Finance

HC Deb 20 December 1966 vol 738 cc1158-9

6. Mr. Boyd-Carpenter

asked the Secretary of State for the Colonies what steps he has now taken to give financial assistance to Gibraltar.

13. Mr. Fisher

asked the Secretary of State for the Colonies whether he will make a statement about the outcome of his financial talks last week with the Chief Minister and Deputy Chief Minister of Gibraltar.

Mr. Frederick Lee

During the talks with the Governor of Gibraltar, the Chief Minister and his Deputy, which took place in London last week, I informed them that Her Majesty's Government agreed, subject to Parliamentary approval, to provide a special grant-in-aid of £100,000 to the budget of Gibraltar in 1967. As to capital finance, I would refer the hon. Member to my reply to the hon. Member for Haltemprice (Mr. Wall) on 3rd November, 1966. [Vol. 735, c. 160.]

Mr. Boyd-Carpenter

Owing to the foolish weakness of the Foreign Secretary in saying that we would continue negotiations with Spain while the present restrictions continue in respect of Gibraltar, is it not necessary to make a big effort to develop Gibraltar's great asset of tourism? Why cannot the right hon. Gentleman come forward with a major proposal to make use of this piece of sterling sunshine?

Mr. Lee

With respect, the right hon. Gentleman is forgetting the points I made in the reply to which I referred. When I was in Gibraltar, we made the necessary arrangements for the economy of Gibraltar to be redirected, as the right hon. Gentleman suggests, towards tourism rather than dependence on Spain. We pointed out then that we would support the Gibraltar Government in that effort, and we made an initial donation of £600,000.

Mr. Fisher

In view of the Spanish Government's rejection of the reference to the International Court, in itself a public admission of the weakness of Spain's case, does the right hon. Gentleman agree that it is likely now to be a very protracted business and that we must be as generous as possible in helping to rebuild the economy of Gibraltar independently of Spain for the future?

Mr. Lee

I must remind the hon. Gentleman that this is precisely what we have said we will do. We have agreed that the plan which the Gibraltar Government have produced is a workmanlike plan. We know how much it will cost, and we have said that we will support them to the hilt in carrying, it out.

Mr. Wilkins

Is my right hon. Friend aware—I am sure that he is—that Gibraltarians themselves, and especially the Legislative Council, deeply appreciate the financial aid which has been offered to them and, more especially, the promise made by the Foreign Secretary that we will continue to sustain them as and when required? Is he further aware that what the Gibraltarians really want to do is to become economically self-sufficient as a result of the aid we give them?

Mr. Lee

I thoroughly agree with my hon. Friend. The spirit of the people of Gibraltar is very fine indeed. I could not find anyone who is not utterly and completely devoted to the idea of remaining British, and we shall do everything we possibly can to sustain them in it.