Wagner Group: Sanctions Regime

Debate between James Cartlidge and David Davis

Wednesday 25th January 2023 Commons Chamber

[James Cartlidge]

I think that the hon. Gentleman submitted a similarly worded urgent question this morning, and obviously I respect that point, but there are no gymnastics here; I am merely setting out the position.

The hon. Gentleman asked about legal advice and so on. Within the sanctions regime broadly, because we are a country with the rule of law and everyone has a right to legal representation, it is possible for frozen assets to be used to pay for that legal representation. This is about sanctioned individuals. The Office of Financial Sanctions Implementation grants licences to allow sanctioned people to cover their own legal fees provided that the costs are reasonable. I should make it clear that decisions on the issuance of licences for legal fees are not, and should not be, political, and are largely taken by officials in line with standard practice. As I said a few moments ago, we are not aware of a case relating to legal fees under any of the sanctions regimes in which a Minister took the decision.

[Mr David Davis (Haltemprice and Howden) (Con)]

I welcome the Minister’s assertion that there is to be a review of this approach, but I ask him to make it quick. Even the Treasury’s press release today indicates a level of misunderstanding on the part of the officials, claiming a fundamental or absolute right to legal representation. Of course you have a right to representation if you are defending yourself in court, but there is no fundamental right to use legal representation to destroy someone else and shut down free speech.

[James Cartlidge]

As my right hon. Friend knows, I responded to his Backbench Business debate. He has been incredibly consistent in calling for actions on these points, and I respect that very much. However, I do think that the right to legal representation is a fundamental tenet of our democracy, which can mean—I am not commenting on the specific case—that individuals whom we find distasteful have a right to legal representation. Let us not forget that even at the Nuremberg trials, people who had committed the most heinous crimes in the history of the western world were legally represented.

Landfill Tax Fraud

Debate between James Cartlidge and David Davis

Thursday 12th January 2023 Commons Chamber

[James Cartlidge]

As I understand it, the figure is public—[Hon. Members: “It is now!”]—following robust campaigning by colleagues present in the Chamber.

Turning to the linked point about decriminalisation, I emphasise that most of HMRC’s work to tackle fraud makes use of civil powers. HMRC does use criminal powers selectively to focus on criminal investigations at the top end of the highest harm and the most complex organised crime and serious fraud. Just to underline that, in 2021 HMRC closed 700 illegal waste sites, including 200 high-risk sites—I say HMRC, but it might have involved the Environment Agency as well. Significant action was taken, but it was primarily civil in nature.

My hon. Friend the Member for Newcastle-under-Lyme continues to raise Walleys Quarry—

[Mr David Davis]

Will the Minister give way before he moves on?

[James Cartlidge]

I am now on Walleys Quarry, so I will stick with that. My hon. Friend the Member for Newcastle-under-Lyme will have anticipated that I cannot comment on ongoing investigations, but I can confirm that, as I understand it, the Environment Agency continues to regulate the operator closely and to consider appropriate action, in accordance with its enforcement and sanctions policy. While it sounds like there has been some progress, my hon. Friend is being a stalwart constituency MP and is a credit to his constituents. It is difficult for Ministers to go into the data at the Dispatch Box. He made points about the mental health impact and so on, and I sympathise with those who have experienced the impact at first hand.

I will now give way to my right hon. Friend.

[Mr Davis]

In a way, the Minister’s comments on Walleys Quarry reinforce the point. He says it is a difficult area to enforce in tax terms. I do not actually agree. I think a great deal more could have been done on the ground with Operation Nosedive in terms of physical investigation. Such things would not normally be undertaken, but that should have happened for something as big as this.

I reiterate the point I made earlier to my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell). The costs of the failure to enforce are financially enormous and socially disastrous, and serve to completely invert the purpose of the policy. The hon. Member for Cambridge (Daniel Zeichner) quoted the industry association and talked about an environmental catastrophe waiting to happen. No, it is an environmental catastrophe waiting to be discovered, because much of it lies underground in our constituencies. This is an area where a huge amount of resource is at play, and a huge amount of effort should be put into dealing with it.

[James Cartlidge]

I understand where my right hon. Friend is coming from. Speaking generally about all these cases and issues—I will go through all the points that have been raised as best I can, because he also talked about joint working and co-ordination—there is point of principle that we have to accept. We have a tax with a rate that incentivises a behaviour that is a positive policy goal, and that has been achieved to an extraordinary degree in the substantial reduction in waste going to landfill. Precisely because of that mechanism of a financial disincentive, there are some rogue actors—there will always be some—who want to take advantage.

All right hon. and hon. Members raised the point about data. I can confirm that the Government are committed to publishing an annual framework of indicators to track progress towards the objectives set out in the resource and waste strategy, including indicators of illegal waste sites, fly-tipping and littering.

The right hon. Member for North Durham and my hon. Friend the Member for Newcastle-under-Lyme both made points about what constitutes a fit and proper person. DEFRA recently consulted on reforms to the carrier, broker, dealer regime, and those transporting or making decisions about waste must demonstrate that they are competent to make those decisions. DEFRA anticipates phased implementation of the reforms from 2023-24.