(1 year, 3 months ago)
Grand CommitteeMy Lords, there has been a change of Minister since we discussed this matter last week when we had a curtain-raiser on Amendment 85, which I moved in Grand Committee. It is always good to see the noble Lord, Lord Goldsmith, in his place; indeed, he had to answer the debate initiated in this Room last week by the right reverend Prelate the Bishop of St Albans. He also had to answer the question about how sanctions can be used to deter autocrats and flag British values against the values of authoritarian regimes; we discussed that issue at some length. As one would expect, the noble Lord gave a competent and welcome reply.
I notice, however, that the Minister’s noble friend Lord Johnson is sitting alongside him—
Oh, is he not? I am sorry; I had better put my spectacles back on.
I apologise to the noble Lord, Lord Evans. It seems that the noble Lord, Lord Johnson, is still travelling back from Hong Kong, but I can see that the noble Lord, Lord Sharpe of Epsom, is sitting in his place. He dealt with our debate last week; no one in this Committee knows more about Hong Kong than he does, having worked there. He will recall the discussions that we had not just on that occasion but on other occasions as well.
The matter was very much on my mind when reading the reports about the visit of the noble Lord, Lord Johnson. I wondered how the imprisonment of more than 1,000 legislators and lawmakers in Hong Kong has been dealt with during that visit, not least the position of Jimmy Lai, who is a British citizen. Indeed, in this very Room, sitting at the back of our proceedings just a couple of weeks ago was Sebastian Lai, his son. I know from our subsequent discussion that he felt deeply that not enough had been done by the United Kingdom in raising the case of his imprisoned father, who might well die in prison. I hope again as I press the Minister, as I did last week, that he will be able to tell us what the response has been from James Cleverly, the Foreign Secretary, and the Prime Minister, to the requests that have been made. Mr Sebastian Lai, who is also a British citizen, and his international legal team should have the opportunity to discuss his case, the role of assets and why no one in Hong Kong has been sanctioned, whereas British parliamentarians have been sanctioned. Despite the sanctioning of the former leader of the Conservative Party Sir Iain Duncan Smith and colleagues such as the noble Baroness, Lady Kennedy of The Shaws, we nevertheless continue business as usual by promoting closer and deeper business links, as the noble Lord, Lord Johnson, has been doing in Hong Kong. How does that link to the need for us to assess the assets that are held in this country by people who have been responsible for the incarceration of pro-democracy legislators and activists, more than 1,000 of whom are currently in jails in Hong Kong?
The main purpose of the amendment that I moved last week and of Amendment 91A before us today is to concentrate on the sanctions regime that has been imposed as a result of the war in Ukraine. I pay tribute to the Government for what they have tried to do, often in exacting circumstances, after the war erupted, but when I went to see the noble Lord, Lord Sharpe, and a member of his Bill team to discuss this last week, he was very straightforward in saying that there is nothing new in Amendment 91A and that it entrenches the current situation. It could be said to be sending a signal, but legislation is about more than semaphore and sending signals. Will the Minister say what is new in this amendment that is not already on the statute book?
Britain’s sanctions regime is broken, which is why some of the players who have been involved in the appalling events in Ukraine have been getting away with murder. Brave people have been laying down their lives defending not just their own country but our shared values of democracy and freedom. From the outset, we must recognise that our sanctions have always been held back by murky layers of financial secrecy in this country, which is why we need more than what is in Amendment 91A and why I hope that the noble Lord, Lord Sharp of Epsom, in particular, will continue to engage with those who spoke in favour of the amendment that I moved last week—they included the noble Lords, Lord Coaker and Lord Leigh, my noble friend Lord Fox and the noble Baroness, Lady Altmann. I therefore hope that Amendment 85 in its fullness, or something like it, will be put in place of Amendment 91A when the Bill comes back on Report.
