VAT: Evasion

Lord Anderson of Swansea Excerpts

Monday 20th November 2017 Lords Chamber

[Lord Bates]

First, I pay tribute to my noble friend for being a consistent campaigner on this issue, which has brought about significant change. We introduced the change where there is joint and several liability. The problem here is that non-EU importers are bringing in goods to the UK at wholesale prices, storing them here, selling them on at retail prices and not paying the VAT, thereby undercutting small businesses. We responded to that by introducing joint and several liability for online providers. That has meant that the number of non-EU traders registered in the UK has gone up from 700 to 17,500 just over the past two years—so we believe that we are making progress, but there is a lot more to do and we have further ideas in that area.

[Lord Anderson of Swansea (Lab)]

My Lords, before the revelations of the Paradise papers, was Her Majesty’s Revenue and Customs aware of the device involving the Isle of Man used by a famous racing driver? If so, why was nothing done about it? If HMRC was not aware of it, will it now close that loophole?

[Lord Bates]

VAT is a matter for the Isle of Man to deal with, but we have said that we are aware that there is a potentially significant problem here. Her Majesty’s Treasury has been approached by the Isle of Man Government and asked to provide technical advice on how to assess and close that loophole. We hope that will be a way of moving forward to ensure that everybody pays the taxes that are due.

Barnett Formula

Lord Anderson of Swansea Excerpts

Thursday 13th July 2017 Lords Chamber

[Lord Anderson of Swansea (Lab)]

What advice will the Minister give us? What do we in Wales have to do to get an extra £1 billion? It would be extremely helpful to have that advice. For example, on the Swansea Bay lagoon, investors now say they are becoming wary of keeping their money on hold. Are the Government capable of making a decision?

[Lord Bates]

We are certainly always open. That is why we spend £120 in Wales for every £100 that we spend in England. We continue to be committed to that. It is why we increased the overall capital borrowing limit to £1 billion from £500 million, and we continue to look for opportunities to grow the economy in Wales, both within and outside the Barnett formula.

East Jerusalem: Access to Emergency Care

Lord Anderson of Swansea Excerpts

Tuesday 28th March 2017 Lords Chamber

[Lord Bates]

A tremendous amount of work is going on with Syrians, not least that which DfID is supporting through its work with the UNRWA. We support 22 clinics which are providing essential medical treatment. This situation, in any circumstance, cannot be justified, but it needs to be resolved in a peaceful, constructive way which recognises the legitimate security concerns of the State of Israel.

[Lord Anderson of Swansea (Lab)]

Of course it is distressing and the people of the West Bank and Gaza deserve the very best medical treatment, but will the Minister confirm the point that has already been made—that on many occasions in the recent past, ambulances have been used to convey terrorists and explosives for use in Israel?

[Lord Bates]

We recognise that and of course we acknowledge the absolute right of the State of Israel to defend itself against terrorist attacks. We believe that with good will on both sides, it will be possible to come to a situation where innocent patients are not ending up as the victims of terrorist activities being perpetrated in Gaza or elsewhere.

Gaza Strip

Lord Anderson of Swansea Excerpts

Tuesday 21st March 2017 Lords Chamber

[Lord Bates]

For the people who are suffering so terribly in Gaza in a situation that looks so bleak as we move towards 2020, as the UN forecast, there should be several steps in addition to our supporting resolutions in various bodies. First, Hamas and the terrorist organisation should cease their terrorist attacks. Next, the Palestinian Authority should take over control of the operation of Gaza. Finally, we need to see the opening of the borders, not just with Israel but the border at Rafah with Egypt as well.

[Lord Anderson of Swansea (Lab)]

My Lords, the situation in Gaza is indeed dire, particularly for children, and this is due not only to Hamas. Do the Government at least recognise that on the latest WHO figures, albeit they are a little dated, over 4,000 Gazans have been received in hospitals in Israel and well over 90% of applicants from Palestine as a whole are accepted by Israel? Would it not be better if Gaza were to seek to build bridges rather than tunnels to Israel?

[Lord Bates]

That lies at the heart of this situation. There will be no relief for the people in Gaza, who are suffering so terribly, until there is a political solution and an easing of the tensions, and those should be based on mutually recognised rights to exist. That has to be the only way forward and the noble Lord is right to point to it as we try to apply these urgent humanitarian responses. There needs to be a longer-term political solution.

St Helena: Airport

Lord Anderson of Swansea Excerpts

Monday 17th October 2016 Lords Chamber

[Lord Bates]

Discuss the term “the right place”.

