INTRODUCTION

Madam Speaker,

When I first rose to speak in an Appropriation debate in 1999, Gibraltar was a different country in almost every respect.

That address came within a few weeks of my first election to the then House of Assembly.

Today, seven general elections later, I rise to contribute to my twenty-eighth budget.

Twenty-eight budgets provide a rare opportunity not merely to judge where Gibraltar stands today, but to measure how far we have travelled together.

Thirteen of those have been in Opposition.

And fifteen in Government.

The Office of the Deputy Chief Minister is found at Head 16 of the Estimates of Revenue and Expenditure before this House.

This Head also covers the Gibraltar National Archives, Gibraltar House in London and Gibraltar House in Brussels.

Their combined expenditure approved by this Parliament last year was of £2,383,000.

The Forecast Outturn shows that £2,184,000 was actually spent.

That means an underspend of £199,000.

GENERAL COMMENTS: PROGRESS

Madam Speaker,

Over the nearly three decades that I have served in this House, Gibraltar has undergone a profound transformation.

Not just in relation to the economy, but across the board.

Some of that change has been driven from within Gibraltar.

Some by wider global events beyond our control.

For centuries Gibraltar has adapted to successive waves of economic, political and technological change.

We adapted to globalisation;

the internet;

the smartphone revolution; and

to social media.

More recently, to the rise of fintech and digital assets.

Marking a shift to decentralised finance and digital payments.

And now we stand at the beginning of the age of Artificial Intelligence;

perhaps the greatest technological transformation of them all.

This will further impact work, creativity and decision-making everywhere.

Many regard AI as the next major stage in technological and economic transformation.

The lesson from every one of those revolutions is the same.

Those who adapt prosper.

Those who stand still fall behind.

GENERAL: SERIOUS GLOBAL SITUATION

Madam Speaker,

As we continue to transition through all these different phases of progress, Gibraltar has never been hampered by our geographical dimensions or by the numbers of  our population.

Indeed, our size remains one of our greatest assets.

Our people too.

That is a constant throughout our history.

But such constants too are often cloaked in change.

And this means that the contributions from Honourable Members during the course of this debate, will be very different to what this House heard back in 1999.

Because we live in a fundamentally different world.

And not only in terms of technology.

We now inhabit a world where traditions are questioned,

and where long-held assumptions no longer hold.

The international order which followed the Second World War is on its last legs.

And Gibraltar cannot afford to be a prisoner of the past.

Nostalgia is not a strategy.

It cannot become a substitute for policy.

We need to adapt to the present.

Where the close relationship between international trade and global economies  means that events many thousands of miles away will impact here as well.

For Gibraltar is not isolated from world events.

There is war in Europe.

There is conflict in the Middle East.

And who knows what else the future has in store.

Against such uncertainty, Gibraltar continues to stand strong as a symbol of stability and security.

Throughout our history Gibraltar has never hesitated to play its part, often contributing far beyond what our size might suggest.

But the global climate today means that Europe must now prepare for two interconnected challenges.

The first military.

The second economic.

And both are inseparably linked.

The point is that all this has now become very real.

We cannot look the other way and pretend it is not happening.

Global military expenditure reached record levels in 2025,

driven by growing instability and strategic competition.

The countries of Europe are rapidly increasing their defence capabilities.

European military spending rose 14% in 2025.

It has more than doubled since 2014.

Nowhere is this trend seen clearer than in Germany.

Berlin is now leading the charge with billions allocated to defence procurement.

The Nordic countries and the Baltic states have introduced varying forms of conscription.

The United Kingdom has increased defence spending.

The Strategic Defence Review last year heralded a move to “war-fighting readiness.”

Meanwhile Gibraltar remains a key factor in UK military thinking.

This is reflected in the level of activity at the naval base.

In UK surface warship and nuclear submarine calls.

And the US navy sent its largest Ohio-class nuclear submarine here in May.

The National Security Strategy Paper published by the Cabinet Office in August 2025 is entitled “Security for the British People in a Dangerous World” .

This is for good reason.

Madam Speaker,

Modern conflict is often hidden rather than overt.

A war without declaring war,

where the object becomes to weaken and destabilise an opponent with invisible underhand action.

That approach includes undermining critical national infrastructure.

And targeted, coordinated hacking attacks.

We need to be clear.

In the same way that Gibraltar is not immune to global economic trends, we are not immune to the changing face of warfare either.

The defence of Gibraltar is obviously the constitutional responsibility of the United Kingdom.

It is, nonetheless, an area of policy on which the elected representatives of the people of Gibraltar are perfectly entitled to have a view.

And in this State of the Nation debate, defence issues cannot be the elephant in the room.

The impact of military decision-making and the deteriorating international climate is a question upon which, in my view, this House has every right to ponder.

Ignoring reality has never made reality disappear.

UK-EU GIBRALTAR TREATY

Madam Speaker,

It is against this wider geopolitical backdrop that the Gibraltar treaty must be understood.

Gibraltar was the last remaining piece of the Brexit jigsaw.

And those international events have conspired to push the UK and the EU closer together.

In many ways, it made sense to settle Gibraltar before the focus of attention moved elsewhere.

Honourable Members will know that political agreement was announced in June 2025.

The draft text was sent for legal and technical review in December.

It was approved by the Gibraltar Cabinet in January 2026.

The full text was published on 26 February.

And it was approved on a Motion by this House in March.

The Committee of Permanent Representatives of the Member States of the EU gave the green light to the text on 1 April.

And the formal approval of the Member States came last week on 1 July.

The next steps require the consent of the UK Parliament and of the European Parliament.

