To ask Her Majesty’s Government what is the constitutional and fiscal relationship between the United Kingdom and Sark.

My Lords, Sark is an island of the Bailiwick of Guernsey—a self-governing Crown dependency. The Crown is responsible for its good governance. The States of Guernsey legislates for Sark in certain matters, but generally not without Sark’s consent. Sark has its own legislature with the power to reform its constitutional system. Sark has an independent relationship with the UK through the Lieutenant Governor of Guernsey, and legislation made by Sark must be assented to by Her Majesty on the advice of her Privy Council. Sark does not have a fiscal relationship with the UK.

Ah. My Lords, I thank the Minister for that interesting Answer. I recall that, in giving evidence to a Commons committee in December, he said that there was considerable ambiguity in the relationship between the Crown dependencies and the United Kingdom. I understood him to say that Guernsey is an autonomous dependency of the Crown, but not part of the United Kingdom; that Sark is a highly autonomous dependency of Guernsey; and that the island of Brecqhou is a partly autonomous part of Sark. If that is not ambiguous, I am not sure what is. Am I also correct in understanding that, whereas Guernsey pays for the Alderney breakwater as its contribution to the considerable services that the United Kingdom gives to Guernsey, Sark provides nothing to the United Kingdom? As for the owners of Brecqhou, whose newspapers campaign for British sovereignty, transparency and high taxation—they pay almost nothing to the United Kingdom.

My Lords, I do not agree that Sark provides nothing at all to the United Kingdom. I was fortunate enough to visit Sark in February this year. If you do not happen to like motor cars, it is the most wonderful place to go because there is none. I was taken to my destination by what is described as the “toast rack”—I will explain later to noble Lords who want to know more—and by horse and carriage.

More seriously, Sark had its first democratic elections in December last year. I had the honour of meeting and talking to its legislature in February this year. Sark has a lot to offer.

My Lords, given the part played by the Daily Telegraph in the MPs’ expenses affair and the legitimate demand that Parliament and all public bodies should be open and accountable, does my noble friend not find it strange that the Barclay brothers, Sark’s most prominent citizens and the owners of the Daily Telegraph, were not prepared to appear before a Select Committee of this House to answer legitimate questions on the role that owners play in the working of the media?

My Lords, it is now twice in two days that I must be careful how I answer a question because—and this is a serious point—the appeal of Sir David and Sir Frederick Barclay against the Secretary of State’s decision to recommend Royal Assent to the 2008 law is due to be heard by the House of Lords in its judicial capacity in mid-July. It would be much better if I say nothing at all about the subject.

My Lords, notwithstanding the obviously cautionary words at the end of the Minister’s response, I shall rephrase my question in a slightly different and more general way. Since the fourth estate is now so powerful and influential, and since the Daily Telegraph has had a very successful campaign highlighting expenses and other details, mainly of MPs, would it not now be logical, rational and fair for the British public and Parliament also to know the full remuneration details of the owners and journalists of the Daily Telegraph and of other areas of the media?

The activities of these particular owners on the island of Sark have already been referred to. Apparently certain interesting tax manoeuvres may be taking place there. Also, as the Minister has met the electors of Sark, who recently expressed clear views in an obvious way, will he have further consultation with them about what they think of the future of the island?

My Lords, the noble Lord will realise that I cannot really comment on anything that he has said. Much as I might want to, I cannot.

My Lords, is not the constitutional position of Sark that it is part of Her Majesty’s dominions by virtue of her being the Duke of Normandy?

My Lords, it certainly is. Her Majesty the Queen is seen as a direct descendant of the Duke of Normandy.

My Lords, is the Minister saying that the sub judice rule applies to this topic? I would be surprised if that were so. Can he indicate whether the constitutional renewal Bill will sort out the rather archaic and tangled constitutional relationship we have been discussing?

My Lords, whether it is strictly sub judice or not I do not know, but I have been advised to be extremely cautious. That is the best response.

My Lords, the Observer on 7 June had a report that the Barclay brothers and their companies are planning to sell goods through the internet from a Sark base, thus avoiding the payment of VAT within the United Kingdom. We know that the Treasury has been much concerned about Channel Islands’ avoidance of VAT through small packages. Can the Government confirm whether this is the case and, if so, what action the Treasury may take?

My Lords, I cannot comment in detail on what the noble Lord says. I can say that Guernsey has taken a number of steps to restrain the exploitation of the low-value consignment VAT relief by UK companies, including policy statements making it clear that Guernsey is opposed to the growth of so-called third-party facilitators on the island. The noble Lord is right. This has been a problem in Guernsey. As I understand it, the Government of Guernsey are looking at the issue with sympathy.