War in Ukraine: Illicit Finance
Leo Docherty Excerpts(2 years ago)
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The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Leo Docherty)
It is a pleasure to serve under your chairmanship, Mr Efford, and to respond to the debate on the Government’s behalf. I thank all Members for a constructive and useful debate.
I am grateful to my hon. Friend the Member for Isle of Wight (Bob Seely) for leading the debate. I acknowledge his long-standing interest and expertise in this field. We are grateful to the members of the Foreign Affairs Committee for producing this extremely useful report. I hope the Government response shows that we regard it as a serious and useful piece of work, and that the overall tone of the response shows that we treat it as a grave matter that requires our urgent attention.
I was grateful for the contributions from the hon. Member for Bermondsey and Old Southwark (Neil Coyle), my hon. Friend the Member for Cheadle (Mary Robinson), and the hon. Members for Strangford (Jim Shannon), for Stirling (Alyn Smith) and for Hornsey and Wood Green (Catherine West). I should say that this topic lies in the portfolio of my departmental colleague, the noble Lord Ahmad; I am pleased to respond today on his behalf. I will try to cover off as many of the questions raised as possible, while giving some assurance that the Government’s response treats the issue extremely gravely and seriously.
The hon. Member for Hornsey and Wood Green asked about our approach to tackling the use of cryptocurrencies. We recently introduced legislation to tackle their use when it comes to sanctions. I will write to her, or have the noble Lord Ahmad write to her, with an update on that statutory instrument, which sought to ensure that the application of sanctions keeps pace with the developments in financial markets, especially when it comes to the use of cryptocurrencies and platforms such as Blender.
A number of colleagues asked about the use of offshore shell companies to purchase property in London. We are tackling the use of offshore shell companies. We are reforming the role of Companies House and improving transparency over UK companies and properties in order to strengthen our business environment and support our national security, while delivering a more reliable companies register to underpin what is important business activity.
The reforms will bear down on the use of thousands of UK companies and other corporate structures as vehicles for facilitating international money laundering, corruption, terrorist financing and the illegal arms movement. The reforms will include the identity verification of people who manage or control companies and other UK-registered entities; greater powers for Companies House to query and challenge the information it receives; enhanced protection of personal information provided to Companies House to protect individuals from fraud and other harms; more effective investigation and enforcement powers for Companies House; and better cross-checking of data. Those are some of the reforms; that is not the entire list. We are aware of the issue and we are tightening up the relevant legislation.
A number of colleagues mentioned the use of SLAPPs and eloquently painted a picture of how they are hugely detrimental to the fabric of civil life. We are committed to protecting free speech and the rule of law in this country; they are cornerstones of our democracy. We are clear that SLAPPs are an abuse of the legal system. They involve the use of legal threats and litigation to silence journalists, campaigners and public bodies. That is deeply detrimental to a free and fair media and to the freedom of individuals. Addressing SLAPPs is a key part of the Government’s work to combat corruption and kleptocracy.
Colleagues will know that earlier this year the Government ran a call for evidence on SLAPPs reform. Our response, published on 20 July, outlined plans for a legislative definition of SLAPPs and an early dismissal process, supported by a formal cost-protection scheme to shield defendants and neutralise the chilling effect of high costs. I am sure colleagues will be reassured to hear that, and we will keep colleagues updated as the process develops.
A number of colleagues mentioned tier 1 investor visas, which they will know are now closed to new entrants. The Home Office lead on visas. We are currently finalising the historical review of the tier 1 provision. We expect the response to be published in the near future. We recognise the interest in the issue, and it is a complex piece of work. The Home Office is of course looking at how to operate a safe and sustainable approach while also attracting investment. We have to get the balance right, but we are clear that any future system must make sure that settlement must be earned and not bought, through applicants actively engaging in the UK economy and delivering job creation and other tangible economic benefits. I hope that information is useful.
Catherine West
Is the Minister aware that just two weeks ago the Home Secretary mentioned in the House of Commons that a number of visas had been sold? She was referring to the change in policy, but I note the difference in the language that the Minister has used today. Will he clarify what the Home Secretary meant when she said that certain visas had been sold?
Leo Docherty
Although I am grateful for the invitation to speak for the Home Secretary, I am going to pass on that opportunity. The hon. Member might seek clarification from the Home Secretary herself.
We are proud that we have sanctioned more than 1,200 individuals and 120 entities since the start of Putin’s outrageous invasion of Ukraine. That includes sanctioning Russia’s major banks, as well as more than 120 oligarchs with a combined net worth of more than £140 billion. This was made possible due to cross-Government planning months before the Russian invasion. Our planning proved pivotal to the swift designation of individuals and the introduction of new measures within days of the invasion. The legislation enabled the Foreign Secretary to sanction more individuals and entities at a greater pace.
We are taking robust action across Government, and with our international partners, to ensure that sanctions are effectively enforced. That is done through the Russian elites, proxies and oligarchs taskforce, which brings together international partners to ensure the effective enforcement of financial sanctions implemented against Kremlin-linked elites and entities.
Neil Coyle
Ten of the people sanctioned by the Government are Russian nationals who were recipients of tier 1 visas. Does the Minister have any sense of shame at the level of misuse of that system? When will the review of the 6,000 people who took tier 1 visas but were under investigation for being a national security risk conclude? He has not given us any information on that.
Leo Docherty
I repeat that the review will be published in due course. We recognise that there has been a problem, which is why it is under review. It will come forward in good time, I hope.
Let me turn to the resources committed to sanctions. As noted in the Government’s response to the report, we agree that the skillset of staff focused on sanctions has been central to our success in bringing those sanctions to bear. In recognition of the central role that sanctions continue to play as a key part of UK foreign policy, our Department has established a permanent sanctions directorate, in line with one of the report’s recommendations. As part of this new directorate, our Department has established a cadre of sanctions experts to build the enduring expertise that we need in the long term.
Additionally, I can confirm that the Office of Financial Sanctions Implementation will have more than 100 staff by the end of this financial year, with current staffing having already more than double compared to last year. That will enable the OFSI to continue to lead the implementation of UK sanctions and ensure that assets in the UK are frozen.
On our approach to asset freezes as opposed to seizures, and getting that balance right—many colleagues have mentioned this and it has come up on the Floor of the House—we are exploring further options to finance the reconstruction of Ukraine using Russian-linked assets. That presents complex legal and policy challenges that officials are considering in detail with other Departments. We are looking at it seriously because we recognise that the scale of assets currently frozen is very significant. I am sure we would all be pleased if there was a route through good legal policy to ensure that that money could be used to make a positive difference.
On overall funding, combatting illicit finance requires the necessary resources to enforce our anti-money laundering laws and bring kleptocrats to justice, which is why the Government have developed a sustainable funding model that demonstrates our commitment to tackling economic crime. We are investing in the National Crime Agency and have increased its budget year on year since 2019. Since February, we have also created a new unit in the NCA, the combating kleptocracy cell, which is focused on targeting corrupt elites and their wealth in the UK. The combination of last year’s spending review settlement and private sector contributions through the new economic crime levy will provide funding of £400 million over the spending review period. That includes £63 million for Companies House to implement its transformation programme, which I already mentioned.
On the speed and scale of our response, we have taken robust action over the past decade. We published a landmark economic crime plan in 2019; we increased the number of investigations into corrupt elites; we established the National Economic Crime Centre; we passed the Criminal Finances Act 2017; and we became the first major economy in the world to implement a public register of beneficial ownership of domestic companies.
Earlier this year, the Government took swift action by passing the expedited Economic Crime (Transparency and Enforcement) Act 2022. The Act is already helping us to crack down on dirty Russian money in the UK. The Economic Crime and Corporate Transparency Bill, which builds on that Act, is currently in Committee. The Bill will help us to bear down on kleptocrats, criminals and terrorists who abuse our open economy, thus strengthening the UK’s reputation as a place where legitimate business can thrive while driving dirty money out of the UK.
