Diego Garcia Military Base and British Indian Ocean Territory Bill Debate
Full Debate: Read Full DebateStephen Doughty
Main Page: Stephen Doughty (Labour (Co-op) - Cardiff South and Penarth)Department Debates - View all Stephen Doughty's debates with the Foreign, Commonwealth & Development Office
(1 day, 9 hours ago)
Commons ChamberI beg to move, That this House disagrees with Lords amendment 1.
With this it will be convenient to discuss:
Lords amendment 5, and Government motion to disagree.
Lords amendment 6, and Government motion to disagree.
Lords amendment 4.
National security must always be the first priority of any Government, and that is all the more important during these uncertain times. This Government have always and will always act to ensure the safety and security of the British people. That is precisely why we have agreed the Diego Garcia military base deal and why we need to pass the Bill, so the treaty can come into effect. The deal secures the vital military asset for future generations. It allows the base to continue to operate as it has done for decades to come, protecting UK national security and regional stability, and that of our allies.
As part of this agreement, the Government have negotiated robust and extensive provisions to protect the base that will categorically prevent our adversaries from compromising the base or interfering with the vital protection the base gives to both the United Kingdom and the United States.
Several hon. Members rose—
I will make progress and then I will take some interventions—certainly from the hon. Member for North Dorset (Simon Hoare) and the right hon. Member for Sutton Coldfield (Sir Andrew Mitchell).
The UK will never compromise on our national security, and as we have repeatedly made clear, the agreement we struck is vital for protecting it; it guarantees the long-term future of a base that is vital for the United Kingdom and the United States and our allies, and which had been under threat. Crucially, the deal secures the operations of the joint US-UK base on Diego Garcia for generations. It has been publicly welcomed by key allies, including our Five Eyes partners, and key international partners including India, Japan and South Korea.
Throughout the passage of this Bill, the Minister has prayed in aid the support of the United States of America and the wider Five Eyes community. This morning the President of the United States dropped what could be described as a depth charge on that and made very clear what he thinks. What are the House and the Government to read of what the Minister says was the American position on the Bill and what it appears that its commander-in-chief is saying today?
We engage with the United States—our closest defence and security partner—on a range of issues, including this one, every single day, and we continue to do so. The hon. Member asks an important question. The United States and President Trump welcomed this deal in the spring, and when we discussed in detail why the agreement was needed, the strong protections that it includes and the vital security it provides for Diego Garcia, the Administration endorsed the agreement as a “monumental achievement” following a thorough inter-agency process in the United States. The hon. Member will know how serious that is.
In May the United States Secretary of State said,
“The Trump Administration determined that this agreement secures the long-term, stable, and effective operation of the joint US-UK military facility at Diego Garcia”.
We will of course have discussions with the Administration in the coming days to remind them of the strength of this deal and how it secures the base for the United Kingdom and the United States. We will continue those discussions on many levels.
Following the excellent point made by my hon. Friend the Member for North Dorset (Simon Hoare), does the Minister realise that the President of the United States, following his perspicacious comments last night, has had a chance to examine the deal in full? Does he therefore understand why the last Conservative Government, of which I was a part—indeed, doing the job the Minister is doing now—would never ever have got this deal?
As I have said in this House many times, the last Government—the right hon. Gentleman knows this, as he was part of that Government—started this deal because they recognised that there was a serious challenge to the operation of the base, which is critical for our national security. [Interruption.] No, we have heard that claim made multiple times, but it is clear from the record of the Government of the former Prime Minister, the right hon. Member for Richmond and Northallerton (Rishi Sunak), that they continued those negotiations right into the run-up to the general election in 2024. They engaged in 11 rounds of negotiations because they recognised, as did we, the very serious risks to the operation of that base.
Several hon. Members rose—
The Minister makes an important point. The key thing about the negotiations is that they were predicated on the United States’ concern about the continuing operation of the base in the context of concerns around international law. The position set out by the President of the United States last night is that he is not concerned about this—in fact, he is concerned about the deal the other way around. Moreover, I do not think that any of us would think that there is a concern around international law vis-à-vis the President of the United States. We are talking about two material changes. Surely in the face of these material changes, now is the time to pause and reconsider the implementation of the treaty. The circumstances have changed.
The circumstances have not changed. Again, we see this collective amnesia on behalf of former Cabinet Ministers on the other side, who, I remind the right hon. Member, engaged in 11 rounds of negotiations. They did that because they knew of the very serious security and operational reasons affecting the base. I refer him to the Secretary of War, who said at the time:
“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 that the base is protected for many years ahead.”
