[Jim Sheridan in the Chair] — Piracy (Somalia)

[Relevant documents: Piracy off the coast of Somalia, Tenth Report from the Foreign Affairs Committee, Session 2010-12, HC 1318, and the Government Response, Cm 8324.]

Motion made and Question proposed, That the sitting be now adjourned.—(James Duddridge.)

2:30 pm
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Richard Ottaway (Croydon South, Conservative)

I welcome the Under-Secretary of State for Foreign and Commonwealth Affairs, Mr Bellingham, who has been dragged back at short notice, for reasons beyond his control, but it is to the benefit of the House that he is here today.

May I raise a point of order, Mr Sheridan? This is a debate on the report of the Foreign Affairs Committee, which I chair, about piracy off the coast of Somalia. One of the key recommendations was that the guidance for the use of private armed guards on British ships be revised. In its response, the Foreign Office said that the guidance would be coming out in April. Then we were advised that it was coming out in May. I have no quarrel about that, because it is important to get it right. I was informed at 2.25 pm today that the guidance was published at 11 am this morning and we do not have copies of it. We have not seen it. No effort was made to get it to us at 11 am. Would it be appropriate to adjourn for 10 minutes while the guidance is made available, so that we can have a quick look at it?

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Jim Sheridan (Paisley and Renfrewshire North, Labour)

Unfortunately, we have to proceed with the business of the House. It is extremely discourteous of the Department to treat the Select Committee as it has done and I am sure that the appropriate people will be aware of exactly what has happened. However, I am unclear how that can be remedied at this late stage. Does the Minister wish to say something?

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Michael Penning (Parliamentary Under Secretary of State (Roads and Motoring), Transport; Hemel Hempstead, Conservative)

I am the Minister responsible for the guidance, although it is not my debate. Clearance was delivered to us only this morning from the Ministry of Justice, and I published it as soon as possible. I apologise to the Chairman of the Committee because he was not given a copy of it. The Chairman is correct: the guidance has to be right, which is why we have published it today. Copies will be here for Committee members before the end of the debate.

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Jim Sheridan (Paisley and Renfrewshire North, Labour)

Will the absence of the information impact in any way on the debate?

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Richard Ottaway (Croydon South, Conservative)

I appreciate the Minister’s explanation. I gather that the delay was due to the need for clearance by another Department. However, a large section of my speech relating to this matter and posing questions is now, frankly, academic.

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Jim Sheridan (Paisley and Renfrewshire North, Labour)

Unfortunately, I am advised that we have to keep going. I can only apologise.

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Richard Ottaway (Croydon South, Conservative)

Thank you for addressing the point, Mr Sheridan.

The tenth report of the Foreign Affairs Committee is about piracy off the coast of Somalia, a major problem that costs industry and the world economy billions of dollars and threatens lives. The Indian ocean has become a no-go area for small vessels and is dangerous for large ones. The causes of the problem are many. First, at the heart of it is the fact that, despite the introduction of military forces and private armed guards, still the majority of vessels are unarmed. Secondly, there is a willingness to pay ransoms—a controversial point to which I will return. Thirdly, there are too few naval forces. Fourthly, the pirates are able to operate with relative impunity inside Somalia.

The United Kingdom Government are well aware of the problem and are taking a leading role and, although the Committee makes constructive criticisms of that role, we congratulate them on the steps that they are taking. Concerted international action is needed. The number of prosecutions has increased, but 90% of those detained are released. There is greater use of armed guards and we have regulation and guidance for armed guards. Vessels have been following best management practices. There are issues to do with tracing financial flows: the Committee’s opinion is that financial flows can be tracked—some of the most sophisticated equipment for that purpose is available in this country—and that more can be done in this regard. The Committee believes that there should be at least one UK vessel permanently on station. Of course, we have to support development in Somalia. I shall deal with those points in turn.

The UK is a big player in the world shipping industry, and our part of it is based just a mile or two up the road from here. Shipping and its management comprises 1.8% of gross domestic product. Piracy poses a threat to the UK’s economy and the security of British assets transiting through the area. Some 40% of world trade moves through the region of the Indian ocean, around the Horn of Africa, into the Red sea. The danger zone now stretches over to the coast of the Indian ocean. Much of the cargo is insured here in the UK. The total cost of addressing the threat to Britain, the assets and the industry is believed to be in the region of $8 billion to $12 billion per annum.

Attacks on vessels in the Indian ocean have decreased in the last quarter. In the first quarter of 2011 there were 102 attacks, 16 of them successful, whereas this year there were only 43 attacks and only nine were successful. That downward trend is welcome. To give an idea of the sums involved, in 2011, ransoms amounted to $135 million. The opinion of some observers and witnesses who gave evidence to the Committee was that some of that money is going to al-Shabaab, which it is believed has connections with al-Qaeda.

Since piracy started in the region, some 3,500 crew members and officers have been taken captive and been held, and in the last four years 62 have been killed. Currently, 12 vessels are held and 178 hostages are still in captivity. That the figure is lower than it was reflects a welcome trend, but it is important to state that the level of detention remains unacceptable. It must not be believed that we have been successful and this situation must not become the status quo.

The peak from which we are coming down was reached in autumn 2011. I think the reason why the trend is now downward is that the self-defence mechanisms are beginning to make progress. The implementation of best management practices is clearly having a serious effect. It is too soon to see if this is a long-term trend, but it is promising. For the benefit of the House, I should say that best management practices involve self-protecting measures, including careful manoeuvring of ships, having safe rooms on ships and using detection equipment. I commend the industry on the implementation of these practices, as does the Committee, and on the results that this is achieving.

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John Spellar (Warley, Labour)

Does not this highlight a further problem, which is that it is not so much the cargo or the vessel but the crew that is the main financial inducement? All the measures the hon. Gentleman has mentioned apply to the large multinational, well organised modern fleets, but many smaller operators with smaller vessels are becoming more vulnerable. Those measures, welcome though they are, can therefore only be regarded as part of a package, because they deal with only part of the problem.

