Spring Statement

Debate between Lord Bates and Lord Hain

Wednesday 20th March 2019 Lords Chamber

[Lord Bates]

My Lords, I thank all noble Lords who have participated in this debate, which will probably go down in history. The purpose of the Spring Statement was to focus attention on the autumn as the single fiscal event and to be a light-touch, mid-year Statement simply to update the OBR forecast. This Spring Statement might go down in history for the reason alluded to by the noble Lord, Lord Bilimoria: there was some other business on the day of the Spring Statement. I think we have now spent twice as long scrutinising the Spring Statement as the other place managed. It all heads down to that.

I want to be associated with some of the thanks expressed by noble Lords. The noble Lord, Lord Shipley, thanked the business managers who intervened and drew us out of the Moses Room into what I refer to as “Centre Court” to debate in the main Chamber. That has added to the number of contributions.

[Lord Hain]

We should thank my noble friend Lord Foulkes.

[Lord Bates]

Yes, we should thank the noble Lord, Lord Foulkes, in his absence, for making that plea, which the business managers were able to accommodate. I also wish to associate myself with my noble friend Lord Wakeham’s generous tribute to my good friend, colleague and mentor on the Front Bench, my noble friend Lord Young. I had not realised they were celebrating 45 years. I associate myself with my noble friend Lord Wakeham’s generous remarks to my noble friend about his service in both Houses.

I shall try to provide some taxonomy of the contributions, which ranged very widely but more or less settled down in the following areas. The first was, unsurprisingly, Brexit. I began repeating the Spring Statement by referring to what the Chancellor said about Brexit: it is dominating thinking not only in this place but in business. The noble Lords, Lord Tunnicliffe, Lord Davies of Stamford, Lord Davies of Oldham and Lord Bilimoria, the noble Viscount, Lord Chandos, my noble friends Lord Gadhia and Lord Northbrook, and the noble Baroness, Lady Kramer, made points about that headwind. The only area of difference between us is that we say that the opposition parties hold it within their gift to dispel that cloud of uncertainty by backing the deal before us, but matters are unfolding. If there is any news to report I hope that a Box note will make its way along to me.

There was—I shall not overegg it—support for and recognition of the progress which has been made, notwithstanding the uncertainty. We enjoyed the noble Lord, Lord Macpherson, describing Treasury civil servants having to deal with disappointment, and I am sure that was enjoyed within my earshot. The reality is that this Statement was able to unfold some positive news about levels of debt, employment and the general fiscal situation. The noble Lords, Lord Macpherson, Lord Wakeham and Lord Northbrook, referred to the positivity. Even the right reverend Prelate the Bishop of Chester—

Trade Bill

Debate between Lord Bates and Lord Hain

Report: 2nd sitting (Hansard): House of Lords
Wednesday 13th March 2019 Lords Chamber

[Lord Bates]

I recognise that and know that the noble Lord is passionate about the Republic of Ireland—as he said, he resides there. There is a fundamental point here: that anxiety would not be necessary if the withdrawal agreement, which was agreed in December, had been passed in the other place last night. That must be the best solution to remove the anxiety to which the noble Lord refers. He also alludes to a very important piece of work, which needs to start immediately—namely, rebuilding those friendships and links, and that partnership, which have served us so well in recent decades, to ensure that the progress that has been made has not been lost. That needs to start immediately. As I say, I take on board very much the point that he has raised.

[Lord Hain]

I thank my noble friend Lord Puttnam for the point he made. I have lots of friends on the island of Ireland, on both sides. I know that there is a real feeling of hurt among citizens of the Republic, given our tangled history—our colonial history, going back centuries—which created enormous distrust and suspicion from Dublin towards us. It was overcome by building trust almost day by day, week by week, over the last 20 years, by Governments of all colours—in particular, those led by John Major, Tony Blair and Gordon Brown, and subsequently. That sense of pain is very deep.