Several hon. Members rose—
I have taken a number of interventions, so I will move on.
The deal had to be done because the base was under threat. Courts had already begun making decisions that weakened our position, and without the deal, as I have said many times, we faced the prospect of further wide-ranging litigation that could have rendered the base inoperable. Let me be clear, as I have been on many occasions: this is not just about the legal position; it is about the operation of the base.
Without a treaty and a secure footing, legally binding provisional measures could have been imposed within weeks that would have undermined base operations. Our ability to protect the electromagnetic spectrum from interference, to ensure access to the base by air and sea and to patrol the area around the base would have been eroded, and everything from overflight clearances to securing contractors could have been affected. That would have driven costs through the roof, deterred future investment and degraded the facility, and our adversaries would have jumped at the chance to disrupt the base—for example, by establishing outposts on the outer islands—with a guise of legality on their side. It is for all those reasons that the previous Government, many of whose former Cabinet Ministers are sitting on the Opposition Benches, undertook 11 rounds of detailed negotiations. It is also why they made critical concessions on the principles of sovereignty and direct payment.
Several hon. Members rose—
I have taken a number of interventions, so I would like to make some progress. I will happily take further interventions later.
I am grateful to the Minister for giving way. I have heard him in this Chamber a number of times say that the United States supported this deal. The President of the United States clearly does not support it any more. I would have thought that that was the case for a pause, but I would also have thought that something else that has changed was the case for a pause: the resolution of the United Nations Committee on the Elimination of Racial Discrimination has also asked for the Bill not to go forward. Does the Minister not think that those two things together mean that we should pause?
We will not pause in defending our national security interests and those of our allies. We will do the right things to keep our national security and the operations of the base working as they have done for many decades. Despite the claims from the Opposition Benches, I reiterate that it is a matter of public record that, on February 2024, the former Prime Minister spoke with his Mauritian counterpart to confirm his commitment to negotiations, which continued until the general election. It was simply not credible to try to hang on, hope for the best and endanger an asset that is vital to our national security. The reality is that the previous Government failed to secure a deal. They failed to secure protections for the outer islands, for example. When it came to a matter of critical security, they did not deliver, so I am proud that we have secured a deal that is able to do those very things.
I thank the Minister for giving way; every time he comes to the House, he is most courteous. He mentioned the example of the former Prime Minister, but the former Prime Minister stated very clearly that the negotiations had to result in a “mutually beneficial” agreement. That did not happen, and therefore the Government ended those negotiations. Today, this Government are expecting us to vote on Third Reading for a deal that our greatest ally—an ally that the Minister has advocated for through this whole process—has turned its back on. How can he expect the House to do that when the circumstances have fundamentally changed?
I have explained the comments of the US Secretary of State, the Secretary of War and the US Government, as well as the President’s previous comments. This is about our Five Eyes partners as well; it is about Canada, Australia, New Zealand and our other key partners. They all understand the critical national security capabilities that the base provides. It is also about Japan and the Republic of Korea. The deal has also been welcomed by a number of our other overseas territories. Perhaps the hon. Gentleman would discount their views, but we are not willing to do that. We are willing to deliver national security and the capabilities that our Five Eyes partners need.
Let me turn to the issue referenced in the Lords amendments. I want to answer the many genuine questions that have been asked by a number of hon. and right hon. Members on behalf of the Chagossians. We have secured a deal that protects the interests of the Chagossians. I know that there are a number of Members of this House who rightly care deeply about this issue and have done so for many years, but I am afraid to say that there are others who have picked up the mantle for pure political game playing and who fail to recognise that there is a genuine range of opinions within Chagossian communities; there are some who oppose this deal and there are many who support it, and that simply has not been recognised by many. We deeply regret—I reiterate this—the way in which Chagossians have been treated by successive Governments in the past. That is why we are committed to a future relationship that is built on trust.
The treaty provides the only viable path to resettlement on the outer islands of the archipelago. We know that that is a matter of critical importance to many Chagossians. Following the Government’s efforts, Mauritius has confirmed that all Chagossians who were born on the archipelago and their children will be eligible for Mauritian citizenship and for participation in a future resettlement programme, regardless of where they live. The Bill also preserves current British and British overseas territory citizenship, and the pathway to British citizenship for Chagossians, meaning that they will be able to hold both British nationality and Mauritian citizenship. In fact, as of April 2025, 94% of Chagossians with British nationality also have Mauritian citizenship.