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Richard Ottaway (Croydon South, Conservative)

The right hon. Gentleman is absolutely right. For small vessels the region is, in truth, a complete no-go area. For the piracy of the 17th and 18th centuries, the prize was the cargo, and the crew walked the plank or went over the sides, but that has changed; now, the crew are equally valuable. That attitude of the pirates is causing the problem. That is not to say that the cargo is not still important—shipowners are paying substantial sums to get their cargo out—but as we see particularly when yacht crews are held, in international terms the yacht is worth nothing while the owners still have a high value.

The Government initially resisted the establishment of private armed security guards on board British vessels. When the Minister gave evidence to us during our inquiry, the Government’s position was that armed guards would not be welcome. However, the Prime Minister announced in October or November last year that we will now put armed security guards on board British vessels, and that view is echoed by the International Maritime Organisation. The Committee welcomes the U-turn.

The operation of a private armed guard on board a British vessel is subject to British law—the law of the flag applies on board any vessel. The Government published interim guidance, at the heart of which was a policy based on the Crown Prosecution Service policy of lawful self-defence. We were critical of that, because the CPS guidance was not written with piracy in mind. Indeed, it states:

“If a…firearm…was used…this may tip the balance in favour of prosecution.”

To me and to the Committee, that seemed to be off-loading responsibility for the use of armed guards on to shipowners. The simple question we posed in our report was: if armed guards on board a ship see an armed skiff approaching, can they open fire? That is the test. The initial interim guidance contained little to help make a judgment on the use of force.

In the Government response, as I pointed out in my point of order, clarification was promised by April 2012, which then became May, then June. I have no idea why there was a delay, but I like to think that it was because international co-ordination and consultation with the IMO were necessary. Indeed, earlier this year, at the invitation of the Department for Transport, I attended a particularly constructive piracy conference at the IMO. What is important, however, is that the UK plays a leading role in the establishment of any guidance, and that is why I regret the new guidance not being available for us to see, because we cannot really comment. We are in limbo—the guidance is out but we are unable to comment on it today. The UK should be playing a leading role, but the issue is current. I want to ask the Government whether they have been happy with the use of armed guards on ships from implementation up to now. How many applications have been received to establish armed guards on board a ship?

The House might be interested to know about the Italian ship Enrique Lexie, which was carrying two Italian marines on board. Though the facts are in dispute, there was an exchange of armed fire with small vessels and two fishermen were killed. For reasons that are not clear, the Italian vessel then went into an Indian port and the marines were arrested amid a dispute about whether the incident took place in international or territorial waters. The matter is unresolved, but the incident highlights the importance of the need for clear guidance and international agreement on the use of force.

We can see how easily diplomatic incidents can occur in the absence of proper guidance or internationally agreed standards. That is mainly because so many factors are involved in international waters, such as a British ship with a foreign crew going into another country’s waters; several jurisdictions are in play. I was interested to read that the IMO has called for an international standard for the use of armed guards, so I shall read the newly published guidance with interest to see whether such a standard has been established. I hope that a Minister might be able to summarise the guidance when he makes his contribution to the debate.

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Jim Sheridan (Paisley and Renfrewshire North, Labour)

Order. I have every sympathy with the hon. Gentleman and his predicament, but I am reliably informed that document is winging its way towards us and should reach us in the next 10 minutes or so. At the end of the debate, he will certainly have the opportunity to sum up, by which time he might have had a chance to read the document, as will other Members. I am sure that my co-Chair will be sympathetic to his position as well.

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Richard Ottaway (Croydon South, Conservative)

That is very helpful, Mr Sheridan, and I am grateful to all those involved in expediting the availability of the guidance.

To conclude on armed guards, I hope that UK rules can influence the international debate, to the benefit of everyone concerned.

Another issue that we identified is that there are no regulations on the movement of weapons, and in that part of the world, a lot of weapons are moving around. We clearly need to have a regime for such movements, and I welcome the UK’s introduction of a revised licensing regime in February this year, although that

does not tackle the difficulty of floating armouries. Believe it or not, some ships out there will lend guns to ships that enter the danger zone and get them back when they leave. All that is outside the control of any organisation, and an international approach to that difficulty would be appropriate.

The naval response has been better than expected—possibly damned with faint praise—but the truth of the matter is that the Indian ocean is not safe, and to have a 30-minute response throughout the ocean would require the deployment of 80 warships at any given moment, which will clearly not happen. The strategic defence review under way in this country can only heighten the impact on the availability of British ships for deployment, but the UK could have a role to play in providing leadership in operations—we have a good record—perhaps with other countries supplying the ships. As reported by the Ministry of Defence, however, last month HMS Westminster foiled three attacks. Can one of the Ministers present tell us what happened to the suspects from those incidents? Were they detained, released or fended off with no detentions? As I understand it, there have certainly been no prosecutions.

What is needed is international co-ordination. We have the successful UN contact group on piracy and recently—established in February this year—the Regional Anti-Piracy Prosecutions Intelligence Co-ordination Centre in the Seychelles. The centre has to be welcome. It will co-ordinate information on ransoms and target the kingpins in the piracy world.

On the naval response, one of the unexpected side effects is how the international operations have been getting on quite well with one another. We considered a recommendation on whether they should be co-ordinated by a single organisation, but we reached the conclusion that there were bigger fish to fry, rather than having that sort of upheaval at the moment. We have Russian, Chinese, Indian, British and NATO ships there, and given the lack of a big umbrella organisation, the close co-ordination is very welcome.

Turning to convictions, it is difficult to obtain evidence in such situations. Our Committee recommended that more effort should be made, perhaps with the use of video links for witnesses. There are difficulties with various national laws because piracy is a crime in some countries but not others. Implementing such proposals can be expensive for poorer countries.

To date, no suspect has been brought back to the UK for prosecution. We have transfer agreements with Kenya and the Seychelles, and I welcome the new agreement with Mauritius, as I hope that it will result in more prosecutions of suspects. Will the Minister who responds on the memorandum of understanding with Mauritius indicate the conditions that suspects are held in and whether that is monitored. I wish the Government well with implementation of the memorandum of understanding, which sounds to our Committee to be a pragmatic solution. However, if it fails, I hope that the Minister involved will note that the French are now engaged in their second trial of suspects.