It feels like every week we get a new story about this oligarch putting his wealth “in the hands of his young children” or that oligarch shrouding his UK assets behind so many shell companies and opaque trusts that we simply cannot track them down. I mentioned Roman Abramovich as a particularly high-profile example. The so-called oligarch files which were leaked earlier this year revealed how he was allegedly able rapidly to move at least $4 billion of his wealth away from law enforcement by transferring the beneficial ownership of several secretive trusts to his children just before he was slapped with sanctions by the Government.
We do not need to take a much closer look at the network of professional enablers who make this type of wrongdoing possible to see what is involved. There are accountants, lawyers and bankers who wilfully subvert our sanctions regime in exchange for tainted roubles. This is all absolutely legal. We have built a financial services sector in which people have been able to play an interminable game of cat and mouse with law enforcement, where the official owner of a given asset—if we can identify who that is in the first place—can change with little more than a stroke of the pen and no questions asked. Now we are finding that those same people—oligarchs, kleptocrats, call them what you will —know the rules of this game and its loopholes better than we do.
Accepting that our existing sanctions policy is not fit for purpose is important, but right now we can and should find a way to make sure that what sanctioned Russian assets we have managed to identify and freeze are taken away from these oligarchs and put towards Ukrainian reconstruction efforts. As it stands, if the war in Ukraine were to end tomorrow, we would have little choice but to hand back £18 billion of frozen assets to their dubious owners, with no questions asked. This is the distinction between freezing and seizing. We simply cannot allow that to happen. Ukrainian schools, hospitals and homes need to be rebuilt in their thousands and scores of unexploded bombs and mines need to be cleared to do so.
The question for us is whether this amendment goes anywhere at all towards achieving that. The cost of rebuilding the country could top £1 trillion, according to recent estimates. Ukraine’s death toll is 60,000 and rising, with millions more people displaced. Under international law, Russia has to pay for the damage that it has caused, yet so far it is the British taxpayer who has forked out £2.3 billion in military support and another £220 million in humanitarian aid. Secrecy and inertia are enabling this—two main reasons why our sanctions regime is not working and why we need to do more than what is contained in this amendment.
I have sympathy with the Government. The sanctions regime relating to Russia was hastily constructed, as I suggested at the outset of my remarks, in the wake of a conflict that has shocked the world. The seizure of assets that belong to individuals is certainly a complex issue. The rule of law, due process and property rights should all be considered, as I discussed with the noble Lord, Lord Sharpe. This is exactly why the Government must not miss the opportunity in this Bill to make a difference, without violating any of these principles.
Our allies have already put wheels in motion. The European Union is looking to seize €300 billion of frozen Russian central bank reserves and €19 billion in oligarch assets that it holds, while Canada has made good progress on a law to allow the seizure of frozen assets. What study have we made of what is happening elsewhere in the world? Should we not emulate those pieces of legislation and ensure that we act in concert? If the Minister thinks that I am asking the UK Government to go it alone on these things, I can assure him that he is mistaken. I recognise that we have to do this with others, but others seem to be ahead of the game. As it currently stands, I do not feel that this amendment is the way we should proceed. I look forward to hearing what the Minister has to say in response.
My Lords, it is always a pleasure to follow the noble Lord, Lord Alton. Briefly, I am trying to get a sense of the proportion of this amendment. The noble Lord set a high expectation bar, whereas the Minister seemed to set a low one. I think that I heard the Minister say that it clarifies something that already exists, which sounds a little like fiddling around the margins, so it would be helpful if he could explain what this does that we cannot do already and how many cases will be brought as a result of having this power that are currently impossible to prosecute. In other words, what is this actually for, how many people do we expect it to be applied to and what sort of scale of penalty does he envision would be applied? Without that context, we will all leave the Room feeling that it really is fiddling around the margins. If he could give us a sense of scope and scale, he may be able to send us away with a slightly stronger feeling about this otherwise modest amendment.
(1 year, 8 months ago)
Lords ChamberMy Lords, as the Minister pointed out, this is a really important Bill. It will guide an estimated £300 billion of public procurement, hopefully making it safe while driving some of the things we want to happen. I thank the Minister. She had an interesting start on this Bill; she too was a Back-Bencher and tabled several critical amendments early on, and was then suddenly propelled to the Front Bench. I think we benefited from that change of perspective—that is not to criticise her predecessor.