Madam Speaker,

there is no doubt in my mind that this treaty represents one of the most significant diplomatic achievements in Gibraltar’s modern history.

It is so both in relation to the process and the content.

I will deal with the former first.

The Agreement was negotiated and concluded with the elected Government of Gibraltar present at every level.

That meant a seat at the top table for Gibraltar,

together with the Foreign Ministers of the UK and Spain, as well as with the European Commissioner responsible.

This symbolism was heightened further still with the first official bilateral meeting between a Chief Minister of Gibraltar and a Foreign Minister of Spain at the Spanish Foreign Ministry.

That public face to face bilateral meeting of Wednesday 22 April will go down in the history books too.

Gibraltar’s leaders have interacted with Spanish Foreign Ministers in the past, going back to the days of Marcelino Oreja and Sir Joshua Hassan.

These were seen as informal or unofficial encounters sometimes conducted in private and with a UK presence.

Private because Spain refused to formally recognise Gibraltar or its Government.

In many ways, the April meeting in Madrid was without precedent.

It came about as the culmination of a process which had commenced some ten years before.

It reflected the variable geometry which characterised the treaty negotiations throughout – one where different parties met in different formats in different places.

And it happened in the formal setting of the Spanish Foreign Ministry, in full transparency and under the media spotlight.

So in any discussion about the text and the substance of the treaty, this House must never forget the process which preceded it nor the legacy which it has now bequeathed.

As a historian, I have always believed in the influence of the personal factor in shaping historical events.

And it is clear to me that this story is about much more than high politics.

It has thrived on personality and personal contacts too.

Having lived those negotiations since 2016,

I have no doubt that personal relationships often became the backchannel through which misunderstandings were avoided, positions clarified and difficult impasses broken.

One day, the full story of these negotiations will be told.

Here I want to pay tribute to the time invested by my Honourable Friend the Chief Minister to the development of those personal connections over a very lengthy period of time.

Because it was precisely that network which often cleared the roadblocks in the way of the negotiations.

RIDDLED WITH PARADOXES

Madam Speaker,

I also wish to dwell briefly on another theme from a broader perspective.

Again, this is best achieved by stepping back from the detail and viewing that broader picture.

What becomes immediately apparent is that the treaty outcome is full of paradoxes.

In a sense, that is nothing new.

I say this because our position inside the EU was itself riddled with contradictions in the same way.

But let us consider a few of these.

First, Gibraltar will end up with a closer practical relationship with the EU now outside it, than we did when we were members.

So exiting the European Union has moved Gibraltar closer to the European Union.

Second, Gibraltar will develop a new relationship with Europe centred on goods, customs and Schengen which were all areas we were excluded from during our period of membership.

Third, border fluidity will be greater outside the EU than it was when we were part of the EU.

Fourth, Gibraltar will now experience a deeper interaction with EU systems while at the same time remaining rooted in British sovereignty.

And Gibraltar will remain the living example that close European cooperation and that British sovereignty are not mutually exclusive.

I have no doubt that students of Brexit in the future will find our journey a fascinating case study.

Politics rarely produces perfect outcomes.

Sometimes it produces unexpected ones.

BORDER – NO IMPACT ON SOVEREIGNTY

Madam Speaker,

I move on now from those general thoughts to dwell upon the impact of the new arrangements in one specific area.

This House already debated the treaty text in March and I do not propose to rehearse that all over again.

Nevertheless, the Government understands some people may remain confused or concerned by the border new arrangements.

So I too want to provide a few words of reassurance in this House.

The first point to be made is that the border remains exactly where it was.

This is the same line which for hundreds of years has separated British sovereignty from Spanish sovereignty.

That line was patrolled by British sentries, later delineated by British sentry boxes and later still by a British fence.

It is significant to note that for most of the existence of British Gibraltar, the limits of British sovereignty were not signposted by a fence.

That same line is still where Spain ends and where Gibraltar starts.

That has not changed and will not change.

Gibraltar remains British up to that frontier line, exactly as before.

Our sovereignty does not travel.

It stays where it has always been.

What will be put in place are practical arrangements in relation to immigration and customs.

So the location at which Schengen entry and exit checks are carried out will move from the land frontier to the new facility adjacent to the air terminal.

As I have said before, Schengen is a practical tool and not a political flag.

A tool which will facilitate the creation of a common travel area between Gibraltar and the Schengen zone of the European Union.

The new arrangements will also facilitate the creation of a customs union between the EU Customs Union and Gibraltar in respect of goods.

The consequence of all this, as we know, shall be the fluid movement of persons and goods between Gibraltar and Spain, and with the wider European Union.

BORDER – MORE SECURE THAN EVER

Madam Speaker,

the removal of those controls, and the physical infrastructure associated with them, will not adversely affect the security of  Gibraltar.

Instead Gibraltar will become more secure than ever.

The Government has already begun implementing security upgrades in the frontier area.

That means enhanced surveillance systems, new patrol capabilities, strengthened perimeter infrastructure and a joint operating base.

New security fences will channel persons and vehicles through the only two access points into Gibraltar.

This access remains through the tunnel or across the runway.

New technology, upgraded infrastructure and enhanced surveillance demonstrate the Government’s commitment to a stronger security posture.

Gibraltar will be safer and better protected when the new border arrangements come into effect shortly.

TREATY RATIFICATION

Madam Speaker, provisional application will follow signature in Brussels next week.

The signatories are the United Kingdom and the European Union.

But it is important to recall that the process of ratification was kicked off here when this Parliament gave the go ahead to Westminster.