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John Spellar (Warley, Labour)

Will the hon. Gentleman, and later a Minister, clarify the position on bringing captured pirates back to the UK for trial, given the real risk of applications for leave to remain? Is it not better—this is why the Mauritius agreement is so welcome—to support efforts in the region?

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Richard Ottaway (Croydon South, Conservative)

I cannot go to our precise conclusion quickly, but we believe that it would be a good idea if there were prosecutions in this country, if only to demonstrate that we mean business. The important thing is that there are prosecutions, and if a memorandum of understanding is working effectively, it is a pragmatic solution.

Turning to ransoms, I said earlier that $135 million was paid last year, and in our judgment the Government have been slow to track the flow of money. It might be an effective means of countering piracy if the flow of money were tracked. An international taskforce on ransoms has been established recently, but it is controversial because it attempts to prevent payment of ransoms. It is worth noting that the Chamber of Shipping has expressed concern that the international policy and that of the UK is to try to prevent the payment of ransoms.

The Foreign Affairs Committee is worried about that. In our view, the only way to recover vessels is to pay ransoms, which is particularly appropriate when the use of force is ruled out. In all honesty, there is no other way for shipowners to recover their property. The position can be likened to a mugging of a man in the street. If he were subject to a violent attack, no one would tell him not to pay anything because it will only encourage more muggers. I invite the Government to take a hard look at the matter and to say whether Government policy is unchanged.

British hostages have been taken as victims of piracy, and the Committee welcomes the release of Judith Tebbutt. We did not refer to her in our report because she was still in captivity while we were drafting it, and we concluded that it would be too sensitive to comment. We are delighted that she has been released. We understand that there are prosecutions in Kenya and that a ransom was paid. I would be interested to know from a Minister whether that payment was tracked and whether a prosecution is expected. We also took evidence from the Chandlers, and we are delighted to hear that only last week they set off to continue their voyage around the world, but I am reliably informed that they will avoid the Indian ocean.

At heart, the solution to the problem lies not offshore, but onshore in Somalia. There is no easy solution for that troubled country. African Union troops are clearly making progress. We have had two excellent conferences on Somalia. One was here in the United Kingdom in February, which I believe is producing results, and I congratulate the Foreign Office on putting it on. The other was in May in Istanbul, Turkey, at which I gather serious progress was made. The Department for International Development is putting in £83 million, of which £6 million will go on counter-piracy.

We treat the subject very seriously. Our report is important.

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Jim Fitzpatrick (Poplar and Limehouse, Labour)

I apologise for not having had the chance to read the Select Committee’s report, but I look forward to doing so. I take it that the hon. Gentleman did not have an opportunity during the Committee’s examination of the evidence to speak to welfare organisations such as the Mission to Seafarers and Apostleship of the Sea, which have dealt with some of the hostages before, during and afterwards.

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Richard Ottaway (Croydon South, Conservative)

The hon. Gentleman will be pleased to see that we took written evidence from seafarers, and we quote some of it in our report.

In conclusion, I look forward to hearing how colleagues view this difficult subject.

2:56 pm
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Eric Joyce (Falkirk, Labour)

I commend Richard Ottaway on his excellent report. I am not a member of the Committee, and I will not detain the Chamber for long, but I was interested in the recommendation in paragraph 27 of the Government’s response:

“We conclude that the Government should not pay or assist in the payment of ransoms but”—

crucially—

“nor should it make it more difficult for companies to secure the safe release of their crew by criminalising the payment of ransoms.”

As the hon. Gentleman said, the Chamber of Shipping sent a strong briefing to hon. Members here and elsewhere. There are many acronyms, concepts and ideas involved in the debate about using armed guards, the payment of ransoms and so on, and there have been recent examples of people being taken captive for a ransom elsewhere in the world on land and at sea. It is self-evident that if someone demands a large amount of money for a loved one, and that they will be killed or executed if it is not paid, everyone would want to avoid that.

The taskforce’s general direction of travel on ransoms, announced on 31 May, was to reduce or constrain payment—although I may be wrong, and a Minister may correct me. It is most unlikely that anyone could convince foreign Governments not to pay, and not to assist or facilitate payment. Indeed, there are examples of foreign Governments—it is probably best not to say which ones—possibly making payments, and certainly of Governments facilitating payments. Even if the UK obtained agreement from some members of the taskforce, it is most unlikely that the payment of ransoms would stop. Pirates would still be attacking ships and taking people hostage. They would not be taking people hostage on the basis that their country was one that would facilitate a ransom payment. The risk is that we could end up with a two-tier situation, and some people would be released eventually. As the hon. Gentleman said, Judith Tebbutt was released after payment of a $1 million ransom, and it was reported that someone, perhaps even a news agency, helped to pay £500,000 for the Chandlers. A sad recent example was a Scotsman, Khalil Dale, who was kidnapped in Pakistan. There was evidently and clearly a financial imperative in the demands of the people who kidnapped him, and his employer, the International Committee of the Red Cross, said that its policy, as the Government suggested, was not to pay ransoms.

There is a distinction between a Government who make a political policy decision not to pay ransoms, and an employer. For many different reasons, and given the scale of their work, the Government’s exposure to risk is far greater than that of any employing organisation, and seafarers belong to the latter group. It therefore seems quite improper to constrain employers who may have seafarers at sea from paying ransoms in cases when they could get someone released.

People are held in Somalia, having been captured off the coast. For example, MV Iceberg 1 is still being held; two people are dead and others have been held for more than 800 days. We know that the longer it takes to get a ransom paid the longer people are held in captivity, and that when a ransom is paid, they are likely to be released. Few UK citizens have been affected.

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Martin Horwood (Cheltenham, Liberal Democrat)

The hon. Gentleman goes to the heart of the knotty moral problem of paying ransoms. Is not the problem that although paying a ransom may well save the life of an employee or a loved one, it encourages the taking of hostages and the risking of other people’s lives? Indeed, it pays for that to be facilitated. Surely we must encourage shipping companies, and others, to take a firm stand against the payment of ransoms.