It is appropriate that we should bookend this Bill with another amendment, because it has been a story of amendments. We should thank the Bill team, who worked through the night at the start of this in Committee in July, explaining and setting out what the hundreds of amendments were there to do. But because there were so many amendments and clearly there was so much work to do, the Bill leaves us with still more work and scrutiny required, if it is going to achieve the things that we all want it to achieve—that is, to have a transparent process that helps our small, medium and social enterprises to flourish in the public procurement system. When it goes to the other place, I hope that those further changes can be made to make sure that it delivers that, and in an ethical way.
I thank the Minister, her predecessor and her Whips in this. I thank the noble Baroness, Lady Hayman, and the noble Lord, Lord Coaker, for what has been a very constructive and co-operative process. I also thank my colleagues. I will name them, because they have worked very hard: my noble friends Lady Brinton, Lady Humphreys, Lady Northover, Lady Parminter, Lord Purvis, Lord Scriven, Lady Smith, Lord Clement-Jones and Lord Wallace. That list reflects the fact that the Bill touches so much of public life. Finally, I thank Elizabeth Plummer in our Whips’ office, without whom life would have been extraordinarily confusing for us on these Benches. That said, we wish the Bill well and beg that the MPs continue to work on it on our behalf.
My Lords, I have something to add before the thanks are completed. The Minister was good enough to express her thanks to the Cross Benches, and I draw the attention of the House to the all-party amendments which were included in the Bill. I begin by thanking her. As the noble Lord, Lord Fox, just said, it was unusual for a poacher to be turned gamekeeper in the course of the proceedings of the Bill and she did it with great aplomb and showed all the characteristics that we have come to associate with her, in the way that she dealt with constructive attempts to improve the Bill as it proceeded through Committee and Report.
As the noble Lord, Lord Fox, said, the Bill has enjoyed support from around the entire House and, of course, whatever form a Bill is in, we will all always want to try to add to it, if we are able to do so. I was therefore very grateful to the House for including the cross-party amendment I moved on the removal of surveillance equipment. I also supported the all-party amendment in the name of the noble Lord, Lord Hunt of Kings Heath, who is here, on the use of forced organ harvesting. Those two amendments are now in the Bill as it goes to another place. Unlike on ping-pong, this is a pristine Bill going to the other place. I hope that Ministers will engage with those amendments and not simply try to remove them.
There were two other amendments. The Minister will recall that the noble Baroness, Lady Stroud, moved an all-party amendment which was not taken to a vote. We had a discussion during Report about how that could be taken to the Minister who might deal with the Bill when it reached the House of Commons. I hope that the noble Baroness, Lady Neville-Rolfe, will be able to draw that to the attention of the House of Commons Minister and suggest that such a meeting should now take place.
With those remarks, I thank the noble Lord, Lord Fox, and his noble friends, but also the noble Baroness, Lady Hayman, and her noble friends—the noble Lord, Lord Coaker, in particular—and those on the Cross Benches who supported the amendments that we brought forward.
(2 years, 10 months ago)
Lords ChamberMy Lords, as the Minister said, this Bill entered the other place a year ago. It has variously been urgent, in the long grass, urgent again and now quite close to passing. I will not delay its passage many more seconds. I have shelved my inner churl, but I absolutely sign up to the comments of the noble Baroness, Lady Merron. There are outstanding issues that your Lordships commented on and put into the Bill as amendments that I hope can be picked up. I hope that when this Bill is finally put to bed, it really does protect the security of this country, and we will work, on these Benches, to help make that happen. There is a lot of unfinished business in this area. I fear that the Minister himself, or one of his successors, may very well be bringing other Bills before your Lordships quite soon.