I give way on this issue to the right hon. Member for South Holland and The Deepings (Sir John Hayes).
On that point, the Minister will be aware that the matter was debated at length in the Lords. Indeed, one of the amendments that we are considering deals precisely with the entitlements of the Chagossians. They were not involved in the negotiations at any stage, and they have made that clear. Why on earth would the Minister reject the Lords amendment, which simply says that they should have a defining say in their own future?
With respect—Madam Deputy Speaker, you can correct me if I am wrong—it is a decision in relation to the engagement of financial privilege and the Standing Orders that means that those amendments are not for debate and will be disagreed with. That has been made clear by the Chair.
Working with Mauritius, we have also agreed the parameters for the operation of a Chagossian trust fund. On 12 December, the Mauritian Government approved legislation to establish the trust fund. That confirms, again, in response to many reasonable opinions expressed both in the other place and by those on the Opposition Benches—
On a point of order, Madam Deputy Speaker. The Chair made it clear at the outset that the amendments that deal with matters of finance were inappropriate to be considered here, for obvious reasons. I understood, however, that the amendments that we were debating, including those that reference the Chagossians, do not concern finance in particular. Can you clarify the matter?
The Deputy Speaker who was in the Chair before me read out the statement, and I will do so again for clarity. Having given careful consideration to Lords amendments 2 and 3, Mr Speaker is satisfied that they would impose a charge on the public revenue that has not yet been authorised by this House. In accordance with paragraph (3) of Standing Order No. 78, the amendments will therefore be deemed to be disagreed to and are not subject to debate.
We cannot keep having the same discussion again and again. This is a very substantial debate and many people hope to speak, so let us proceed as fast as we can.
Thank you for clarifying that, Madam Deputy Speaker.
In parallel with the other measures, we have established a contact group to give Chagossians a greater say in UK Government support to their communities and we are in the process of enhancing that group, as Baroness Chapman committed to do in the other place. Thanks to the work we have done and the reasonable concerns raised across the House, the Chagossian trust fund will be operated for Chagossians by Chagossians. There will be a Chagossian majority on the board, which will include a UK-based representative and a Chagossian chair. Those reasonable concerns have been raised in the course of the debates and we are trying to address them.
I need to make progress, as Madam Deputy Speaker has asked me to be conscious of time. I will come back for further interventions.
Before moving on to discuss the specific amendments, I express my thanks to the noble Lords for their tireless efforts and to the many noble peers who scrutinised and supported the Bill. Lords amendment 4 was tabled by the Government, and I thank Lord Lansley for his helpful conversation and collaboration on the topic. The amendment will change the parliamentary procedure applicable to the delegated power in clause 6. With that amendment, all instruments made using that power will be subject to the negative procedure. Previously, no parliamentary procedure applied unless the power was used to amend, repeal or revoke Acts of Parliament or statutory instruments made under them. The amendment makes it clear that the Government are prepared to work with those who engage in genuine, constructive dialogue, rather than those who rely on political point scoring, to achieve meaningful compromise.
Turning to the other amendments made in the other place, I make it clear that the Government are thankful for all the scrutiny and are willing to engage with challenge. However, the other amendments are either already provided for or not necessary, or they simply make political points and play games with our national security, so we cannot accept them.
Lords amendment 1 would amend clause 1 to prevent the Bill and the treaty from entering into force until the Government had sought to renegotiate the termination clauses to include the base becoming unusable due to environmental degradation. That is unnecessary and I shall set out why. First, limiting the circumstances in which the treaty can be terminated protects the UK’s interests and those of the United States, which has invested heavily in the base. In line with the United States’ wishes, the previous Conservative Government agreed to limit termination to two grounds, both of which are in UK control, and this Government have secured that—
The Minister mentions the United States’ wishes, and he appears to be presenting the case that the United States remains in the position that it was in previously, despite what President Trump said last night. The Deputy Prime Minister said in February:
“If President Trump doesn’t like the deal, the deal will not go forward”.
Last night, President Trump said that he did not like the deal. Is it still going forward, or is the Minister suggesting that President Trump did not mean what he said last night?
