Islands (Hansard, 7 February 1991)

§ 7. Mr. Foulkes
To ask the Secretary of State for the Home Department when he last visited Jersey, Guernsey and the Isle of Man to discuss those matters for which he is responsible.

§ 10. Mr. Holt
To ask the Secretary of State for the Home Department when he last had discussions with 404 members or officials of the Isle Of Man Government; and whether he discussed taxation matters affecting the United Kingdom.

§ Mr. Peter Lloyd
Since assuming his present duties, my right hon. Friend has not yet had an opportunity to visit any of the islands, or to have discussions with members or officials of their Governments. I met representatives of the islands on 15 January. We did not discuss taxation matters.

§ Mr. Foulkes
The Minister must surely be aware that the British Government have responsibility for the general good government of those islands, as well as for foreign affairs and defence. In view of the increased use of the islands for laundering drugs money and as a haven for the shadiest of financial institutions, will the Government, take a more active interest in them and exercise their responsibility for general good government?

§ Mr. Lloyd
In contact with the Bank of England, the islands Governments have improved their arrangements for such matters. Far from being marginal, they are extremely effective and bear comparison with our arrangements. But the islands are self-governing and have democratic Governments. That is a state of affairs with which the vast majority of the people of the islands are highly satisfied.

§ Mr. Holt
When my hon. Friend next talks to the Tynwald councillors, will he deal not only with taxation but with the scandal of the Isle of Man Savings Investment Bank, which has caused thousands of people in Britain, including my constituent Gwen Lamb to lose their life savings? Eight years later, the people responsible for that fraud are still walking free in the Isle of Man, and no one is doing anything about it. The Government have a moral responsibility for the legal aspects. May we look to the Government to ensure that some compensation along the lines of that made in the Barlow Clowes case is urged upon the Isle of Man so that the people affected do not have to suffer any longer?

§ Mr. Lloyd
As my hon. Friend probably knows, the Manx Government suggested to the Tynwald that there should be a scheme of compensation once the inspector's report was available. The Director of Public Prosecutions in this country asked that the report should not be made public until he had completed all his inquiries. I understand that he has not yet completed all his inquiries. However, I understand my hon. Friend's anxiety on the part of his constituent, so I will bring his inquiry to the attention of the Government of the Isle of Man and make sure that they are well aware of his feelings on the subject.