Below follows Minister Nigel Feetham's speech on the UK-EU Gibraltar Treaty:

Madam Speaker, 

I rise to support the Motion before this House asking the United Kingdom Government to enter  into the UK–EU Treaty in respect of Gibraltar, for and on our behalf of Gibraltar. This debate is  not about re-fighting Brexit. That chapter is written. This debate is about what we do now. About  how we secure Gibraltar’s stability and prosperity in the world as it is, not as it was back then. The  decision we take today will have immediate and tangible consequences for our economy, our  workforce, our businesses, our border with the European Union and our way of life. 

Madam Speaker, if we are honest with ourselves, not entering into this Treaty would not preserve  the status quo as we know it, it would fundamentally destabilise it. That is why, Madam Speaker,  I have taken the deliberate decision to script and read my address to this House today. The issues  before us are too important, and the stakes too high, for anything less than careful and considered  words. It is also one of those moments that require some straight talking. 

Madam Speaker, I have devoted my professional life to helping to build our economy in the  financial sectors, and a significant part of my career to the advancement of knowledge and  education, principally in the field of economic development. Like all my Ministerial colleagues, I  have tried to bring everything I have learned to the service of our people. Equally, I have no doubt  that every Honourable Member in this House has the best interest of Gibraltar at heart. 

To vote against this Motion or call for an abstention in this vote today would be a total abdication  of responsibility. 

Having said that, Madam Speaker, the contributions from Honourable Members opposite (except  for the self-proclaimed heartfelt contribution of the Honourable Mr Bossino) are confusing, if not  entirely contradictory. Yesterday, during the debate, they effectively voted in support of the  Motion through their amendment, and they signalled that they will support it again when the  Honourable Chief Minister calls for a division. Yet in their in all their speeches (except for the  Honourable Mr Bossino), they gave us every reason why, according to them, this is a very bad  Treaty for Gibraltar. It beggars’ belief. They support a Treaty which all (except the Honourable Mr  Bossino) have effectively characterised as very bad. 

Madam Speaker, the Honourable Lady opposite, in her address, made what can only described be  as a revealing admission. I believe I heard her say that “initially she was not going to vote for this 

Agreement”; that she was, in her own words, “forced to consider” it; and that she experienced an  “agonising moment.” Madam Speaker it is evident from the speeches of the Honourable Members  on the opposite side of the House that this was likely not her view alone (except for the  Honourable Mr Bossino who had a very clear view on the issue). 

So, what changed? Because the Treaty has not changed. The text has not changed. The negotiated  outcome has not changed. 

Let me surmise what might have happened. I suspect they originally drafted speeches abstaining  or opposing the Treaty (except for the Honourable Mr Bossino), Madam Speaker, and then were  brought back into the fold by Sir Peter Caruana who in the Chronicle on Monday described it as  the best deal. What they are now really doing (except for the Honourable Mr Bossino) is sitting on  the fence. If the Treaty delivers, they will say they supported it. If there are difficulties, they will  say they opposed it. In effect, they are positioning themselves politically. 

But the Honourable the Leader of the Opposition may want to listen carefully to the contribution  of the Honourable Mr Bossino because he was not in this House for the entire speech, I appreciate  he was being interviewed on GBC, and I am told in significantly less conciliatory language than his  Parliamentary colleague. 

Let us be clear. Our current economic model, built on the reality of an open frontier, will not  survive a hard border. Speaking for myself, can I live without crossing the frontier if I must? Whilst  I could if I had to, we cannot expect that of younger or future generations of Gibraltarians. But our  economy, as it is structured today, certainly cannot. 

Madam Speaker, these are the socio-economic cost and consequences of a no-treaty scenario. All  treaties inherently try to address some uncertainty or challenge. This one addresses the single  greatest uncertainty AND challenge we have faced in a generation (not only since 2016) and one  which the Honourable Chief Minister has previously described as “existential” for Gibraltar. 

With 15,000 workers crossing daily between Gibraltar and Spain, border fluidity is not an abstract  policy objective. It is the lifeblood of our economy and supports much of our tax revenues. It  sustains families on both sides of the frontier. It currently underpins the economic viability of key  sectors including Gaming and Financial Services that account for over 50% of our economy. It also  underpins investor confidence. 

Without the Treaty, the EU’s Entry/Exit System (the EES) will apply in full at our land border,  including biometric capture such as facial scans and fingerprints for non-EU nationals. The Treaty  avoids this for Gibraltar residents. The alternative would be a very serious disruption to daily life  and our economy. 

Madam Speaker, border fluidity matters, because the economy matters. Our tax revenues matter.  Our economic stability matters. Our ability to fund our public sector, education, public pensions  and our health services matter. For a country of our size, that is not theoretical. It is a live issue,  even an existential issue.