The UK process will come under the UK Constitutional Reform and Governance Act 2010.

This will provide 21 sitting days for scrutiny.

In this context, the House will know that there will be a debate in Westminster Hall tomorrow.

On the EU side, the European Council has already deemed that the Gibraltar Agreement covers EU competences only.

The effect of that decision is important.

It signifies that the treaty will only require the consent of the European Parliament, as opposed to some forty national and regional ones.

So in the event, the European Parliament will be asked to express its view through a simple “yes” or “no” vote.

However, recent EU treaty experience with Mercosur demonstrates that ratification processes cannot be taken for granted either.

Having said that, the consent of the EU Parliament is part of the action required on the EU side.

The responsibility now rests with them.

But the Government, working together with the UK, is already monitoring the situation closely.

TREATY IMPLEMENTATION

Madam Speaker,

I now want to say a few words about treaty implementation.

Honourable Members are well aware that workstreams around the treaty have progressed in phases.

There are a number of such phases.

Negotiation;

political agreement;

legal scrub;

translation;

signature;

provisional application;

ratification;

and finally implementation.

The truth is that each of those phases comes with its own unique set of challenges.

The final step in this list is the actual implementation itself.

This has been coordinated through a Treaty Implementation Group made up of officials from different departments and agencies.

The Group has been modelled on the Brexit Strategic Group which brought together the different workstreams in relation to a non-negotiated outcome.

The meetings of the Group have been chaired by the Chief Minister or by me in his absence.

It has had oversight of all relevant work.

This has covered technical, legal and administrative areas.

Technical matters were led by the Chief Technical Officer;

legal matters by the Attorney General, working with Nadia Sisarello Parody and the team at the Gibraltar Law Offices;

and administrative matters by the Chief Secretary, the Director of Immigration and Home Affairs and other senior officials.

Madam Speaker,

Week after week, the transformation of the air terminal has been remarkable to witness.

The removal of frontier infrastructure, the volume of legislation and the administrative work across Government have together demonstrated the scale of treaty implementation.

Officials across Government have worked tirelessly to deliver the treaty, and I thank them all for their outstanding contributions.

EXTERNAL ACTION

Madam Speaker,

I move on now to report on my responsibilities as Minister for External Action.

This political and diplomatic activity of the Government is designed to raise the profile of Gibraltar and further the interests of its people.

So the purpose is straightforward.

And it will surprise nobody to learn that most of this work is largely below the radar for reasons which I am sure Honourable Members will understand.

However, it is known that our activity is centred on London, Madrid, Brussels, Washington and New York.

It covers the workstreams with the European Union, the United Nations, the United Kingdom Overseas Territories Association and the Commonwealth.

I should add that Madrid has always been taken forward by the Office of the Chief Minister together with the Press Office.

The main effort over the last twelve months has obviously focussed on taking the UK-EU treaty over the line.

The conclusion of the treaty will now free up time and resources which can be invested in developing other external workstreams further.

Madam Speaker,

Gibraltar is not responsible for external relations under the Constitution.

The fact remains though, that both the Chief Minister and I devote a considerable portion of our time precisely to this subject.

Indeed, the treaty negotiations have demonstrated just how much the elected representatives of Gibraltar have been involved in the development of our own foreign policy.

The concept of “nothing about you, without you” promoted by the UK Labour Government is itself a recognition of this reality.

A number of territories enjoy specific letters of entrustment from London which permits them to conduct external relations.

Bermuda has a long-standing “general entrustment” allowing it to conduct external relations on its behalf delegated on a case by case basis, including for example, negotiating its own associate membership status in regional bodies like CARICOM.

Jersey has a dedicated Minister for External Relations who manages its international affairs, diplomacy and global trade.

Their foreign policy is run through its Ministry of External Relations together with the island’s Chief Minister.

And in Scotland there is a Cabinet Secretary for the Constitution, External Affairs and Culture.

The treaty process has demonstrated how far Gibraltar’s constitutional arrangements have evolved in practice from the letter of the Constitution.

So Madam Speaker,

in the months and years ahead, Gibraltar must cement the evolution of its constitutional framework.

It is increasingly clear that this is one area where carefully crafted constitutional language should reflect the reality of Gibraltar’s modern international role.

I will now report to the House on some of the workstreams which have been developed outside Gibraltar.

LOBBYING: UNITED NATIONS

Madam Speaker,

The Government remains fully committed to continue the Gibraltar lobby at the United Nations.

Indeed, there is now scope to increase the level of engagement in New York after our relationship with the European Union has been settled.

My colleague Sir Joe Bossano participated in the annual seminar organised by the Committee of 24 in Managua, Nicaragua in May.

And in June, the Chief Minister asserted the right of the people of Gibraltar to self-determination before the Committee of 24.

After accompanying the Chief Minister to New York, I remained there for further meetings.

It is precisely in those meetings behind the scenes where we hope to be able to expand the activity of the Government.

The United Kingdom has made it clear that it will support the removal of Gibraltar, and other UK Overseas Territories who wish it, from the United Nations list of Non-Self-Governing Territories.

Gibraltar too has long expressed the desire to be so removed.

The people of Gibraltar have the same right to a democratic decolonisation as all the other territories which have come before.

The Government will continue to raise these issues with the Fourth Committee of the United Nations in October.

This context, in my view, is a further reason for a discussion on the constitutional arrangements between Gibraltar and the United Kingdom.

The balance of UK-Gibraltar responsibilities has a direct read-across in New York.

Separately, I also want to take the opportunity to remind the House that the Gibraltar National Archives will be holding an exhibition after the summer on the theme “Gibraltar at the United Nations 1946-2026”.