I have already answered that point. As I said, discussions will continue with the US Administration in the coming days, as they have done throughout the process. We will remind them of the strength of this deal, allay concerns and, of course, emphasise how it secures the base for both the United Kingdom and the United States. We work together on these matters. As the Speaker of the House of Representatives set out this morning, it is important that we work together on all matters of national security.
Let me make some progress on the issue of termination.
As I have said, limiting the circumstances in which the treaty can be terminated protects the UK’s interests and those of the US. The Government have secured that procedure.
Secondly, I reassure the House that, given the importance of the base, we are taking necessary steps to protect it from environmental damage. Working with the United States, again in partnership, we already have extensive measures in place, such as the coastal erosion programme, and scientific studies show that natural land loss over the past 50 years has been less than 1%. That said, we recognise the concerns of Lord Craig and Lord Houghton, and I would like to reassure them and Members of this House that the international law of treaties allows for the termination of a treaty when it becomes impossible for a treaty to be performed as a result of
“the permanent disappearance or destruction of an object indispensable for the execution of the treaty”.
Baroness Chapman set out the legal position clearly in the other place.
For further reassurance, since that debate we have consulted Mauritius to verify that it shares our assessment. I am happy to update the House that this has been confirmed in writing to the Government. Mauritius is clear on the point, both as a matter of international law and in its domestic law. We welcome that confirmation by Mauritius and trust that it will assure Members in this House and in the other place who share this concern that such an amendment is unnecessary.
I give way to the former Chair of the Intelligence and Security Committee.
The Minister seems to be putting an awful lot of faith in the good intent and reliability of the Mauritian Government. They are a close ally of China, which, he might remember, gave us cast-iron guarantees about the future of the Hongkongers once the lease on Hong Kong was given up. I gently remind him that the 2024 Labour manifesto, entitled “Change”, stated:
“Defending our security also means protecting the British Overseas Territories and Crown Dependencies, including the Falklands and Gibraltar. Labour will always defend their sovereignty and right to self-determination.”
Can he look the Chagossians in the Gallery in the eye and tell them that that is what the Government are now doing?
I have great respect for the right hon. Gentleman and his role, and we have had many good conversations, but it is extremely unhelpful to, and unwanted by, residents in Gibraltar and the Falkland Islands that this false comparison keeps being made—
Absolutely, and we stand by that commitment to defend the Falklands and Gibraltar. That is exactly what we have been doing and will continue to do. I gently say that I fully recognise and respect the fact that there are many Chagossian groups who disagree with this deal as well as many who agree with it. Unfortunately, some of the comments in this place have represented only one side of that argument. It is our duty as a Government to listen to all those groups and to engage appropriately with them.
Lords Amendments 5 and 6 both relate to the costs of the treaty—
I am not going to take any more interventions at the moment. I need to make some progress.
Lords amendment 5 would require the Secretary of State to publish the total real-terms costs of payments made under the treaty, including the methodology used by the Government Actuary’s Department and the Treasury. I confess that it brings me some satisfaction to learn that the Opposition have eventually accepted the importance of quoting financial figures for a 99-year treaty in real terms. They have always known that it is misleading to ignore the impact of inflation—a pound today is not worth the same as a pound in 99 years’ time—and now at long last they seem to have seen the light. Let us see whether, in today’s debate, we can do away with the deliberately and misleadingly inflated figures that have been bandied about again by the shadow Foreign Secretary during questions today, and start discussing the financial elements of the treaty with accuracy and transparency.
Several hon. Members rose—
I will carry on, and then I will take the intervention from the hon. Member for Huntingdon (Ben Obese-Jecty), who has raised these issues before.
For all the good intentions, I am afraid that Lords amendment 5 is unnecessary. We have been clear about the costs of the deal from the moment of signature. We published full details of the financial arrangements the very same day the treaty was signed, including in the financial exchange of letters and the explanatory memorandum laid before Parliament. If Opposition Members are having difficulty finding where that is, it is on pages 9 and 10 of the explanatory memorandum. The documents set out the payment schedule and the confirmed amounts at that time.
The methodology is clear: the average annual payment has been calculated using forecast inflation figures from the Office for Budget Responsibility. We used the forecast GDP deflator, which is published regularly. That generated the real value of the payments, which is the valueusb adjusted for inflation to create a fair comparison with other costs. Members will recall that this equates to less than a quarter of 1% of the Defence budget and compares favourably to the cost of comparable overseas facilities. I have mentioned the facility that France pays for in Djibouti. This is an immensely more valuable facility. It is priceless for our defence capabilities and those of our allies.