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Eric Joyce (Falkirk, Labour)

The hon. Gentleman describes the point that we all regard as central to the question. Paying ransoms may encourage pirates, but my instinct is that pirates in Somalia are looking not at the policies of international Governments but at the fact that it is possible to get a ransom payment. I greatly doubt that Governments across the world will agree not to facilitate ransom payments. Indeed, I can list—we all can—the Governments who are highly likely to encourage the facilitation of ransom payments. Therefore, if we say that we will discourage such payments, British citizens will be affected but no one else. It is true that the UK has considerable influence because of its importance in the maritime industry and the presence in the UK of the International Maritime Organisation, but it is highly unlikely that other countries would agree not to pay ransoms.

If there was a billionaire whose daughter had been captured and was about to be shot, and there was a £2 million ransom, would they pay it or would they say, “No, I don’t think I will because it’s just going to encourage others.”? Of course they would pay it. If people are discouraged from taking up kidnap and ransom insurance, the risk is that we will end up with only rich people being able to secure their safety. We know of one or two cases, including that of Judith Tebbutt who luckily was able to secure a large amount of money—$1 million—to secure her freedom. If no kidnap and ransom insurance is paid, other employees will be at considerable risk of exposure.

The case of Khalil Dale in Pakistan is relevant, if perhaps only tangentially. The non-governmental organisation in question was described as “brave” for taking a decision that led inevitably to Khalil Dale’s death. I did not regard that as brave. I thought it was a businesslike decision that, in the worst case, saved the organisation money because kidnap and ransom insurance is expensive. Commercial companies can build insurance into their expenditure and planning assumptions, and it seems a bit too easy for employers to say, “Well, the Government say that this is the best thing to do.” If someone who works for an NGO is unfortunate enough to get captured and a ransom is not paid—imagine, for example, someone on land in Somalia—they are much more likely to be held for many months, or even killed. If they are lucky enough to be employed by an organisation that has paid kidnap and ransom insurance, there is a strong chance that they will be released. That is the realpolitik of the matter.

In conclusion, we should be cautious about assuming that just because we say, “This is a jolly good thing”, everybody else will agree. If we decide to discourage, or in the worst case, make it unlawful to pay kidnap and ransom insurance, employees—the people about whom organisations must be concerned—will be exposed to much greater risk. That is why in this dilemma I come down strongly on the side of paying kidnap and ransom insurance, and I think NGOs ought to do that as well.

3:04 pm
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John Stanley (Tonbridge and Malling, Conservative)

I am pleased to follow in the wake of my hon. Friend Richard Ottaway. We have been the beneficiaries of his naval and nautical expertise over the course of this inquiry.

I start, Mr Sheridan, by wholeheartedly endorsing your comments at the opening of the debate about the gross discourtesy that the Government have shown to the Committee by failing to make available a crucial document that had been promised by the end of April. We are grateful to the Minister for trying to ensure that the document appears before the end of the debate, but you will be first to appreciate, Mr Sheridan, that in such a complex and technical area, the Committee should have seen the document days earlier in order to study it and, if necessary, take advice from the Committee staff before the debate commenced.

Piracy is emphatically not a marginal, peripheral world issue. In my view, it is wholly central, above all on humanitarian and human rights grounds. Piracy is one of the worst forms of human rights abuse that we see anywhere in the world. Thousands of innocent seamen and seafarers have been taken hostage and held in captivity under intolerable conditions. Many have died, and nearly 200 people are in captivity today, some of whom have been exposed to torture, and threats of torture, in order to increase the degree of pressure for ransom money. This is a vile humanitarian abuse.

Equally important are the international maritime ramifications of Somali piracy. A few years ago, most of us would have said that piracy was relatively confined in sea terms; it was a risk in the maritime choke points such as, for example, the Gulf of Aden. As Somali piracy has developed, however, pirates have become more and more audacious, and more and more skilled. They have acquired mother ships and dramatically increased the range of piracy. Piracy now extends vastly further in geographical or sea terms than at the outset of this malevolent trend.

If we were starting the report today, I would suggest to my Committee colleagues that we call it not “Piracy off the coast of Somalia” but “Piracy in the Indian ocean.” Piracy is a form of criminality that, if allowed to take root, has the potential to expand beyond the Indian ocean. We already have what appear to be copycat attempts off the west African coast, and pirates are a risk in the Caribbean. We are talking about an international maritime threat, which is why the issue is so important and why I believe that the Foreign Affairs Committee has done a considerable service to Parliament and the wider international community by producing this weighty and well-researched report.

All the manifold briefings that I have had on Somali piracy, both in the course of the inquiry and as a member of the NATO Parliamentary Assembly’s defence

committee, have erred consistently on the side of considerable over-optimism and rose-tintedness. We have been told that we are getting on top of the problem, and figures are produced to indicate that that may be the case. We have been told that the numbers of merchantmen held hostage are going down, as are the numbers of ships that have been taken. However, those are not the key figures. If we honestly ask ourselves, “Is piracy paying?” only two statistics really matter. First, what is happening to the size of the ransom money being paid out? Secondly, what is the degree of risk to which pirates are exposing themselves?

The Committee, in our report, comes up unequivocally with the answers on those two key figures. With regard to the money, at the end of paragraph 111, we state:

“The latest information from Northwood HQ is that ransom payments in 2011 have already totalled $135m—a further substantial increase and a new record.”

On the ransom money test, we are losing comprehensively. The ransom money is going up; indeed, a new record has been set. On the risk test, there is a key sentence in our report at the opening of paragraph 74:

“Around nine out of 10 piracy suspects detained by forces engaged in multinational operations are released without trial.”

Nine out of 10 captured pirates are just released. Therefore, the honest answer to the question “Does piracy pay?” is yes, it does; it is a growing source of huge sums of money and it is largely risk free for those who engage in it. That is the point we are at, and it is singularly serious.

What do we do in this situation? Yes, in a perfect world, there would be an up-and-running criminal justice system in Somalia. There would be a splendid criminal justice system, with splendid courts, and those people would be put where they belong—in jail, for many years. However, that is an illusion. We will not be at that point for years.

