Part of the debate – in Westminster Hall at 10:34 am on 15 February 2006.
I am quite keen, not least given the specific questions that have been put to me, to set out my response comprehensively. With the forbearance of the hon. Gentleman, I shall make further progress.
First, I shall explain what the decision entails. Allowing the development of a settled population by granting a general right to remain would make the UK ultimately responsible for ensuring a viable future for those individuals who chose to settle on the island. That means that the UK would be taking on contingent liabilities, and possible—indeed, it is judged, probable—extra financial commitments in relation to the future provision of infrastructure and services. Before taking such a decision, it was imperative to explore where this funding could be found, now and in the future.
In March 1999, the Government published a White Paper that set out the results of a review of the UK's relationship with the overseas territories. The White Paper used the words
"consult the people of St Helena and Dependencies about how to develop the democratic and civil rights . . . on Ascension".
Indeed, that quote was used by the hon. Member for Twickenham. But that White Paper also noted that every territory was unique and needed a constitutional framework to suit its own circumstances. There must be a balance of obligations and expectations. The White Paper also set it out that each territory had to be considered on its own terms.
In the late 1990s, the users on Ascension informed the Government that they no longer wanted to finance directly the majority of the services on the island, as they had been doing for many years. In the light of that, the UK therefore needed to address the future administration of the island. A consultation paper setting out options on how Ascension could be run was produced in April 1999, and a follow up fiscal and economic study by Portsmouth university, again referred to during the debate, was commissioned. In line with the consultation document, it recommended the establishment of a publicly funded system.
The Foreign and Commonwealth Office agreed with the Ascension Island Administration that they should take over responsibility for core services from the users. A new fiscal regime was put in place in 2002. Revenue is now derived primarily from personal income tax and property tax, both borne primarily by the users on their employees' behalf, and customs duty.
Following that, those living and working on the island were consulted on the form of democratic representation for the island, which was only appropriate given they were contributing to the running of the island through taxation. A 10-strong Ascension Island council with seven elected members was set up in the same year. The council's establishment, therefore, resulted from the UK's intervention to ensure that Ascension remained economically viable for the users. As a result, there were continued employment opportunities. This was not taken forward as part of a staged process that was intended to result in those living and working on Ascension being given the right of abode.
The 1999 consultation paper, as the hon. Member for Twickenham pointed out, raised the issue of the development of a general right of abode and property rights, in addition to other issues including services and democracy, but it stressed that those were options only and stated specifically that the UK had not yet made up its mind on what those changes should be. Up until 2002, the possibility of developing the general right of abode and property rights on Ascension had not been developed. The island council engaged a legal draftsperson to draft proposed legislation. This process, which started in 2003, remains incomplete.
In 2003, the UK Government also concluded the Wideawake agreement, referred to by the hon. Member for Cotswold, to open up the possibility of commercial charter flights to Ascension, if viable. Partly as a result of these consultations, the Foreign and Commonwealth Office looked again in 2005 at whether the island would be economically viable to support a settled population, with regard to fishing and tourism in particular.
The Government commissioned an economic study by Oxford Policy Management Ltd. in August 2005. The report highlighted the limited scope for development without significant external investment. It concluded that the prospects for buoyant growth driven by significant inward investment seemed slender in the near-to-medium future, and that the costs entailed by the local and physical characteristics of Ascension made the development of tourism unlikely to succeed.
During 2005, the FCO continued to consult, but in the light of the Oxford Policy Management report published in October, it became increasingly apparent that the economic argument was outweighing the views of the minority of those working and living on Ascension Island who wanted a general right to remain and reside there and to buy property. FCO officials and Ministers were in contact with the island council during the year, including through two visits in May and November. Lord Triesman also talked to Councillor Lawson Henry in London in October.
The Government accept that the continuation of the process to assess whether this was politically and economically viable might have led to confusion on the part of some of those living in Ascension. That, of course, is to be regretted. However, it would have been wrong to prejudge the decision that my colleague Lord Triesman took last month without examining all sides of the issue, including the steps I have just outlined.
In exploring all the options, the Government consulted widely, with Ascension and across Whitehall. The FCO took into account representations made by those on the island to the governor, administrators and groups of visiting officials. Before the decision was made, the FCO considered fully the representations to the team that went to the island in late November 2005 and the letter of