Sean Woodcock (Banbury) (Lab)
Can the Minister confirm that the deal provides certainty and full operational use of the base for 99 years?
Absolutely, I can confirm that the deal secures the base for us and our allies. It secures the crucial capabilities that benefit ourselves, the United States and, indeed, all our allies.
I am happy to further canter through the calculations. The net present value was established by discounting the real value of the sums due to be paid over the duration of the treaty using the social time preference rate, as set out in the Green Book. That adjusts for social time preference, which is a reflection of the value society attaches to present, as opposed to future, consumption. That has been used in the UK by Governments of all flavours since 2003.
Members will be aware that my right hon. Friend the Chief Secretary to the Treasury announced a review of the social time preference rate shortly before Christmas. That follows a review of the Green Book last year. I do not know how that review will conclude, but I know that the Government used the correct methodology when the figures were published, and were clear and transparent in doing so, and we will continue to do so whichever way the review comes out.
This evening, the Minister is trying to convince us to vote for this Chagos deal. The President of the United States says that the Government are handing over the island “FOR NO REASON WHATSOEVER”, so can he give us some reasons?
With the greatest of respect to the right hon. Lady, I do not think she has been present in many of the other debates on this issue—she popped up here today to make these points. I have been clear and answered the question already, so I will not do so again.
Ben Obese-Jecty (Huntingdon) (Con)
I thank the Minister for giving way and for his detailed explanation of how the calculations have been made. The Government Actuary’s Department clearly stated that this deal would cost £34.7 billion. That figure was then confirmed by his colleague, the Minister for the Middle East, who said that all the figures had been ratified by the Government Actuary’s Department, but his colleague sitting next to him, the Minister for Defence Readiness and Industry, told me that that figure was inaccurate. Will the Minister therefore clarify how much this deal costs?
We set out the costs clearly at the time, as I have done for the hon. Gentleman in the Chamber a number of times. What I will confirm is that they have been verified by the Government Actuary’s Department. The House of Commons Library has been through them and reached the same conclusion. The Office for Statistics Regulation has welcomed the Government’s approach and said that it is in line with intelligent transparency, and the Office for Budget Responsibility also confirmed separately to it that the discount rates were correct. I have given the hon. Gentleman four good reasons and the costs. However much Opposition Members bandy about the costs, it is simply unhelpful.
I will move on to the other amendments. Lords amendment 6 would introduce an ongoing estimates and supply scrutiny process for expenditure under the treaty, including parliamentary approval for future payments and supplementary estimates. The agreement has undergone intense scrutiny, and the treaty provides robust mechanisms for dispute resolution under article 14. It is normal practice for payments under treaties to be made under the prerogative power and charged on the Consolidated Fund under the authority of the Supply Acts. Furthermore, the amendment would infringe on the financial privilege of the Commons and affect the Commons’ arrangements for authorising expenditure. These are long-standing practices that members of the former Government will know. The same applied under them, and it applies under this Government, too.
Finally, subsection (4) would infringe on the prerogative power to make and unmake treaties. It is not wise to impose any immovable requirements about a hypothetical set of circumstances that might arise in the future. This provision risks requiring the Government to breach the UK’s obligations under a treaty. It is clearly preferable for all options to be open to a future Government, so that they can deal with whatever the future may bring and act in the UK’s best interests, taking into account all the circumstances.
I am conscious of your exhortations about time, Madam Deputy Speaker, and I know that a number of right hon. and hon. Members wish to speak. The previous Government recognised that there was a problem. They engaged in 11 rounds of negotiations, but failed to reach a deal that was in our interests and those of the United States. We secured this deal. It protects the base, and the interests of the United States and our Five Eyes partners.
On a point of order, Madam Deputy Speaker. May I correct the record? The hon. Member for Spelthorne (Lincoln Jopp) says that there are not any veterans. I have served this country as an Army reservist, and I am very proud to have done so. We have many other Labour Members who have served and are veterans; they absolutely defend the national security of this country and have done so at many different stages. That comment is not accurate and needs to be corrected.
I thank—[Interruption.] Order. I can make a decision; I do not need any help. That was not exactly a point of order, Minister. It was much more of an intervention, which may have been taken by the Member who was about to rise to her feet. However, the Minister has got his point on the record. We need to move at a pace; otherwise, we will not get speakers in.