LOBBYING: UNITED STATES

Moving on Madam Speaker,

the Government has continued its political engagement in the United States of America.

This commenced in 2014 when the policy decision was taken that the Gibraltar point of view needed to be directly presented by us to decision-makers in Washington.

For obvious reasons I cannot discuss every aspect of this work in detail.

However, the House will know that the establishment here of a branch of the American Chamber of Commerce AMCHAM was a direct consequence of that activity.

In order to introduce Gibraltar to Members of Congress, a Resolution has been tabled in various US Congresses.

The process is similar to an Early Day Motion.

The signatories are always bipartisan.

The Resolution celebrates the long and historic relationship between Gibraltar and the United States, which dates back to the Barbary Wars of 1801.

The first ever action of the US navy outside their shores took place from Gibraltar.

It is significant to note that some Members of Congress who supported the Resolution have subsequently moved on to high positions in the US administration.

One of them went on to become a Chief of Staff to the President of the United States.

Another a National Security Adviser.

Over many years we have made Gibraltar’s case to senior officials in different US administrations.

This included meeting the then State Department Senior White House Adviser.

On another occasion with officials in the Office of the Vice President.

And with the National Security Council in the White House complex.

So this work enjoys a high reach and has considerable value.

In May I was again in Washington for meetings.

Those meetings paved the way for this week’s Congressional visit to Gibraltar.

The delegation arrived today Tuesday and departs on Thursday.

That visit was framed under the Mutual Educational and Cultural Exchange Act, MECEA, with the United Kingdom.

These visits are invaluable to provide a deeper understanding of what Gibraltar is all about.

There have also been a number of CODEL visits too.

In August 2023, a nine-strong bi-partisan delegation from the House Appropriation Committee on Defence were able to witness our strategic location at first hand.

It is worth noting that they flew directly into Gibraltar from Joint Andrews Air Force Base and then went on to Germany from here.

This work is set to continue.

In the current global climate, it makes even more sense to remind others of the value of British Gibraltar and to put our message across to them directly.

There is no better way to understand Gibraltar than to visit Gibraltar.

I want to thank our Representative in the United States David Liston who has been a pillar of support for all the work we do there.

And I must acknowledge, in this context, his work to re-energise the Gibraltar-American Council.

WASHINGTON INTERNSHIPS

Madam Speaker,

I am also delighted that the Government intends to resume the internship programme in Washington.

I must thank my Honourable Friend and colleague Professor John Cortes who has secured the funding for the Department of Education.

Honourable Members will recall that the programme was paused after the COVID pandemic.

Up to that point, over 100 young people from Gibraltar were able to experience life in Washington for three months.

This came through placements with businesses, charities, NGOs or congressional offices.

The objective is for participants to be aligned with areas of strategic interest to Gibraltar.

All those who have taken part were clear as to its value.

And the Government is itself convinced of the importance of this programme.

I have no doubt that once again this will prove a very useful experience for those who attend.

THE COMMONWEALTH

Madam Speaker,

The Government intends to continue its engagement with the organs and institutions of the Commonwealth.

This follows a conscious policy decision to move in that direction after our departure from the European Union.

That work continued over the last financial year.

It is important to note that National Day 2025 was the first time that a congratulatory video message to the people of Gibraltar was delivered by a Secretary General of the Commonwealth.

Gibraltar has been represented at events hosted by the High Commissioners of India, New Zealand and Australia, and has maintained contact with Cyprus, Malta and other Commonwealth partners. 

I would like to place on record my personal thanks to His Excellency the former High Commissioner of India, Vikram Doraiswami.

He has moved on from London as India’s new Ambassador to China.

During his time in the UK, he personally built up a warm relationship with Gibraltar — and with our Hindu community in particular.

We will continue this work going forward.

Gibraltar has maintained an active presence across the Commonwealth during the year.

This has come about through ministerial meetings, parliamentary engagement, trade initiatives and participation in Commonwealth institutions.

We had a presence at the Commonwealth flag-raising ceremony;

the traditional Commonwealth Day service at Westminster Abbey;

the Commonwealth Day Banquet;

meetings of the Commonwealth Foundation;

the Global Advisory Council;

the Commonwealth Investment Network; and

the Commonwealth Trade and Investment Summit.

The Government would like to thank the Commonwealth Enterprise and Investment Council (CWEIC), and in particular its Country Director Jared Peralta, for its assistance in connecting Gibraltar to the wider Commonwealth.

On that note, it was a pleasure to welcome CWEIC Deputy Chairman Lord Swire to Gibraltar in June.

And I was particularly delighted to see that former Governor Vice Admiral Sir David Steel was appointed as the new Chair of CWEIC Gibraltar.

The Commonwealth is not merely a historical association; it is a living network of markets, ideas, talent and opportunity.

This year the Commonwealth Heads of Government meeting, known as CHOGM, will take place in Antigua and Barbuda in November.

I had the pleasure to attend events around the last such meeting in Samoa at the end of 2024.

This was a very useful framework in which to project the many positive faces which Gibraltar has to offer.

Alongside CHOGM, Gibraltar expects to participate in the associated Business, Youth, Women’s and Citizen’s Forums.

Last month, this Parliament played host to the British Islands and Mediterranean Region of the Commonwealth Parliamentary Association.

It provided an opportunity for our MPs, from both sides of the House, to interact with our peers from other parts of the Commonwealth.

The Gibraltar delegation comprised my colleague the Honourable Minister Bruzon and I from the Government benches, well as the Honourable Mr Clinton and Mr Honourable Mr Sacarello from the Opposition.

