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(Link
to Written evidence of Common Foreign Affairs Committee -
July 2002)
The Gibraltar
Government notes the response of the Foreign Office to the
House of Commons Foreign Affairs Committee Report which was
very favorable to Gibraltar. In overall effect, the Foreign
Office appears to reject the fundamental conclusions of the
Report, but the fact is that those conclusions remain, and
they are the judgement of a cross party committee of MPs with
a Labour majority.
The Response
is factually inaccurate in several material respects. For
example, in relation to the pensions issue the Response says
that the Gibraltar Government "has not taken up our offers
of technical assistance". This is not correct. All offers
of technical assistance have been taken up, involving a multitude
of technical meetings and exchange of correspondence. The
bottom line was always the same. HMG insisted that Community
Care be reformed in a way that would result in a substantial
number of current and future recipients of HCA losing out
substantially by receiving less money. The Gibraltar Government
has throughout refused to agree to this for two reasons. Firstly,
the Government would be unwilling to reduce payments to recipients
of HCA, and, secondly, Government is, in any case, unable
to do so. Community Care is not a Government entity, it is
a private charitable trust. All suggestions made, for consideration
by the Trustees, that would not result in anyone being worse
off were rejected by HMG.
The Gibraltar
Government has not indemnified the British Government in respect
of possible Spanish Pensions Liability. The Community Care
Trust was established in 1988. It is the view of the Trustees
of the Community Care Trust, of this and the previous Gibraltar
Government that the Community Care arrangements are defensible
under EU law, if legally challenged. Since Gibraltar wanted
to defend an unreformed Community Care in the absence of reform
acceptable to Gibraltar, in 1998 the Government told the British
Government that, Gibraltar would not look to London for liability
due under a Court Ruling in respect of Community Care Payments
by the Trust and that any such HCA Liability would be funded
by Gibraltar. There is no prospect of HMG or GOG being liable
to non-residents for HCA payments. Any possible liability
would necessarily be for uprated statutory pensions (for which
HMG is responsible) and this is not covered by the terms of
that indemnity. However, even this limited indemnity was withdrawn
early last year when the British Government provided to the
EU Commission answers to questions about HCA which undermined
the defensibility of HCA by Gibraltar in any future court
case. Also it had proved impossible to agree reforms acceptable
to Gibraltar.
The Gibraltar
Government rejects HMG'S failure to distinguish between Community
Care payments and pensions. These two types of payments are
made by different entities, under different entitlement rules,
to a different class of persons and on different terms and
conditions. HCA is a matter for Gibraltar. Any liability to
pay non residents of Gibraltar an uprated pension is a matter
for HMG.
The Gibraltar
Government has been clearly and firmly committed throughout,
and will remain committed, to the principles that Gibraltar
will not pay uprated Spanish pensions and that Community Care
Trust payments should continue on the present basis, without
it being reduced or withdrawn from anybody in Gibraltar.
The Government
takes this opportunity to publish the attached detailed Memorandum
of evidence submitted by the Government to the Foreign Affairs
Committee in relation to the history of, and events relating
to, the pensions and Community Care issues. This shows that
the statement that offers of technical advice from HMG were
turned down is not sustainable.
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