With the leave of the House, I will close the debate. Hon. and right hon. Members have raised important questions and points during the debate. Once again, I must reiterate that for those who engage in genuine and constructive debate, the Government are willing to find compromise where that is reasonable and proper, and that debate is welcome, as it has been in the other place.
The deal sits at the cornerstone of the defence and security of both the United Kingdom and the United States. It plays a crucial role in defending our interests, our countries and our people and ensures that we remain equipped to face an increasingly complex and dangerous world.
I have to challenge one of the points that has been made repeatedly and falsely throughout the debate. We have heard the same nonsense that this deal puts the base at threat from Chinese interference. [Interruption.]
Order. There appear to be many side conversations taking place. If Members wish to leave the Chamber, they can do so. Otherwise, we should focus on what the Minister is saying.
Thank you, Madam Deputy Speaker.
I was referring to the claims about Chinese interference. I doubt that those on the Opposition Benches have actually seen or read the op-ed by the Chinese ambassador to Mauritius on 14 January criticising the Chagos deal, which again very much underlines the point that I have been repeatedly making.
Just last week, the United States military signed a new contract worth $85 million for base operating support services. Before the treaty was signed, it had been rolling over previous contracts due to the uncertainty, but because of the certainty provided by this deal, it has now entered into a new long-term contract, which delivers strength and certainty for the United States, the United Kingdom and our allies, because national security is the priority for all of us.
While securing our national security, we have taken steps throughout the Bill to ensure that we have the measures in place, including the full control of Diego Garcia; the 24-mile nautical buffer zone where nothing can be built or placed without our consent, meaning that we can protect our interests; a rigorous process to prevent activities on the wider islands—some over 100 nautical miles away—from disrupting base operations; a strict ban on foreign security forces on the outer islands, whether civilian or military, without UK consent; and a binding obligation to ensure that the base is never undermined. These are robust provisions, and they defend the national security of ourselves and our allies, including the United States.
Many important points have been raised about the Chagossian community. I absolutely acknowledge and respect the Chagossians who are here today. I also acknowledge and respect that there are many views within the Chagossian community. I was disappointed by the tone of the remarks from the hon. Member for Rutland and Stamford (Alicia Kearns), who I have good engagement with. I can tell her that I met Chagossians on 30 September 2024 and 3 October 2024. On 22 May 2025, she claimed that the former Foreign Secretary, the right hon. Member for Tottenham (Mr Lammy), had not met the Chagossians; in fact, he met them with me. On 2 September 2025, I was at the first meeting of the Chagossian contact group. Officials regularly engage with Chagossians. Indeed, I engaged with Chagossians long before I took this position as a Minister and did so in opposition, along with many hon. and right hon. Members, to listen to the range of views.
Several hon. Members rose—
No, I will not give way. I am conscious of time—I need to respond to the points made.
Of course, many groups support the deal, including the Chagos Refugees Group, the Chagos Islanders Movement and the Seychelles Chagossian committee.
The shadow Foreign Secretary, the right hon. Member for Witham (Priti Patel), made many criticisms. We have heard and been through them a number of times. I remind her that, of course, it was her party that started the negotiations in the first place. She supported this when she was in government. The Conservatives have demonstrated absolute naked opportunism, ignoring the national security issues and jumping on the political bandwagon. They talk about defence and national security, but in 14 disastrous years in office their party hollowed out our armed forces. Our Government are investing at levels not seen since the cold war, and 85% of the negotiation rounds took place—
That is not a point of order. Can we prevent the debate from continuing in points of order? If colleagues wish to intervene, they can try to do so, and it is up to the Minister whether he wishes to respond to those interventions. We can keep going until 7.18 pm when the time will cut off.
I was referring to an article published on 14 January by the Chinese ambassador to Mauritius.
The former Government had access to the same legal advice, the same security briefings and the same threat assessments as we do now, including on threats to the operations of this crucial base, and senior figures raised no objections in Parliament, filed no critical questions and voiced no concerns on social media. It is only after leaving government that they have done so. That is not principled opposition; it is opportunistic.
Many questions were raised about the finances. I must be clear that the higher figure of £34.7 billion that was released by the Government Actuary’s Department was a nominal amount and was not adjusted for inflation or the social time preference rate, so it is deeply misleading to cite that figure, given the changing value of money over time. A pound today is not worth the same as a pound tomorrow. Quite frankly, I am baffled at hearing these complaints about the finances, given the billions that the Conservatives wasted on defective personal protective equipment, the festival of Brexit and who knows what else.
