House of Commons Foreign Affairs Committee Piracy off the coast of Somalia Tenth Report of Session 2010–12 Ordered by the House of Commons to be printed 20 December 2011 HC 1318 Published on 5 January 2012 by authority of the House of Commons London: The Stationery Office Limited £22.00 The Foreign Affairs Committee The Foreign Affairs Committee is appointed by the House of Commons to examine the expenditure, administration, and policy of the Foreign and Commonwealth Office and its associated agencies. Current membership Richard Ottaway (Conservative, Croydon South) (Chair) Rt Hon Bob Ainsworth (Labour, Coventry North East) Mr John Baron (Conservative, Basildon and Billericay) Rt Hon Sir Menzies Campbell (Liberal Democrat, North East Fife) Rt Hon Ann Clwyd (Labour, Cynon Valley) Mike Gapes (Labour, Ilford South) Andrew Rosindell (Conservative, Romford) Mr Frank Roy (Labour, Motherwell and Wishaw) Rt Hon Sir John Stanley (Conservative, Tonbridge and Malling) Rory Stewart (Conservative, Penrith and The Border) Mr Dave Watts (Labour, St Helens North) The following Member was also a member of the Committee during the parliament: Emma Reynolds (Labour, Wolverhampton North East) Powers The Committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the Internet via www.parliament.uk. Publication The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including news items) are on the internet at www.parliament.uk/facom. A list of Reports of the Committee in the present Parliament is at the front of this volume. The Reports of the Committee, the formal minutes relating to that report, oral evidence taken and some or all written evidence are available in a printed volume. Additional written evidence may be published on the internet only. Committee staff The current staff of the Committee are Mr Kenneth Fox (Clerk), Mr Eliot Barrass (Second Clerk), Dr Brigid Fowler (Committee Specialist), Ms Zoe Oliver-Watts (Committee Specialist), Mr Richard Dawson (Senior Committee Assistant), Jacqueline Cooksey (Committee Assistant), Mrs Catherine Close (Committee Assistant), Tabish Shah (ESRC intern) and Mr Alex Paterson (Media Officer). Contacts All correspondence should be addressed to the Clerk of the Foreign Affairs Committee, House of Commons, London SW1A 0AA. The telephone number for general enquiries is 020 7219 6394; the Committee’s email address is [email protected] Piracy off the coast of Somalia 1 Contents Report Page Summary 3 Conclusions and recommendations 5 1 Introduction 11 2 Somali piracy 13 Who are the pirates and how do they operate? 13 Violence 15 Impact of piracy off the coast of Somalia 15 Impact on the UK 17 3 The British and international response 19 Response from industry: self defence 19 Best Management Practices 19 Vessel protection detachments 20 Private armed security guards 21 Naval response: policing the Indian Ocean 28 Co-ordination 29 Effectiveness of naval response 30 UK commitment 34 International co-ordination 40 The UK’s comprehensive response: cross-departmental co-ordination 42 Bringing pirates to justice 43 Practical difficulties 44 Jurisdiction 45 Transfer agreements 49 Prosecution in the UK 53 Ransoms 55 Financial tracking 58 Engagement with industry on ransoms 59 4 Somalia: a solution on land 60 The origins of piracy: breakdown in Somalia 60 International response to the crisis 62 Political engagement 62 Security 63 Development co-operation and humanitarian aid 63 Counter-piracy projects 65 UK response 65 Criticism of the approach in Somalia 66 5 FCO support for victims and families 68 Paul and Rachel Chandler 68 2 Piracy off the coast of Somalia 6 Conclusion 71 Formal Minutes 73 Witnesses 75 List of written evidence 75 Piracy off the coast of Somalia 3 Summary Over the last four years, Somali piracy has grown into a major problem for the international community, representing a threat to vital trading routes and to national and international security. As a state whose strengths and vulnerabilities are distinctly maritime, the UK should play a leading role in the international response to piracy. Despite nine UN Security Council resolutions and three multinational naval operations, the counter-piracy policy has had limited impact. The number of attempted attacks, the cost to the industry and the cost of the ransoms have all increased significantly since 2007. The shipping industry has largely focused on non-lethal defence measures, with some success. However, in the face of a continuing threat from pirates, over the last 12 months there has been a perceptible shift toward using more robust defence measures. We heard compelling evidence in support of using private armed guards, and welcome the Prime Minister’s recent announcement that they will be allowed on UK shipping. The guidance published