§ 5. Sir Bernard Braineasked the Secretary of State for Foreign and Commonwealth Affairs what response the Government are making to the Banaban Council of Leaders' acceptance of his ex gratia offer of $A10 million subject to its condition that the capital sum should be paid directly to it and be under its control and when the money will be paid.
§ Mr. LuardWe have proposed that the modalities of payment be discussed through legal channels, and the Banabans have welcomed the suggestion. No payment can in any case be made until it is confirmed unconditionally that there will be no appeal in the legal action against the Crown.
§ Sir B. BraineThat sounds suspiciously like blackmail to me. Will the hon. Gentleman confirm that the Government no longer intend to withhold from the Banabans the right to administer the fund themselves? Will he confirm that the accumulated interest on this sum will be paid over to them and will be under their control? Finally, as the Secretary of State for Foreign and Commonwealth Affairs has said that the sum is not compensation for the grievous wrongs done to the Banabans over a long time, what response are the Government making to the High Court of Chancery's invitation, in December 1976, to make reparation for the continued breach of trust by the Government in terms of this small community?
§ Mr. LuardOn the question of the administration of the fund, we are taking note of the request that was made by the former Council of Elders. The new Council of Elders has recently been elected, with a completely different composition from the previous council. Therefore, we wish to explore its views before we reach a final decision. As for accumulated interest, I require notice of that question.
1552 It is true that my right hon. Friend said that the offer was not intended as compensation. As the hon. Gentleman knows, the legal action found there was no direct responsibility on the British Government. My right hon. Friend was making it clear that we have offered an ex gratia payment to take account of the difficulties and disturbances of the Banabans over previous years.
§ Mr. SkinnerTo what extent is the company concerned with the exploitation and the ravages that took place on the island making its contribution to the so-called compensation?
§ Mr. LuardThe final distribution of the surplus of the British Phosphate Commission, to which I imagine my hon. Friend is referring, is still to be decided. We are only one among three Governments who are responsible. We have to discuss the matter with the other two Governments.
§ Mr. LuceAs there is widespread feeling that the Banabans have had a raw deal over a long period, will the Minister at least assure the House that the elected representatives of the Banabans will have a major share in the administration of the trust fund that is to be established?
§ Mr. LuardIt was because we recognised that many people felt that the Banabans had received a raw deal over some years that the offer—it was generally regarded as a generous offer—of $A10 million was made to the Banabans. Whatever some Opposition Members may think about it, the Banabans have recognised it as a generous offer and have accepted it in principle. As for the administration of the fund, there would be close consultation with elected representatives of the Banabans—in other words, the Council of Elders. As I have said, a new council has been elected and we shall want to know its views before we reach a final decision.
§ Miss Joan LestorWill my hon. Friend explain why it is that because the composition of the Council of Elders has changed there is an alteration to the principle concerning the administration of the fund, which was agreed by the British Government before the change was made? The statement made in another place is leading to a great deal of 1553 suspicion and speculation among the Banabans.
§ Mr. LuardI think that my hon. Friend is mistaken. The British Government have not agreed to the original proposal that the money should be administered directly by the Council of Elders. We have always said that that should be done by way of a trust fund. We have said that for a good reason. Many people believe that in the past funds have not been as well administered by the Council of Elders as they might have been. We want to ensure that the funds go genuinely to the purposes for which they are intended, namely, to help the people of Banaba as a whole.
§ Miss FookesWill the hon. Gentleman now make it abundantly clear whether the Banabans will control the capital sum, whatever form it takes?
§ Mr. LuardWe have proposed that a trust fund should be established, with which the representatives of the Banabans would be closely associated. We are now considering their proposal that the money should be paid direct to the Council of Elders.