[Lord Anderson of Swansea (Lab)]

My Lords, I join in the chorus of praise and welcome for the noble Lord. He actually tries to answer questions, which is a major benefit. In respect of the contract, a major mistake has potentially been made. Everyone knew that the winds were extremely fierce around the islands, so why was nothing done? What lessons have been learned and was anyone held responsible for what clearly was a failure of preparation?

[Lord Bates]

The noble Lord says that, but the wind was tested by the technical advisers and advice was taken from the Met Office. The issue came to light only when flights attempted to land in April, and of course we have to have the highest regard for public safety. It has been approved by Air Safety Support International as a category C airport, which is the same as London City Airport or Gibraltar Airport, for example. It is possible to see that it is used. Lessons need to be learned, of course, which is one of the reasons why, at the instigation of the noble Lord, Lord Foulkes, we are having a meeting for all interested Peers on 25 October between 1 pm and 2 pm in Committee Room 10A. I am very happy to extend that invitation to the noble Lord.

Zimbabwe: Food Security

Lord Anderson of Swansea Excerpts

Thursday 11th February 2016 Lords Chamber

[Baroness Verma]

My noble friend raises an important point about what the Commonwealth can deliver. It is right and proper that when we see progress, we encourage even greater progress, and that we make sure that countries are able to remain, or return to being part of, the Commonwealth family.

[Lord Anderson of Swansea (Lab)]

My Lords, part of the problem is man-made; part of it is simply the dislocation caused by reorganisation in Zimbabwe. Part of the tragedy is that historically Zimbabwe has been the bread-basket of the region, so this is, to some extent, a regional problem. Given the corruption in the Zimbabwe Government and more widely, as well as the inefficiencies in administration, is the Minister wholly confident that any food aid is getting through to the people who desperately need it?

[Baroness Verma]

My Lords, this disaster has been added to by the El Niño effect and we need to make sure that we address that, as well as ensuring, as the noble Lord rightly points out, that the people who most need assistance receive it. I am really proud that the Government step up, show leadership and encourage their partners to work as stringently as we do, ensuring that there is real monitoring of the delivery of cash transfers and food aid on the ground. Ultimately, the focus must be on the Zimbabwean people who most need assistance.

Commonwealth Heads of Government Meeting: Human Rights

Lord Anderson of Swansea Excerpts

Tuesday 17th November 2015 Lords Chamber

[Baroness Verma]

My noble friend is right to raise the issue of the Burma elections, which allow us an opportunity to make some real progress with the reforms process that started in 2011. We look forward to working with Burma.

[Lord Anderson of Swansea (Lab)]

My Lords, these are sensitive issues, but is it not true that all these Governments have signed the Commonwealth charter? Is the Government not distressed that, among the list of the worst offenders in, for example, the persecution of Christians are several Commonwealth countries, notably in south-east Asia? If the Commonwealth is serious, should it not have some means of monitoring or peer-reviewing how countries are performing in relation to their commitments under the charter?

[Baroness Verma]

Again, the noble Lord raises an important issue. We regularly urge Governments to protect the right to practise religious belief free from persecution and discrimination. We shall continue to do so.

Middle East and North Africa

Lord Anderson of Swansea Excerpts

Wednesday 16th September 2015 Lords Chamber

[Lord Anderson of Swansea (Lab)]

My Lords, the Minister is right to put the issue of migration in the global and longer-term context, but there are immediate issues to face. Part of our problem is finding the right balance between the heart and the head. The scale of global migration is so immense that it is increasingly difficult to manage. People living in poverty and insecurity see the good life outside their borders, hear from relatives and friends who have reached the promised land and, understandably, long to improve the conditions of themselves and their families. We in Europe, drawing on our Christian and Enlightenment traditions, are clearly a magnet, the envy of less happy lands.

The Motion is careful to avoid words such as “economic migration” or “refugees”. Some claim that it is difficult to differentiate between the two. From my experience, as both a barrister and a constituency MP, I beg to differ. Who, then, are the economic migrants? I recall, in the late 1960s, speaking to the then Immigration Minister, who had just visited Bangladesh. He had asked a large assembly of villagers how many would like to settle in the UK. A high proportion raised their hands. He, although of a very liberal and open disposition, was forced to reflect on his position.

The blunt truth is that we are a small island that is highly attractive to those around the world who have disadvantaged lives. We are overcrowded compared even with France. We in the UK and Europe cannot reasonably be expected to accept all those who suffer the effects of civil war. We could not, for example, accept the whole Tamil population of Sri Lanka after the troubles there. The number of Nigerians affected by the atrocities of Boko Haram can reasonably be expected to move elsewhere in Nigeria.