On the naval side, as the Chairman of the Committee, my hon. Friend the Member for Croydon South, rightly pointed out, the geographical scale of the sea operations is such that there is no conceivable prospect of being able to produce the massive armada of naval forces that would be in a position to respond quickly to a threat of piracy in such a huge area of ocean. Therefore, we are left with just one solution. We must put armed guards on the merchant vessels, and those armed guards must be in a position to ensure that not a single merchantman on the ship is taken hostage and the ship is not captured in any circumstances.

The Government, after a long delay—I have to say that they were continuing the policy of the previous Government—have performed what the Chairman of the Committee rightly pointed out is a complete U-turn, a very welcome U-turn, and have accepted the policy of placing armed guards on UK-flagged ships. However, that can be only half the policy. It is not enough to say that we will put armed guards on the ships and create a new form of arms export licence that enables weapons to be supplied to them. I have, not least in my capacity as Chairman of the Committees on Arms Export Controls, a number of detailed questions about that form of licence, but I shall be delivering them in writing to the Minister. I will not take up hon. Members’ time with them now.

It is not enough to say that we will allow armed guards and will have a licensing system to get the appropriate weapons and ammunition to them. We must have in place the right, requisite rules of engagement,

and that is where I believe that the Government are seriously falling down in policy terms. The Government’s position appears to be that we state the policy—we say that we are in favour of armed guards—but we will not give any help or support with regard to the circumstances in which lethal weapons can be used. I refer hon. Members to what the Government say on page 5 of their response:

“It must remain for shipping companies and private security companies to agree between themselves upon the guidance on use of force within which armed guards are to operate.”

That, to me, seems to be a very serious cop-out. I do not believe that the Government can responsibly say that we have a policy of putting armed guards on British-flagged merchant ships and then refuse to accept any responsibility whatever for describing the circumstances in which those armed guards can use their weapons.

When I look at how the Government try to justify the policy, I have to say that it does not stand up as far as I am concerned. The Government’s justification, also on page 5 of their response, is that

“the introduction of government-prescribed rules on the use of force would blur the distinction between private maritime security personnel as civilians only acting in the context of self-defence, and military personnel who may be authorised to use force for other reasons.”

My first point is that armed military personnel are used and have been used with considerable regularity to board and to be on board civilian ships in a variety of circumstances, so the Government have ample experience of that; and in all those circumstances, those armed military personnel have rules of engagement, so the Government have in their possession rules of engagement that deal with the type of situation we are discussing.

I would question the Government when they say that the armed guards on British-flagged merchant ships are acting only in the context of self-defence. I do not know whether that is meant to imply the armed guards’ own self-defence. They have a much wider role. Their key role is, of course, to protect and ensure the safety of all the civilian crew members on board the ship and, in the process, ensure the safety and retention of that ship under the control of the crew’s master and the ship’s crew. That is their wider role.

In those circumstances, when the Government have abundant expertise in the area and, as a matter of course, have rules of engagement that they apply to service personnel who have to go on board civilian ships, and given that the Government now have a clear policy in favour of armed guards going on to British-flagged merchant ships, it seems to me to be wholly incumbent on the Government to accept the necessity of making clear what the rules of engagement are.

I come back to the conclusion that the Committee draws in paragraph 37. To me, it is the single most important recommendation in our report. It should be read in full, but I shall quote just the key sentences:

“The Government should not offload responsibility onto ship owners to deal with the most difficult aspects of handling private armed guards…The Government must provide clearer direction on what is permissible and what is not. Guidance over the use of potentially lethal force should not be left to private companies to agree upon. We recommend that the change of policy be accompanied by clear, detailed and unambiguous guidance on the legal use of force for private armed guards defending a vessel under attack.”

I urge the Minister to accept that recommendation.

3:19 pm
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Martin Horwood (Cheltenham, Liberal Democrat)

I congratulate Richard Ottaway and his Committee on securing this timely and important debate and the whole Committee on the report, which is an authoritative and important contribution to British policy making in the context.

The problems associated with piracy are well understood by everyone here. It is conducted on a staggering scale in the Indian ocean, and I think that the report suggests that between 1,500 and 3,000 pirates are operating there. It affects trade through the Gulf of Aden worth hundreds of billions, if not trillions, of dollars to the global economy. Any disruption of that trade certainly affects not just British companies, but companies all over the world, and the insurance and other markets that support it. There are disturbing trends, which the Select Committee drew attention to, including—and probably most worryingly—increasing violence against hostages, which was not a particular characteristic of Somali piracy a few years ago. On top of that, there is the fact that such piracy has been going on for decades. The international community despite, I think, nine United Nations Security Council resolutions and three multinational naval operations, has not remotely cracked the problem. As we have heard, the amount of ransom that is being paid is on the increase.

That is not to say, however, that there are not some positive signals. In Somalia, the situation on the ground seems more promising than for many years. That is partly due to the courage of African Union and other international forces, which have secured more territory than for many years. There is some evidence that progress is being made against forces such as Al-Shabaab, although it continues to control huge swathes of the country.

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Rory Stewart (Penrith and The Border, Conservative)

Will the hon. Gentleman reflect on how serious or sustainable the progress in Somalia is? Is he confident that in three years’ time Somalia will be significantly better than it is today?

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Martin Horwood (Cheltenham, Liberal Democrat)

I cannot predict the future, but the fact that Mogadishu is now an overwhelmingly secure city, which was far from true only a few years ago, and that the Foreign Secretary and International Development Secretary can visit cities such as Mogadishu with a degree of confidence about their personal security is a quite dramatic shift, as I am sure that the hon. Gentleman would acknowledge. I do not say that securing a military solution is the only path forward, but the fact that African Union troops and others have made enormous sacrifices, displayed great courage and secured a large amount of territory should not go unnoticed.

There is also progress in the sense that areas of the internationally recognised territory of Somalia—mainly, in practice, self-governing areas such as Somaliland and Puntland—have achieved a reasonable degree of peace and security. The Government have shown wisdom in promoting a flexible attitude to territories such as Somaliland. The creation of the Somaliland Development Corporation, which the Government supported earlier this year, is a positive development. Trying to exploit the economic potential of the relative peace of areas

such as Somaliland is a practical contribution to the provision of an alternative economic model to the chaos and piracy prevalent in other parts of the Somali territory. It is exactly right that the Department for International Development is prioritising development on the ground and the provision of economic alternatives to people in Somalia.