A number of colleagues, particularly the hon. Member for Stirling, mentioned the role of Crown dependencies and overseas territories. Of course, all Crown dependencies and overseas territories with financial centres are committed to meeting international standards on illicit finance, tax transparency and anti-money laundering, including those set by the OECD and the Financial Action Task Force. All Crown dependencies and inhabited overseas territories have committed to introducing publicly accessible registers of company beneficial ownership. That is a major shift that puts them ahead of most jurisdictions.
I am pleased that significant progress has been made by several of the jurisdictions, including Gibraltar, which I visited recently. Gibraltar’s register is already operational. The Cayman Islands is working at pace and is completing a consultation on the details of its register. The British Virgin Islands also recently passed legislation that will enable the framework for regulations to be made for a register, in preparation for 2023. Smaller overseas territories, such as Montserrat and Anguilla, are working with the FCDO to update their systems to enable public access. We have funded Open Ownership, a specialist NGO, to provide technical assistance to each overseas territory.
I reiterate our gratitude to the Foreign Affairs Committee for its detailed and useful report. We hope that the Government’s response will assure colleagues that we are gripping the issue at the policy and technical levels. We also hope that it sends the message that London and the UK are no place for dirty Russian money and that our legal framework and institutional strength will deter anyone who thinks that is not true. I also hope it will provide reassurance to our friends and allies, especially Ukraine. We are determined to ensure that we are able to help Ukraine to rebuild its country and defend its sovereignty against outrageous Russian aggression, which all too often has been connected to Kremlin-linked international assets. I hope the Government’s response reassures people that we are getting after it.
Sri Lanka
Leo Docherty Excerpts(2 years ago)
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The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Leo Docherty)
I am pleased to respond to this debate and I thank my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) for leading it. I also thank the hon. Member for Richmond Park (Sarah Olney), the right hon. Member for East Ham (Sir Stephen Timms) and my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) for securing it. We have heard a number of moving contributions, reflecting the deep humanitarian and economic crisis afflicting Sri Lanka, and I am grateful for those contributions. We heard from the hon. Member for Mitcham and Morden (Siobhain McDonagh), the right hon. Member for Kingston and Surbiton (Ed Davey), the hon. Members for Richmond Park, for Ealing North (James Murray), for Leicester East (Claudia Webbe) and for Strangford (Jim Shannon), and the Opposition spokespersons, the hon. Members for Dundee West (Chris Law) and for Hornsey and Wood Green (Catherine West). I should say that the Minister of State, Foreign, Commonwealth and Development Office, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan) is now the lead Minister on our relations with Sri Lanka, but I am pleased to respond to this debate on her behalf, and I will briefly reflect on the activities of Lord Ahmad, who, until now, has held that brief.
The UK and Sri Lanka have had a long shared history. Many UK citizens and parliamentarians have close ties with that country; we have heard Members speak movingly of their experiences in Sri Lanka. The relationship really does matter to the UK, and it has been extremely difficult for us all to witness Sri Lanka’s recent economic decline. It is an economic crisis made worse by dreadful and long-term mismanagement, the economic fallout from the terrible 2019 Easter Sunday attacks, the covid pandemic and Russia’s illegal invasion of Ukraine.
As for what the British Government is doing about this, we believe that a stable and inclusive political settlement is an essential foundation for economic recovery and growth in the long term in Sri Lanka. Lord Ahmad of Wimbledon made that point to Sri Lankan President Wickremesinghe in July and to Sri Lankan Prime Minister Gunawardena in August, urging progress both on human rights and accountability, and on economic reform.
The UK is providing economic support through a number of institutions, including the IMF, the World Bank, the United Nations, the Asian Development Bank and the Paris Club. As has been mentioned, we welcome the initial September staff-level agreement with the IMF for a four-year support programme of some $3 billion. Although this agreement represents a positive milestone for Sri Lanka, continued negotiations are needed to achieve final programme approval and a route to restore macroeconomic stability and debt sustainability.
Some hon. Members have proposed conditionalities on IMF assistance. Within its governance structure, the IMF only has the ability to impose conditionality linked to economic policy, not political or human rights-linked conditionality. But of course we want human rights progress to advance in tandem with economic progress, and we will use other mechanisms to hold the Sri Lankans to account and progress human rights in that regard.
Theresa Villiers
May I emphasise that, if these international bodies are allowed to impose conditions in relation to economic matters, they should be imposing conditions in relation to military spending, cronyism and corruption? Those are reasonable asks of any bail-out.
Leo Docherty
I note my right hon. Friend’s comments, but we seek to interlink conditionality with our approach in multilateral forums with regard to human rights. Essentially, we are using the UN to push forward human rights.
In addition to our economic support through institutions, the UK Government have also provided humanitarian assistance. We announced £3 million of humanitarian support in September. This will be delivered through the Red Cross and the United Nations partners as part of our ongoing humanitarian response. It is, of course, important that humanitarian assistance reaches those who need it most, wherever they are in the country, and that is something that we want to see. The UK is also the largest donor to the United Nations central emergency response fund, contributing more than £1.7 billion since its inception in 2006. The fund has already provided $5 million to Sri Lanka.
I wish to address the question raised by the right hon. Member for Kingston and Surbiton (Ed Davey) about conditionality with regard to trade discussions. On the generalised scheme of trade preferences, the EU scheme to which he referred will be replaced by our new developing countries trading scheme early next year. Under this new scheme of preferences, the UK will retain the power to suspend a country on the grounds of human rights violations. I take his point and am pleased to confirm that, under our new arrangements, we will have that capacity in the future.
Ed Davey
I thank the Minister for giving way. I am not sure whether he has read the House, on both sides, or the motion today. It is a question not of whether the Government have the capacity to do something but of whether they are going to use that capacity to send the message that this House wants to send. We are not prepared to put up any longer with the way the Sri Lankan Government are treating many of their citizens, not least those from the Tamil community.
Leo Docherty
I note the right hon. Gentleman’s intervention and am grateful for it. I hope that I have offered him reassurance by noting that we do have that capacity. I will not make pronouncements from the Dispatch Box today about our plans, but it is reassuring to Members to know that we maintain that freedom of movement in terms of our future trading relationship with Sri Lanka.
Let me turn explicitly to the human rights situation. The comprehensive report issued by the Office of the High Commissioner for Human Rights, which has been mentioned today, highlighted a number of profound concerns. There continues to be a lack of progress on basic human rights and post-conflict accountability. The report also highlights economic crimes and the link to a lack of accountability, and the need to ensure that the most vulnerable continue to receive support. Minority communities continue to face discrimination and harassment by state authorities. In the north and the east of the country, where Tamils and Muslims are in the majority, schemes that emphasise Buddhist hegemony continue to aggravate tensions. For two years, provincial council elections have been delayed under the promise of electoral reform, denying a voice for local and minority groups.
Protest leaders have been arbitrarily or unlawfully arrested and the state of emergency powers have been extensively used. The Government of Sri Lanka have made numerous commitments to the international community to address this situation. They have promised to repeal the Prevention of Terrorism Act 1978 and implement legislation that is compliant with international human rights standards. The Government have also promised to implement a proper accountability mechanism to establish truth, reconciliation and justice. We will continue to call on Sri Lanka to make progress on human rights and accountability. We will continue to work with international partners to hold the Government of Sri Lanka to their promises. We have supported efforts to promote human rights and peace and reconciliation in Sri Lanka for many years.
In October, we worked with partners in the UN to agree the new resolution on Sri Lanka—resolution 51/L1—which has been mentioned many times today, to extend the mandate to report on the realities on the ground and to preserve and protect evidence of past human rights violations and abuses for future accountability processes.
This international framework ensures that Sri Lanka remains on the international human rights agenda, and we believe that this diplomatic approach is the best way to encourage progress. However, we recognise that sincere and sustainable progress on human rights and accountability must be led by the people of Sri Lanka. Over the past three years we have spent more than £10 million from our conflict, stability and security fund to support peacebuilding, social cohesion and gender equality, as well as to strengthen democratic institutions. Lord Ahmad of Wimbledon met Sri Lankan Foreign Minister Ali Sabry in September to urge progress and to renew our offer to work with Sri Lanka.
