Diego Garcia Military Base and British Indian Ocean Territory Bill Debate
Full Debate: Read Full DebateLuke Pollard
Main Page: Luke Pollard (Labour (Co-op) - Plymouth Sutton and Devonport)Department Debates - View all Luke Pollard's debates with the Ministry of Defence
(1 day, 15 hours ago)
Commons ChamberI beg to move, That the Bill be read a Second time.
On 22 May, the Prime Minister signed a landmark treaty with the Republic of Mauritius that guarantees the continued UK operational control of Diego Garcia for the next 99 years and beyond.
Will my hon. Friend give way on that point?
I congratulate my hon. Friend on his recent appointment. It is important, right at the outset, that we understand that there has been almost no change in position. I refer him to the comments of the right hon. Member for Braintree (Sir James Cleverly) in 2023, when he stated that his
“primary objective is to ensure the continued effective operation of our defence facility on Diego Garcia.”—[Official Report, 13 June 2023; Vol. 734, c. 151.]
Can my hon. Friend confirm that that has not changed?
Order. I know that the hon. Member also wants to make a speech. I would not like him to use up his whole speech in an intervention in the first 10 seconds of the debate.
It was a timely intervention. I am happy to confirm that this precise deal delivers on the objective as originally set out when the Conservatives were in government. It secures the continued operation of the UK-US military base.
To be fair, I will give way to one Opposition Member, and then I will make some progress. I give way to the former Deputy Prime Minister.
I congratulate the hon. Gentleman on his appointment. I had not intended to intervene so early, but I will, given that the record of the previous Government has come up. Can he confirm whether it is the case, as was the position under the previous Government, that we will retain sovereignty after 99 years on a rolling basis? Can he confirm the basis on which he is compensating the Mauritians, because it certainly was not the case that the last Government would have agreed to a remotely similar sum being paid? On this, as on so many other measures, there is an enormous gap between the negotiating position set out under the last Government and the total capitulation by Labour when they came into office.
To borrow a phrase, if the right hon. Member shows me his, I will show him mine. The whole point is that our deal is published. If he would like to go into the files and dig out his deal and publish it, we would be able to see where this deal has enhanced those protections, secured the operation of the base and got a better deal for the British people. I would be very happy if he would like to go into his files and publish the deal.
I will come back to the former Deputy Prime Minister and then I will make some progress.
The Minister invites me to respond to him. He needs to appreciate that there is an enormous difference between a tough negotiating position in the British national interest and the capitulation of the Government’s deal.
I do not think the right hon. Gentleman wants to show me his draft deal, and there is a very good reason for that: this deal, this treaty and this Bill improve on that deal.
I said I would take one intervention from each side of the House. I have done that, so I will make some progress, but I am certain that Members will get another chance in a moment.
This treaty is indispensable to keeping Britain secure at home and strong abroad. It is an expression of our unbreakable defence and intelligence bonds with the United States. It strengthens and extends our power to respond to terrorists and hostile states, wherever they may be. It protects some of the world’s busiest trade routes, on which British businesses and consumers rely. It is a long-term investment in our core national interests, and it will benefit British people for generations to come.
I am going to make some progress, but I will be happy to give way in a moment.
Before I start getting into the detail, I want to recognise up front the Chagossians affected by decisions taken by Britain many years ago. We recognise in the preamble to the universal deep regret over what happened. It is acknowledged on the face of the treaty, and I know there is cross-party support for the Chagossians, although there is a range of views on the deal within the Chagossian community. I want to place that on the record right at the start of the debate—[Interruption.] I will return to the Chagossians in a moment.
Both Houses have now had the opportunity to scrutinise the treaty under the Constitutional Reform and Governance Act 2010. The Minister of State, Foreign, Commonwealth and Development Office, my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty), who is sitting next to me, gave evidence to three parliamentary Committees during the scrutiny period, allowing Members of this House and the other place to fully interrogate the details of the treaty. The International Agreements Committee concluded that if the treaty were not ratified, the future of the base on Diego Garcia would be at greater risk. The purpose of this Bill is to make the necessary changes to domestic law to implement the treaty, so that it can be ratified and brought into force.
Let me remind the House why we needed to secure this treaty. The Diego Garcia base is central to our national security—I know that all Members of this House will recognise that very simple fact.
I am going to make a wee bit more progress, but I always like giving way to a Luke, and I will do so in a bit—do not worry—but not quite yet.
I pay tribute to all Members of the House who have taken the time to scrutinise the treaty in detail.
Allow me to set out why it is so vital. The importance of the base cannot be overstated. The joint UK-US base on Diego Garcia has played a vital role in defending the UK and its allies for over 50 years. The base plays a key role in operations that support UK forces and our allies across the middle east, east Africa and south Asia. Its deepwater port, airfield, and advanced communications and surveillance capabilities, give the UK and our allies crucial strategic capabilities, which have played a key role in missions to disrupt high-value terrorists, including Islamic State threats to the United Kingdom.
