Hansard

The order will confer legal immunities and privileges on or in connection with a new international organisation, the Asian Infrastructure Investment Bank.

The Asian Infrastructure Investment Bank is not an ordinary bank but a specific kind of international organisation known as a multilateral development bank. Its purpose is to provide finance and advice to address the gap in investment in infrastructure in Asia.

The UK Government has signed an international agreement that provides the Asian Infrastructure Investment Bank with privileges and immunities in all states that become members. States that are members range from Iceland to Germany. Some privileges and immunities relate to reserved matters and have been conferred by the Westminster process. The equivalent order in Westminster was approved by both Houses of Parliament without opposition and by the Privy Council on 11 November.

As some privileges and immunities relate to devolved matters, the order that we consider will add the new body to a list of organisations that enjoy similar privileges and immunities in Scotland. The list is in the schedules to the International Organisations (Immunities and Privileges) (Scotland) Order 2009, and includes, for example, the International Maritime Organization and the European Police College.

Privileges and immunities were also granted, pre-devolution, to other multilateral development banks, such as the European Bank for Reconstruction and Development, which has a similar function. Privileges and immunities are commonly granted to international organisations. Under international law, those entitled to diplomatic immunity are expected to obey the law of their host state.

Let me be clear. This organisation and its officials will be expected to comply with the laws of this country. Membership of the Asian Infrastructure Investment Bank provides considerable opportunity for those working in the financial and professional services sector in Scotland. The sector employs almost 100,000 people directly and about the same number indirectly. Scottish companies already have a strong background in these fields. If Scottish businesses are to be able to take advantage of the potential work that the UK’s membership of the Asian Infrastructure Investment Bank might generate, the order is necessary. The order was considered by the Justice Committee, which recommended that the Parliament approve it. I call on Parliament to approve it this evening.