A number of right hon. and hon. Members have mentioned sanctions. The Government would not speculate from the Dispatch Box on possible designations, since that would reduce their impact, but we keep all evidence and potential listings under close review.
To conclude, the people of Sri Lanka are experiencing an unprecedented economic crisis and they continue to face violations of human rights and barriers to justice. In response to the economic situation, the UK Government have provided direct humanitarian assistance and financial support through multilateral institutions, and we continue to pursue options for debt relief through all of this; ensuring that the poorest and most vulnerable continue to receive support at this time is critical.
We will continue to support the Sri Lankan people in their pursuit of justice and accountability and of progress on human rights, including at the UN Human Rights Council. Sri Lanka is an important and valued friend of the United Kingdom, and this Government will do all we can to help the Sri Lankan people to achieve the prosperous and peaceful future they deserve.
NATO Parliamentary Assembly
Leo Docherty Excerpts(2 years ago)
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The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Leo Docherty)
My right hon. Friend the Member for Aldridge Brownhills (Wendy Morton) has replaced my hon. Friend the Member for Wolverhampton South West (Stuart Anderson) as a member of the United Kingdom delegation to the NATO Parliamentary Assembly.
My hon. Friend the Member for Colne Valley (Jason McCartney) has replaced my hon. Friend the Member for Wealden (Nusrat Ghani) as a member of the United Kingdom delegation to the NATO Parliamentary Assembly.
My hon. Friend the Member for Bracknell (James Sunderland) has replaced my hon. Friend the Member for Beckenham (Bob Stewart) as a member of the United Kingdom delegation to the NATO Parliamentary Assembly.
The right hon. Member for Walsall South (Valerie Vaz) has replaced the hon. Member for Erith and Thamesmead (Abena Oppong-Asare) as a member of the United Kingdom delegation to the NATO Parliamentary Assembly
[HCWS362]
Oral Answers to Questions
Leo Docherty Excerpts(2 years ago)
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Mark Pawsey (Rugby) (Con)
The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Leo Docherty)
The Prime Minister and the Foreign Secretary, after coming into their roles, made their first foreign counterpart calls to President Zelensky and Foreign Minister Kuleba of Ukraine, respectively. Last week, at the G7 in Germany, the Secretary of State, with other leaders, expressed solidarity with the Ukrainian people and condemned Russia’s outrageous invasion of Ukraine. Our total economic and humanitarian support to Ukraine has been more than £1.5 billion, with vital humanitarian aid helping more than one in four Ukrainians.
Duncan Baker
This week, a group of my constituents will journey to Ukraine to deliver urgently needed humanitarian support for what will be a very cold winter. They are not alone, as great swathes of the British public have done extraordinary acts of kindness to help Ukrainians in desperate need. Will my hon. Friend please commend my constituent Rob Scammell from North Walsham for what he has done, and comment on the steps his Department is taking to help Ukrainians in the light of Russian attacks that have damaged civilian heating and water supplies?
Leo Docherty
I join my hon. Friend in thanking Rob Scammell and others who are providing important aid to Ukraine. Although our strong advice is that individuals do not travel to Ukraine and find other ways to support Ukrainian civilians, I want to put on record my thanks. Such humanitarian aid is very significant, and electricity generators are also being sent to Ukraine to help people keep warm over the winter. This reflects the tremendous spirit of generosity within the British public, which my hon. Friend, who I think was the first Member of Parliament to receive a Ukrainian family into his home, also demonstrates. I thank him for that too.
Mark Pawsey
Almost daily, we see Putin’s army targeting civilians: the young, the elderly and the vulnerable. I am very proud, as I am sure we all are in this House, that the UK is the European country providing the most support—from not only the Government but, as we have heard, teams of volunteers. Will the Minister welcome the work done by Bags of Joy in my Rugby constituency, which is sending bags of treats and goodies to some of those affected by this most appalling war?
Leo Docherty
I join my hon. Friend in thanking Bags of Joy for sending those products to Ukraine, which is good to see. I think the generosity from his Rugby constituents shows that Ukraine has many friends and Russia in this instance has none.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Part and parcel of our support for Ukraine is how we look after Ukrainian refugees. I know of examples in the north of Scotland of their finding the bureaucracy involved in accessing universal credit very difficult. Although Work and Pensions is not his Department, does the Minister agree that a one-point telephone number and a dedicated team in that Department would help sort out this problem?
Leo Docherty
The hon. Member is right to point out the amazing scale of the issue, with more than 140,000 Ukrainians having received visas and living in the UK, but I will take away his helpful suggestion and we will see whether that is in place.
Chris Bryant (Rhondda) (Lab)
Whatever Americans vote for today, I hope they stick with supporting Ukraine over the next few months. May I ask a question I have asked the Minister before—so I hope he knows the answer by now—about the Abramovich money? Chelsea was sold for £3.5 billion many months ago. Has that money yet got to Ukraine, and if not, why not?
Leo Docherty
I am very pleased to be able to provide an answer. The money is still frozen in a UK bank account. The administrative work is being done and a licence is being applied for, but we hope it is on the start of its journey to Ukraine to help the people where they need help.
Leo Docherty
On all three fronts—diplomatic, economic and military—I think the whole world has come together. That was made very clear by the Foreign Secretary at the G7 last week. Looking at some of the statements about solidarity at COP today, I think Russia has a very long border and very few friends. We are stronger because we are together, and I think that is very clear.
Kate Osamor (Edmonton) (Lab/Co-op)
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Leo Docherty)
The Government are aware of reports that Turkish forces have used white phosphorus in northern Iraq. However, we have no direct evidence to support those claims. Of course, we take all allegations of this nature seriously, and we are committed to upholding the chemical weapons convention.
Kim Johnson
A Turkish CHP opposition Member of Parliament who asked the question about the alleged use of chemical weapons has received a summary of proceedings to prosecute him for terrorism. Does the Minister agree that it is time for us to follow in the footsteps of the Belgian Supreme Court by revisiting our designation of the PKK as a terrorist organisation? Does he also agree that not doing so gives cover to Turkey’s human rights abuses against Kurds living both within and beyond its borders?
Leo Docherty
The hon. Lady mentions the PKK. We should be very clear that we regard the PKK to be a terrorist organisation—that is why we have proscribed it—and that we believe Turkey has a legitimate right to defend itself against this form of terrorism.
Lloyd Russell-Moyle
Sezgin Tarikulu—the Turkish MP to whom my hon. Friend the Member for Liverpool, Riverside (Kim Johnson) has referred—said: “I watched the footage of the alleged chemical weapons. Chemical weapons are crimes against humanity. Tomorrow I will submit a PQ on the accuracy of these allegations.” For saying that, and that alone, he has been indicted for terrorism and supporting PKK rhetoric, despite the fact that a Turkish Minister has confirmed that Turkey does use gas. Sezgin is a member of the CHP, the founding party of Turkey; he is not of the Kurdish party. Does the Minister not recognise that the overreach of the PKK terrorist definition is shutting down democracy in Turkey and hurting our allies in Syria, Turkey and Iraq?
Leo Docherty
As I have said, we have no direct evidence to support the allegations to which the hon. Gentleman refers, but we are of course committed to upholding the chemical weapons convention. I myself met the director general of the Organisation for the Prohibition of Chemical Weapons last month, and we will keep these issues under review.
Yasmin Qureshi (Bolton South East) (Lab)
The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Leo Docherty)
The UK is of course supporting Pakistan following the disastrous floods, and has committed £26.5 million towards the immediate response. The effects of that on the ground were seen by our Minister in the other place, my noble Friend Lord Ahmad. This catastrophe shows how climate change is making extreme weather events more intense, which is why we have doubled our global climate finance commitment to £11.6 billion and, in Pakistan itself, have pledged £55 million to support climate resilience and adaptation.
Yasmin Qureshi
I refer the House to my entry in the Register of Members’ Financial Interests, as chair of the all-party parliamentary group on Pakistan.