But the base on Diego Garcia was under threat. Had we not signed the treaty, we could have faced further legal rulings against us within weeks, because the negotiations begun by the Conservatives had been stayed. Further legal rulings might have included arbitrary proceedings against the UK under annex 7 of the UN convention on the law of the sea, known as UNCLOS.
In a moment. I will come to the hon. Gentleman—he should not worry.
A judgment from such a tribunal would be legally binding on the UK. It would impact on our ability to protect the electromagnetic spectrum from interference, and impair our ability to ensure access to the base by air and sea, to patrol the maritime area around the base and to support the base’s critical national security functions.
My hon. Friend has spoken about the important capabilities of this vital US-UK base. Does he agree that it would be dangerous and counterproductive to put those capabilities at any risk—certainly if that could have happened in a matter of weeks or months?
I agree, and it is precisely the reason why the Conservative Government started the negotiations in the first place. You do not accidentally rock up one day to the Foreign Office and decide to start international negotiations; you do so because there is a clear risk to the future of the military base. That is why the Conservatives started the negotiations, why they had 11 rounds of negotiations, and why we had to conclude the deal.
As I have taken one intervention from this side of the House, I am happy to take another from the Opposition Benches.
The International Court of Justice ruling is not binding. It is not in law. We did not have to abide by it. Why are we giving away British territory to Mauritius and then renting it back? There was no need for us to do so. Why are we doing it?
I have a lot of time for the right hon. Gentleman. The provisions of those judgments affect the operations of the base—that is what is important here. It is also about the extension of the judgments, because other powers could be used on the basis of those judgments. That is the reason that the Conservatives started the negotiations. [Interruption.] If they would like to explain that there was a better reason that they started the negotiations—if it was not to ensure the security of this vital base—they are welcome to do so.
If the hon. Gentleman would like to explain why the Conservatives started the negotiations, I am happy to give way.
I thank the Minister for giving way, and I welcome him to his new position. He keeps saying “could”, “if” and that things “might” have happened. Will he accept that the legal judgments that have been cast down, which he is using as evidence, are not binding? Does he accept that when he talks about our deal—in other words, the last Government’s deal—he is actually being a bit duplicitous? There was no deal, because we ended the negotiations.
I think the Opposition have got their attack line sorted, but not the reasons why they started the negotiations.
Order. I did not like the word “duplicitous”, and I definitely did not like the carrying on afterwards. I am sure that “duplicitous” will not be said again today.
Thank you, Mr Speaker. I will make some progress, but I will take Members’ interventions in just a wee moment. [Interruption.] The shadow Foreign Secretary will get a go in a moment, but if she wants to continue shouting at me, she is more than welcome to do so; I will make some progress in the meantime. I hope she understands that this debate is best approached in a good-natured way, and I am certain that she will be doing so, with less shouting.
As I just mentioned—the hon. Gentleman might have missed it—I will give way in a moment, but I will now make some progress.
Courts and international bodies were already making decisions that undermined our position. Others would have followed suit, taking us down a path towards making the base inoperable. This Government will not allow that to happen. There has been a wealth of misinformation on these legal points, and those who have suggested that the UK should simply ignore international law fail to recognise the true impacts of these cascading adverse rulings, which would have not only impeded our ability to control and operate the base, but would have swiftly undermined our ability to control the waters, the air and the electromagnetic spectrum on which the base relies. Such rulings would have fundamentally undermined the very capabilities that make the base so uniquely valuable to the UK and the US, our allies.
This treaty eliminates that legal threat. Under the treaty, the UK will retain all the rights and authorities necessary for full operational control of Diego Garcia. It provides for unrestricted use of the base.
In just one moment.
The treaty provides for control over the movement of all persons and goods on the base, and for control over the electromagnetic spectrum used for communications. It ensures that nothing can be built within a buffer zone of 24 nautical miles without our say so, and it delivers an effective veto on any development in the Chagos archipelago that threatens the base—something that the previous Government failed to secure in their negotiations. It prohibits foreign security forces from establishing a presence on the outer islands.
I congratulate the Minister on his new position
May I get one little moment of agreement here? The Government say they abide by the law. Given the opt-out that we had, the original judgment was specifically not found in law, because we did not allow the ICJ to rule on Commonwealth issues. The question is a matter of law, so if the Minister is suggesting to the House that other actions would have taken place, they would have been unlawful. In what world was it necessary to block off those by assuming that this was law? It was not lawful.
The Foreign Office and the Government published the Government’s legal position when the treaty was laid. That assessment says:
“The longstanding legal view of the United Kingdom is that the UK would not have a realistic prospect of successfully defending its legal position on sovereignty”
in any future sovereignty litigation. That important and long-standing view predates this Government. Again, it was one of the reasons why the Conservative Government began the negotiations and held 11 rounds.