The convening of the London conference earlier this year was an important step, not just in relation to tackling war and conflict in Somalia and getting a co-ordinated regional approach, which the Select Committee asked for, but in making concrete contributions to progress on anti-piracy initiatives, including some things that have been mentioned: the taskforces on ransoms and the wonderfully named—let me get it right—Regional Anti-Piracy Prosecutions Intelligence Co-ordination Centre. I am sure that Hansard will report that I got that fluently right. The substantial financial commitment that the Government have made to RAPPICC is welcome, and we have provided its first director, Garry Crone. That support is welcome and exactly the kind of lead in international co-ordination that the Select Committee asked for.

On ransoms, Her Majesty’s Government’s instinct is exactly right. Briefings from non-governmental organisations such as Saferworld, which has talked to civil society in Somalia, make it clear that the economic model of piracy brings, in some cases, the most effective wealth provision into the local economy. If we can disrupt that business model and suggest that a peaceful, normal economy and society would be a more profitable way to develop—as we would obviously hope—we will have some chance of defeating the root causes of piracy. If we continue to fuel the ransom economy and pay money, that will be a massive incentive for Somalis to continue with piracy and to allow it to spread. If, as Sir John Stanley said, risk and reward are so imbalanced, why would piracy not spread down the coast of Africa? Why would not that model be emulated in other parts of the world?

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Eric Joyce (Falkirk, Labour)

I thank the hon. Gentleman and will be brief. Does he not think that the thing for a responsible employer to do, if two dozen employees are captured and a ransom is demanded—they may well be executed—is to pay it, as opposed to the view of NGOs, which appear on the whole to want to leave them to die?

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Martin Horwood (Cheltenham, Liberal Democrat)

No. I think that paying is profoundly irresponsible. There are even more extreme cases than that of an employer. It is difficult to tell someone whose loved one has been kidnapped—it would be difficult for me if one of my loved ones had been kidnapped—and other members of the family, “You should not pay.” That is a terribly difficult thing to say to someone, face to face. However, in the bigger picture, people are kidnapped because other people have paid ransoms, which paid for the boats and motherships and the lifestyle of the pirates that makes future ransoms, kidnaps and piracy much more likely. We must try to disrupt that business model. Trying to find a simple military solution is only half the answer. I am afraid that I think that the Government’s instinct is right.

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Richard Ottaway (Croydon South, Conservative)

What does the hon. Gentleman think would have happened to Judith Tebbutt and Mr and Mrs Chandler if no ransoms had been paid?

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Martin Horwood (Cheltenham, Liberal Democrat)

As I said, it is a horrendously difficult thing to say to an individual family or a company, “You should not pay,” but Governments must consider the larger picture and the fact that ransoms fuel the whole situation and that every payment of a ransom supports future piracy.

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Richard Ottaway (Croydon South, Conservative)

To use the illustration of a mugger, does the hon. Gentleman think that the best advice to give a mugging victim is, “Don’t hand over your wallet, because that will stop mugging in the future.”?

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Martin Horwood (Cheltenham, Liberal Democrat)

That is the police advice—[ Interruption. ]The police advice is to co-operate, I know, but that is where someone is at imminent risk themselves. The right hon. Member for Tonbridge and Malling set out the situation: it is a balance of risk and reward. The Government and the international community are addressing the risk element, because they are stepping up self-defence measures, and there is greater international co-ordination and increasing provision of private armed security forces and armed guards. The risk element is therefore increasing slightly, but the rewards are stupendous—hundreds of millions of dollars—and we must try to reduce the rewards or the economic model behind piracy will thrive.

I am afraid that this situation is the classic philosophical prisoner’s dilemma, where the individual action may be difficult to take, but the result on a larger scale is clear. Saferworld says clearly in its briefing, from its research on the ground in Somalia, that the continued payment of ransoms fuels and exacerbates the problem. We want to tackle those things and want people to be safer.

Eric Joyce asked what would happen to British ships in that situation and whether British hostages would be more at risk. I suspect that Somali pirates are quite good business men and can spot a red ensign, a white ensign or whichever British flag happens to be flying. If Britain acquired a reputation for not paying ransoms, it would balance out the risks and rewards of attacking a British vessel and they might think that it would be better to attack somebody else’s.

The principle has been established in other fields. It used to be more common practice for ransoms and payments to be made when hostages were taken in international terrorist situations, such as airfields. There was a concerted international drive to stop any hostage payments being made in those situations, and that form of terrorism has largely disappeared. It has sadly been replaced by many others. It is critical that we disrupt the business model of piracy. That was not the only issue that I was going to address; I will move quickly on.

On the military front, the moves towards international co-ordination are good. I note the existence of the European naval force. We ought to agree between these four walls not to tell Mr Cash about it. It is very effective, and a British operational commander is in place. The rejection of the catch-and-release approach was rightly highlighted by the Foreign Affairs Committee. It is important that that approach is abandoned, so increasing the risk that pirates face. We need more effective action to prosecute, using every available international or national legal jurisdiction that we can find. The British Government are taking a lead in that.

The report highlighted other issues, rightly including the disappointing progress to date in tracking financial flows—tens of millions of pounds are being trafficked. The Government and, indeed, the international community have been slow to provide ways to track it down and disrupt the flow. It is an important step in disrupting the pirates’ business model. It will be interesting to hear the Minister’s view.

The Foreign Affairs Committee is a little inclined always to want Britain to be the country taking the lead. These are global problems. Likewise, it insists that Britain plays the leading role in the naval operation. Although Britain is an important naval power, perhaps given our financial situation and the fact that it is a global problem affecting global business and threatening the lives of nationals of all countries, it is not absolutely necessary to have at least one British naval vessel on operation all the time. This must be done through international co-ordination.

On the prosecution of pirates when they are visible, the report says:

Gathering evidence to secure a successful prosecution for piracy is clearly challenging, but when pirates are observed in boats with guns, ladders and even hostages, it beggars belief that they cannot be prosecuted.”