The stakes are huge. Speaking to my Ministerial responsibilities, the Gaming industry and the  Financial Services sector have affirmed their support for a negotiated outcome, after a decade of  uncertainty. The Gaming sector stands to be one of the principal beneficiaries of the Treaty. The  sector is a cornerstone of our modern economy, employs approximately 3,400 people, two-thirds  of whom are cross-border workers. The importance of fluid movement cannot be overstated.  Senior executives in the sector also live in Gibraltar. They invest here. They make strategic and  operational decisions here. 

The Treaty does not restore the right to provide gambling services directly into the EU. But fluidity  at the border was essential to the operational needs of gaming companies in Gibraltar. Crucially,  the position on VAT for gambling support services remains intact, a key red line in the negotiations. 

At a time when the industry is confronted with the UK gambling tax increases, the Treaty mitigates  what would otherwise have been an even bigger shock of a hard border. Whilst the sector may  have to operate with a lower profit base, at least with mobility certainty and a modernised  Gambling Act, Gibraltar remains firmly positioned as a Tier 1 jurisdiction. 

Madam Speaker, this Treaty must be viewed as part of our wider programme of economic  development. The recent United Kingdom’s announcement on increases of betting duty, reminded  us that we cannot rely on any single trading partner even if that is the U.K. Madam Speaker, to be  frank, we also do not know what other challenges could emerge in that trading relationship with  the U.K. This Treaty therefore provides a parallel framework with the European Union to help us  diversify our economy, open new markets and create new opportunities. I will say more about  economic opportunities when I present two Bills to this House shortly. 

I think the Honourable Mr Bossino during his heartfelt address, Madam Speaker, was lamenting  that we may have to ‘reinvent’ ourselves if things do not work out with the Treaty, even though I  accept that he is the most enthusiastic supporter of the Treaty on the opposite side of the House  today. 

Well, Madam Speaker, we always have and indeed we have had to over the last 10 years in  particular. Before entering public office, much of my professional work following the Brexit  referendum was shaped by its consequences. Within days of that referendum, I prepared a  roadmap for the financial services and insurance sector, much of which depended on European  Union passporting rights. Brexit created profound uncertainty for those businesses, and I worked  closely with industry to safeguard stability and continuity. 

What that period demonstrated was this: Gibraltar did not freeze. We adapted. We found  solutions. We continued to grow our business and, indeed, our revenues. This Treaty is a  continuation of that same spirit - pragmatic, forward-looking, and rooted in cooperation. 

Madam Speaker, I intend to work very closely with my colleague the Minister for Business and we  will show what we are capable of doing precisely because we both have a track-record. 

With regards to my Taxation Ministry, Madam Speaker, whilst the Transaction Tax will not fall  within the purview of the Income Tax Office for which I am Ministerially responsible, Gibraltar will continue implementing the recognised principles of good governance in taxation and that includes  adherence to global standards on tax transparency, exchange of information and fair tax  competition. 

As of today, Madam Speaker, I am pleased to report to this House that we have surpassed last  year’s record corporate tax receipts with over £245 million already collected and one more month  still to go until the end of the Financial Year. Madam Speaker, that is almost a quarter of a Billion  Pounds in corporate tax receipts alone and we may well reach that number by the end of this  month. Madam Speaker, let me repeat that again – almost a quarter of a Billion Pounds. And this  success, Madam Speaker, is built, among other things, on the premise of an open frontier. 

I challenge anyone to point to another country that has delivered tax revenue results of this scale  in such a short time and without disruption. It is not a coincidence and Hansard will attest to that  fact. Instead, it reflects what can be achieved through strategic planning and responsible fiscal  management, one which I have referred to from the outset in and outside this House as our  “National Tax Strategy”. 

Madam Speaker, I had a real sense of déjà vu while hearing the speeches of the Honourable  Members opposite. When I brought the National Tax Strategy to this House, the Honourable  Members criticised it (here, including by the Honourable Mr Bossino) but sat on the fence. They  offered no clear alternative, no plan, no vision for Gibraltar. And just like then, today (as a  collective) they present no coherent vision in relation to the Treaty. But they come here today  saying they should have negotiated the Treaty with us. 

Madam Speaker, in politics there is always a choice: hesitation or delivery. We choose delivery.  Well, here are the tax results for all to judge. It is a remarkable achievement, and even more  significant when one recalls that last year’s record of £212 million, was itself a 37% increase on  the previous year, which I described in this House during the Budget as ‘truly exceptional’.” 

The increase in these extraordinary tax revenues we have once again worked so hard to secure,  Madam Speaker, are not attributable to gaming companies, hugely important as their contribution  continues to be. Nor indeed are they the result of any exceptional payment by any single taxpayer.  We had already begun implementing the next phase of our tax strategy as I said we would at the  last Budget, and how we manage our Tax Strategy going forward, with the Treaty, is equally as  important. 