Does the Minister not think it is the height of hypocrisy for those in the last Government, who negotiated 85% of this treaty over 11 rounds, to wait until they were in opposition to make these claims, none of which they made during their negotiations?
I thank my hon. Friend for that. It must be quite a freeing experience, because we now know that nearly every single legacy Tory MP during the last Government—whose Ministers started the negotiations, negotiated a deal, and made statements and answered questions in this House—were not actually supporting their Front Benchers, which is what we saw, but were deeply upset with the Conservative Government. If that is their genuine position, not just their political position now, they should have raised those concerns with the Foreign Secretary at the time. They should have been clear about it, but I believe that not many of them did so, and that tells a story.
I welcome the hon. Gentleman to his promoted position. If he is asking the House to thank him for negotiating what we already have, I think our thanks will be a long time in coming, because the outcome of the negotiations is pretty poor as far as this country is concerned. Surely we have given away what is of most strategic importance in this space as we now have to notify the Mauritian Government any time we want to do anything there. We do not currently have to do that, and therefore the element of surprise has been lost.
I have a lot of time for the hon. Gentleman, but I am afraid he is incorrect about the notification criteria. There is a lot of fake news out there—which I and the Minister beside me, my hon. Friend the Member for Cardiff South and Penarth, have corrected in this House before—about the suggestion that pre-notification of action is required; it is not. As is explicitly set out in the documents, we do not need to undertake pre-notification. It is established under the criteria that post-action notification for overseas bases is normal, and that would be normal for the UK and our overseas allies that have overseas bases. It is not unusual, and he will be familiar with the fact that there is further international reporting of any military action. It is important that we go on the facts. Some people are worried about the situation that the hon. Gentleman outlined, but I can reassure him that they do not need to worry about it, because what he said is not accurate.
I sincerely congratulate my hon. Friend on his new position. I have to say to him that I have never found it a satisfactory basis for arguments or positions in this Chamber to say that those on the other side are doing it. However, I do think it is important that we are consistent. When we were in opposition and the Conservatives were in government, they made the Foreign Secretary a Member of the House of Lords, and we created about it. We shouted about how someone in a senior Cabinet position should be directly accountable to this House. We now have a super-active Attorney General making many controversial decisions. Does my hon. Friend agree with me that we should be making the case that the Attorney General should be in this House, not the other place?
That is not a matter for me in relation to this Bill, but my hon. Friend has put his views on the record, and I am certain that others on the Front Bench will have heard what he has said.
The Minister has made it absolutely apparent that this is about the long-term security of the base, so could he explain why, under article 13, if after 99 years the Mauritians decide not to negotiate, the base will just stop. We will get first refusal, but we can easily see that the Chinese would outbid us because we in this country decide that that is not affordable. We are a hostage to fortune, and that base will crumble. He has not secured the base, he has just deferred the issue by four generations, and this House will then have to decide what to do.
It is good that the hon. Member has read the detail of the treaty. As he will know that, at the end of the initial 99-year lease, a first refusal will be offered to the United Kingdom. That is the right place to be, and that offer will mean—as he describes it, in four generations’ time—there is a decision for this House to take about what it wants to do based on the circumstances at the time. This gives us first refusal, so we can conceivably see that full control of the UK-US base on Diego Garcia could extend well beyond the 99 years I have mentioned.
Does the Minister accept that we owned the freehold of the Chagos islands, and does he agree with me that in the mid-1960s we paid Mauritius £3 million in old money—some 80 million quid in today’s money—to cede all future claims over sovereignty?
The legal analysis that this Government have received, and indeed that the last Government received, showed that the position of UK sovereignty over the Diego Garcia military base was putting the base’s operation at risk. The reason why the last Government began the negotiations was to secure the continuing operation of the base, and it is the reason why we are doing so. Securing the future operation of that base is the primary concern of this Government. Indeed, as we heard from my hon. Friend the Member for Leyton and Wanstead (Mr Bailey), it was the primary concern of the last Government as well. That is what this deal secures, and it is really important that that is understood clearly: the base is what matters in relation to its continuing operation, and that is what this deal secures.
I will give way to the right hon. Gentleman first and then come to the hon. Gentleman.
Could I ask the Minister to return to the human cost and the human story? In 1968, the Chagossians first began to be removed from Diego Garcia and the archipelago. Their treatment was abominable and disgusting by any stretch of the imagination. It needs a bit more than a statement of regret; it needs a full-hearted apology to all the Chagossian people for the way they were treated.
