---

Diplomacy

My Lords, like other noble Lords, I begin by warmly congratulating the noble Lord, Lord Hannay, on initiating this interesting debate. He has enormous experience from his previous profession as one of our country’s leading diplomats. I also extend warm congratulations to the noble Lord, Lord Monks, on his maiden speech. He brought to our Chamber his vast experience in matters of organised labour and unions and tactfully applied that experience to the world of diplomacy in a kind and understanding way. I shall start my comments in the limited time available by concentrating on the people, the diplomats. I start by paying tribute to the work of all our diplomats overseas and at home and our locally engaged staff, who number about 10,000 overseas in FCO posts worldwide. A third of UK-based diplomats working overseas are in hardship posts, and this debate comes only a few days before the seventh anniversary of the Istanbul bombing on 15 November 2003 when 11 colleagues lost their lives in the service of our country. As recent events in countries such as Yemen or Iceland have shown, those working on Britain’s behalf continue to do so in the face of terrorist threats as well as of natural disasters. This creates extremely difficult conditions, as noble Lords have been good enough to recognise. The safety of all our staff is paramount, and our spending settlement, which I shall come to in some detail in a moment, will allow us to invest sufficiently in our overseas estate and in the security and safety of the staff. We continue to seek to upgrade our posts to meet modern-day threats, particularly in high security environments. We expect to complete all outstanding high- and medium-risk security projects by the end of this year, and our spending-round settlement, as I shall explain, contains adequate provision to allow us to continue this work over the next few years. I apologise if I am putting excessive emphasis on the threat from terrorism, but it is very serious. The threat arises because terrorists are empowered with new weapons technologies, as well as emanating from other non-state groups and cells. It represents the biggest danger to the safety of our staff today. The number of posts where we assess the terrorist threat to be critical or severe has increase threefold since 2006. The nature of the terrorist threat is constantly changing and indiscriminate, as we saw in the two attacks on our staff in Yemen earlier this year. Fortunately, our security procedures worked in both cases and there were no casualties. However, it is not just Yemen, as although it is the latest place where our staff face a high threat to their personal safety, there are also acute terrorist threats posed in other locations such as Iraq, Afghanistan and Pakistan. Moreover, the threat of violent crime on top of terrorism is also serious and growing. Over recent months, several of our staff and their families have been the victims of armed robberies. Overall, our diplomatic network is operating today with much higher threats to the personal safety of its staff. It is a testament to them and their families’ resilience that staff are ready to live and work with these risks. I wanted to put that on the record right at the beginning of my remarks in closing the debate. I turn now to our objectives, which rightly have been discussed by a number of noble Lords on both sides of the House. The Government understand that to promote and safeguard Britain’s priorities, we must have a firm picture of what we want to achieve in a very fast-changing world. We must properly resource our diplomatic effort to make this vision a reality, and a clear understanding of our national priorities and positioning in today’s global order that goes hand in hand with our internal sense of unity and purpose inside this nation. I have no doubts about that at all. From the outset, this Government have brought a strategic basis to our overseas relations. The National Security Council was established as a centre of decision making on all international and national security issues. It oversaw the development of the National Security Strategy and the Strategic Defence and Security Review which, taken together, cement the position of the Foreign and Commonwealth Office at the centre of delivering the Government’s international priorities. The FCO played a lead role in setting the context for the National Security Strategy through its work on the changing threats and opportunities that the UK faces, and ensuring that the capabilities and structures set out in the Strategic Defence and Security Review were fit for the purposes required. I can tell your Lordships that the FCO will be instrumental in taking forward the strategic defence and security goals of tackling threats at source, bringing all of the UK Government influence to bear in order to achieve our objectives both at home and overseas, and working more closely with our key allies and partners, both old and new. The FCO will give the lead that allows foreign policy to be supported by other government departments. As we have heard in the debate from the noble Baroness, the high-level foreign policy priorities have a lasting and enduring continuity. As she rightly says, they are to safeguard Britain’s security, to build Britain’s prosperity and to provide—which we will do—full and effective consular support to British nationals around the world. Those are the overarching objectives, and within them I want to discuss various policy issues. First, however, I turn to the spending settlement itself and how it fits in with those overarching and broad objectives. After a lot of pessimism in the press and elsewhere about cuts at the Foreign Office and so on, in fact I have to tell noble Lords that the settlement we have secured is an extremely good one. Like everyone else, of course, we have to take our share of the austerity package because of the overriding need to cope with the budget deficit that certain people left behind that we have to clear up. That is our problem and we have to grapple with it. The noble Lord, Lord Anderson, seems to have got the wrong end of the stick on this matter. The net outcome is not a 24 per cent cut but a 10 per cent cut in real-terms reductions spread over four years—2.5 per cent a year. It works out as a flat cash settlement which, given some of the difficulties that have to be faced, is not a dramatic change. It gets better than that: we have secured the restoration of the foreign currency protection mechanism and we will move the BBC’s World Service funding over to the BBC in 18 months’ to two years’ time, which will take 14 per cent off our budget expenditure straightaway.