I want to thank Madam Speaker, the Clerk and the staff of Parliament for the exemplary and faultless organisation of this event.

Members also represented Gibraltar at the 68th Commonwealth Parliamentary Conference in Barbados and at other CPA organised events.

And I want to pause here to congratulate the Honourable Joelle Ladislaus on her recent appointment as Vice Chair of the CPA Overseas Territories Women Parliamentarians Network.

This summer, Team Gibraltar will again fly the flag at the Commonwealth Games which will open in Glasgow on 23 July.

The event will run until 2 August and for many of our competitors it will represent the pinnacle of their participation in a multi-sport competition of this kind.

COMMONWEALTH: YOUNG PEOPLE

Madam Speaker,

the policy of the Government remains to deepen the link between Gibraltar and the Commonwealth.

The role of young people in taking this forward is particularly important.

That is why we will continue to support the continued participation of our young people at Commonwealth events.

In April, Westside School student Aditya Dhanwani represented Gibraltar at the Commonwealth Youth Development Summit which took place in the University of Oxford.

Later this month, Gianna Stanley and Puneet Sabhnani will participate in the Commonwealth Youth Parliament.

This will be hosted by the Parliament of New South Wales, in Sydney, Australia.

And in November, two more young people will go to the Commonwealth Youth Forum in Antigua and Barbuda.

The Government will also continue to support the participation of our young people in the UKOTA Youth Summit and at the UK Youth Parliament.

Here I want to congratulate Isabella Azzopardi for her impressive performance in the House of Commons in November last year.

GIBRALTAR HOUSE - BRUSSELS

Madam Speaker,

I will now move on to report on Gibraltar House in Brussels.

And will outline the Government’s priorites there as we head into the next phase of Gibraltar’s relationship with the EU.

BRUSSELS - WHY THE OFFICE?

But before I do so, Madam Speaker, let me address a question that is sometimes asked:

What does Gibraltar House in Brussels actually do?

Or, put differently, what value does this office bring?

The answer is straightforward.

The office exists to promote and defend Gibraltar’s interests at an EU level.

In that regard, it performs a role no different in principle from that carried out by the UK Mission to the EU.

Or indeed by the representations maintained in Brussels by the EU Member States themselves or by third countries.

Many small countries have an office in Brussels.

Independent states like Andorra, San Marino or Monaco;

British Crown Dependencies like the Channel Islands or the Isle of Man;

and Bermuda which like us is a UK Overseas Territory.

This presence is all the more vital for any government with a treaty relationship with the EU.

We recognised that reality early on.

Indeed, almost 12 years ago, in 2014, this government took the decision to expand Gibraltar’s office in Brussels.

This led to the acquisition of the building at its current location in a very central square.

But the world was a very different place back then.

We were happily in the EU.

Even though we had our issues with them.

And our objective then was to expand our visibility and influence at the heart of European decision-making.

At the same time, we had to confront the hostile and deeply damaging narrative advanced by then Spanish Foreign Minister Margallo.

But Margallo came and went.

And the landscape in Brussels changed completely when the UK voted to leave the EU in 2016.

From that moment onwards, the office necessarily assumed a more focused and strategic role.

This centred almost exclusively on supporting Gibraltar through the process of leaving the EU, and subsequently through negotiations on our future relationship with it.

And throughout that period Gibraltar House proved indispensable.

It supported Ministers and government officials.

It developed direct and productive relationships with the EU institutions and the diplomatic community in Brussels.

It built expertise across the many policy areas touched by the negotiations.

And, at a critical juncture of our history with the EU, it strengthened Gibraltar’s reputation and standing in Brussels.

BRUSSELS - A NEW PHASE

Madam Speaker,

the government has adopted a new plan to position Gibraltar House for this next chapter in Gibraltar’s relationship with Europe.

First a change of name.

In recognition of that new role, and of Gibraltar’s status outside of the EU, the government has decided that the office will now formally be known as Gibraltar’s Mission to the European Union.

This simply mirrors the change made by the United Kingdom itself.

The UK Representation to the EU has become the UK Mission to the EU.

But this is more than a new title.

Which brings me to the second point, that this reflects a new mandate, new priorities and a new framework for engagement.

Work will continue to centre on two principal strands.

Monitoring and analysis, on the one hand.

Engagement and outreach, on the other.

Given that the treaty has profound implications for both areas,

I will look at each of them in turn.

BRUSSELS - MONITORING AND ANALYSIS

The importance of monitoring developments within the EU will now increase significantly.

For the first time, Gibraltar will have a deep and structured relationship with significant areas of the EU acquis.

This is particularly so in relation to the circulation of persons and the movement of goods.

In addition, we have taken on obligations, at times providing for varying degrees of alignment with EU law in other areas.

This covers the environment and climate change, state aid, aviation, anti-money laundering and data protection.

All this means that developments in EU legislation in these areas will matter enormously to Gibraltar. 

Government departments and agencies will need early visibility of legislative proposals as they emerge.

Gibraltar House will play a central role in monitoring legislative dossiers, and assessing their implications.

In this way, they will ensure that government is equipped with the foresight necessary to prepare for and implement changes.

This function will become one of the most important responsibilities of our Mission to the European Union.

BRUSSELS - ENGAGEMENT AND OUTREACH

Gibraltar will engage differently with EU institutions post-treaty.

The office will be expected to interact with the Commission on agreement-related issues.

This is an important factor which we have considered when planning for its activities in the years to come.

The agreement’s governance structures will set up a political Cooperation Council.