That is exactly right. I will be interested to hear the Minister’s comments on progress on the international front.

I think that the right hon. Member for Tonbridge and Malling was a little uncharitable in his comments on the use of force by private armed security forces. The UK legal situation is pretty clear. The Library briefing quotes an international law firm called Ince and Co., which says that

“the use of force in deterring or preventing what is a criminal act”

is justified. It continues:

“In the UK…lethal force is normally only allowed where there is serious and imminent threat to life. The decision to use lethal force must be reasonable and the force used proportionate.”

Further clarification on the exact definitions and terms will be obviously welcome whenever it arrives through the door today, and Government are working to provide that. Ince and Co. goes on to make the point that rules on the use of force need to be internationally agreed and as standardised as possible. That is required internationally. The IMO ought to be taking a lead, but it is possibly the slowest organisation in the world at doing almost anything.

In deference to other Members, because we were distracted, I will move swiftly to a conclusion. It is imperative to tackle the situation on the ground and provide different economic models. We should use the example of Somaliland positively to look at fisheries and try to present an alternative way of providing prosperity in the longer term for the people of Somalia, so that this appalling trade does still not offer the attractions that it does now.

3:34 pm
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Rory Stewart (Penrith and The Border, Conservative)

The whole debate is a tribute to the astonishing attention currently being paid to Somalia. In fact, the increase in African Union troops from 12,000 to 17,730, and indeed

this whole discussion, show how important Somali piracy is. I would like to sound a note of caution, however. The most important thing in the debate is not to get dragged in too deeply, or to be too ambitious in what we feel we can achieve on the ground in Somalia.

There are very grand theories going around about the importance of Somali piracy and linking it to theories of state building, economic development, regional stability and terrorism. Martin Horwood made a number of those arguments. They are powerful, partly because a powerful industry supports them, trying to draw us ever deeper into Somalia. The components of that industry are various, but there are four.

The first is what I call the “forward school”, represented by people like my father, who quite like the idea of grand naval operations and keep talking about sending out Q-boats and remembering Julius Caesar attacking the shoreline. That is the naval “use it or lose it” approach, where a military complex likes to expand its area of operations to justify its existence.

The second is, of course, the Somali Government themselves, who find it very convenient to use Somali piracy to attract international attention and resources. They are increasingly adept at manipulating international sentiment on human rights and terrorism to attract more resources into their Government.

The third component is think-tanks. There is now a major industry, particularly focused on Islamic radicalisation and counter-terrorism, that is keen to connect Somali piracy with the obsessions of Washington think-tanks with the proliferation of al-Qaeda.

Finally, as the previous speaker pointed out, there are the aid agencies, which find it extremely convenient to use Somali piracy to argue for more investment in development operations in Somalia. Connections are perpetually made, and were made by the hon. Gentleman, with governance, failed states, economic development and alternative livelihoods, as they are in Yemen, Congo, Chad, Afghanistan and Sudan.

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Martin Horwood (Cheltenham, Liberal Democrat)

I recognise the hon. Gentleman’s long and genuine experience in the field, but having worked for a development NGO I think the suggestion that the NGOs are in some way fostering an image of Somalia in particular for the benefit of their business model and to encourage spending on development is rather extraordinary and, indeed, really offensive.

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Rory Stewart (Penrith and The Border, Conservative)

I am very happy to share endless statements from almost every major NGO and development agency that has attempted to draw links between their programmes on the ground in all the areas the hon. Gentleman and I mentioned and state instability, and indeed piracy itself. It is entirely normal. We have seen it all the way from Congo to Afghanistan. Somalia is absolutely no exception.

The problem with that kind of argument is twofold. First, there is a theoretical problem: the strong link between state instability, governance and developmental poverty and piracy is yet to be proven at any theoretical level. Secondly, the actual links, as Anja Shortland argued in a recent academic paper, are very fragile indeed. No link has so far been effectively established between the piracy and al-Qaeda, and very few substantial

links have been established between piracy and the al-Shabaab movement itself. As for statements about development and state building, Anja Shortland argued that it is very doubtful whether the contribution of piracy to the Somali economy is anything other than marginally positive at the moment.

I am not saying that Somali piracy is not an evil in itself, or that poverty in Somalia is anything other evil. Both those things are true and important. Attempting to connect the two, however, draws us into a dangerous policy position. The solution is humility and context. Instead of endlessly inflating the problem of Somali piracy in order to draw in more resources, we need to acknowledge the reality of our situation.

We need to acknowledge first that, as many hon. Members have pointed out, we have made little progress on Somali piracy over the past five years. We have invested surprisingly little in the issue, despite an enormous amount of rhetoric. Despite nine UN resolutions and three multinational task forces, the reality on the ground is that there has been an increase in both the number of attacks and the amount of ransom money being paid. Moreover, despite an enormous amount of rhetoric and the idea that people read in The Daily Telegraph that this is the No. 1 priority of the British Navy, we have often only one ship or perhaps none at all in the region; in fact the matter does not actually classify at the highest priority level for our naval operations. Part of that may be due to mixed signals, influenced by the fact that the majority of the crews, unfortunately, are not citizens of OECD countries, and the majority of the ships involved have nothing to do with Britain itself.

However, there are much more fundamental limits constraining us and, unless we acknowledge those limits, we are going to get ourselves in trouble. Those limits are threefold. First, there is a limit of abstraction. Statements about governance, rule of law and economic development in Somalia are extremely vague and ill-focused. We have a poor understanding of governance and rule of law structures on the ground in Somalia, very little idea of what kind of country the international community could turn Somalia into, and few models to put forward. The isolated lives of our diplomats and other international officials, because of security issues and short tour lengths, and lack of linguistic expertise means that their understanding of what is happening at rural level in Somalia is extremely limited. All of that is disguised within a very optimistic language, which talks about a land-based solution, without any evidence that we have the knowledge, the power or the legitimacy to achieve that kind of solution.

