Economic Crime (Transparency and Enforcement) Bill

Debate between Lord Beamish and Alison Thewliss

2nd reading
Monday 7th March 2022 Commons Chamber

[Alison Thewliss]

My right hon. Friend is absolutely correct to point that out. This money has been around the world many times and we may never ever find out where it has come from, but we could take further action to stop it coming through bank accounts in this country, helped by lawyers and accountants in this country, and the Bill does not go far enough to deal with the people who are facilitating this economic crime.

On the register of overseas entities, Members will know that I sat on the Joint Committee with the Lords on the draft Registration of Overseas Entities Bill, because I have mentioned it several times before. I cannot understand why it took so long before we had this legislation coming before us today—and in such haste, I should say. Introducing the registration of overseas entities is intended to shed light on the individuals behind overseas companies that control property in the UK, and that is welcome, but again it is too late. The proposals were discussed in detail in that scrutiny Committee, and I still do not understand—I would like some kind of explanation from the Minister, if he would stop chatting—why the Government twiddled their thumbs for four years instead of getting on with implementing such legislation.

I should note that the Scottish Government have moved on this. The register of persons holding a controlled interest in land in Scotland will come into effect and start operating, by taking names on the register, on 1 April. I seek some information from Ministers about what exactly will be the interaction between this register of property in Scotland, which includes overseas entities, and the provisions they are trying to pass today. It has been remarked by a number of organisations that the Scottish register will actually have transparency at its heart and has better transparency than what Ministers are proposing with their register. I would ask that they go to that higher level, rather than ask Scotland to level down on what we are putting on the register of persons holding a controlled interest in land.

Transparency International has estimated that £6.7 billion of questionable funds has been invested in UK property since 2016, of which at least £1.5 billion-worth has been bought by Russians accused of corruption or links to the Kremlin. When we take into account the secret nature of these transactions and how hard it is to get the actual information, the real figure is likely to be much higher.

The Bill as it stands will give the owners of about 95,000 foreign-owned properties six months to reveal their identities. I am glad that the Government have cut that back from the original 18 months they proposed in the draft Bill, but as things stand six months gives people an awful long time to move their money, down what Oliver Bullough calls the “Moneyland tunnel”, to hide those assets and to spirit them away to where they cannot be seen and cannot be found. Such secret jurisdictions will be used by the people who want to do this.

I would like to know from the Minister whether this register will be to the same standards as the Companies House register just now, because the Companies House register is basically full of guff. I have said this many times, but someone can register a company to “Anytown, Anyplace”. I could register one in the Minister’s name if I wanted to, and if I did not give any indication that I had done that, I would get away with it scot-free. The Minister really needs to tell the House what the standards of registration for these companies will be.

Our new clause 4 suggests that Companies House should be an anti-money laundering body, and it should use the Government’s Verify scheme to make sure that a person is a real person when they register a company at Companies House. I want to know what this register of overseas entities is going to look like and how we can make sure that the data put in will be maintained.

[Mr Kevan Jones]

Does the hon. Lady agree that full transparency at Companies House of who owns companies is in everyone’s interests? It was only because of the investigation undertaken by Caroline Wheeler of The Sunday Times that we discovered that Viktor Fedotov was one of the beneficial owners of Aquind, a company that has given huge sums of money to individuals in this House as donations. Does the hon. Lady think it would perhaps have helped some of those individuals decide whether to accept that money if they had known that Fedotov was an owner, especially because of his track record of alleged corruption in the Transneft gas pipeline deal?

Draft Financial Regulators' Powers (Technical Standards Etc.) (Amendment Etc.) (EU Exit) Regulations 2018

Debate between Lord Beamish and Alison Thewliss

Wednesday 10th October 2018 General Committees

[Mr Jones]

So basically the Minister is saying, “Take ‘EU’ out and stick ‘UK’ in.” If that is the case—

[Alison Thewliss]

What is the point?

[Mr Jones]

That says a lot about a lot of these things. As this SI goes through, therefore, have those various bodies that will get these powers got the necessary technical expertise to be able to determine that, or is that a Treasury decision?

European Union (Withdrawal) Bill

Debate between Lord Beamish and Alison Thewliss

Committee: 4th sitting: House of Commons
Monday 4th December 2017 Commons Chamber

[Alison Thewliss]

I pay tribute to the hon. Member for Ilford South (Mike Gapes), because that was an absolutely perfect speech. It had to be made and I am glad that he did it.