Experts have called the flooding in Pakistan a “climate catastrophe”. Millions have been displaced, more than 1,700 people are dead, and there has been $40 billion-worth of damage to livelihoods and infrastructure. Over the summer, Pakistan experienced the hottest temperature on the planet. Pakistan and other countries are bearing the brunt of the climate crisis and will continue to do so, although they contribute the least to global warming. Can the Minister assure us that his Government, rather than cutting aid, will make a serious commitment to the long-term support of communities in Pakistan to enable them to weather the coming storms?
Leo Docherty
We are indeed overwhelmingly committed to Pakistan. In 2020, our aid was £200 million and we have committed £55 million specifically for climate resilience. Lord Ahmad saw on his visit the life-saving impact that all this money achieves, including the £26.5 million towards the immediate response. The broad point is that tackling climate issues is now woven through the fabric of our policy making.
Elliot Colburn (Carshalton and Wallington) (Con)
Dan Jarvis (Barnsley Central) (Lab)
The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Leo Docherty)
The hon. Gentleman is absolutely right, which is why this year alone we are committing £286 million of humanitarian aid that is being disbursed through international organisations. That is all the more needed because of the deprivations of the Taliban regime.
Alexander Stafford (Rother Valley) (Con)
Ellie Reeves (Lewisham West and Penge) (Lab)
Leo Docherty
We bring a huge amount of diplomatic pressure to bear. Clearly, it is difficult countering the deprivations of the Taliban regime, but we have a huge stake in the game because we disbursed £286 million-worth of aid this year alone. That is the right thing to do, because we know that women and children are disproportionately affected by this kind of conflict.
Sir Robert Neill (Bromley and Chislehurst) (Con)
When Kabul fell, the Government rightly undertook to assist in the relocation of courageous Afghan judges who had taken a key role in the fight against the Taliban. Since then, however, a High Court decision has ruled against the operation of the latest resettlement schemes and there is concern that the level of support initially given is drying up. Will the Minister meet me to discuss, with members of British judiciary, schemes and ways by which we might improve and revise the system?
Leo Docherty
Of course, I am happy to meet. We have had some success extracting judges, but if my hon. Friend would like to meet me to furnish me with those specific details, I will try to try to expedite a response.
Priti Patel (Witham) (Con)
The Europe Minister will be familiar with the case of my constituent Mr Thomas Toolan and the ongoing retention of his daughter in Poland. This is a heartbreaking case that has been going on since 2018. Will the Minister meet me and other Members of this House who have similar child abduction cases in Poland, and will he please raise this case with his Polish counterpart?
Leo Docherty
I am aware of this case, and I thank my right hon. Friend for her advocacy on it. I know that she met our ambassador to Warsaw and, of course, I would be very pleased to meet her to see whether we can make some progress.
Sarah Owen (Luton North) (Lab)
Leo Docherty
I am happy to write to the hon. Member with a specific breakdown, but I think that it is the majority, because women and children are disproportionately affected. We are proud and pleased that we have committed £26.5 million in our immediate response to the tragic flooding.
Sir James Duddridge (Rochford and Southend East) (Con)
What consideration have the Government given to opening two new high commissions in the two newest Commonwealth countries, Gabon and Togo?
Dr Julian Lewis (New Forest East) (Con)
May I attend the meeting that the Minister is going to have about judges, so that the plight of Afghan interpreters and others who helped our forces can also be considered?
Sarah Champion (Rotherham) (Lab)
It has been well reported that a very sizeable proportion of the UK’s international aid budget is being spent within the UK on the costs attributed to Ukrainian and small boat refugees. The OECD Development Assistance Committee rules on spending are clear, but the Government’s spending is less clear. Will the Minister commit to publishing a breakdown for this financial year of how the UK’s in-country refugee costs are being spent based on the DAC eligible costs guidelines?
Global Food Security
Leo Docherty Excerpts(2 years, 1 month ago)
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The Minister for Europe (Leo Docherty)
It is a pleasure to serve under your chairmanship, Mr Pritchard. I am standing in at short notice after my right hon. Friend the Member for Chelmsford (Vicky Ford) left her position. I wish to put on the record our gratitude for everything that she did so magnificently in the Department in recent months in her role as the Minister for Development. Her work was much admired throughout the House and her recent visit to Ethiopia showed the compassion with which she conducted her duties and the extent of her contribution. I put on the record our thanks to her.
In the same spirit, I congratulate the incoming Minister for Development, my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell). He will need no introduction on this issue; he has long-standing and deep expertise. I am sure he will fulfil the role with alacrity and that he will be available for Westminster Hall debates in the near future.
I congratulate the hon. Member for Birmingham, Erdington (Mrs Hamilton) on her first Westminster Hall debate. She gave a passionate speech full of information and I am grateful for the issues and questions she raised. She set the issue of food security in the global context very effectively, and mentioned the fact that food insecurity is a function not of food shortage but of a lack of access to food; I agree wholeheartedly. It is with great regret that we see food being weaponised as a political means of achieving certain outcomes around the world—indeed, we are seeing that in mainland Europe right now.
The hon. Member mentioned the fact that we have a global cost of living crisis; I will make some remarks about our contribution to the World Food Programme in that respect. She rightly pointed out that women and children are disproportionately affected by food insecurity, and I assure her that that is why empowering women and girls is one of the main pillars of our international development strategy. We are in agreement on that issue. She also made some remarks about climate finance, which I will cover presently.
I thank all hon. Members for their contributions, not least the Labour spokesperson, the hon. Member for Birmingham, Edgbaston (Preet Kaur Gill); the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier), who is no longer in her place but talked about the importance of small farmers; and the hon. Member for Strangford (Jim Shannon), who talked about the importance of domestic food production and the magnificent production of fish and beef in his constituency, which is an extremely important contributor to UK domestic production. The hon. Member for Glasgow North (Patrick Grady) talked about the importance of sustainable agriculture and small farmers, which was a very relevant set of remarks, and the hon. Member for Coventry North West (Taiwo Owatemi) mentioned the climate impact of food security, which is something we are serious about and which I will cover presently.
The hon. Member for Stirling (Alyn Smith) made clear the connection between geopolitics and agriculture and brought to bear his deep experience in the European Parliament, which was welcome. He referred to the IDC report; he will have seen the Government response, which is cogent and lays out the fact that the Government are doing a great deal. He should be reassured that there is coherence across Government about bringing development to bear throughout everything we do, and that it is linked into the integrated review in terms of our being aware of climate change and food security as a function of geopolitics, but I welcome his remarks.
The world faces an unprecedented food and nutrition crisis. Conflict, climate change and the lasting impacts of covid have had a devastating impact on local and global food systems and the people who rely on them. On top of that, we have the insecurity coming out of Putin’s outrageous invasion of Ukraine and the extent to which he has sought to weaponise the flow of grain, principally, but also other foodstuffs from Europe’s breadbasket. We are keenly aware that up to 345 million people face acute food insecurity. Close to 50 million people are one step away from famine and, across the regions of most concern, some 9 million children are suffering from severe malnutrition. Our focus is on meeting humanitarian need, keeping food moving and working to future-proof global food systems. We are working to resolve conflict and address its root causes.
I gently say to the hon. Member for Birmingham, Edgbaston that we have been constrained in our official development assistance budget, given the reduction to 0.5%, but we should be proud that it is still north of £11 billion annually. It is not a decimation: development is still a very important part of our political output through the Foreign Office, so we should be upbeat about what we can achieve given—and despite—our budgetary constraints. Helping those in acute humanitarian need is a top priority. We are taking life-saving action. Our support to the World Food Programme is helping it to reach 150 million people in urgent need of food and nutrition assistance this year. We plan to provide £156 million of bilateral humanitarian assistance to east Africa this year, helping millions of people to access essential services and supplies, including food, water, shelter and healthcare.
Of course, the UK is combining aid with diplomacy, using our political influence to bring others to the table and deliver a greater impact. At September’s United Nations General Assembly we co-hosted an event with the head of humanitarian affairs at the UN, Martin Griffiths, the head of the United States Agency for International Development, Samantha Power, and the Governments of Italy and Qatar, to raise the level of alarm around the humanitarian crisis in the horn of Africa.