I thank the Ministers, first the noble Baroness, Lady Barran, and then the noble Lord, Lord Parkinson, for their work and their willingness to communicate with those of us who were seeking to scrutinise this Bill. I join the noble Lord in congratulating the DCMS Bill team, and I hope he did not leave anybody out. I congratulate the noble Baroness, Lady Merron, and the noble Lord, Lord Coaker, on their legislative debuts. I also thank the noble Lord, Lord Alton, for his spirited, highly principled and really important, contributions on the Bill.
Finally, I thank my noble friends Lord Clement-Jones and Lady Northover, without whom this scrutiny would not have been complete, and Sarah Pughe, our legislative officer, for her invaluable support. With that, we wish this Bill onwards, with speed and effectiveness, because it has a very important job to do.
My Lords, before we pass this Bill, may I add to a comment to what the noble Lord, Lord Fox, and the noble Baroness, Lady Merron, said? I express my thanks as well to everyone who was on the long list that the noble Lord, Lord Parkinson, gave us, but also to his predecessor, the noble Baroness, Lady Barran. As Ministers, I do not think they could have been more helpful and more responsive to the points we made both in Committee and on Report.
My noble friend also mentioned the all-party amendment moved last week by myself and the noble Lord, Lord Blencathra, which we also raised in Committee. It raises the need for reviews to take place when another jurisdiction—specifically, in this case, many of us cited the United States of America—had banned a particular company which was not banned in the United Kingdom but working within the telecommunications sector.
One example the noble Lord, Lord Coaker, and I gave in our debates was Hikvision, which is banned in the United States. It makes the surveillance cameras that are used punitively against the Uighur people in Xinjiang but are also used in our own high streets and public buildings. That amendment called for a review: that when any such company is banned in another Five Eyes jurisdiction, it is to be reviewed in the United Kingdom. It is a very reasonable all-party amendment, but it was opposed by the Government. Before the Minister completes his remarks today, could he tell us what has happened to that amendment and how the Government intend to respond to it?
(2 years, 10 months ago)
Lords ChamberMy Lords, Amendment 1 applies the affirmative procedure to the regulations made under new Section 105B in Clause 1. It requires secondary legislation to be laid in Parliament in draft and to be subject to a debate and a vote in both Houses. Clause 1 allows the Secretary of State to introduce regulations that have wide-ranging consequences for providers, and there is no provision for any independent or specialist formal oversight of these regulations. This continues a worrying trend whereby the Government make key regulations with no meaningful parliamentary scrutiny. New Section 105A introduced by Clause 1 is wide-ranging. In fact, it covers
“anything that compromises the availability, performance or functionality of the network or service”
—I repeat: “anything”.
This means that the Secretary of State has the means to make regulations that have highly onerous provisions, laying down that any provider must take “specified measures” of any kind. This is currently under the negative procedure, which, as we have noted from these Benches on many occasions, gives a near-certain guarantee of their coming into force with a minimum of scrutiny—none, it is safe to say. In Committee, the Minister’s predecessor was adamant that additional scrutiny was not desirable. She said that this was meant for technical people and had to be explained in technical language, which it was not appropriate for Parliament to discuss. However, there is the rub: the Bill covers a huge range of potential issues and, as I said, there is no formal independent or specialist oversight of these regulations, yet the Government said that they were too technical for Parliament to have its say on them. My noble friend Lord Clement-Jones spoke about the Secretary of State having unfettered power and, as usual, he was right.
Since then, the Government have slightly changed their mind, and this is seen in Amendment 3. We welcome Amendment 3 as far as it goes, which, given that it is effectively a negative process, is not very far. It does demonstrate that the Government now believe that your Lordships’ House can review technical issues and that we are capable of this onerous task, which the Minister’s predecessor deemed us incapable of doing. Clause 1 covers virtually anything the Minister decides, and we are in danger of signing a blank cheque. Amendment 1 addresses this issue and gives Parliament particular scrutiny of how these regulations affect the communications networks that are so vital to the UK’s economy and our public life. I beg to move.
My Lords, the amendment just moved by the noble Lord, Lord Fox, is about transparency, accountability and parliamentary scrutiny. It puts Parliament into the driving seat. It deserves the support of the whole House, and I hope we will give it.