We have talked in general terms today about lots of the things to do with the new clause and what it might mean, about clause 11, and about the 111 things that require some attention. I want to look at how issues of waste are dealt with within the EU. The EU waste framework directive flows into the Waste (Scotland) Regulations 2012. The European landfill directive, the European packaging and packaging waste directive, and various other EU directives are currently implemented by the Scottish Government. The EU sets the rules within those frameworks and directives, and the Scottish Government have flexibility, as do the other devolved nations, on how they implement them.

Without any certainty over what happens on the day of Brexit, we can have no deal, no certainty and no regulation of those matters. In Scotland, we have developed a circular economy strategy and made a lot of progress towards the implementation of the EU’s circular economy action plan. We have made more progress than the rest of the UK has, and we have made different progress. The directives have given us the flexibility to take a different road. Were the matter to come back to the UK Government, we could not be guaranteed the flexibility we need to make progress with the plans that we have already embarked on.

The Local Government Information Unit recently produced an excellent briefing on waste disposal and Brexit. The briefing raises specific concerns about the future UK directive, which could well be less ambitious than our plans. We have heard a lot from various Tories in the past about cutting red tape and regulations, but doing so could have a serious impact on the interesting and important issue of waste collection. Scotland’s zero waste plan is award winning and ambitious, as we are on climate change. We should have full control over it, and we should not have to drag behind the UK if it does not wish to step forward as quickly as we do.

[Mr Kevan Jones (North Durham) (Lab)]

The hon. Lady says that the plan is ambitious, but, in practice, waste from Scotland is simply being transferred into England, and there is very little enforcement of the so-called zero waste plan.

[Alison Thewliss]

I would take issue with that, and our plan is ambitious. An awful lot of our plan depends on the existence of a European market for waste. Lots of waste goes backwards and forwards to Europe for processing.

There has been no clear detail from the Government about what they mean by an interim period or a temporary period before further powers are released to the Scottish Government. We already know that the market for waste exists, and taking that market away will create uncertainty. Businesses face huge uncertainty, because there is a big private market in waste; I have a large processing facility in my constituency, for example. The Confederation of Paper Industries has said that its members need to be sure which regulations they will have to operate under. If paper is going into European markets, it needs to meet the standards required by those markets, so we need the regulations in place to allow that to happen.

Hon. Members might not know that paper is a £6.5 billion industry. The UK is the world’s largest net importer of paper, and the industry is doing quite well out of the Bill, which is producing huge amounts of paper. The regulations determine our participation in the paper market, and certainty is important. We need clarity, so that we can make progress on recycling and other things that we have started on. If our ability to work under directives is taken back to the UK Government, who do not share exactly our environmental ambitions or links to European markets, where does that leave Scotland?

There is uncertainty as well for local government. If we do not have the rules or the framework, can we just throw our waste in the street and the council is no longer obliged to collect it? Those things are underpinned by EU waste directives about the processing and treatment of waste, and without them there is no framework at all.

I want to speak briefly about where the power lies in another area. The hon. Member for Aberdeen South (Ross Thomson) and a couple of hon. Members who are no longer in their places mentioned food and food labelling, a lot of which is dealt with by the European Food Safety Authority. Of particular interest to me is the labelling and marketing of infant formula. I am fairly sure that the Scottish Government may wish to act to regulate infant formula further, but the UK, as has been evidenced in questions that I have raised on the issue, may not wish to do so.

The UK has long used EU law as a means to get around the full implementation of the international code of marketing of breast-milk substitutes. If we are no longer in the EU and we can set up the frameworks ourselves and make progress on the issue, why should the Scottish Government have to lag behind? Why should we have to wait while those powers are held at Westminster for an indeterminate length of time—it has been described as temporary and interim, but how long it is we do not know—when we want to make progress on policies?

The hon. Member for Newport West (Paul Flynn) made a very good point about organ donation and presumed consent in that, when the Welsh Government had such powers, they made progress and had a good policy, which has led the way in the UK. In Scotland, we have had the smoking ban and other progressive health policies. If action on such policies is wrapped up in frameworks or EU directives, how can we be certain—in the context of clause 11 and of this Government not accepting any amendments that would give the devolved Administrations competence in these areas—that the devolved Administrations will be able to take the action we actually want to take, and how long will we have to wait for Westminster to give us back our powers?