The UK plans to carry on with its migrant “push-back” policy despite mounting opposition within the government.
The British Navy, which will take over operational control of Channel crossings from UK Border Force later this month, has ruled out implementing the controversial policy. However, a public row among Whitehall departments has revealed a larger role for the Ministry of Defence than was previously acknowledged.
Earlier in the month, Armed Forces Minister James Heappey told the House of Commons that “neither the Royal Navy nor the Royal Marines will be engaged in push-back”.
The minister had been defending government plans to get the Royal Navy to halt undocumented migrants using small boats to cross the Channel to several Conservative MPs who criticised the strategy for burdening an already-stretched military and using it as a “taxi service”.
On Thursday, Home Secretary Priti Patel told the Home Affairs Committee that Mr Heappey has been “wrong to say anything specific in regards to work operationally [because] they’re still being planned, that work is not completed yet”.
Responding to Ms Patel’s comments on social media, the Ministry of Defence’s press office reconfirmed its position that the Royal Navy and Royal Marines would not be used to carry out push-backs but said a military commander could instruct the Border Force to do so. It was the first time the MoD revealed that it will have powers to instruct Border Force vessels under the new government policy.
It is not, however, the first time that members of the Royal Navy and Royal Marines have indicated their aversion to the push-back policy as well as concerns over the forces’ capacity to monitor migrant crossings.
Last month, a former Royal Navy commander told the Commons Defence Committee that the navy had “no spare capacity” for the operations and said the solution to the crisis was “not at sea”.
“If you fill the Channel with ships you could make this problem worse because you’re now making the crossing safer, and therefore more attractive,” said Tom Sharpe, a former patrol boat commander.
Also speaking at the committee, Vice Admiral Sir Charles Montgomery, a former Second Sea Lord and director general of Border Force between 2013 and 2017, said he would be “happy if the expression of pushback was never used again”.
“I cannot conceive a situation where you’re physically turning these ships back that’s either legal, or, perhaps more importantly, safe,” he later added.
Push-backs, if deployed, would involve three Border Force jet skis surrounding a migrant boat and directing it back to France. It would also require the use of one of its five cutters and at least two of its rigid inflatable boats.
The French government, along with several rights groups, has criticised the tactic and said it contravenes international law. Relations between countries on either side of the Channel have soured in recent months with President Emmanuel Macron blaming the UK government for not taking responsibility for the crisis after failing to establish legal routes for asylum seekers.
Meanwhile, Home Secretary Priti Patel has made a clampdown on traffickers who facilitate the migrant crossings a central part of the government’s asylum policy overhaul, which includes the criminalisation of asylum-seekers who arrive to the UK through such routes.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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