I thank the noble Lord, Lord Bates, for his generosity towards me. What I feel very strongly goes to the point made by the noble and learned Lord, Lord Mackay of Clashfern, whose interventions are always interesting and intellectually testing; I often agree with them. The point is this: we have no idea what sort of future awaits us. We do not know whether we will have an agreement with the European Union at all. There are vociferous voices, some in this House but particularly in the House of Commons, that do not want a deal with the European Union. Therefore the terms of the amendment are absolutely right. The default position that we can fall back on is that we need at least to agree with the Irish Republic in the terms of the Belfast/Good Friday agreement how the border issue is to be managed. I do not see that that is the obstacle in the terms of the amendment that the noble and learned Lord and the Minister have suggested.

--- Later in debate ---

[Lord Hain]

Perhaps I may conclude with something that might help the noble and learned Lord, Lord Mackay. It is what this amendment does not say that is important. This amendment does not tie the Government’s hands, except in terms of the exact requirements for the future, because that is not appropriate in a clause of this kind, which I hope will be accepted and put into the Act. It spells out for new trade the principles that the Government have already accepted in the withdrawal agreement. So it is already in statute, and I am therefore puzzled as to why the Government are not accepting this agreement by approbation.

[Lord Bates]

My Lords, it may be helpful to the House if I explain our hesitation on precisely that point. Section 10(2)(b) of the EU withdrawal Act prohibits regulations creating new border arrangements —that is, arrangements that did not exist before exit day—unless they are in accordance with agreements between the UK and the EU. This amendment would prevent any arrangements unless they were subject to an agreement between the UK and the Government of Ireland. Such an agreement, in our view, would be unlawful for Ireland to enter into, as customs and a common commercial policy fall within the exclusive competence of the EU. I want that point to be clear on the record.

[Lord Hain]

I understand that point. However, under the Good Friday agreement—the Belfast agreement—we are bound and obligated, including with the approval by treaty of the European Union, as the noble Lord, Lord Purvis, said, to agree things with Dublin. That is the way it works. That is part of the Good Friday agreement that has the blessing of the European Union.

I repeat that we have no idea as yet of our future trading relationships with anybody, including across the Irish border—no idea at all. This amendment spells out the principles that have already been accepted in the withdrawal Act, and agreed in statute by the Government. I therefore wish to test the opinion of the House.

World Bank: Selection Process for President

Debate between Lord Bates and Lord Hain

Thursday 28th February 2019 Lords Chamber

[Lord Bates]

We attach great importance to the legitimacy of the open, merit-based process that is now in place for making that appointment.

[Lord Hain (Lab)]

My Lords, in assessing which candidate will succeed, will the Minister take account of the policies advocated by them? Along with the IMF, the World Bank has had a reputation in recent decades for pursuing a destructive, neoliberal policy, which has recently failed in Georgia, as it has elsewhere. Privatisation, marketisation, small government and cuts in public spending have become a religion, instead of a sensible policy to allow these countries to grow and succeed.

[Lord Bates]

I do not accept that description of the World Bank’s work. It does an incredible amount for the world’s poor through investing in infrastructure and food—for example, for the Rohingya population. It is absolutely committed to eradicating extreme poverty around the world, which is why we support it.

Sanctions and Anti-Money Laundering Bill [HL]

Debate between Lord Bates and Lord Hain

Committee: 3rd sitting (Hansard): House of Lords
Wednesday 6th December 2017 Lords Chamber

[Lord Hain]

Perhaps I may press the Minister to respond to my request on red flag warnings to the British domestic banks. I am happy for him to write to me about it, but some government response on this matter is important to try to deal with this infection of our own banking system by a disease that is spreading throughout the South African economy.

[Lord Bates]

The noble Lord, as an experienced Member, will know that when there is an ongoing investigation, to which he referred, it is often dangerous for Ministers, who are supposed to be detached from the process, to comment. However, I recognise the seriousness of the allegations—as does the Chancellor—and they have been passed to the appropriate authorities. I am pleased that they are being investigated.

