are withholding about £500,000 a year, over the past three years). Mrs Ann Miller of the Ascension Island warned that should this tax not be paid, the Ascension Islands will face bankruptcy by April 2010, and would no longer be able to provide essential services. In a note to the Committee staff on 3 November, the FCO said that it was doing all it can to facilitate a resolution to the dispute, including a dialogue at Ministerial level. Could you update us as to progress in this area? Please find attached a letter to the Ministry of Defence in relation to this.
I met Bill Rammell in December and agreed that the Government and the Ascension Island Government (AIG) needed to work together urgently to find a solution which would address the outstanding tax issue and put AIG public finances on a sustainable footing. Dialogue is continuing between Ministers, officials and AIG. This work will be informed by a review of public finance issues which will shortly be concluded. In the meantime, AIG continues to make efficiency savings but, as Mrs Miller pointed out, these alone will not be sufficient to prevent insolvency. I am therefore acutely conscious of the need to resolve this issue as a matter of urgency.
Updates
1) Concerns were raised with us in relation to the impact of air passenger duty tax on the Caribbean, both in terms of tourism and in terms of the Caribbean diaspora. What steps are being taken by the FCO to address this?
The FCO has received regular representations from many of the Caribbean countries over the past year and more recently from the Caribbean Overseas Territories about air passenger duty tax (APD) and we continue to raise their concerns with the Treasury. Gillian Merron wrote to Angela Eagle MP then Exchequer Secretary to the Treasury on 5 March 2009 outlining the Caribbean's reaction and concerns to the APD reform. Angela Eagle replied on 21 March, outlining the reasons for the reform in an effort to alleviate the concerns.
During the UK/Caricom meeting at the Commonwealth Heads of Government Meeting in December 2009 the Prime Minister spoke about APD and the Caribbean, and undertook to ask the Chancellor to look again at this issue.
2) What is the FCO is doing to assist with the development of a modern communications system in the Falkland Islands, particularly telecommunications and broadband? Responsibility for telecommunications in the Falkland Islands lies with the Falkland Islands Government (FIG). FIG currently licences Cable and Wireless to provide its telecommunications system. It is for the FIG to resolve issues under the licence with Cable and Wireless.
3) What is the current position in relation to the appointment of a new Governor in the British Virgin Islands? Have concerns been raised with you in relation to the Deputy Governor, and, if so, what was your response?
The appointment of the new Governor in the British Virgin Islands was announced on 14 December. Mr William Boyd McCleary will succeed Mr David Pearey, and will take up his appointment in Autumn 2010.
We are aware of the Hon Ralph O'Neal's opposition to the appointment of the Deputy Governor, Mrs Inez Archibald. The Premier has previously raised this issue with Meg Munn, Gillian Merron, the Director for the Overseas Territories and the Governor. The Government has always supported the appointment of Mrs Archibald and encouraged the Premier to recognise the appointment. During his bilateral meeting with the Premier on 7 December, Chris Bryant made clear his concern about the Premier's continuing lack of cooperation with the Deputy Governor. He expressed his confidence in the Deputy Governor and urged the Premier and his government to engage constructively with her, emphasising that she was the representative of the UK Government when the Governor was absent from the Territory. 4) What is the current nature of the UK's bilateral relations with Argentina?
Argentina is an important partner. We have a close and productive relationship on a range of bilateral and multilateral issues, including the global economic situation (particularly in the G20), human rights, climate change, sustainable development and counter-proliferation.
We will also continue to work for a constructive and positive relationship on South Atlantic issues - such as the humanitarian visits by Next of Kin of the Argentine Fallen to the Falkland Islands in October 2009. We encourage the Argentine authorities to do the same.
5) Could you provide an update on the position of the Uighurs in Bermuda?
We remain in discussion with the US authorities over the four Uighur men who arrived in Bermuda in June, following an agreement reached between the Government of Bermuda and the US. The US Government has assured us that it will not send former detainees from Guantanamo Bay to UK Overseas Territories in future.
Since the Uighurs' arrival in June, both the Foreign Secretary and I have met the Premier of Bermuda and emphasised to him that we expect him to support the UK in resolving the Uighurs' situation. The Foreign Secretary has also discussed a long-term resolution to the issue with Hilary Clinton as part of the eventual closure of Guantanamo Bay.
As a result of the Premier's action, the British Government has reviewed the 1968 General Entrustment, which authorised the Government of Bermuda to conduct certain aspects of external relations. A revised General Entrustment came into effect on 1 December 2009. It strengthens and updates the 1968 text and adds an additional requirement to provide an annual report on any activities undertaken under the entrustment.
12 January 2010 [1] Not published |