In the most recent tax payments, we have seen a decline from the gaming sector, as companies  anticipate reduced profits resulting from the United Kingdom’s increase in gaming tax on 1 April.  This development was inevitable, and, as I have explained throughout, we expect a significant  impact by the end of this calendar year. When I present the new Gambling Bill to this House, I will  elaborate further. 

Madam Speaker, why do I say this? Corporate tax revenues are the lifeline of our economy. They  fund our public sector, our schools, our scholarships, our pensions and our health system. This is  critical to maintaining both economic and social stability. Our economic model depends on  stability, certainty and investor confidence. This is why this Treaty is important.

Had we not acted to protect Gibraltar’s public finances as and when we did, there would have  been at least £150 million less in the “coffers” (to use the favourite term of the Honourable  Members Opposite) over the last 15 months. Indeed, the shortfall would have been even greater  when measured against prior year receipts, given the clear month-on-month downward trend in  corporate tax revenues that we were witnessing at the time, as I have previously highlighted in  this House. The easiest political course would have been to do nothing and hope for the best. But  we could not, just as we cannot do so now. We must act, and we must support this Treaty. 

As a Government, Madam Speaker, we have a fundamental obligation to protect our people and  our community. We carry the responsibility to build a better society and to improve the standard  of living for all. This Treaty is precisely about protecting jobs, protecting tax revenue and  protecting opportunity. 

But democracy is a two-way social contract. It is not only what government provides or can offer  the citizen, but also a commitment on the part of all citizens to support and sustain the society  from which we all benefit. It should already be evident, Madam Speaker, that what any  government can provide is not a bottomless pit; our tax revenues, even the extraordinary results  of the last 2 years, are not limitless, a message I repeat at every opportunity. 

But there is, Madam Speaker, respectfully, a fundamental difference between the approach of  Honourable Members opposite and that of Members on this side of the House. They say they  cannot commit to any expenditure until they know precisely what is in the coffers. We say we will  work tirelessly to ensure that the coffers are replenished, and we have. If we were to adopt their  approach, nothing would ever be done (including this Treaty). 

Madam Speaker, back to the application of the Treaty, none of this works without operational  capability and readiness. The Royal Gibraltar Police has been closely engaged in Treaty  preparations. Supporting this Treaty, of course, will mean supporting the resourcing necessary to  implement it effectively. 

And finally, Madam Speaker, there are members of our community who worry that the Treaty  dilutes sovereignty. The Chief Minister and Father of the House have been absolutely clear that  nothing in this Treaty alters sovereignty. This is supported by Legal Opinions from eminent  lawyers. Nothing changes our constitutional status. Nothing diminishes our British identity. 

We remain British. We remain self-governing. We remain secure in our constitutional settlement.  What this Treaty does, is provide a structured and legal framework to manage the practical  consequences of Brexit. 

Doing anything other than supporting this Motion invites disruption. It invites a hard border and  the worst consequences of a Brexit we did not ask for nor did we support. It introduces uncertainty  at our border at a time when global conditions are already fragile. 

Supporting this Motion provides: Border fluidity, legal certainty, and investor confidence.

This Treaty is not a panacea. Its success will depend not on signatures, but on the practical  implementation in practice. Whilst every treaty is intended to be durable, history reminds us that  no such guarantee can ever be given. That, however, is not a reason to refuse to enter into this  Treaty. On the contrary, it is a reason to proceed. We must do so, and at the same time continue,  over time, to restructure and strengthen parts of our economy so that we are prepared for all  future eventualities. 

Gibraltar has always been stronger when it has combined pragmatism with intelligence and  principle. This is one of those defining moments. Let us be honest with ourselves – securing a  better Treaty would simply not have been possible. This is the best deal. As a young boy with an  interest in local politics, I recall then Chief Minister, and the founding father of this community, Sir  Joshua Hassan saying, “Politics is the art of the possible”. Former Chief Minister Sir Peter Caruana  KC himself has, repeatedly, said that we must consider “prize versus price”. Madam Speaker, time  will be the ultimate judge of the decision we take today. Perhaps many Members may no longer  sit in this House when that judgment is made. 

But I hope that history will record that, in this defining moment, we chose the course that best  safeguarded the continued prosperity of our community at this point in time. 

Madam Speaker, party politics in Gibraltar tends to be tribal but the Treaty before us is far too  important for that. 

Finally, Madam Speaker, I first met The Honourable Fabian Picardo many years ago, when he was  a young man with a passion for public life. Even then, I sensed he would be a consequential figure.  Today, through this Treaty Motion and the leadership he has shown in bringing it to this House,  he has cemented his place as one of the most consequential Chief Ministers in Gibraltar’s history.  For that he deserves to be thanked by everyone. I include myself, Madam Speaker, when I say that  sometimes we do not say thank you enough. 

There are those who on party political lines, and on the opposite side of the House, will want to  bid farewell to the Chief Minister, but WE on this side say: “Your work must continue Chief  Minister”. 

Madam Speaker, I support the Motion and commend it to the House.