Since there is a legal judgment that the Chagos islands in their entirety, including the archipelago and Diego Garcia, should return to Mauritius, is this treaty not just completing work that was not properly done in the 1960s? Would the Minister confirm that the question of returning to live on the outer islands is agreed, but be clearer about the Chagos islanders who want to return to Diego Garcia, either to visit or to reside, in the future? History has treated them badly, and that needs to put it right.
Order. I always respect the right hon. Gentleman, and I could put him down to speak because of his knowledge—if he wants me to, I can certainly add him to the list—but it would be better if we had shorter interventions.
I agree with the right hon. Gentleman about the way the Chagossians were treated. For those who have a copy of the treaty to hand, part of the preamble says that the parties are
“Conscious that past treatment of Chagossians has left a deeply regrettable legacy, and committed to supporting the welfare of all Chagossians”.
That is in the treaty because their treatment was unacceptable, as he has explained, and it has caused a legacy of pain and suffering for that community. It is the reason why the Foreign Office Minister, my hon. Friend the Member for Cardiff South and Penarth, has engaged so much with the different views of a range of Chagossian voices in this debate.
I will come on to answer the right hon. Gentleman’s question when the interventions slow down a wee bit but, to get ahead of that, people will be able to visit Diego Garcia. Chagossians will be able to visit Diego Garcia as part of this treaty, which they are not currently able to do, but they will not be able to reside on Diego Garcia. They will be able to do so on some of the outer islands, for which the provisions will be different, but the military base is a military base for a reason, and although people will be able to visit, they will not be able to reside there. I will come back to that in due course.
If the hon. Member does not mind, I will come back to him when I deal with the Chagossians later, but in the meantime I am happy to take the other intervention.
I am grateful to the Minister for giving way on the negotiations. He is making great play of the fact that the previous Government started the negotiations and that there were 11 rounds of them. Is he not aware that, in 1965, the United Nations passed a resolution saying that we should enter into conversations with Argentina over the Falkland Islands. Those negotiations went on for 17 years and ended in 1981. In 1982, we all know what happened. So it is not where we start; it is where we finish.
I say politely to the hon. Gentleman—for whom I have a lot of time, and I respect his military service—that that comparison we have seen of the British Indian Ocean Territory with the Falkland Islands is shameful. I have seen the tweets from the Conservative party asking, with a map of the Falkland Islands, “Are they next?”—a shameful comparison, which stokes the flames of division and threatens the sovereignty of such overseas territories. Let me be clear, as my hon. Friend the Member for Cardiff South and Penarth from the Foreign Office has been clear at the Dispatch Box: there are no changes or implications for any other British overseas territories. Indeed, the British overseas territories support the deal. I hope that we will not need to revisit this again, but any implication that seeks to apply the experience of BIOT to other overseas territories is unhelpful to them. I am certain that the hon. Gentleman wishes to create no question marks over those overseas territories.
To go back to the point that the Minister was making earlier about control, can he confirm to the House that, contrary to the reasoned amendment in the name of the hon. Member for Clacton (Nigel Farage), we are not ceding control of the Diego Garcia military base, consistent with clause 3?
My hon. Friend is exactly right. On the reasoned amendments, my colleague who is to conclude the debate, the Minister of State, Foreign, Commonwealth and Development Office, my hon. Friend the Member for Cardiff South and Penarth, will respond to some of the details of the reasoned amendment selected by Mr Speaker. However, there is a lot of misinformation about this treaty, and I believe that in some cases it is deliberate misinformation to confuse the picture. Clearly, securing the operation of the base is the priority of this Government and of this treaty. Indeed, I believe in good faith that it was the priority of the previous Government as well, which is why they started the negotiations and held them for 11 rounds, and why we concluded them, because we agreed with the previous Government that securing the future operation of the base was the priority. That is why they started them; that is why we completed them.
The Minister has already outlined the support of the British overseas territories. Will he please remind us of who else supports the Bill? Who supports it and who else opposes it, in addition to the Conservative party?
I will come to the level of international support in a moment, but our allies back this Bill and support it strongly. When we look at which column people choose to be in—the column of those in support of the Bill, with our allies, with India, the United States and others, or the column of countries and people who oppose it—I know which side I am on. I am on the side of our allies. It is up to each of the opposition parties to choose whether they oppose the Bill and to decide which column they are in. That is a choice not for me, but for them. Only one column has our allies in, including our principal security partner, the United States. It is on the side of the treaty.
I have long been interested in Diego Garcia, not least because I am one of the few Members of Parliament who has visited it, 40 years ago with the Defence Committee. May we get some certainty? Every time we mention the £35 billion estimate of the Government Actuary’s Department, the Minister’s colleague, the Minister of State, Foreign, Commonwealth and Development Office, the hon. Member for Cardiff South and Penarth (Stephen Doughty), brushes it aside and says that he does not recognise the number. Given that we are spending a lot of taxpayers’ money on this—something we already owned—will he tell the House in detail how much the agreement will cost us over its lifetime?