[Lord Hain]

I apologise to the Committee for probing this point. I am grateful for the Minister’s response but I have named other banks as well as those to which I previously referred—namely, HSBC, Standard Chartered and the Bank of Baroda. I hope that he or the Chancellor will send me a letter in the manner in which the Chancellor responded to my earlier request—even if the Minister cannot respond this evening, for reasons that I totally understand.

[Lord Bates]

I am happy to undertake to write to the noble Lord in response.

South Africa: Money Laundering

Debate between Lord Bates and Lord Hain

Thursday 19th October 2017 Lords Chamber

[Lord Hain]

To ask Her Majesty’s Government what action they are taking to prevent money laundering through British banks by families and businesspeople linked to the government of South Africa.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, the Government are committed to tackling corruption in the UK and overseas and preventing the proceeds of corruption from entering the UK’s economy. The recently introduced money laundering regulations set out strict rules that British banks must follow when doing business with those with links to prominent public functions that may expose them to risks of corruption. We are concerned about the allegations in South Africa, and the British high commission is monitoring the issue closely.

[Lord Hain (Lab)]

May I thank the Chancellor for ensuring that the Financial Conduct Authority, the Serious Fraud Office and the National Crime Agency investigate HSBC, Standard Chartered Bank and Baroda Bank, each of which expert South African whistleblowers have told me must have been conduits for the corrupt proceeds of money stolen from their taxpayers and laundered through Dubai and Hong Kong? In my letter of 25 September to the Chancellor, I supplied for investigation 27 names and personal identification numbers, including President Jacob Zuma, 11 members of his family, 11 members of his close friends, the Gupta family, and their five associates, together with 14 entities linked to the Guptas and suspected to have been set up for the purposes of transnationally laundering an estimated £400 million, or 7 billion rand, of their illicit proceeds. Will he ensure that those banks, together with the European banks—about which I have similarly written to Commission President Juncker—track down that laundered money, return it to the South African Treasury and supply evidence to its officials to enable the prosecution of all those connected with such corruption?

[Lord Bates]

My Lords, we are grateful to the noble Lord for the persistence that he has shown on this issue and in drawing it to the Chancellor’s attention and to international attention. The UK has some of the toughest anti-money laundering laws in the world. We have been at the forefront of introducing them—whether it is the Criminal Finances Act this year or the fourth anti-money laundering directive. We realise that London, as the largest financial centre, is a target which can be used for this purpose, but we are determined to root it out. That is why, when we are provided with information—as when the noble Lord, correctly, wrote to the Chancellor setting out that detail—immediate action is taken to refer it to the relevant authorities to ensure that they can pursue the matter and that justice is done, and is seen to be done.

European Union: Schengen Agreement

Debate between Lord Bates and Lord Hain

Tuesday 15th December 2015 Lords Chamber

[Lord Bates]

The noble Baroness is absolutely right, and there is absolutely no crowing whatever. What we want is the security of those internal and external borders. We are joining the Schengen Information System II, which is very important for sharing information. We are providing support to FRONTEX and also providing support to the European asylum support officers, who operate in hotspots around Italy, Greece and Bulgaria. So we are not passive or crowing—we are actively working with our EU partners to ensure that this problem is addressed.

[Lord Hain (Lab)]

My Lords, I apologise for my premature enthusiasm earlier—bad habits brought from down the Corridor. If Schengen were suspended, why would the French feel any obligation to maintain our border in Calais?

[Lord Bates]

That is a good question. I wish the noble Lord had continued a little further in his first intervention and then I might have heard it before. The important point is that the juxtaposed controls which we have with Belgium at Coquelles and also at Calais are essential partnerships. It is very important that they are maintained. We do not believe that Schengen is in danger of suspension at present. There may be members of it, such as Greece, which are causing concern and certain members which are exercising their rights under Article 23 to suspend the operation of those borders for a time. However, it would have implications for us, and that is why we are following it very closely and will offer every support we can to our EU partners.