Green Finance

Debate between Lord Bates and Lord Gadhia

Wednesday 31st October 2018 Lords Chamber

[Lord Bates]

I get the question, but I do not necessarily agree with it. Green finance is exciting and is growing, and the City of London is at the forefront internationally. We are ranked third in the league table that the noble Lord mentioned, but first for the quality of the green finance. Our approach is that where the private sector—the City—provides leadership in developing these investments, that is the best outcome and the Government should support it through our strategy but should not necessarily participate and potentially crowd it out.

[Lord Gadhia (Non-Afl)]

My Lords, having dinner yesterday evening with the CEO of the London Stock Exchange, Nikhil Rathi, made me aware that green finance is one of its big priorities, including the establishment of a green sustainable investment centre. Will my noble friend join me in welcoming the development of green indices which can prompt institutional investors to shift their asset allocation to sustainable investments?

Economy: Productivity

Debate between Lord Bates and Lord Gadhia

Thursday 28th June 2018 Lords Chamber

[Lord Gadhia (Non-Afl)]

My Lords, the chairman of John Lewis, Sir Charlie Mayfield, has also examined the UK’s productivity puzzle and he found there is significant variability in productivity for SMEs. Can my noble friend say what support we are giving SMEs to improve their batting average?

[Lord Bates]

There are incentives for R&D spend. We know that things such as infrastructure and capital investment—we have had a patient capital review—contribute to improvements in productivity. We know that education and skills are a key part, and that is why we have T-levels and the apprenticeship levy. We also know that investment is very important, and that is why the capital breaks we have for R&D, particularly in small firms, are very important. But this is a whole-economy effort in which small and medium-sized enterprises, as well as the large companies, need to play their part.

Overseas Development Assistance: Fossil Fuel Subsidies

Debate between Lord Bates and Lord Gadhia

Tuesday 15th May 2018 Lords Chamber

[Lord Bates]

The right reverend Prelate is absolutely right. A lot of the power stations we are talking about are of no benefit to the rural areas in which most of the poor people live because they cannot be cost-effectively connected to the grid. Therefore, solutions have to be off-grid. Energy Africa is a key part of what we are doing but, as well as that, we are launching some exciting programmes for the rural economy in Sierra Leone and there are the CDC investments in off-grid. Off-grid offers tremendous opportunities in getting power to poor people in rural areas and we will continue to invest heavily in it.

[Lord Gadhia (Non-Afl)]

Will my noble friend join me in welcoming the UK’s membership of the International Solar Alliance, which was initiated by Prime Minister Narendra Modi and announced during his recent visit to the UK? Will he also welcome the joint infrastructure fund we have created with India with the help of his department?

[Lord Bates]

I will absolutely do that. Solar offers enormous potential. Not only is it a clean energy but, as technology advances, we see the cost of solar tumbling compared to other fuel supplies. The opportunity to achieve economic growth and development and to meet our climate change obligations is immense, and we are delighted to be able to partner other countries in delivering that.

Kashmir

Debate between Lord Bates and Lord Gadhia

Tuesday 21st November 2017 Lords Chamber

[Lord Bates]

The situation that the noble Lord refers to is highly complex and dynamic, and we are very sensitive to it. It has been the long-standing position of the UK that it can neither prescribe a solution to the situation in Kashmir nor act as a mediator; it is for the Governments of India and Pakistan to find a lasting solution, taking into account the wishes of the Kashmiri people.

[Lord Gadhia (Non-Afl)]

My Lords, does the Minister agree that we should be cautious in lecturing the world’s largest democracy on human rights, which are enshrined in its constitution, protected by a well-established legal system and accountable to an independent judiciary—not to mention a large and vibrant investigative media and an active civil society? In the meantime, we should support our ally, India, to combat cross-border terrorism sponsored by Pakistan and Pakistani infiltrators, who are the real threat to peace, stability and human rights in that region.

[Lord Bates]

Both Pakistan and India are close friends of the United Kingdom and we want to maintain that strong relationship. Of course, we wish for a peaceful outcome to negotiations. We welcome the fact that the Government of India have recently appointed an interlocutor but we feel that, as in all conflicts, the countries themselves—the parties to the conflict—must be the parties to the peace.

Paradise Papers

Debate between Lord Bates and Lord Gadhia

Monday 6th November 2017 Lords Chamber

[Lord Bates]

I will have to check on the practices. However, my recollection is that Sir Patrick McLoughlin responds in his capacity as part of Cabinet Office Questions during regular Oral Questions. Members of all sides of the House and in both Houses are at liberty to table Questions for Oral Answer or debate at any point, and people will have to respond according to their responsibilities.

[Lord Gadhia (Non-Afl)]

My Lords, I declare my interests as an investor in a wide range of assets, including offshore investments. Will my noble friend agree that millions of UK savers and pensions, let alone Her Majesty, benefit directly or indirectly from investments held offshore, and to suggest that they are avoiding tax is simply fake and false news? Those who take the time to properly understand offshore investment vehicles will realise that their underlying purpose is to provide an efficient and predictable umbrella structure to attract the widest possible range of investors from around the world. They are in fact set up to minimise the amount of tax paid within the offshore entity and consequently to maximise the returns flowing back to investors, allowing them to pay tax directly in their own countries.

[Lord Gadhia]

The use of these investment vehicles therefore maximises the eligible tax take for the UK Exchequer, and to suggest otherwise is either financial illiteracy, political populism or lazy journalism. Will my noble friend agree that we need to collect the tax and that, if it is not paid, that is tax evasion not avoidance?

[Lord Bates]

The key point that must be remembered here is that, if funds are for legitimate reasons allowed to be placed offshore in order to purchase assets, and if the people concerned are domiciled in the UK, the funds need to be repatriated to the UK and full tax needs to be paid on the profits, income and revenue gained.