I am grateful to the Father of the House for helping me to get back on track with my speech, because that is the topic of my next section. I will answer the right hon. Gentleman’s question in my remarks, but if a bit is missing, he may ask to intervene on me again.
We have heard some outrageous claims artificially boosting the costs of this deal. It will cost an average of £101 million per year in today’s money. That is an investment in today’s money of £3.4 billion over 99 years. That has been rigorously calculated, based on net present value, the methodology endorsed by the Government Actuary’s Department and the Office for Budget Responsibility. All the associated costings have been laid previously before the House and were explained in full at the time of signature.
Crucially, the exaggerated numbers that have been cited ignore inflation, the OBR deflation mechanisms and the Green Book. The Government have secured a strong deal. I remind those who criticise it that the previous Government knew full well that the status quo was dangerous and unsustainable—that is why they entered into negotiations in the first place, why they held 11 rounds of negotiations under successive Prime Ministers, Foreign Secretaries and Attorneys General, and why the Conservatives have never been able to provide serious alternatives to this deal.
Can the Minister point to any other country in the world that has used NPV to give away sovereignty? As far as I am aware, there is none, so why are we pioneering that way forward?
This deal secures the base. The calculated value of the deal uses the Green Book. Other countries look at overseas bases that they rent and make the calculation based on their national accounting standards. We base it on the Green Book. Indeed, the Green Book was updated by the previous Government and has been used for such decisions for the past 20 years.
I will return to the Green Book in a moment, but will give way first to my hon. Friend the Member for Leyton and Wanstead (Mr Bailey). I am trying to be fair to everyone.
Will the Minister place that £101 million in context? Perhaps the US or other nations have entered into such agreements. Will he make reference to the value for money that we received for the deal?
The deal represents broadly 0.2% of the defence budget. The total deal represents less than the cost of the unusable personal protective equipment acquired by the previous Government and burnt during the first year of the pandemic. A helpful comparator useful for the House to know about is the French base in Djibouti. Recently, France agreed a deal with Djibouti worth €85 million per year to rent a base. Diego Garcia is a larger—15 times larger—more capable and more strategically located military asset and, importantly, it is not next to the Chinese naval base that sits next to the French one in Djibouti. As a comparison, that is useful for people to understand in terms of present value.
Will the Minister give way?
I congratulate the Minister on his promotion, but must say how sorry I am that his first outing has been to defend this load of nonsense. What does he say to the UK Statistics Authority and to the Government Actuary’s Department, which appear to have a very different view of the costing of this to the one that he has just outlined? Is it not the case that what he has said represents a load of accounting double-speak and is dubious, to put it politely and in parliamentary terms?
That is not quite correct. Indeed, unfortunately, this is not my first outing. My first outing was at Defence questions yesterday, supporting British jobs in the defence sector and celebrating the £10 billion frigate deal that this Government achieved. My second outing was yesterday afternoon with the statement on the defence industrial strategy, making the case for more investment in British businesses. My third outing, though, is here today, securing the most vital military base that the UK and the US operate together. It is absolutely right that, as part of it, we present the costings to Parliament. It is also precisely right that those are reviewed properly by the Government Actuary’s Department and the Office for Budget Responsibility. That has happened, and that is why we have been able to use the figures with certainty. The costings are also entirely consistent with the Green Book.
The Green Book point is a useful one to dwell on for one moment, because if the policy of the Conservative party is not to use Green Book calculations for long-term investments—the same Green Book used for costings of our nuclear deterrent or pensions—I want to understand how much spending the Opposition are now committing to. In how many other examples would the Green Book no longer apply? What are their new accounting principles and what would be the increased cost to the public purse? How many more people will pay increased taxes, because of their disapplication of the Green Book principles? Those are entirely fair questions. The shadow Chancellor, the right hon. Member for Central Devon (Sir Mel Stride), signed the reasoned amendment, so surely he would be able to say how many other areas the Green Book no longer applies to. Perhaps the Opposition Front Benchers will be able to specify any other areas that they no longer believe that the Green Book applies to. We calculated our figures based on the Green Book, and that is why we are confident in them.
I will take two more interventions, and then I will make some progress. I am aware that the debate is one that people want to speak in.
If the Minister is such a big fan of the social time discounting method that has been applied, will he tell the House where the social time discounting method has been used in other parts of Government to generate net present value?
The hon. Gentleman will know that we have published the full methodology, and that the social time preference rate is only one part of the calculation that we have used; we have also used the OBR’s inflation deflator mechanisms as well. He will also know that we published the full costings at the point of the treaty being applied.
I will make a little bit more progress and then I will come back to the hon. Gentleman. [Interruption.] I can hear the shadow Foreign Secretary has gone back to her shouting again, but it is still not the politest way of running the debate. Let me keep going.