Three Specialised Committees will sit under its umbrella.

One on the Circulation of Persons,

One on the Economy and Trade

And one on Aviation.

The committees will have a central role in monitoring and reviewing the implementation and proper functioning of the agreement.

They will carry significant responsibilities in reviewing compliance, addressing operational issues and preventing disputes from escalating through formal dispute resolution mechanisms.

The Government anticipates that the Mission will play a coordinating role in Gibraltar’s participation in those new structures.

This will cover work in preparing for committee meetings, participation in meetings and workstreams flowing from committee activities.

But outside of those formal structures, there will also be constant day to day engagement with the European Commission and other EU institutions. 

This, Madam Speaker, will soon become part of the business as usual of Gibraltar House in Brussels.

And, beyond treaty-related matters, Gibraltar will continue engaging with the EU institutions on broader policy issues.

The office has already demonstrated it can do so successfully.

This has included areas like the EU’s greylist, the UK-EU Contact Group of the Committee of the Regions and even the presentation of Llanito at an academic conference in Brussels.

That wider engagement will continue as well.

Indeed, the ambition is to deepen it and to expand it.

So the treaty gives Gibraltar a new platform to engage with the European Union.

This interaction is not as an outsider looking in, but as a partner with whom the EU will have an ongoing and structured relationship.

BRUSSELS - STAFFING ARRANGEMENTS

A new structure for the office has now been approved by the government.

Daniel D’Amato will continue to lead it as Head of Mission.

He will be responsible for delivering this new strategic direction.

He will continue to be supported by Paul Patron, the office’s Policy and Communications Officer, who will now assume the role of Deputy Head of Mission.

The government plans to advertise for or to deploy a third staff member to join the Mission in Brussels.

This follows on from a retirement last year.

It is hoped that this will provide another young professional with the invaluable experience of representing and defending Gibraltar’s interests abroad.

The Government has every confidence that this team of three will successfully lead the Mission into this new phase

BRUSSELS - THE FUTURE

So Gibraltar House in Brussels now stands at the beginning of a new chapter.

The agreement with the EU has breathed new life and direction into the office.

There will undoubtedly be challenges ahead.

But the government is confident that our Mission to the EU is fully equipped to help guide Gibraltar through them.

I want to thank Daniel D’Amato and the team in Brussels for their assistance and support over many years.

GIBRALTAR HOUSE – LONDON

Madam Speaker,

I turn now to London.

The London office has undergone significant transition while maintaining an intensive programme of political engagement.

Jonathan Scott took up the post of UK Representative and Head of Gibraltar House in November 2025.

He succeeded Dominique Searle who gave a decade of distinguished service to Gibraltar.

In the short time he has been in post, I am pleased to say that Jonathan has indeed been our voice, our eyes and our ears in Westminster and Whitehall.

At the same time, Tyrone Duarte was confirmed as Executive Director, Head of Intelligence, Information and Strategic Advice.

On the operational side, a new Junior Political Officer is now in post.

LONDON – TREATY WORK

In London, the past six months have been largely focussed on the Treaty.

Gibraltar House there has delivered an intensive programme of parliamentary engagement.

This has included support for Gibraltar’s continued interaction with the relevant Committees of the Westminster Parliament,

in particular the European Affairs Committee of the House of Lords and the Foreign Affairs Committee of the House of Commons.

I was also supported by both our Brussels and London offices when I updated the UK-EU Committee of the Regions Contact Group in London in November.

LONDON – OVERSEAS TERRITORIES

The London Office has continued to coordinate work with the other UK Overseas Territories.

The main annual set piece event is the meeting of the Joint Ministerial Council also known as the JMC for short.

This is the highest forum of engagement between United Kingdom Ministers and Overseas Territory Ministers.

The 13th JMC took place in London from 24 to 28 November 2025,

under theme “Protect, Grow, Sustain – Together”.

Preliminary work on the Communique was coordinated through my office, and the meeting was attended by my Honourable Friends the Chief Minister and the Minister for the Environment.

The meeting was led by UK Europe and OT Minister Stephen Doughty MP.

It renewed the commitment to defend the sovereignty of the Overseas Territories.

It maintained the pledge to uphold the right to self-determination of its peoples, including the people of Gibraltar.

And it restated the policy of the United Kingdom to support the removal from the United Nations list of Non Self Governing Territories of those who wish it.

The JMC was preceded by a meeting of the UK Overseas Territories Association (UKOTA) Political Council.

I want to recognise here the work of my Honourable Friend Professor Cortes with the other OTs in the environmental area in his role as Chair of that group.

In May, I represented the government at a Pre-Joint Ministerial Council virtual meeting with OT Leaders and Ministers.

The objective was to prepare the agenda for the next JMC which will take place later this year.

The questions of constitutional reform and the interaction between territories and international organisations were among the topics discussed.

LONDON – POLITICAL LANDSCAPE

Madam Speaker,

the House will know that the political spectrum across the United Kingdom has fractured.

This makes it more important than ever that Gibraltar is fully engaged across it.

The London office continues to exchange views on a regular basis with representatives of the main national political parties in the United Kingdom.

Traditionally has included Labour, the Conservatives and the Liberal Democrats.

It now also includes Reform UK.

Our team in London also continue to engage with the regional parties.

That is the SNP in Scotland and Plaid Cymru in Wales, both of which are now the government in their respective nations.

There is also fluid contact with the political parties in Northern Ireland.

LONDON – PARTY CONFERENCES

The political shift in the United Kingdom will impact the policy of the government in relation to the 2026 party conference season this autumn.

