(13 years, 9 months ago)
Lords ChamberMy Lords, I know that I risk upsetting the sensibilities of some noble Lords when I say that I am glad that the Bribery Act has not yet been implemented. This is not because I take a cavalier attitude towards corruption, but because it is only fair to British business that the Act should not yet be in force. I do not suspect that our companies are all involved in shady practices and that they should be allowed to continue in that vein for as long as they can get away with it. On the contrary, I have sufficient faith in British business to believe that it can win contracts without resorting to buying them in one way or another. My qualms about the implementation of the Act coincide with those voiced so admirably by my noble friend Lord Hodgson.
I have listened to what the noble Lord, Lord Goodhart, has to say, and I cannot agree with him completely. To be critical of the Bribery Act is not to condone the payment of massive bungs to corrupt dictators and their chums, nor even to go along with expensive gifts being lavished on minor officials in the hope of winning their good will. It is merely to say that business, like life, has nuances that need to be understood. Yet the business world has been very slow to raise its voice publicly to query any aspect of the Act. It knows, as I do, that to question any aspect of this legislation is to risk being branded as somebody who condones crookery, as if one is either in favour of the Act or in favour of bribery—and this, of course, is nonsense. We need to remember that we are in complicated territory here, where perceptions differ.
In 1997, as noble Lords will surely recall, Formula 1 racing in the shape of Bernie Ecclestone wrote a cheque for £1 million and subsequently found that plans to ban Formula 1 from tobacco advertising, so important to its finances, had been put on hold. Naturally, there was no connection between the two occurrences. The then Prime Minister was appalled that anyone should think there might be. He was, as noble Lords will remember, a pretty straight sort of guy. Others saw things differently. As I say, we are in complicated territory. I found it as dispiriting as the noble Lord, Lord Goodhart, when the SFO inquiry into BAE was dropped; I think that it was that pretty straight sort of guy who was involved there, too.
The Bribery Act as drafted would subject business to a more draconian regime than even that of the United States. What is more, it attempts to throw its net over companies that are not even headquartered in the UK but do business here. A company that is based in Russia, with some link to the UK and doing business in Kazakhstan, for instance, could find its activities there making its directors guilty of breaking UK law. That would be quite a challenge for UK prosecutors. It seems that the impossibility of stretching the arms of British law quite so far have now been recognised and that reassurances are being given that a mere listing on the London Stock Exchange does not bring a company within the ambit of the Act. Look at the motley collection of overseas companies that now make up a large proportion of the FTSE 100 and you will understand why this point had to be clarified.
The previous Government were absolutely justified in their efforts to prevent potentates being paid large sums in exchange for contracts, but this Act goes too far. Not only does it risk disadvantaging British business, but it puts those who are striving to win much needed work for British people in the appalling position of not knowing what will or will not be considered legitimate business practice. Until we have clear guidance on matters such as facilitation payments and hospitality, this Act should not be implemented. Surely any facilitation payments are outlawed under the Bribery Act, despite them being allowed, as we have heard, even under the US Foreign Corrupt Practices Act. In parts of the world, a small sum ensures that goods or documents move from A to B. Presiding Governments condone that situation; it is part of the prevailing culture. We might wish that situation to change, as the noble Baroness, Lady Williams, does, but for Britain to say no when the rest of the world says yes is commercial madness. One leading UK company doing business in Colombia decided that it had better stop paying the minor payments that it made. The result was that every one of its vans was impounded and its drivers imprisoned. We have to move carefully on this, just as we do on hospitality.
Another issue is the fact that government has to set the lead in conduct rather than just in legislation. It is imperative that UK Trade and Investment and its special representative should be models of complete probity as they attempt to drum up business for Britain. Their aims are admirable, but there is widespread disquiet about some of the relationships that have arisen. This will not stop. Surely it is time for change. Some noble Lords have expressed concern about the reputation of British business abroad in the absence of implementation of the Bribery Act, but I fear that questions over UKTI might do at least as much damage, if not more.
My Lords, I spent much of the autumn teaching senior police officers in India. We explained the Bribery Act to them. They told me—