It was left to this Government to finish what our predecessors were unable to deliver. In doing so, we have secured a much stronger deal that will protect our interests well into the next century. Let me remind the House of the international context. The ruling of the International Court of Justice against the UK was a low moment for our country globally. It left our allies fearful that we might lose control of the base, it left our adversaries with opportunities to exploit, and it tarnished our reputation in the global south. In contrast, as we have heard on countless occasions from a range of colleagues, this deal has been welcomed wholeheartedly by our allies and the wider international community.
Does the Minister agree that it is completely wrong for the hon. Member for Clacton (Nigel Farage) and Reform UK to claim that President Trump did not support this deal, when he said it was a “very strong” deal that was secured for a “very long” time?
In support of the deal, the US Defence Secretary, Pete Hegseth, put it well when he said:
“Diego Garcia is a vital military base for the US. The UK’s (very important) deal with Mauritius secures the operational capabilities of the base and key US national security interests in the region. We are confident the base is protected for many years ahead.”
President Trump has described the deal as “very long term” and “very strong”.
That follows a rigorous US inter-agency process, involving the whole of the US security apparatus, both under the previous Biden Administration and the current Trump Administration. This involved the Department of Defence, the National Security Council and the intelligence agencies, including the CIA. Do Conservative Members say that they do not trust the assessment of the CIA, the US and all the security apparatus? The deal secures the use of the base—they are happy with it and we are happy with it. Our Five Eyes partners recognise the benefits of the treaty for our collective security. The deal is supported by Japan, South Korea and India. It is also a deal publicly welcomed by the African Union, the UN Secretary General and the Commonwealth.
I turn now to the issue of Chagossians, which needs to be raised as well. While the negotiations were necessarily conducted on a state-to-state basis, we are alive to the diverse views of Chagossians about their future, and we have the utmost respect for their past suffering.
I will come back to the hon. Gentleman in a moment.
Although the Chagossians could not be part of the negotiations as they were conducted on a state-to-state basis, both the Minister of State, Foreign, Commonwealth and Development Office, my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty), and Foreign and Commonwealth Development officials have met and had regular meetings over the past year, and stayed engaged with their diverse views. There are diverse views within the Chagossian community that are strongly held, and we have listened and respected those.
As some Members laugh about the nature of the 99 years and other Members talk about the sums of money involved, I ask all of us to look at the Public Gallery to remind ourselves that there are Chagossians here today who feel deeply aggrieved by the deal. They feel that the Foreign Office and this Government have not gone above and beyond to consult all the groups involved. The Minister said that this deal does not refer to other overseas territories, but the principle of self-determination of our overseas territories’ citizens—
I understand the hon. Gentleman’s argument. It is the reason why, right up front, before I went into the military utility of the base at Diego Garcia, I wanted to speak about the Chagossians. It is important. I will come on to the engagement that the Minister of State, Foreign, Commonwealth and Development Office, my hon. Friend the Member for Cardiff South and Penarth, has had in this respect, but I understand the strength of feeling that the hon. Gentleman describes. I will come to the hon. Member for Harwich and North Essex (Sir Bernard Jenkin), and then I will make progress.
I am most grateful to the Minister for giving way. I am afraid my question goes back to the cost of the deal, which will hang around the Government’s neck like an albatross for the rest of their time in office. We know that the Government Actuary says the gross cost is £35 billion. Please can the Minister enlighten the House and help hon. Members to understand his own calculations? What is the meaning of “social time discounting”?
The hon. Gentleman’s intervention is not about Chagossians, but I realise I could not take his intervention earlier. He asks about the meaning of the social time preference rate in relation to the deal. Discounting in appraisal of social value is based on the concept of time preference, and that the value of goods or services today is greater than in the future. This is the discount rate that has been used in the Green Book since 2003, including in every year that his party was in Government. It was the basis on which this was there.
To return to the issue of Chagossians, on which I am trying to make progress, my hon. Friend the Member for Cardiff South and Penarth and FCDO officials have met with the Chagossian communities. Under the treaty, Mauritius will now be free to carry out a programme of resettlement of the outer islands, and we have agreed a new trust fund for Mauritius to use in support of Chagossians and the resumption of visits to the Chagos archipelago. Over the coming months and years, we will increase the UK Government’s support to and engagement with UK Chagossians, including through UK-funded projects designed through a new contact group, informed by the Chagossians’ own wishes, which met for the very first time last week and was attended by my hon. Friend the Member for Cardiff South and Penarth.
The Minister will be aware that the payment from the 1960s, referred to by the hon. Member for Boston and Skegness (Richard Tice), was also supposed to be spent on Chagossian welfare, but many Chagossian groups have raised the fact that that money did not go on Chagossian welfare. It went on many other things for the Mauritian Government, but not on Chagossians. What confidence does he have that this agreement is any more valid than the last one?