The government will maintain its usual programme of engagement at the Labour, Conservative and Liberal Democrat Party conferences, including exhibition stands and receptions.

We will also have a presence at the Reform UK conference for a second year.

I cannot stress enough the importance of explaining the position of Gibraltar to those who may not agree with it.

And this will be better understood in person.

Representation will extend to the SNP, Plaid Cymru and parties in Northern Ireland.

Honourable Members may recall that in 2025, the government invited Gibraltar students studying in the UK to attend party conferences alongside the official delegation.

All applicants were accommodated.

The same opportunity was advertised again for this autumn.

Gibraltar House in London has also facilitated visits by MPs from across the UK political spectrum.

This has included separate groups of Labour, Conservative and Liberal Democrat MPs as well as All-Party Parliamentarians for National Day.

The team in London will monitor closely the ratification process of the Gibraltar treaty as it makes its way through the Houses of Parliament.

That will take place against a complex and evolving international backdrop.

And it is precisely at moments of global uncertainty that engaged, well-positioned representation in Westminster matters most.

Gibraltar House is active, connected and ready to make our case to everyone who needs to hear it.

I want to thank Jonathan Scott and the team in London for their ongoing support.

GIBRALTAR NATIONAL ARCHIVES

Madam Speaker,

I now turn to workstreams within Gibraltar itself.

And will start with a few words on the activities of the Gibraltar National Archives.

The Archives continue to serve as the guardian of Gibraltar’s documentary memory.

They continue to receive a significant number of enquiries from both local and international researchers.

Indeed, the increase in digitised content uploaded by the Archives to their website has resulted in a rise in the number of enquiries received.

A volunteer programme launched in May 2025 attracted fifty expressions of interest and remains ongoing.

In September, an exhibition marking the 40th anniversary of the border opening welcomed nearly 1000 visitors.

This included many school groups and received very positive feedback.

This September there will be another exhibition.

Its theme, as I said earlier, is “Gibraltar at the United Nations 1946 -2026”.

It will mark eighty years since Gibraltar was listed as a Non-Self-Governing Territory.

During the last financial year, the Archives also reached out to young people through presentations in schools.

The community continues to donate historical material to the GNA in the form of documents and photographs, both in paper and in digital format.

The Archivist is very grateful for those contributions which enrich the archival collection and preserve aspects of our shared history for future generations.

It is said that a nation without a memory is a nation without identity.

On behalf of the Government, I want to take this opportunity to thank the Archivist Gerard Wood, the staff at the National Archives and the many volunteers for their valuable contributions.

CIVIL AVIATION

Madam Speaker,

I turn now to Civil Aviation.

Civil Aviation has undergone significant structural reform over the past year and is distinct from Commercial Aviation.

The latter, which includes the new aircraft registry, is an area for which my Honourable Friend and colleague Minister Santos is responsible.

CIVIL AVIATION: CREATION OF AUTHORITY

Following commencement of the Civil Aviation Authority Act 2024, the Director of Civil Aviation Chris Purkiss became the first Director General of the new Authority.

On his advice, the Government selected a Board of Directors to provide Governance functions over the Authority. 

I thank Mr Jose Julio Pisharello, Capt Christine McGee and Mr Lloyd Lemmon for serving as Board Members.

The new Authority has adapted quickly to its responsibilities.

And it continues to oversee domestic aviation safety and security.

CIVIL AVIATION: LEGISLATION

The Director General has published eighteen new Aviation Operating Regulations to support the future aircraft registry and ensure compliance with the Chicago Convention.

Those Operating Regulations provide legal clarity to aircraft operators who may wish to register their aircraft.

The legislation and supporting documentation will become available on the Gibraltar Aircraft Registry webpage which, I am told, is in the final stages of development.

CIVIL AVIATION: AUDITS

Madam Speaker,

the UK Department for Transport required an audit of safety oversight activity, which confirmed existing best practice at the Airport.

And the audited entities benefit from the experience of the UK Civil Aviation Inspectors who exercise the same audit functions at airports in the United Kingdom.

CIVIL AVIATION: TREATY

The treaty has required significant changes to airport infrastructure.

This was in order to permit Schengen and EU customs controls, all of which have been carefully designed to preserve security and compliance.

The Authority has worked closely with the Air Terminal Director to make this happen.

The use of sensible amendments to the Airport Security Programme and the introduction of new security screening equipment, will see the Airport adopt an enhanced security posture moving forward.

In addition to those physical works, four new aviation regulations are being drafted to give effect to the treaty.

These cover aircraft slots, airport charges, ground handling and provisions relating to persons with reduced mobility.

Those will be applied through our Parliament, our constitutional instruments and by our competent authorities.

CIVIL AVIATION: DRONES

Madam Speaker, on another matter,

the number of drone permits issued rose by approximately 30% over those issued in 2024/2025.

Unfortunately, the latter end of 2025 and beginning of 2026 saw a spate of unauthorised drone activity in the vicinity of the airfield.

This impacted on its operations.

Gibraltar Airport has developed a response plan as a consequence of this illegal activity.

That plan has already been tested successfully during real incidents.

It has resulted in the airport being reopened in a quicker timescale on each occasion.

Work continues, in conjunction with the Ministry of Defence, to further mitigate the disruption caused by unauthorised drones.

I want to thank the Director General Chris Purkiss for his leadership during an important transition in the civil aviation world locally.

PARLIAMENT AND THE MOUNT

Madam Speaker,

I want to say a few words about the refurbishment and modernisation of Parliament and the completion of major restoration works at The Mount.

