HL Deb 20 June 1988 vol 498 cc491-2

2.35 p.m.

Lord Merrivale asked Her Majesty's Government:

To what extent they propose from the beginning of 1989 to help Gibraltar to meet its contributions to Spanish pensioners, arising from Spain's accession to the European Economic Community.

The Minister of State for Defence Procurement (Lord Trefgarne)

My Lords, under the present arrangements, agreed in 1985, Her Majesty's Government contributed £16.5 million, representing some 80 per cent. of the estimated total up to the end of this year. No further assistance is planned.

Lord Merrivale

My Lords, I thank the Minister for his reply, although the latter part of it does not seem to be very satisfactory. Can he give some report on the outcome of the ODA Gibraltar Joint Review to establish the extent of the pensions liability? Further, has agreement been reached as to the capacity of the Gibraltar economy to contribute to the commitment?

Lord Trefgarne

My Lords, the study to which my noble friend referred has now been completed. Indeed, the document has been received and is at present being studied. However, it remains the view of Her Majesty's Government that the Gibraltar Government can afford to meet those commitments.

Lord Cledwyn of Penrhos

My Lords, can the Minister say whether the Gibraltar Administration have made a request to Her Majesty's Government for assistance? Indeed, can the noble Lord go a step further and say what the British Government's legal liability is in this regard? Is it possible that in view of the fact that Spain is now a member of the European Community there is a special liability upon Her Majesty's Government which did not previously exist?

Lord Trefgarne

My Lords, no; that is not the case. I think that the legal liability in the matter—the Government are in no doubt about this—rests with the Gibraltar Government. As regards the first part of the noble Lord's supplementary question, no formal request has been received.

Lord Bottomley

My Lords, although the Minister suggested that the Gibraltar Government can meet the cost, they dispute that fact. Therefore is there no way in which the Government can make overtures to the Gibraltar Government so that they may consult together to try to achieve an amicable settlement?

Lord Trefgarne

My Lords, the economy in Gibraltar is as flourishing as is that of this country. Therefore we see no reason why these sums should not be found from the funds generally available to the Gibraltar Government.

Lord Merrivale

My Lords, can my noble friend really justify such an increase in the expansion of the economy? Is he really satisfied, in his heart, that the national income warrants such a reduction of transfer of funds?

Lord Trefgarne

My Lords, the Government will be studying the report to which my noble friend referred. However, as I said, we have no reason to believe that Gibraltar's economy will not continue to flourish as it has done recently, and therefore these sums should be readily found from within that Government's own resources.

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