That is precisely why my FCDO colleagues are working very closely with Mauritius to ensure that the money that is included in the treaty, and the obligations that both the UK and Mauritius sign up to in the treaty, are fully delivered so that the Chagossians receive what this treaty says they should receive. That is a really important part of the treaty.
Have the meetings undertaken by the Minister of State, the hon. Member for Cardiff South and Penarth (Stephen Doughty), included all the Chagossian groups, including the Chagos Refugees Group, based in Mauritius?
The Minister of State has met a full range of groups, including the group mentioned by the right hon. Gentleman.
The Minister is being extremely generous with his time. He was pressed earlier, but I would like to press him again on the social time discounting method. He should be able to give examples of big projects to which his Government have applied this method. Could he now do that and say why, for example, the right hon. Member for Ashton-under-Lyne (Angela Rayner) did not use that method when she was calculating the cost of the 10-year affordable housing programme?
I understand the argument that the right hon. Gentleman is trying to make, but I hope that he appreciates my argument that the calculation is based on the OBR’s inflation and deflation figures and on the social time preference rate. It is a figure that has been calculated and supported by the OBR, and it stands up to scrutiny. If Conservative Members are saying that they no longer wish to use the Green Book for calculating long-term investments like this, which is their inferred argument, then it is worth looking at what they are suggesting that we no longer use the Green Book to calculate—they are making an awfully large spending commitment when they suggest that.
I am going to finish my remarks on Chagossians, if I may.
I hope that all Members of the House will recognise that the treaty is not just about the importance of the military base on Diego Garcia. Diego Garcia and the wider Chagos archipelago have a unique environment. I hope that protecting the world’s oceans is a point of cross-party unity in this debate, advanced across our overseas territories by the blue belt programme. The UK supports Mauritius’s ambitions to establish a marine protected area to safeguard the globally significant ecosystems in the Chagos archipelago, and the UK will provide technical support and assistance to enable that to happen. The UK and Mauritius will work with international conservation organisations to ensure implementation of science-backed strategies for conservation.
I want to conclude, but I realise that I have not been able to allow all the hon. Members to intervene who wanted to do so, so I give way to the hon. Member for Sleaford and North Hykeham (Dr Johnson).
The Minister seems to be arguing about exactly how much it will cost. My constituents just see that he is giving away British territory and paying rent for it, which is completely unacceptable to them. He talks about how it is good for the global south, because they agree with it; good for other countries, because they agree with it; and good for Mauritius, because it is getting extra money. What about the British people that he, as a British Minister, is here to represent? What are they getting for this deal? They are losing territory and it is costing them money.
We are securing one of the most valuable military bases on the planet. We are securing our close intelligence relationship with the United States. We are securing a vital base for operations in the region. We are securing a vital base for allies. That is the key British objective. It was the objective stated by the previous Government, which I believe the hon. Lady was serving in at the time, when they started negotiations. If she would like to say that she vividly opposes it and wants to publish the letters she was writing to the then Government for starting negotiations, she is welcome to do so, but I do not believe that any Conservative Members really did that.
Let me say one final thing on cost. The average payment cost is 20% less than the cost of the festival of Brexit under the previous Government. We can cite statistics, but the key thing the previous Government said that their deal would secure was the future operation of the base. This deal secures the future operation of the base. It is a surprise that Conservative Members are not going to accept it.
I will now conclude, because I want everyone to have a chance to speak in this debate. Let me do so by explaining what the Bill will do in practice. The Bill, along with the secondary legislation that will follow, will allow the treaty to be ratified and to enter into force. The Bill preserves the current laws of the British Indian Ocean Territory, which will ensure the base’s continued effective operation without any disruption during the transition. The Bill also ensures that there are no changes to the rights of Chagossians to acquire British citizenship, and no changes to the status of Chagossians who currently hold British citizenship or British overseas territory citizenship. Protecting national security is one of the utmost priorities of this Government, and we are delivering on that with this deal and the Bill. The Bill is crucial to securing the critically important military base on Diego Garcia for the next century and beyond, and that is why I commend it to the House.
As I mentioned in my introductory remarks, given that various other Committees have been looking into this and that it has been extensively debated on the Floor of the House, and considering the other work that the Committee is undertaking, including an inquiry launched this week into the Afghan data breach, that is why we have not looked into this matter. However, I will give way to the Minister, who I hope will give me some sort of reassurance.
To reassure my hon. Friend, as I did the hon. Member for North Dorset (Simon Hoare) earlier, we are not required to give pre-notification of any military activities to Mauritius. That is important, because some people are erroneously suggesting that we are. That is not correct; we do not have to give pre-notification.