by the Government offers practical advice, but does not provide clear and full guidance on the legal use of force. NATO, the EU and the Combined Maritime Task Force have all established naval operations to counter piracy. Alongside self-defence measures on shipping, these have contributed to a significant decrease in the ratio of successful hijackings to attempts, but have so far been unable to contain the growth in the overall number of attacks and the area in which pirates can operate. There have recently been welcome signs that naval forces are taking more robust action. However, the risk to pirates of serious consequences is still too low to outweigh the lucrative rewards from piracy. The UK has contributed naval assets to all three of the naval operations at different times, but the FCO Minister could not offer a guarantee that this commitment would not be cut in future. It is difficult to see how the UK could continue to play a “leading role” in the international response without a visible commitment of at least one British naval vessel to one of these operations at all times. Even when pirates are detained by naval forces, it has been estimated that around 90% are released without charge. 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. We accept that there are difficulties inherent in bringing pirates back to the UK for prosecution, and transferring suspects to be prosecuted in local courts should remain the preferred option. However, there is no legal reason preventing the UK from asserting jurisdiction over suspected pirates, if no other state is willing to do so. Over the last four years, average ransoms have risen from $600,000 to $4.7 million per vessel and ransoms paid in 2011 have totalled an alarming $135m, which should be a matter of deep concern to the British Government and to the entire international maritime community. The Government has been right to act at an international level to ensure that the payment of ransoms remains legal in order to ensure the safety of the crew. However, the Government has been disappointingly slow to track financial flows from piracy. We are surprised by the continuing lack of information available about those funding and 4 Piracy off the coast of Somalia profiting from piracy, and welcome the Government’s new initiative for a centre based in the Seychelles to focus on pirate financiers. The UK has channelled much of its counter-piracy work through international organisations, which is commendable and has achieved good results in the Gulf of Aden. It does not appear, however, that international efforts have been as decisive, timely or effective in curbing Somali piracy in the Indian Ocean. The Government’s overall approach to tackling the problem of Somali piracy through a number of different departments is correct but lacks clear leadership and the Government should provide a statement clarifying which department has the overall lead on countering piracy. It has become a truism that the long-term solution to piracy lies on land in Somalia. In addition to supporting the work of the Transitional Federal Government to establish order, the Government should step up its work with grassroots organisations and communities in Somalia to discourage piracy and to develop alternative means of employment. Paul and Rachel Chandler, who were hijacked and held hostage by Somali pirates in 2009– 10, have made a number of criticisms of the FCO’s handling of their case, particularly about the level of support provided to their family. The FCO should review its communication and other procedures to provide support to family members of British hostages abroad in the light of these criticisms. Piracy off the coast of Somalia 5 Conclusions and recommendations Impact of piracy off the coast of Somali 1. Piracy off the coast of Somalia has escalated over the last four years and is a major concern for the UK. The threat is not primarily to UK ships as very few have been captured. Rather, the threat is to the UK’s economy and security. Piracy affects the UK’s banking, insurance and shipping industries, and threatens the large volume of goods which are transported to the UK by sea. In light of these concerns, and as a state whose strengths and vulnerabilities are distinctly maritime, the UK should play a leading role in the international response to piracy. (Paragraph 20) Response from industry: self defence 2. We commend the maritime industry’s work on Best Management Practices and note their success in reducing ships’ vulnerability to attack. (Paragraph 24) 3. We conclude that the Government should engage with the shipping industry to explore options for the industry to pay for vessel protection detachments of British naval or military personnel on board commercial shipping.