Baroness Chapman of Darlington (Lab)

My Lords, Amendments 7, 39, 47, and 50 all relate to financial transparency and parliamentary oversight of expenditure under the treaty. Amendments 39 and 47, tabled by the noble Lord, Lord Callanan, seek to require the Government to publish a schedule of payments to Mauritius and a detailed statement of the total cost of the treaty, including the methodology used by the Government Actuary’s Department and the Treasury. These amendments are not necessary, as we published full details of the financial arrangements on the day the treaty was signed, including the finance exchange of letters and the Explanatory Memorandum laid before Parliament. These documents set out the payment schedule and confirm that the net present value of the treaty is £3.4 billion in today’s money, calculated using the standard Green Book methodology that successive Governments have applied to long-term projects. The average annual payment is £101 million—less than a 0.25% of the defence budget and a fraction of the cost of comparable overseas facilities. This is a sound investment in our national security, and the figures have been confirmed by the Government Actuary’s Department. For these reasons, we reject these amendments. Amendment 7, which ties commencement of Sections 2 to 4 of the Act to the discharge of duties under Amendment 47, would introduce unnecessary delay in ratification. The Government have already provided the transparency sought by the noble Lord through the published Explanatory Memorandum and accompanying documents, as well as a significant number of Parliamentary Questions and debates in this Chamber and the other place. We therefore do not accept this amendment. Amendment 50, from the noble Lord, Lord Purvis of Tweed, proposes an ongoing estimates and supply scrutiny process for expenditure under the treaty, including parliamentary approval of future payments and supplementary estimates. The agreement has already undergone scrutiny under the Constitutional Reform and Governance Act 2010, and neither House objected to ratification during the statutory period. The treaty provides robust mechanisms for dispute resolution under Article 14. It is normal practice for payments under treaties to be made under the prerogative power. While the standard annual estimates process still applies, the introduction of additional parliamentary approval requirements is not necessary and would undermine the certainty and stability that this long-term agreement provides. As I have said on many occasions, the US covers the running costs of the base on Diego Garcia, which are significant, but any expenditure met by this Government will be published in our annual departmental accounts.