Ukraine

Lord Collins of Highbury Excerpts

Tuesday 1st November 2022 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I reiterate that these Benches are completely at one with the Government in giving full support to the Ukrainian people in their fight against Putin’s illegal and immoral act of aggression.

The Russian missiles launched against Ukrainian energy and water systems are part of a deliberate and callous strategy to target civilian infrastructure ahead of winter, causing as much damage to civilians as possible. Therefore, the resilience of Ukraine’s energy, heating and water systems is vital in resisting Russia’s attacks on that civilian infrastructure.

James Cleverly said yesterday in response to my right honourable friend David Lammy that

“the UK has pledged £100 million to support Ukraine’s energy security and to reform, and £74 million in fiscal grants to support Ukraine through the World Bank.”—[Official Report, Commons, 31/10/22; col. 625.]

All this is very welcome, but he was unable to give a specific answer on the number of generators we have supplied, and promised to find out the details. The reality is that, in such war conditions, practical support and speed of delivery are essential. In addition to detailing the number of generators that we will supply, can the Minister assure the House that we are working with all relevant suppliers to speed up matters? Also, can he tell the House whether such action is being co-ordinated in conjunction with our allies, particularly our European allies?

As we have heard in media reports today, Russia’s attacks on infrastructure and the electrical grid have not been limited to the use of drones, missiles and bombs. Europe Minister Leo Docherty said on the BBC this morning that Ukraine faces

“the same threat and same challenge in the cyber domain,”

representing the most extensive compromise of a single Government seen in history. He confirmed that support is provided through the FCDO, with officials saying that it has led the way among allies in providing specialist expertise. Can the Minister tell us whether this support is being co-ordinated with such allies? What assessment has the department made of the implications of escalation of the conflict?

In relation to arms supplies to the Russians, the Foreign Secretary said that the UK will be keeping a close eye on the actions of Iran, and indeed other countries. He confirmed that we would take appropriate action to dissuade them from supplying arms and would react if they do. Can the Minister assure the House that in reacting the Government would work in complete tandem with our allies, such as the US and the EU? On too many occasions we have been slower than our allies to react.

On the important issue of grain exports from Ukraine, the UN-backed agreement has been vital in reducing global food prices. Putin’s unjustifiable decision to pull out of this deal will undoubtedly have catastrophic consequences. It comes at a time when many countries are already food insecure, including Somalia, where an imminent famine is feared. This is a cruel and transparent use of hunger as blackmail. Any spike in world food prices will be the responsibility of the Russian Government. Therefore, this agreement must be restored.

The Foreign Secretary said that he had spoken to his Turkish counterparts in the past, expressing our gratitude for the work they have done in securing the grain export deal. However, it was unclear from what he said whether he has spoken to his Turkish counterparts and Turkey’s political leadership on the potential for restoring grain flows since Russia’s announcement. Have the Minister’s department or the Foreign Secretary been in touch with Turkey in recent days? The Foreign Secretary did not address the steps that the UK is considering to mitigate the worst consequences for the developing world if these efforts fail, but I hope the Minister will be able to do so today.

James Cleverly also told the other place that we are supplying a considerable number of air defence missiles, which is very welcome in light of the attacks we have seen. Can the Minister assure us that we are able to keep up with the demand for these missiles with our US and NATO allies? Can he assure the House that we can provide all the lethal and non-lethal equipment that is being requested?

I conclude by reiterating Labour’s full support for the Government’s actions in respect of Ukraine.

[Lord Purvis of Tweed (LD)]

My Lords, as the barbarity of Putin continues and winter approaches, our admiration for the resilience of the people of Ukraine knows no bounds. The Minister knows that we have supported the government strategy; the support for the Ukrainian Government and people; and the sanctions regime— notwithstanding that we have highlighted areas where we could have gone further and faster on sanctions, as has been highlighted. There is no doubt that Putin wants both malaise and division in the West, and we support the Government in ensuring that that does not happen.

I have a number of questions for the Minister about the direct impact of the sanctions regime on Russia, which he will have heard me ask before. I ask for an update on what the direct impact of our sanctions has been, because they do not seem to have prevented the barbarity continuing in certain areas.

Could the Minister also be specific about what we are saying to our allies in the Gulf and in Asia, India in particular? Have the Foreign Secretary and the Prime Minister raised at the highest levels the concern about the impact of our allies providing neutrality but also therefore de facto support? This is a challenging area for UK foreign policy, but one we need to tackle. It would be depressing if we are so reliant on the Gulf’s inward investment and so hopeful for a trade deal with India that it prevents us having very hard conversations with our allies.

As the noble Lord, Lord Collins, indicated, we have seen the grotesque weaponisation of energy, fuel and grain by Russia. Prices have risen already with the 4 million tonnes of shipments that are being prevented from being distributed. As the Minister knows, this will have a disproportionate impact on the countries in east Africa and the Horn of Africa that are already facing famine. What direct measures are we taking to ensure that shipments can be released? What security support might be made available to ensure their supply?