There were some very sensible and I think legitimate questions raised about the costs. The Government have always sought to be transparent on these matters. We set out the forecasts at the time of publication, and the documents that we published at the time of the treaty set out that the net present value of the treaty was £3.4 billion, calculated using the Green Book methodology —I have set that out on many occasions before. Of course, I would expect forecasts to change over time, given the changes in the OBR’s forecast inflation rate and other matters. We were transparent then, and of course we will continue that transparency in the usual ways before the House. Indeed, the TaxPayers’ Alliance, no less, has confirmed that the use of a discount rate to give NPV is a standard concept in finance, and that it is reasonable for the Government to use an inflation assumption and a discounting rate to give an NPV of the cost. If we use its suggestion of 2.9%, the annual payments would be £96 million on average, which is £5 million less in today’s money than the Government’s forecast at the time of the treaty’s publication.
I am not going to pursue the Minister down that line—I did that last time—but I do want to ask a simple question. This morning, we had a very clear statement from the President of the United States. The Deputy Prime Minister was also clear previously when he said that if America says no, then this does not go ahead. Are his counsels in any way discussing or thinking about waiting to find out whether that view from the President today is clear and for good? In other words, will they then stop this Bill?
That is a very reasonable question from the right hon. Gentleman. Of course, we engage with the United States as our closest defence and security partner every single day. Conversations are ongoing. We are always engaging with them on these matters, and I am sure we will continue to do so over the coming days. I have set out the clear position that the United States set out on many occasions—this went through a detailed inter-agency process—and of course we will continue conversations with the United States, as we have done before.
I was rather baffled by the complaint of the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), who is not now in his place—[Interruption.] Ah, he is at the Bar of the House. It was his Government who established the citizenship route for Chagossians, which rightly gives them the right to come here, and local authorities can engage in the usual way with the Ministry of Housing, Communities and Local Government about their needs.
My hon. Friend the Member for Blackley and Middleton South (Graham Stringer) raised the United Nations Committee on the Elimination of Racial Discrimination. This is very important, so let me be clear: it does speak on behalf of the United Nations or member states. Indeed, the UN Secretary-General and the African Union chairperson both welcomed the agreement, so it is simply not the case that those concerns were raised by the United Nations, and it is important that the record be corrected.
There were concerns about the reasons. I was clear about the operational impacts on the base of not securing this deal, which include overflight clearances, securing contractors, declining investment and degraded facility. We would also be unable to prevent—this is a crucial point that Members have reasonably raised—China or other nations from setting up installations on the outer islands or carrying out joint exercises. I have set out the legal reasons for that on many occasions, which include the litigation that could be brought quickly by Mauritius against the UK, including under annexe VII of the UN convention on the law of the sea. A judgment from such a tribunal would be legally binding.
The shadow Foreign Secretary raised the Pelindaba treaty. The United Kingdom and Mauritius are satisfied that their existing international obligations are compatible with the agreement, and we are very clear that we comply with our obligations under international law.
I refer the Minister to article 298 of the UNCLOS treaty, which means we have a complete opt-out on military bases, but may I take him back to costs? The Government Actuary’s Department, whose whole raison d’être is to calculate long-term spending commitments, stood up the £35 billion figure—in fact, it said it might be more. Who should the House believe—people whose whole life’s work is to calculate long-term costs, or this Minister?
I regret the right hon. Gentleman’s tone. I have respect for him normally, but if he had been listening a moment ago, he would have heard me explain this exact point. It is a nominal amount. It is not adjusted for inflation or the social time preference rate. The value of money changes over time; £1 today is not worth the same as £1 tomorrow. This is very clear. I set out the multiple ways in which this has been verified, and it is even agreed by the TaxPayers’ Alliance.
We have discussed these issues at great length in this House on many occasions. Let me be clear: this deal secures this base for the national security of the United Kingdom and the United States, and it secures it for our allies. It is vital, and this is an important point to end on. My hon. Friend the Member for Blackley and Middleton South asked why this matters to our constituents. It matters because the capabilities on this base matter for the national security of this country, our allies and our citizens in preventing terrorism and the activities of adversaries with hostile intent towards us, the United States and our allies. It secures this base into the future, and we urge the House to reject the Lords amendments and agree with Lords amendment 4.
Question put, That this House disagrees with Lords amendment 1.