Overseas Territories: Tax Haven Status

Debate between Baroness Vere of Norbiton and Baroness Chakrabarti

Monday 26th February 2024 Lords Chamber

[Baroness Chakrabarti (Lab)]

My Lords, in polarised times, I look across and see the significant space where the temperate voice of our friend Lord Cormack ought to be. We will all miss him. I beg leave to ask the Question standing in my name on the Order Paper.

[The Parliamentary Secretary, HM Treasury (Baroness Vere of Norbiton) (Con)]

My Lords, the UK has not made any recent quantitative assessment of the economic benefits of the overseas territories to the UK, but we continue to support the territories to build vibrant and sustainable economies, including through encouraging greater links to the UK economy. The overseas territories are an integral part of the British family. The elected Governments of inhabited overseas territories are responsible for fiscal matters, including tax, and are committed to upholding international tax standards.

[Baroness Chakrabarti (Lab)]

I am grateful to the Minister, if not exactly any the wiser. Last November, the UN General Assembly voted overwhelmingly in favour of a new framework convention on tax justice. His Majesty’s Government were among a small club of rich countries that voted against. Now that that Motion has been so overwhelmingly carried, and there will be negotiations for a treaty to deal with tax avoidance and evasion in the world, will His Majesty’s Government engage?

[Baroness Vere of Norbiton (Con)]

As the noble Baroness will know, there is an enormous amount of work going on at the moment around international tax. That has been led by the OECD and the inclusive framework, involving 130 countries and jurisdictions from around the world working on two pillars: one for the greater share of group profits to be taxed in market countries, and the second a global minimum tax, where all profits will be subject to a 15% minimum effective tax.

Ryanair: Afrikaans Language Test

Debate between Baroness Vere of Norbiton and Baroness Chakrabarti

Thursday 9th June 2022 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, the language test requirement for passengers travelling with Ryanair is not a UK government requirement. The FCDO’s post in South Africa has confirmed this via its social media channels and has been in touch with the South Africa’s Department of International Relations and Cooperation. My department has approach Ryanair for comment. As yet, we have received no response.

[Baroness Chakrabarti (Lab)]

I am grateful to the Minister for that. Like other noble Lords, she will remember that next week will mark 46 years since attempts to impose the Afrikaans language on black South African children led to the Soweto uprising. Today, in post-apartheid South Africa, Afrikaans is one of 11 official languages, and it is less prevalent than Zulu and Xhosa, so using Afrikaans to verify citizenship is as ignorant as it is insulting and discriminatory. Will the Minister and her Government explore all potential regulatory options to persuade Ryanair to the cause of common sense and decency?

[Baroness Vere of Norbiton (Con)]

When the noble Baroness raised this with me earlier this week, I thought that the entire thing was morally dubious and surely not appropriate, and my view has not changed. If a passenger is refused the right to fly despite having the correct documents and there being no other grounds for the refusal, they have the right to compensation—I encourage all such passengers to take it up—by being either reimbursed or rerouted to another destination. I completely and utterly take the noble Baroness’s point. As I said, we have not yet heard from Ryanair, and I will take this up with the Aviation Minister and the CAA to ensure that we do whatever we can to make it see sense, frankly, in this matter.