Press Release - Foreign and Commonwealth Office: Managing Risk
in the Overseas Territories
16 November 2007
The UK bears the ultimate risk of potential liabilities from its
overseas territories such as Anguilla, Montserrat and the Falkland
Islands; and, while progress has been made in managing and
mitigating these risks since the last report by the National Audit
Office in 1997, there is room for improvement, the NAO has reported
today.
The report to Parliament has found that progress has been made
in improving the standards of safety and security of transport
links, and in the regulation of offshore financial services in the
territories. It is important, however, that the UK should reinforce
its close working with Territories to manage risks in government
finances, disaster and crisis management, and in law enforcement
and security.
Although the responsibilities for the territories are UK
Government-wide, the degree of involvement by UK departments is
variable. Though the Foreign and Commonwealth Office leads policy
for the Territories, active participation from a wide range of UK
agencies is needed to ensure that all responsibilities are covered
and risks are well managed.
Despite differences in size, economic and social development,
and systems of governance, the overseas territories have many
things in common: they are mainly relatively isolated, island
communities often located in areas prone to natural disasters, and
most depend on one or two key industries. Prosperity varies
significantly between the overseas territories. Bermuda and the
Cayman Islands have among the highest GDPs per head in the world,
whereas St Helena. Pitcairn and Montserrat are reliant on UK
budgetary aid. These Territories receiving budgetary aid absorb
half of annual UK Government investment in the territories; some
£28 million. They face the biggest challenges and need continued
support for infrastructure and development, combined with the right
incentives to make the most of their own resources, if they are to
develop out of aid dependency.
Although the nature of the challenges facing the territories can
vary, there are similarities and opportunities for greater sharing
of information and good practice. As such the UK should promote and
facilitate greater links between the territories. Territories
should also follow the lead being set by Bermuda and the Cayman
Islands in identifying, monitoring and evaluating risks.
Sir John Bourn, head of the National Audit Office, said
today:
"The UK government has a responsibility to ensure the
security and good governance of the overseas territories, and I'm
encouraged by areas of progress made in the last ten
years.
"Though they share many challenges the Overseas
Territories are a very diverse group. There is more that can be
done to help all Territories consistently reach the best standards
already to be found amongst them."
Notes for Editors:
- The Foreign and Commonwealth Office leads on policy for the
Overseas Territories and supports the UK-appointed Governors, most
of whom have responsibilities for Territory Public Services. These
territories are: Cayman Islands, British Virgin Islands, Bermuda,
Turks and Caicos Islands, Anguilla, Montserrat, Gibraltar, St
Helena, (including the dependencies of Ascension Island and Tristan
da Cunha), Falkland Islands, British Indian Ocean Territory,
Pitcairn Islands, South Georgia and the South Sandwich Islands, and
the British Antarctic Territory. The Department for International
Development leads on development matters. But the Territories are a
UK Government wide responsibility.
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 850 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 50/07
All enquiries to Mark Anderson,
NAO Press Office: Tel: 020 7798 7558
Mobile: 07796 937119