Clearly we cannot expect to have an open-door policy. If Germany and Sweden have until recently appeared to have had such, it can clearly affect us through secondary migration. It is claimed, for example, that many Somalis from the relatively peaceful Somaliland see Sweden as a staging post en route to the UK, where, understandably, they wish to join well-established communities. Do the Government have any concern about the ultimate intention of migrants who migrate to Sweden and Germany? Clearly, co-ordination at European level is vital. We should not pursue a narrow, unilateralist policy, which would only harm our broad negotiating position on EU reform.

If we are to have a coherent immigration policy in general, we must have a prioritised system. We must be firm on those migrants, however poor, from countries where there is peace. Those from the Balkans, for example, cannot use this emergency to jump on the Syrian bandwagon. The position of refugees is wholly different—in the case of Syria and some other countries, for example, where we have convention obligations. We must use all our compassion and experience from history to help this tragic people.

If the presumption must be against accepting migrants from safe countries, except those within the accepted current criteria, we must be generous to those who have a well-founded fear of persecution. We see in Syria devastated cities, the effects of barrel bombs and chemical weapons, and of the medieval brutality of ISIS. We have responded magnificently in financial terms, providing up to £1 billion. Yet, the UN has received only $1.67 billion of the $4.6 billion it needs this year. We must encourage those countries that are failing in their response. The UN humanitarian agencies are now overwhelmed. Will the Government join those who argue that such agencies should receive assessed mandatory contributions, as is the case with the regular UN budget?

What has been the response of the UK? After a bad start, the Prime Minister has had to respond more generously. If he rightly criticises other EU countries on their financial contributions, he should expect criticism from them on the numbers that he is prepared to receive. It is not either/or. The Prime Minister is right to concentrate on the solution for Syria, but for him to focus on the camps alone causes problems as certain minorities—Christians and Yazidis—are often excluded. There is an element of haste about his response, so that he is talking to local authorities only after the announcement. We have heard today about the gold command team. What is the structure underneath that at the regional level?

The UN speech by Mr Juncker on 9 September was a more generous note, but it begs many questions as to how the 160,000 refugees will be assessed, how many will be repatriated and so on. I notice that Australia has agreed to 12,000 refugees and the US 10,000, yet Saudi Arabia and the Gulf none. What are the prospects of the international community shaming the Saudis and their neighbours into a more positive response to their co-religionists?

One final thought: we are now seeing a new and widespread global migration. Syria, Iraq and Afghanistan may be the first, but there are many failed states on the horizon—Libya, Yemen and certain west African countries are already in that category. We must surely be prepared, with the international community, to meet potentially even greater challenges to our hospitality and principles. At present it is Hispanics from central and South America seeing the US as the promised land; Afghans looking to Australia; Burmese Rohingya Muslims fleeing south; or those from the Middle East and north Africa looking to Europe. The world is far from finding a solution to these increasing migratory flows.

International Development (Official Development Assistance Target) Bill

Lord Anderson of Swansea Excerpts

Friday 27th February 2015 Lords Chamber

[Lord Armstrong of Ilminster (CB)]

My Lords, it is 45 years since I walked out of the Treasury, never to return. However, that was after 20 years there, and once a Treasury man, always a Treasury man. For that reason, and for many others, I support the amendment in the name of the noble Lord, Lord Butler. Like him, I have no difficulty with the commitment to make the target 0.7%. We do not need legislation to do that. The noble Lord, Lord Davies of Stamford, talks about the signal that the passage of the legislation would send. With great respect to him, I do not believe that the passage of a Bill with this title would set all the flags flying in the capitals of the developing world. Legislation is not the best vehicle for gestures and signals. If you want to send gestures and signals, things like manifestos and Queen’s Speeches are the appropriate means of doing that. Therefore I support wholeheartedly the spirit behind this amendment, that this expenditure, however good and however meritorious, needs to be subject to the same discipline as other public expenditure.

[Lord Anderson of Swansea (Lab)]

My Lords, I have no interest to declare save that some of my best friends are in the Treasury. The argument has been made about a signal. I think that it is an important signal to the developing world and to other countries, which are manifestly failing in respect of the moneys that they spend. It would certainly give us a greater lever to use with regard to that, although I am not so convinced by that argument.

However, I notice—and I will be very brief—that the argument used, very powerfully, by those who have spoken in favour of the amendment is rigour and accountability. They speak as if no accountability is likely. There are a number of accountability mechanisms, one of which is of course the Select Committee. The Select Committee is able to throw a searchlight on mistakes that are made by any government department so that any middle-ranking civil servant or higher civil servant who made the decision knows that at any stage they may be hauled before the committee and asked to justify their action or lack of action, which can be extremely embarrassing. Of course, the proposal then is retrospective, but it has relevance for any future decisions. It is also certainly a corrective for anyone particularly in a ministry such as this, which is more than most subject to pressure groups and non-governmental organisations from outside, and it gives them a degree of rigour.

