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Select Committee on Public Accounts Seventeenth Report


2  Attaining the right balance between UK and Territory funding and responsibilities

7. Governors' constitutional responsibility for internal security requires them to exercise oversight of Territory prison and police services and prepare them for dealing with natural and man-made disasters. Governors depend on funding being provided from the Territory governments in order to discharge these vital functions. Managing this balance has proved a challenge in the past. For example the prison in Anguilla, although built with UK funding, does not meet minimum standards of security and segregation, and there have been three breakouts, and other serious incidents, in the last two years.[16]

8. The Department admitted that there was no easy solution; while it felt that it is right for law and order to remain a Governor responsibility, it ought not to fall to the UK to meet the costs of law enforcement, prison and disaster management agencies in the Territories, especially those which are richer per head than the UK.[17] The onus is on Governors to use their diplomatic influence and their position as head of Territories' Executive Councils to encourage Territory governments to allocate necessary funds to law and order and disaster management. If Territory governments fail to make funds available, Governors have reserve powers to require funding. The Department cautioned that the use of these powers must be balanced against the need to respect democratically elected local governments.[18]

9. The UK also has a responsibility to ensure that Territory police forces are fit for purpose. The Department funds a law and order adviser to Governors and maintains a database of retired British police officers to provide advice and expertise to the Territories. It has only used external inspection by the UK HM Inspectorate of Constabulary on three occasions, though as external inspection is perceived as expensive, Territory governments are often unwilling to provide the necessary funding.[19] The Department is not yet happy with the overall level of policing expertise but was reluctant to use its reserve powers to force Territories to fund inspections for fear it might jeopardise good working relations between the Territory governments and the UK.[20]

10. The Overseas Territories are at risk of natural and man-made disasters. The extent to which the UK could be called on to provide funding for disaster response depends on the wealth of the Territory and its ability to fund any response and recovery for itself. Since the 1995 volcanic eruption in Montserrat, the UK has provided over £250 million in emergency aid, whereas the Cayman Islands met the US$2.5 billion cost of Hurricane Ivan without recourse to UK financial assistance.[21] The standard of disaster management in the Territories is improving, but Territories are at very different stages, with some, such as the Cayman Islands and the British Virgin Islands, having more advanced systems. All Territories now have elements of an overall disaster management strategy; however climate change and global warming has exacerbated the risk in low-lying Territories.[22] DFID funds a disaster management adviser to support disaster management agencies in the Caribbean. It told us that Territories were exercising plans more regularly and are progressively incorporating disaster risk management into their own planning, though it conceded that the rate of improvement needs to accelerate to respond fully to the increased risk.[23]

11. A lack of capacity in-Territory is also a challenge when responding to law and order and disaster risks. Increased cooperation and sharing of resources between Territories has been used to address this, most notably in the recently established legal drafting centre in Anguilla, which will provide other Caribbean Territories with access to legal drafting expertise.[24] The Department maintains an Overseas Territories Programme Fund of approximately £5 million, which aims to promote sustainable development and build capacity in the Territories, across all risk areas. So far, the funds have been spread across too many small projects to be fully effective.[25] The high number of projects has also made it difficult for Governors' offices to manage and to monitor them. From 2007/08, the Department intends to move to fewer, larger, and more sustainable projects which have the potential to generate greater impact.[26]

12. Wealthier Territories such as Bermuda and the British Virgin Islands still receive some UK resources, despite their GDP per head outstripping that of the UK. The British Virgin Islands receives £600,000 of free services each year to regulate its civil aviation. Aviation regulation has been successful across the Territories due to ongoing support from the UK Department for Transport and Air Safety Support International, although the Department agrees that, where the Territories can afford it, they should fund themselves.[27]



16   C&AG's Report, Appendix 3.1, p 43 Back

17   Q 12 Back

18   Q 147 Back

19   Qq 138-143 Back

20   Qq 142-147 Back

21   Q 153; C&AG's Report, Figure 11, p 27; Appendix 3.4, p 47 Back

22   Qq 32, 33 Back

23   Q 34 Back

24   Q 153 Back

25   Q 112 Back

26   Q 113 Back

27   Q 152 Back


 
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Prepared 29 April 2008