Furthermore, we have been one of the first to respond to the terrible flooding that has affected more than 33 million people in Pakistan. Alongside the amazing response from the British public to the Disasters Emergency Committee’s appeal, we have provided supplies, shelter and essential water and sanitation assistance to help to prevent water-borne diseases. Colleagues have been hugely impressed with Lord Ahmad’s leadership on that in the Department.
When it comes to multilateral finance, international co-operation is paramount in addressing food insecurity. With the UK’s support, the multilateral development banks are stepping up their assistance. Of course, we remain one of the largest shareholders—indeed, we are joint fifth—at the World Bank. The bank has announced $36 billion-worth of support alongside a further $9 billion from other multilateral development banks.
When it comes to Ukrainian grain, it is clear that Russia’s invasion of Ukraine has been extremely harmful. We have pushed hard for the Black sea grain initiative and are very grateful for the leadership and co-ordination provided by the Turkish Government, which has helped to stabilise food supplies by increasing the flow of grain out of Ukraine. Since 1 August, more than 8 million tonnes of food has been exported from Ukraine’s Black sea ports and, importantly, more than 60% of the wheat exported has gone to low and middle-income countries. That is despite what Putin’s regime might say in its propaganda. It is vital that Russia does not block the deal’s extension when the initial 120-day period expires on 19 November. We are working really hard through our diplomatic channels to ensure that that does not happen, because the grain must keep flowing.
Several Members mentioned climate change and sustainable agriculture, which is absolutely critical. Feeding the world must work hand in hand with tackling climate change, biodiversity loss and biological threats. I can confirm that our international development strategy reaffirmed our commitment to doubling our international climate finance to £11.6 billion between 2021-22 and 2025-26. At least £3 billion of that will be invested in solutions to protect and restore nature, and we aim to ensure a balanced split between mitigation and adaptation finance. We are putting our money where our mouth is. We think that is important because, as has been discussed in this debate, if the climate is protected to allow small farmers to continue production, that tackles the root cause of these sorts of issues.
Furthermore, under our COP26 presidency we helped to bring agriculture and food systems to the centre of climate discussions at that forum. We launched the agriculture breakthrough agenda, which will help to accelerate the transition to sustainable agriculture. At the World Bank annual meetings, we bought partners together for our policy dialogue, to learn about and collaborate on policies that work for people, climate and nature, such as the repurposing of harmful subsidies.
For example, Vietnam is training farmers in the Mekong delta in sustainable rice production, cutting the use of water resources by 40% and reducing fertiliser use while increasing farmers’ incomes. Similarly, Sierra Leone is planting trees on degraded lands to reduce the impact of climate change and to protect farmers from flooding. I am sure Members will be pleased to hear that in Malawi, Nepal, Rwanda and Ethiopia, our commercial agriculture for smallholders and agribusiness programme is helping farmers to adopt climate-smart technologies and improve fertiliser use.
On science, technology and innovation, our investment in science and research has been important to the Foreign Office’s work. Our support enables bodies such as CIGR—the International Commission of Agricultural and Biosystems Engineering, which is the world’s leading agricultural science and innovation organisation—to release new climate-resilient wheat varieties, which help millions of farmers to increase the resilience of their crops to drought and disease. Last year alone, our investments resulted in the release of 59 climate-resistant and nutritious new bio-fortified crop varieties, feeding more than 27 million people.
Jim Shannon
I thank the Minister for his comprehensive response to the debate. I and other Members have talked about the partnership between the agrifood sector and universities, and how that advances the technological opportunities that result. Does he recognise that those contributions and those partnerships in universities across all of this great United Kingdom of Great Britain and Northern Ireland really point the way forward to finding a new way to feed the world?
Leo Docherty
I agree entirely; that co-operation is extremely important. That kind of research and co-operation has shown that the efficiency of things such as photosynthesis in food crops can boost yields by more than 20%. That is critical to drive up yield, improve the efficiency of land use and, of course, feed the world, so we are in agreement. We need such technological transformation to expand global food supplies in a sustainable way without expanding land use or damaging the environment.
I conclude by thanking all hon. Members for their thoughtful contributions. We acknowledge the fact that feeding the world in the face of such huge challenges demands the attention of us all, and the entire effort of the Government is focused on that. I am grateful for the contributions from all parties. We will continue our extremely important work.
Persecution of the Rohingya: International Response
Leo Docherty Excerpts(2 years, 1 month ago)
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The Minister for Europe (Leo Docherty)
I am pleased to be able to respond today. I thank the hon. Member for Bethnal Green and Bow (Rushanara Ali) for calling this debate and for speaking movingly of her experience, which is reflective of her long-standing interest in this issue, for which the House is grateful. I should say that in preparation for this debate, I have liaised with Lord Ahmad of Wimbledon, the Minister of State with responsibility for south Asia. Again, I wish to thank the hon. Lady and her colleagues on the all-party groups, as we acknowledge the importance of their work over a number of years in raising the prominence of this issue and correctly pushing for an active policy response. I am also grateful to the right hon. Member for Barking (Dame Margaret Hodge) and the hon. Member for Bradford East (Imran Hussain) for their contributions in the Chamber
It has been more than a year and a half since the Myanmar armed forces seized power in a coup in that country. We must be clear that they continue to inflict acute suffering on the people of Myanmar. The country is plunging ever deeper into political, economic and humanitarian crisis, and the consequences for regional stability and security are clear.
The Myanmar armed forces continue their brutal campaign of violence against civilians, with many of the same hallmarks of the atrocities committed against the Rohingya in 2016 and 2017. The recent airstrike on a school, which killed at least 11 children, was an abhorrent reminder of the nature of the military regime. At this point I should say, in response to the questions from the hon. Member for Bethnal Green and Bow, that we are targeting sanctions at the military’s access to finance and arms. That includes targeted sanctions on gems and timber. We have worked and continue to work closely with partners in the US, Canada and the EU to tighten the sanctions regime to hit the military where it hurts.
More than 14 million people are now in need of humanitarian assistance—a staggering 13 million increase since the coup—which makes the situation in Myanmar one of the world’s largest humanitarian crises. Over the past financial year, the UK Government have given more than £49 million in assistance to support humanitarian needs, as well as for healthcare, education and civil society. More than half that money is being spent to tackle the humanitarian crisis, particularly in the border regions. That includes support to the Rohingya communities in Rakhine state. Approximately 600,000 Rohingya remain in Rakhine state, almost a quarter of whom have been confined to camps for the past decade.
We are now five years on from the horrific violence and trauma that the Rohingya communities suffered in 2017. Sadly, there continues to be no sign of a durable solution to the Rohingya refugee crisis. We are particularly concerned about the renewed violence in Rakhine state over the past month. Rohingya communities are caught up in fighting between the armed forces and the Arakan army, which is, as Members will know, an ethnic Rakhine armed organisation. Humanitarian access is blocked by the military regime, leaving nearly a quarter of a million people in need.
Rohingya communities, who have been stripped of their citizenship and denied freedom of movement, have been caught in the crossfire, with many trying to flee to safety. The UK Government are clear: the violence must stop immediately; all civilians must be protected; humanitarian access must be restored; and Rohingya communities must be enabled to return to Myanmar from neighbouring countries in a safe, voluntary and dignified way.
When it comes to our support, which has been mentioned, since 2017 the United Kingdom has provided £340 million-worth of support to the Rohingya and neighbouring communities in Bangladesh. We have also provided £25 million for the Rohingya and other Muslim communities in Rakhine state. This has paid for life-saving food, water, shelter, healthcare and protection. We continue to be a major global donor to the United Nations’ humanitarian agencies, providing £108 million this year. That enables them to respond to this crisis, including when it affects young people and children. One of our key partners is UNICEF, which attends to children and young adults who are particularly in need.