These are both important heritage and public infrastructure projects that continue to demonstrate this Government’s commitment to preserving Gibraltar’s historic identity while investing in its future prosperity.

Over the course of the last financial year, significant progress has been achieved.

These projects are not standard construction works.

They are in part about nation building, civic pride and creating long-term opportunities.

Starting with Parliament.

Substantial progress has been achieved during the last year in the continued refurbishment and enhancement of this important institution.

Progress has advanced significantly, including the creation of new parliamentary offices and supporting facilities designed to improve its operational functionality.

The aim is to better accommodate the needs of Members and staff.

At the same time, particular emphasis has been placed on accessibility.

This Government firmly believes that this building must be accessible to all members of our community.

Significant improvements have therefore been undertaken to ensure that persons with limited mobility are able to access parliamentary facilities in a dignified and practical manner.

Accessibility improvements include a new ramp, lift and accessible facilities for persons with limited mobility.

These works represent an important modernisation of the parliamentary estate while respecting the historic character and significance of the structure itself.

Because Parliament is more than a building.

It is where our democracy finds its voice.

These works will ensure that Parliament is more accessible, functional and fit for future generations.

I am pleased to tell the House that the current works are now approaching completion.

The Government looks forward to seeing the enhanced facilities brought fully into operation during the coming financial year.

I want to make a brief reference here to the Select Committee on Parliamentary Reform.

The Committee has met on nine occasions so far.

Progress has inevitably been affected by refurbishment works and the intense legislative demands which have arisen from the treaty process.

I hope, as its Chair, to be able to continue with Select Committee meetings in the months ahead.

Madam Speaker,

I now turn to The Mount.

Over the course of this year, restoration and refurbishment works at The Mount have progressed substantially.

The Porters Lodge and the Events Hall are now complete.

These works form part of a wider strategy to revitalise one of Gibraltar’s most important historic properties and return it to meaningful use.

The completed facilities now provide an elegant and functional setting.

This is capable of hosting a range of events and activities, including receptions, conferences and weddings.

The Government believes that The Mount can become one of Gibraltar’s flagship heritage destinations.

Accordingly, an expressions of interest is underway on the possible development of a boutique hotel operation on part of the site.

Such an initiative will safeguard the long-term sustainability of the property.

It would also enhance Gibraltar’s tourism by creating a distinctive heritage-based tourism offering.

This represents another example of how historic buildings can be carefully adapted to meet modern economic needs while preserving their cultural significance.

We do not see heritage conservation as an obstacle to progress, but as part of it.

Properly managed heritage projects create jobs, support tourism, strengthen community identity and contribute directly to economic development.

They improve the quality of life of our citizens while preserving the story of who we are.

I want to thank Carl Viagas who has led on these projects for the government.

TENDERS AND PROJECTS

Madam Speaker,

I want to provide a short update in relation to sites which were the subject of an Expression of Interest process.

Submissions in respect of the AHQ Building and Rosia Bay have resulted in the appointment of a preferred bidder.

Internal deliberations are underway in relation to the EOI in respect of The Mount.

And discussions continue with a preferred bidder in relation to the site at South Barrack Road which was formerly occupied by GBC.

The government is grateful to Kevin de los Santos and the management and staff of Land Property Services Ltd for their professional support throughout the year.

CONCLUSION

So Madam Speaker,

Being in Government carries enormous responsibility.

The two Honourable Members on the opposite side of the House who have been here will understand what that means.

Public service is rarely as simple as it appears from the outside.

Every administration assumes office with ambition, promises, and carefully laid out plans.

But governing means responding not only to what was expected, but also to what could never have been predicted.

It is true that Governments are judged on their results.

Yet very often decisions must be taken on the spot in those moments of uncertainty.

Government is also often a balancing act.

A balancing act between competing needs.

Sometimes impacted by demands on resources.

And under the scrutiny of the expectations of thousands of people.

Recent times have reminded us how quickly events can reshape even the best-laid plans.

And how easy it is to forget all this.

We have lived and governed through extraordinary challenges,

from COVID-19 and Brexit to international conflict and inflationary pressure.

Governments around the world have been forced to change direction almost overnight.

Priorities have shifted.

None of this means governments should escape scrutiny or accountability.

Criticism is an essential part of democracy.

But it does mean we should recognise the complexity of the task.

And very often we do not.

The reality of governing is not perfection.

It is perseverance — continuing to serve, adapt, and make decisions in the best interests of our country, even when circumstances change unexpectedly.

And this is central to what this Government has done.

Because in government, success is not simply about planning for the future — it is also about guiding people through the unforeseen.

I am conscious that this is my Honourable Friend’s last budget speech as Chief Minister.

I do not think history will ever fully record the magnitude of the challenges that have confronted him during this journey.

But I hope it will record how the people of Gibraltar responded to them.

Madam Speaker,

Gibraltar enters this new financial year with confidence.

This government has never claimed that the journey has been easy.

Only that it has aways known where Gibraltar needed to end up.

We now operate in a world that is less certain than at any point in recent memory.

Yet our people remain resilient.

Our institutions remain strong.

Our economy remains dynamic.

And our future remains firmly in our own hands.

That confidence has always been Gibraltar’s greatest strength.

Throughout our turbulent past, this strength has carried us through adversity.

It will continue to carry us through whatever may lie ahead.

And so Madam Speaker, in closing I want to thank my personal staff Coral Schembri and Stephen Britto, as well my wider office staff Ayshea de la Cruz and Jay Pitaluga.

I am also grateful to the Clerk and to the Staff of the Parliament for their ongoing guidance and support and to you too Madam Speaker.

Thank you.