Equally, of course, one has the NAO. That very powerful report—and I have not heard DfID give a very convincing reply to this—showed the extent to which there was a readiness to spend almost for the sake of spending. All of us, and perhaps most of us, have been in such positions. I recall once having an entertainment allowance; as I had only spent 50% of it by the end of the year, I ensured that I used up the rest of the money very quickly in the last few weeks—so there is that temptation.

Those noble Lords who have spoken thus far seem to ignore the relevant clause, Clause 5, where again there is a mechanism for accountability. There is accountability, and the danger is that if we were to accept this amendment, it would be rather like the French “en principe”. Yes, of course we are all in favour of aid and of 0.7% of GNI in principle, but if this amendment were to be accepted it would effectively drive a coach and horses through the Bill.

[Viscount Eccles (Con)]

My Lords, I speak as somebody who was part of the aid programme for a number of years with the Commonwealth Development Corporation and who was subjected to Treasury discipline. At the time, in today’s money we were responsible for about £3 billion of assets. Under the statutory arrangements of the day, we were partly responsible to the Foreign Office and partly to the ODA. The ODA arranged the monitoring meetings at which we would account for how we were getting on with the income and expenditure related to £3 billion of assets. In the run-up to the meeting, the discussions we had within CDC were all about what the Treasury official would ask us in the meeting which followed. From our point of view, in formal terms, the Treasury official had no right to be there, but of course the Treasury has a way of being where it wants to be.

International Development (Official Development Assistance Target) Bill

Lord Anderson of Swansea Excerpts

Friday 6th February 2015 Lords Chamber

[Lord Howell of Guildford]

I am sorry; I am not quite sure what point the noble Lord is making. I am trying to deliver the last sentence of my contribution and I do not understand why the noble Lord feels that it is right to keep interrupting.

I am sure that your Lordships’ House is the place that can refine and improve a Bill and will not try to knock down or contain attempts to improve it, as I believe this amendment does. We have heard from the noble Lord, Lord Butler, and we have heard many wise voices from our Back Benches. We have heard from major committees in other countries, from the Dutch and German ministries and from House of Commons committees that there is a danger of too much emphasis being put on overseas development assistance as “the” target and “the” duty, which could badly distort our development priorities. Today, we need new priorities, and the Bill should reflect them and not reject them. That is why I am grateful to those noble Lords who are prepared to hear some doubts about an otherwise noble and well intentioned Bill.

[Lord Anderson of Swansea (Lab)]

My Lords, I want to make one observation, which alas may be deemed to be going for the man rather than the ball on the eve of a rather important rugby game. I listened to the noble Lord, Lord Lawson, proudly setting out his credentials as an advocate of aid. Had he been in his place at Second Reading, he would have heard the noble Baroness, Lady Chalker, for whom I have immense admiration, stating that, to her shame, during his time as Chancellor the proportion of our aid contribution fell to 0.28% of GNI. Perhaps that is something we should bear in mind when he sets out his credentials so proudly.

[Viscount Eccles (Con)]

My Lords, perhaps I could make a very brief intervention. My noble friend referred to the Colonial Development Corporation. In my time it was the Commonwealth Development Corporation—now called CDC. It may come as some surprise to your Lordships that it is still 100% owned by the taxpayer, but that is now a well kept secret. When I was fortunate enough to be its chief executive, we were much interested in income as well as in expenditure. One of the difficulties and the need for flexibility in this target is that if you are interested in income as well as expenditure, you cannot very well set the figure before the beginning of the year with any great accuracy. You need some flexibility.

That leads me on to a thought that is also a very strong reason for there being flexibility, as the noble Lord, Lord Butler, said. Life moves on. Things change very rapidly. Without the flexibility to adjust to those changes, you can be in great trouble. It has always seemed strange to me that, ever since the great days of Lord Bauer and Lord Balogh debating aid seriously in this House, in the 15 years that I have been in this House I have not yet heard a really serious debate about third world, second world or whatever world development—not one. In those days, there were serious debates on the subject and they got down into the depths of it, as indeed my noble friend Lord Howell was trying to indicate—much, I think, to the disappointment of the House.

I end by saying that I hope your Lordships will not regard the whole business of overseas development as a shut subject: “There is nothing more to say about it, we all know the answers and so we set this fixed, rigid target”. Finally, I think the structure when ODA came under a Minister of State within the Foreign Office was a much better structure than the one we have today.