Let me address directly one question from the hon. Lady. We remain committed to increasing the level of our humanitarian support back to 0.7% of GNI when fiscal constraints allow. We have been clear about that all along. We are of course operating under some constraints.
Overall, the UK Government’s total portfolio of support makes us one of the largest bilateral humanitarian donors to the Rohingya response. We will continue to provide support until the Rohingya are able to return to Myanmar, as well as to local communities around the camps in Bangladesh. We will of course continue to work alongside the international community to improve conditions for the Rohingya in Myanmar and mitigate the risk of further atrocities. As I have mentioned, that work includes using targeted sanctions and building a global coalition of countries committed to tackling the flow of arms into Myanmar.
This year marked the fifth anniversary of the atrocities committed by the Myanmar armed forces against the Rohingya people. We marked it by pressing for accountability for the atrocities in Rakhine state. We have not forgotten what happened. Last month, as the hon. Lady mentioned, the United Kingdom announced a further round of sanctions to target businesses with close links to the Myanmar armed forces that funded the clearance operation of 2017. We want to hold those responsible to account. We believe that that is crucial to ending the violence and the misery suffered by the Rohingya.
In August, the UK Government announced our intention to intervene in the International Court of Justice case—the case mentioned by the hon. Lady—which has been brought by the Gambia, regarding Myanmar’s obligations under the genocide convention. We believe that that is the best form of holding those responsible to account. The hon. Lady also referred to the International Criminal Court. Of course, we support attempts to bring these issues before the ICC, but our judgment is that a referral from the Security Council would not at this stage be the most efficacious way of doing that, and it may inadvertently afford comfort to Myanmar’s military. Our belief is that the best vehicle for holding the perpetrators of these terrible atrocities to account is through the International Court of Justice and the case brought by the Gambia, and we have been energetic in our intervention in support of that case.
Rushanara Ali
I thank the Minister for his response, but could he say a bit more about what is being done to build that international alliance to ensure that the ICC referral route is pursued at some point? The only way to do that is if the UK, as the lead, actually works to build that alliance. It will not happen without that effort. Furthermore, what exactly are the UK Government doing to support the ICJ case led by the Gambia? Having expressed support, can the Minister be specific about what exactly the Government are doing?
Leo Docherty
We certainly hope that the ICC will at some point be a forum for holding these crimes to account. We will continue to use our diplomatic network very energetically to build a foundation for one day arriving at that point. We think that, on that journey, our contribution to the ICJ case will be very significant. What we bring to that is tremendous legal firepower and an ability to add real strength to the case being brought by the Gambia. We hope that our alliance and our legal firepower will be an effective and important intervention in that case, which may lay the foundation for further legal activity and, possibly in the longer term, some movement in the ICC.
To achieve true justice for the Rohingya, their citizenship in Myanmar must be restored, the systematic human rights violations they have suffered for decades must end and Rohingya people must be meaningfully included in future visions of Myanmar society. Humanitarian assistance cannot solve that political element of the crisis. We need to look to the future and work to create the conditions that will allow the Rohingya to return to Myanmar voluntarily, safely, and with dignity when the situation allows.
We therefore continue to engage with a range of partners, both globally and in the region, to encourage dialogue, to find a peaceful resolution to the crisis and fundamentally to support a return to democracy. We will use all available opportunities, including at the G7 and with our Association of Southeast Asian Nations partners, to push for a long-term solution to the crisis at its root cause. We will also use our role as penholder to keep the situation in Myanmar on the UN Security Council’s agenda and explore all available council tools.
The Rohingya crisis remains a top priority for this Government. We will continue to do all we can to ensure the Rohingya can voluntarily, safely and sustainably return home when conditions allow, and to ensure that all people in Myanmar can live safely and in peace. I reiterate my thanks to the hon. Lady for calling this debate and to all parliamentarians for their efforts to engage and support this important issue.
Mr Deputy Speaker (Mr Nigel Evans)
As somebody who has been to Cox’s Bazar myself and seen the appalling consequences of the persecution of the Rohingya, I must say how privileged I am to have chaired today’s Adjournment debate.
Question put and agreed to.
Treaty on the Non-Proliferation of Nuclear Weapons Review Conference
Leo Docherty Excerpts(2 years, 1 month ago)
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The Minister of State, Foreign, Commonwealth and Development Office (Leo Docherty)
The House may welcome an update regarding the 10th treaty on the non-proliferation of nuclear weapons review conference, which was held at the United Nations in New York from 1 to 26 August. The conference reviewed progress and sought to reach consensus on future actions under the treaty’s three pillars: disarmament, non-proliferation and peaceful uses of nuclear technology. While the conference was unable to achieve its overall goal of a consensus outcome document owing to Russian actions, it advanced discussion on each of the treaty’s three pillars, and agreed to establish a working group on further strengthening the review process of the treaty, open to all states parties.
We were deeply disappointed that, despite the progress made in many areas, Russia blocked the adoption of a consensus outcome document over references to Ukraine, in order to defend its unprovoked, illegal war on Ukraine. Russia’s betrayal of the security assurances it gave through the Budapest memorandum when Ukraine joined the treaty, and its responsibility for the unfolding situation at the Zaporizhzhia nuclear power plant, were both referenced obliquely in the President’s consolidated text. Russia’s aggression poses grave challenges to the international nuclear security architecture. The UK, and many other states, raised these concerns consistently throughout the conference, and the UK issued a joint statement with 56 countries explaining how Russia’s aggression and behaviour in Ukraine impacted the treaty.
The UK played an active role both in the preparation for the conference and at the conference itself. As part of its preparations, the UK published a revised national report setting out the action being taken to support the treaty and fulfil the UK’s commitments across all three pillars of the treaty. At the start of the conference, former Minister of State at the Foreign, Commonwealth and Development Office, Graham Stuart MP, set out the UK’s approach and progress against the treaty’s objectives, and led a side event on the UK’s national report. The UK’s positive agenda for the conference focused on our track record on disarmament, including reductions in stockpiles and delivery systems and thought-leadership on risk reduction, verification and transparency. The UK also highlighted our leadership in establishing the “Sustained Dialogue on Peaceful Uses”, a new effort to increase access to the benefits of peaceful nuclear technologies for development, including through meeting the UN sustainable development goals. We engaged constructively in the negotiations throughout, seeking to reach agreement and to make progress across all three pillars of the treaty.
The lack of a consensus outcome neither undermines the treaty nor changes states’ obligations. Of the nine previous review conferences, which have taken place almost every five years since the treaty came into force in 1970, only three have adopted a comprehensive final document by consensus. Throughout, the treaty has remained vitally important for the UK and for the international community as a whole, playing an unparalleled role in curtailing the nuclear arms race and keeping the world safe. The action plan adopted at the 2010 conference remains valid as a comprehensive road map for all states party to the treaty to follow to take forward action on disarmament, non-proliferation and peaceful use of nuclear technology, as do the consensus outcomes from 2000 and 1995. The UK will continue to work closely with our partners to strengthen the treaty and make progress against this roadmap, while also building on the successes of this conference.
In particular, we look forward to contributing to the working group on strengthening the review process and we will continue to work with Norway on our initiative to clarify and apply the principle of irreversibility. We will also be launching, with the United States and 30 other partners who have joined so far, the sustained dialogue on expanding access to the peaceful uses of nuclear technologies.
The UK’s commitment to the treaty and to fulfilling our obligations, including under article VI on disarmament, remains undiminished. As a nuclear weapon state that takes our responsibilities seriously and an original party to the treaty, the UK remains committed to creating the conditions for a world without nuclear weapons. We have approximately halved our nuclear stockpile since the cold war peak and we continue to drive research and discussion on risk reduction, verification and transparency. We remain committed to working internationally to reduce the risk of nuclear conflict and enhance mutual trust and security. The UK will continue to play its part in bringing about a safer world for all and achieving the long-term goal of a world without nuclear weapons.
