Lord Hannan of Kingsclere (Con)

My Lords, I beg leave to move the amendment standing in the name of the noble Lord, Lord Morrow. The financial aspects of this Bill are the easiest for people not involved to understand. It does seem bizarre that at a time when we are borrowing money and scratching around for savings, we are raising taxes here in order to fund tax cuts in Mauritius. I do not want to detain noble Lords, so I will not go over the figures again. We had an expert disquisition from my noble friend Lady Noakes at Second Reading. Even if we were to accept the Government’s figures, we still face an immense imbalance in where the money is going. I come back to the point that we were making just before dinner, about the wrong that everyone accepts was done to the Chagossians and what restitution would look like. The Minister said they had been very badly treated. Well, badly treated or otherwise, their compensation, if we measure it purely in financial terms, comes to a one-off £40 million settlement for good—whereas, even on the figures offered by the Government, we are paying Mauritius £101 million every year for the next 99 years. Who is the wronged party here? How is it that having done this harm to population A by moving them, we then reward the population that is in fact making permanent their exile and deepening their sense of grievance? Never mind whether it is £3.1 billion, £35 billion or somewhere in between, at Second Reading my noble friend Lord Altrincham made the point that this is money being sent out of the country. We can argue about whether there is merit in Governments spending cash here to stimulate growth. I personally am of the camp that says it does not work. It is better to leave that money directed by people who are attached to it; they spend it more wisely and the growth impact is much higher. But I will allow that there is some impact in stimulating the domestic economy, even when a Government spend money badly. There is none at all when you just take a sum of money and send it several thousand miles away, which is what is being proposed here. The amendments from the noble Lord, Lord Morrow, are about impact assessments, particularly on the financial consequences for the United States, as well as for us. I just want to tackle the view that this is a great deal for the US—that, however inconvenient it is for us, we are left with the bill and the US gets to keep the base. Every pound that we send to Mauritius to lease the property that we currently own is a pound that we are not spending on defence. It is a pound taken away from NATO and from the western alliance. That is just the immediate and direct cost of what happens when you take a freehold and then decide to pay for it as a leasehold. There is then, it seems to me, an underexplored indirect cost: how have we now incentivised future Mauritian Governments to monetise this territory? If they can get this sum of money out of us, why not lease other parts of the archipelago to other powers? The Minister has said, of course, that in the treaty they are not allowed to for military purposes. The treaty says they cannot use these things for defence purposes, but I wonder: down the line, if Mauritius was indeed incentivised to make more money and leased an island for supposedly civilian purposes, then very gradually it was turned in a secret way by an unfriendly power into a more direct military installation, is that something realistically that is then going to trigger a military reaction from us? It seems to me that the only way of ensuring that we do not have unfriendly neighbours in the Chagos Archipelago is not to have these islands being leased out in the first place, and the best way of preventing the islands being leased out is to hang on to them ourselves.