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Martin Horwood (Cheltenham, Liberal Democrat)

I will resist the temptation to debate Anja Shortland’s conclusions, which I think demonstrate exactly the opposite of what the hon. Gentleman is saying, but on the specific point about the lack of a positive model, what about the example of Somaliland—he may regard it as a different territory, I suppose—and the British Government’s support of the Somaliland Development Corporation? Does not that look like a positive alternative model of development?

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Rory Stewart (Penrith and The Border, Conservative)

The problems in the al-Shabaab-controlled areas and in Puntland are completely different from those in Somaliland, and attempting to read from one across the other is highly misleading.

To conclude, the context needs to be put in place. The limited obligation that we have needs to be asserted: in other words, we do indeed have an obligation to the Somali people, as we have an obligation to the people of Congo, Sudan, Afghanistan and our own people, but the threat posed by Somali piracy and by Somali state instability to UK national interests is limited. It is a threat but it is one threat among many. Somalia is one of perhaps 40 countries in the world with which the United Kingdom and the international community needs to be concerned. We should not be raising the expectations of the Somali people through talk of our ability to deliver solutions that we cannot deliver.

This is not a recipe for pessimism. It is instead to suggest that we can make developmental progress, but we will not be able to achieve governance, rule of law, or state stability. We may be able to contain Somali piracy, but we are extremely unlikely to be able to eliminate it. Our objectives should be limited to ongoing counter-piracy operations, some development operations and an attempt to increase the likelihood of a political settlement and decrease the likelihood of civil war. Any attempt to claim that we can do more is likely to mislead the British people, disappoint the Somali people and draw us into a situation into which we should not be drawn.

3:44 pm
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John Spellar (Warley, Labour)

I congratulate the Chair of the Foreign Affairs Committee and his colleagues on their report. The detailed work that has been undertaken and the drawing together of a number of difficult issues show the value of Select Committees. One does not necessarily have to agree with every line of the conclusion. We just need to see the thread of the work that enables a debate to take place, and I am pleased that it was acknowledged in the Government response.

Would you indulge me for a minute, Mr Sheridan, so that I can pay tribute to Lord Peter Archer of Sandwell who died today? He was my predecessor in the Warley constituency. He served for some 26 years in the House of Commons and 20 years in the House of Lords and made a considerable contribution to both Houses and to his own constituency. If there was anyone to whom the phrase, “A fine Christian gentleman” applied, it was Peter Archer. He was a man of formidable intellect. His father was a toolmaker in Tipton. Peter rose to high levels in the law, but never forgot his roots. He always served his constituency well. In some ways, he was a hard act to follow; his reputation as a Member of Parliament in the constituency stood very high, and I only hope that I have matched up to his standards in that regard. I am sure that the feelings of Members here who knew him will go to his wife and family.

I am pleased to see two Ministers here today. Let me briefly damage their careers by saying that they have played a proactive role in dealing with this issue. If some other Departments had been as forward leaning, we would have made progress, and today’s problems are an indication of that. I hope that we will improve the rate of our response to this evolving situation.

As Sir John Stanley mentioned, the problem began off the Somali coast. Then we saw it moving along the coast of Aden. Indian Ministers are extremely concerned about how close the problem is getting to India. We

have seen the movement from skiffs to mother ships, the involvement of spotters in ports and allegations of intelligence gathering elsewhere. We are now seeing imitation tactics in the Gulf of Guinea, and I have heard reports, which I have not validated, of similar problems off the coast of South America. We have seen changes in the levels and manner of response.

Martin Horwood talked about Britain taking a lead, which is absolutely appropriate. A major part of our naval doctrine is to secure the world’s sea lanes not only for British vessels but for the world’s vessels. Maintaining free passage of vessels throughout the world is an important contribution and is core to our basic philosophy and our national interest. [Interruption.] I was wondering how long I would have to speak before the documents arrived. One hears a distant trumpet blowing over the horizon as the cavalry appears. I hope that the Minister will indicate whether that basic philosophy is still a doctrinal priority for the Ministry of Defence, our armed forces and the British Government.

Secondly, we have talked quite extensively about the impact on world trade, the amount of money that is being paid, the impact on the willingness of seafarers to go through these routes, the rise in insurance premiums and the potential risk to supply chain management for many countries. The effects of the tsunami in Japan and the floods in Thailand were felt right across Europe. Much of the British car industry and other industries experienced disruption in the supply of component parts because of those particular events. If the passage into the Suez canal became too unsafe for seafarers to risk using it, the additional journey would cause not only extra costs but considerable disruption for British industry.

We should not underestimate the impact of piracy on the countries in-region. I remember talking to the Kenyan Government about cruises. Cruise terminals are big business, providing a considerable amount of employment in many parts of the world. Up to about the middle of last year, the number of cruise ships visiting Kenya went down from about 60 to one—interestingly that one was from Saga, which shows the redoubtable spirit of British pensioners. We can imagine the impact on many workers in Mombasa and indeed on the tourist industry there. In the future, therefore, cruise liners and the yachting business will be affected, which will have a considerable impact. We have talked about development, but such an impact creates the conditions for further instability. That should concern us very considerably.

It is fair to say that throughout the current epidemic of Somali coast piracy the Government have tended towards finding the right solutions but they have not necessarily always moved at the requisite pace. One of the images that we must get away from is the Somali pirates as mindless hooligans. I am not talking about the expendables who, for an extra few per cent, will want to be the first ones on to the vessel. I am talking about the people who are behind them—the people who organise the schemes and who are involved in the organisation of the money. The amount of money that we are talking about requires considerably sophisticated organisation, including the spotting of targets. We have

seen the evolution of tactics; as we have managed to move, so too the pirates’ tactics have changed. That is not surprising.

What we need to see is Departments working together and not just individually. We were discussing the issue of armed guards and what are sometimes the problems of Government co-ordination, including in real time, as well as the other work we have to do. I fully understand the frustrations that sometimes arise from working through the IMO. We must also co-operate with other countries, and I join colleagues in paying tribute to the naval patrol; it is a very good example of international co-operation. We must get partners to work together and we have to recognise that time is of the essence. We cannot always be playing catch-up. I am not saying that military solutions are the sole solution; they are not. However, we must see a step change in operational tempo.