It is. It is true about the legally binding aspect within the area that the tribunal covers, but that does not cover sovereignty, as we learned in 2015 when the tribunal sided with the British Government. Here we have the farcical situation of a House of policy and law shining light on one side and another, but never on the truth. This is where my right hon. and learned Friend the Member for Kenilworth and Southam is exactly right. If the Government were to come forward and say exactly which court, where and why, they might get more sympathy from Opposition, but we have been through an entire five-hour debate and we still do not have answers to those questions.
Another court that is often cited is the International Telecommunication Union covering spectre, radio and radar. Article 48.1 states
“Member States retain their entire freedom with regard to military radio installations,”
and the Government know that. Even the written answer from the Minister—it has been hinted at before—states:
“Individual countries have the sovereign right to manage and use the radio spectrum, within their borders, the way they wish, subject to not causing interference with other countries. This right is recognised in the Radio Regulations. The Radio Regulations are the international framework for the use of spectrum by radiocommunication services, defined and managed by the International Telecommunications Union (ITU). Individual countries, not the ITU, make their own sovereign spectrum assignments in accordance with the Radio Regulations. The ITU has no legal authority over these assignments regardless of the country’s civilian or military classification of spectrum. The ITU cannot challenge the UK’s use of civilian or military spectrum.”
It is clear here—the Government know it in their own answers—that the ITU has no role in sovereignty. It all boils down to where one believes British overseas territories stand.
Now we must talk about the cost, which has been much debated. There have been three figures in the debate: £3.4 billion, £10 billion and £34 billion. The £3.4 billion is the net present value using social time preference rate. The £10 billion is inflation adjusted, and the £34 billion is the nominal value by the Government Actuary’s Department. The question is, why use net present value? I put it earlier in the debate that there is no other precedent in the world for NPV being used in sovereignty matters. The Minister at the time asked whether the Conservatives want to do away with using NPV—of course not.
Absolutely, the Minister says it is within the Green Book. Absolutely not, because it has a perfect place in domestic use for commercial practicalities, not for international sovereignty issues. No other country has looked, or would look, at this because it does not make sense.
The House of Commons Library said when asked that
“this methodology is regularly used in government accounting, but its main use is for cost-benefit analyses. It is unusual to see it used in this situation like this, where only the cost is being assessed and it is not being compared to any benefit”.
On that basis, and listening to the House of Commons Library, what cost-benefit analysis has actually been done in this case, and would it be put in front of the House so we might be able to see it?
At the end of the day, NPV is highly political because it assumes a discount rate, and what is the discount rate that one should choose? In the details, it talks about 3.5%, but the US will use 3.5% or 7%, which would vastly differentiate the figures. It goes on further, for the social time preference rate is 3.5%, but for 30 years. This deal is for 99 years, so how can the Government respond in a written parliamentary question that this
“represents good value for UK taxpayers”?
On what basis are they comparing that if there is no international comparison? We are talking only about domestic uses and for an accounting point.
As I come to my conclusions, possibly the scariest thing to me—I have tried to highlight it throughout the debate—which does seem to be falling on deaf ears, is article 13. I believe this treaty is legally bomb-proof. It looks sensible, and I am no legal expert as I have attested to, but it seems to stand the test of time. That means when article 13 says explicitly that in 99 years Mauritius can say no and just take control, that is a big worry. We have heard from many Government MPs how it secures the long-term aspirations of this country for a period of 99 years. When I mentioned that, several Government MPs scoffed. But is it not the duty of this House to provide not only for the next generation, but the rest of time for our country, in the best interests of our country? After listening to all the arguments that have been made about how essential the base is, the very fact that Mauritius could pull the base is a very scary prospect. There is, of course, a caveat: the right of first refusal. But if China decides to do a deal with Mauritius at exorbitant cost, we are over a barrel and the British taxpayer must fork out yet again to guarantee our security. Mauritius has been given a golden ticket, and it knows it.
Beyond the sovereignty and cost, my biggest concern is that we are outsourcing decision -making for our children and our children’s children. That is the modus operandi of this Government—we need only look at the borrowing in the Budget to see how they borrow on the backs of future children. Pushing this decision out for 99 years is not security for now; it will help, but it creates a far bigger problem in 100 years’ time. If the Government want to give away our islands, they should be open and transparent about how and why.
The biggest thing is that we have not even had our day in court. That is what most troubles the British public. I think that the British public would be reasonable if a court found against us—they would happily say, “We follow the rule of law”—but the Government will not even try that. They say that there is a risk. As has been said, this has been going on for years, and still we are looking at a treaty to sign it off.
That inevitably poses final questions about what happens with Gibraltar, the Falklands and Cyprus. The Minister is correct to point out that there are differences, but the biggest fundamental problem that the Government have in arguing to the British people and the people of the Falklands is about understanding. If this House cannot understand the legal concepts of the places where we are likely to fight these causes, how can we expect the public to do so? When it comes to delivering comms to the UK public, that is what they need to understand.