The treaty is and will remain the fundamental cornerstone of the nuclear non-proliferation regime and is the irreplaceable foundation and framework for our common efforts on advancing nuclear disarmament and the peaceful uses of nuclear technology. The conference decided to hold the 11th review conference in 2026 in New York, with preparatory committees to take place in 2023 in Vienna, 2024 in Geneva and 2025 in New York. The UK will continue to work alongside the international community at all of these meetings to strengthen the regime and to promote international stability, peace and security and will keep Parliament updated.
[HCWS316]
Contingent Liability Notification: Ukraine Guarantees
Leo Docherty Excerpts(2 years, 1 month ago)
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The Minister of State, Foreign, Commonwealth and Development Office (Leo Docherty)
Today, I have laid a departmental minute that describes two liabilities that the Foreign, Commonwealth and Development Office is undertaking to support the economic stability of Ukraine following Russia’s invasion in February 2022.
It is normal practice, when a Government Department proposes to undertake a contingent liability in excess of £300,000 for which there is no specific statutory authority, for the Minister concerned to present a departmental minute to Parliament giving particulars of the liability created and explaining the circumstances; and to refrain from incurring the liability until 14 parliamentary sitting days after the issue of the statement, except in cases of special urgency.
This departmental minute sets out details of two new liabilities undertaken by the Foreign, Commonwealth and Development Office. The first is a guarantee to support lending by the European Bank for Reconstruction and Development to Ukrenergo, Ukraine’s state-owned and sole electricity transmission system operator. This guarantee has an expected maximum exposure of €54 million— £47 million. The second is a guarantee to support lending by the World Bank to the Government of Ukraine directly. This guarantee has an expected maximum exposure of €527 million—£460 million. The guarantees will be denominated in the currency Ukraine decides to borrow in. Due to the urgency of the situation in Ukraine and unexpected disruption to Parliament’s schedule in September, we notified the Public Accounts Committee instead of Parliament before signing the first of these two guarantees. We are now presenting a written ministerial statement and departmental minute to the House for information.
The FCDO is guaranteeing both principal and interest repayments on the EBRD and World Bank loans. A UK pay-out would be triggered if either Ukrenergo or the Government of Ukraine miss a repayment by 180 days.
The World Bank and EBRD are both well respected multilateral development banks that benefit from preferred creditor status. The UK is an active shareholder at both institutions.
The exact length of the liabilities is linked to the terms of the agreed financing between the World Bank, EBRD and the Government of Ukraine. The EBRD guarantee has a maturity of five years. The World Bank guarantee has a maturity of 18 years.
HM Treasury approved both of these guarantees and the expedited notification process. Chairs of the relevant parliamentary Committees did not raise any objections. If any Member of the House has questions, do get in touch.
A copy of the departmental minute has been placed in the Library.
[HCWS315]
Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2022
Leo Docherty Excerpts(2 years, 1 month ago)
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The Minister of State, Foreign, Commonwealth and Development Office (Leo Docherty)
I beg to move,
That the Committee has considered the Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2022 (SI. 2022, No. 818).
The statutory instrument before us was laid before the House on Tuesday 19 July 2022 under the powers provided by the Sanctions and Anti-Money Laundering Act 2018, also known as the sanctions Act. Sanctions are of course a key pillar of our foreign policy. It is essential that our sanctions regimes are maintained and updated appropriately so that we can respond at pace to the activities of malign actors around the world. We have recently shown the strength and utility of our sanctions in our response to Vladimir Putin’s outrageous invasion of Ukraine and Russia’s crimes against the Ukrainian people.
The legislative instrument that we are debating today updates all our sanctions regimes, including those we are required to implement due to our United Nations obligations, as well as our own autonomous UK regimes. The regulations ensure that cryptoasset businesses fall within the scope of financial sanctions reporting requirements, strengthening our ability to respond to emerging threats and evolving global standards. Specifically, the regulations require cryptoasset exchanges and custodian wallet providers to report to the Treasury in the event that they encounter any designated persons in the course of their business or if they are holding any frozen assets on behalf of customers who are designated.
Cryptoasset businesses are also required to report any suspected breaches of financial sanctions. The regulations include new powers for public authorities to share financial sanctions information with the Treasury. The change ensures that a wide range of persons and organisations, from regulators to local authorities, have a dedicated information-sharing gateway.
Michael Fabricant (Lichfield) (Con)
I am delighted that my hon. Friend has given way. On cryptoassets, will he assure me that he or his Department will work closely with GCHQ on this? Without its help we will not know precisely what cryptoassets are being transferred by whom and to whom.
Leo Docherty
I am grateful to my hon. Friend for that question. We do of course have an intelligence-led approach to sanctions. The good thing about the regulations is that they will expedite the way we work in lockstep with Government agencies and the private sector.
Organisations will no longer have to rely on non-sanction specific gateways or on the Treasury’s powers to compel the release of information from partners. We expect that that will give organisations confidence to share information so that Government can better pursue breaches and uphold the integrity of UK sanctions. Those changes are possible thanks to the Economic Crime (Transparency and Enforcement) Act 2022, which amended the sanctions Act in March this year.
The regulations also make changes to our various sanctions regimes in order to update definitions and clarify intentions. Those amendments ensure that the definition of “designated person” is consistent across regulations. They include a correction of the reporting obligations relating to the transfer of funds to a ringfenced account. They clarify that within the Libya sanctions regime it is not a breach of sanctions to credit a frozen account with interest, and they specify that Treasury licences would be available for the purpose of satisfying prior obligations.
Nick Smith (Blaenau Gwent) (Lab)
I have just been going through the explanatory memorandum. On page 4 it states:
“No consultation has been carried out on this instrument”,
but it goes on to say that there was an earlier consultation, as regards the memoranda to the amended regulations. Can the Minister tell us how wide that consultation was and what the response was?
Leo Docherty
That is a very good question. I will gladly write to the hon. Member with the granular breakdown of the scale and depth of the response to that earlier consultation.
Leo Docherty
I feel confident—my expectation is—that it was extensive to the degree that we did not need to do a second one. I look forward to writing to the hon. Member for Blaenau Gwent on that.
These measures also correct acronyms that were entered incorrectly into the initial regulations or were missing. The name of the African Union peacekeeping force in Somalia is also updated. The regulations will ensure that our sanctions continue to hold to account corrupt officials, abusers of human rights and malign actors across the world, and that our UN sanction regimes remain accurate.
To conclude, the amendments mean that our sanction regimes take account of the most modern financial services and prevent loopholes being exploited in the future. I commend the regulations to the Committee.
Leo Docherty
I am grateful for colleagues for their constructive comments and their perfectly valid questions. I will attempt to cover off some of them as I conclude.
I agree entirely with the hon. Member for Cardiff South and Penarth’s characterisation of the appalling ballistic strikes from Russia on Ukraine yesterday. It is important that we put on record our absolute horror at the scale and nature of that activity, and we are as one in our condemnation of the continued barbaric impact of this illegal war on the people of Ukraine. I acknowledge his personal interest in that country.
The hon. Gentleman made the perfectly sensible point that these kinds of transactions—the sort of illicit activity that these instruments are seeking to tackle—are already illegal. What the legislation is doing is tightening up our approach to it. He asked about application. We should acknowledge the context: in our sanctions response so far this year to the outrageous Russian invasion of Ukraine, we have put in place a very robust sanctions package that includes more than 1,200 individual sanctions, more than 120 entities and 126 oligarchs, who have a total net worth in excess of £130 billion. We can feel pleased that we have been active and quite aggressive in terms of our sanctions, but there is always more to do because we are aware of the extent to which Putin and his cronies will find ways around this globally and cryptocurrencies might be one of those elements. That is why we are seeking to tighten up this particular area, but I agree with him that we must be cognisant of the extent to which Russian wealth around the world is being weaponised. The west needs to be urgently aware of that.
The hon. Gentleman used that as a good springboard to go into a discussion about so-called mixers and tumblers. I note that Tornado Cash was sanctioned recently in the US. I am confident that Tornado Cash and Blender are entities that the Minister of State, Foreign, Commonwealth and Development Office, my right hon. Friend the Member for Hereford and South Herefordshire, will be looking at, but I commit to him writing to the hon. Gentleman to confirm that those two entities are under consideration.
The hon. Gentleman also asked about the extent to which we are discussing with allies the mechanisms being used for sanctions evasion, and for an update on the discussions between His Majesty’s Treasury and the IMF. I will ask my right hon. Friend to include that in his letter when he has an opportunity to write.
Stephen Doughty
I thank the Minister for those comments. However, he will understand my concerns that those entities were sanctioned by the US, our closest ally, in August. It is now October; that is three months where evasion could have been going on. I appreciate his willingness to look at both those issues with his colleague. Will he commit to a wider review of all types of mixers and tumblers—I named two—that might be used in that way?
Leo Docherty
We are in complete agreement. I agree that this is urgent and it should be a broad consideration of the tumbler facility. I commit to an urgent update from my right hon. Friend the Member for Hereford and South Herefordshire on that. He might also usefully cover the finance element of the Russia report, as the hon. Gentleman rightly mentioned. He then asked a perfectly valid question about staffing levels at Departments and public agencies with regard to sanctions. Having met members of the legal team earlier today, I am confident that we have some of our best people on it. It is an urgent priority and I think we have the required staffing levels.
The hon. Gentleman mentioned United Russia. I will not be drawn into giving an answer to that now, but I commit to formally replying to that question. He also asked about sequestration. That is a live topic as we consider the remarkable financial challenge of the reconstruction of Ukraine. Clearly, there is a legal context, but that is actively under consideration in the Department. We have already embarked on a great body of work in advance of us hosting the Ukraine reconstruction conference next year. Of course, it is more urgent than that, and it is something we are considering.
Stephen Doughty
The Minister is generous. I have mentioned the importance of keeping at the cutting edge of this. There is an important group established by Ambassador McFaul, the former US ambassador, in which a number of UK experts are involved. However, I am not clear whether there is UK Government representation in that. Will the Minister assure me that we are keeping in close contact with such groups that are trying to be at the cutting edge, to ensure we have the toughest regime possible implemented in the quickest way?
Leo Docherty
I commit to keeping that on our radar. That sounds like a useful proposition, so I am happy to commit to it.
I was pleased to hear questions from the hon. Member for Walthamstow. She asked some good questions about implementation, because this is all about implementation. If we cannot implement it, it will not make a difference and there is no point in doing it. I can give her absolute reassurance that we are in lockstep with our EU and US allies. This is a global effort that is intelligence-led. We each use our domestic law, but this issue is very much joined up because it is a global threat and the response that it demands is global. All our agencies are involved on a daily basis in prosecuting and pursuing this kind of threat.
The hon. Lady asked about public authorities, the balance of compulsion and them volunteering information. Our expectation is that this involves bodies such as the Financial Conduct Authority, for example. It is designed to ensure that they have a road map to being helpful, rather than requiring them to do something they do not want to do. Most people will want to be doing this; it is designed to lay out a clear pathway to information being shared urgently with the Treasury. That is our expectation, but we will measure the response and use that as a mechanism for holding to account and judging success.
Stella Creasy
That is helpful to hear. Will the Minister clarify something? New section 49A, for example, mentions “any police officer”, “any local authority” and “any other person exercising functions of a public nature”.
Will he clarify what level, and will there be training provided? It is quite a big request to make of a police constable to share information. Equally, this will clearly be tested because it comes across other disclosure rules. For example, there are clear guidelines about supervising officers, which do not seem to be in this legislation. What protection will there be for a police constable, for example, maybe from prosecution or censure under general data protection regulation, without clarity as to who makes the decision on what information can be disclosed, and if it is a permissive, rather than mandatory, requirement?
Leo Docherty
I think it is the other way around and that this will actually afford greater protection because it will make things clearer and ensure that there is no risk of GDPR being used so that a certain individual finds themselves in a regrettable circumstance. I think it will clarify. Under this legislation, the public authorities that are exposed to these sorts of issues will be required to conduct that sort of training, and they will be responsible, as we would expect.
The hon. Lady then went on to a mischievous digression, because she sought to use the unfortunate inclusion of inaccurate acronyms as a means of shaking our confidence in not just this legislation but other new legislation as we tidy up our statute following our exit from the EU. I can say that there is no duck soup in this legislation or any other. Clearly drafting errors happen in legislation; it is the way that the world works, unfortunately, but we are, as parliamentarians, amenable and available to redraft and improve, as we are doing this afternoon. Therefore, in answer to the hon. Lady’s question, yes, I am confident not only that this piece of legislation is correct and in good order, but that the vast body of legislation that will flow from our leaving the EU will also be similarly effective and accurate. On that note, I again commend the instrument to the Committee.
Question put and agreed to.
Resolved,
That the Committee has considered the Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2022 (SI. 2022, No. 818).
Withdrawal from Afghanistan: Joint Committee
Leo Docherty Excerpts(3 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Minister for Defence People and Veterans (Leo Docherty)
I am pleased to wind up this important debate. I thank the shadow Minister for his constructive remarks.
I start by putting on record our gratitude to all those who served in Afghanistan over the last 20 years. Our veteran community should know that it was worth it. It was worth it to go to Afghanistan in 2001 to get rid of al-Qaeda, it was worth it to spend the long years of hard sacrifice and service in Helmand province to expand education and security alongside our courageous interpreters, and it was worth it when the rising tide of geopolitics meant that we had to leave Afghanistan. It was worth it when Operation Pitting extracted, under huge pressure, 15,000 civilians in the largest humanitarian airlift in living memory. My message to veterans tonight is, “Be proud of what you did in Afghanistan and hold your heads high.”
Operation Pitting has given way to Operation Warm Welcome, and we will energetically welcome the Afghan families who have come to this country. I am delighted that this cross-Government effort is led by the Under-Secretary of State for the Home Department, my hon. Friend the Member for Louth and Horncastle (Victoria Atkins), who is sitting on the Front Bench this evening. We will bring a spirit of compassion, comradeship and community to the welcome we extend to those who helped us when we were in their country, and we will help them now they have arrived here.
I was pleased to meet some of those families on their arrival in Birmingham, and I saw the relief on their faces. That joy is tempered by the fact that not everyone got out. Some 300 people who qualified for ARAP were left behind, which brings great sorrow, especially to those hon. Members who, through personal experience, have an understanding of the value that interpreters brought to our military operations.
It is clear to everyone that the case for the Opposition motion has not been made, but I will touch briefly on some of the comments that have been made. We are grateful to my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) for pointing out that his role as Chair of the Foreign Affairs Committee basically makes the motion pointless, and we very much welcome his scrutiny, which I hope will continue with his characteristic vigour.
The right hon. Member for Birmingham, Hodge Hill (Liam Byrne) spoke movingly about the barbarism of the Taliban, and we share that concern. One of my constituents was among the fatalities on the Thursday of the last stage of Operation Pitting, so we have all been touched by that tragedy.
My right hon. Friend the Member for New Forest East (Dr Lewis) spoke about the limitations of the motion with regard to the handling of intelligence, which was supported, in welcome fashion, by the right hon. Member for North Durham (Mr Jones). My right hon. Friend the Member for New Forest East brings great knowledge to his position, and he touched on the central importance of Select Committees, which essentially make the Opposition motion entirely pointless. I am grateful to him for pointing that out.
I was pleased to hear the comments made by the hon. Member for West Dunbartonshire (Martin Docherty-Hughes). We do not agree on any policy at all, but he has a sustained interest in this field and he shares his brother’s good sense of humour.
Finally, the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) raised the case of the Linda Norgrove Foundation, and he must keep trying. We would be pleased if he wanted to raise the case with Ministers personally after this debate, and that stands for all Members in the Chamber tonight.
I will conclude by saying—I am watching the clock and it is not a problem, Mr Deputy Speaker—that we must reject this motion tonight. We must express confidence in our ability to project power around the world, to fulfil our national security—
Sir Alan Campbell (Tynemouth) (Lab)
claimed to move the closure (Standing Order No. 36).
Question put forthwith, That the Question be now put.
Question agreed to.
Main Question accordingly put.