The Minister knows that we have supported the UK’s support for Ukraine and we of course supported the resettlement scheme at home. He will also know that we have repeatedly highlighted concerns that this is provided at a direct cost to overseas assistance to countries in need. Figures suggest that the resettlement scheme at home for Ukrainians will be met entirely from ODA funds, which will mean that, for the first time in our nation’s history, more overseas development assistance will be spent domestically than bilaterally abroad. That is unprecedented. I hope the Minister will say that this is not correct.

It was disturbing to read Kwasi Kwarteng’s tweet in June, posted when he was BEIS Secretary, saying on supplying defence equipment:

“My Department has contributed to the effort by surrendering climate finance and foreign aid underspends.”


Countries with which we are seeking to build a diplomatic consensus against Putin are seeing the UK provide support, which is welcome, but at a direct cost for those countries. Just before the start of proceedings this afternoon, I met the deputy speaker of the Malawi Parliament, who raised questions as to why cutting support for young girls in Malawi was a cost of UK support for Ukraine. Surely this is a cost which will do us long-term damage. I hope the Minister is able to respond to these issues. We will not retain moral value in our work for Ukraine if other countries see us cut directly as a cost of it.

European Political Community

Lord Collins of Highbury Excerpts

Monday 31st October 2022 Lords Chamber

[Lord Goldsmith of Richmond Park (Con)]

My Lords, it will be for BEIS to provide specific details on next steps in relation to this issue but I can confirm that it was discussed. The former Prime Minister pushed for the development of new North Sea hybrid interconnectors to accelerate renewables capacity, among other things, but I am afraid that I will have to leave the outcome to colleagues in BEIS.

[Lord Collins of Highbury (Lab)]

My Lords, I know it feels like some time ago but, at the Conservative Party conference, the Foreign Secretary said:

“We want to find ways of working well with our neighbours and partners … in Europe”.


I am rather disappointed with the Minister’s response; the security situation is incredibly grave and we do need more formal structures to address security. Instead of trading insults and threats to break international law, will the Government consider an EU-UK security pact to complement NATO in light of the security threats that we now face?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, the UK will always do what is in our interests, and our interests are closely aligned with those of our European neighbours. The fact that progress was made at the forum without that forum being owned exclusively by the EU, with the summit being open to other non-EU member countries on the continent—as I said, one-third of the attendees were not members of the European Union—and the fact that no new structures or institutions needed to be created mean that this is exactly the kind of forum that we need, to be able to talk honestly with our friends and to align our response to things such as Russia’s illegal invasion of Ukraine with one another in our mutual interest.

Genocide Determination Bill [HL]

Lord Collins of Highbury Excerpts

2nd reading
Friday 28th October 2022 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I too thank the noble Lord, Lord Alton, for introducing this Private Member’s Bill today: it is an important element of our fight to defend human rights. I stress that it is an element of our fight to defend human rights because I must pick up the point made by the noble Lord, Lord Mann: there is a pathway to genocide. It does not start with mass murder or gas chambers; it starts with abuse, disrespect and all kinds of actions that can accumulate. It is really important that we look at that sort of pathway.

Certainly, since the UK acceded to the genocide convention in 1948 and introduced laws that criminalised genocide, no matter where it is committed, we have a duty to prevent and punish the crime of genocide wherever it occurs. An important lesson from this debate is that we need to look at the mechanism to prevent, as much as to punish, genocide. The UK Government, as we heard from all speakers, has a long-standing policy of leaving the question of genocide determination to the international judicial system. Of course, it has not stopped the Government supporting efforts and I know that the Minister will say that where there is a strong evidence base, we will support the gathering of that evidence and make sure that there is a strong basis for pursuing that international court action. But the lack of a formal mechanism, whether grounded in law or policy, was, as we heard from my noble friend, criticised by the Foreign Affairs Committee in December 2017, particularly on the situation in Rakhine state in Myanmar.

On these Benches, we support the efforts of the noble Lord, Lord Alton. We supported him in the Trade Act. In debates on that Act, I also had amendments, supported by this House, to underpin the element of it being not just about genocide. A lot of the things we have been talking about today are not simply about genocide; they are that pathway to genocide.

When I read the Library briefing and the campaign briefing that the noble Lord has been associated with, what struck me was the question of whether a determination makes a difference. I found the research in the briefing by Gregory Stanton from George Mason University fascinating. It found that recognising as genocide mass atrocities that meet the legal definition has resulted in a more comprehensive response, including to stop atrocities. That is what the Bill is about. It is not about having the luxury position of saying, “We now know they’re guilty and there’s a legal process”, but about how we stop it. I thought that research was really important. As Gregory Stanton put it, genocide determination is the first step towards an effective and comprehensive response, including to prevent the risk of genocide materialising and to prevent further atrocities. Has the department seen that research? How might it help the department to consider the broader policy issues in relation to how we pursue evidence of genocide?

The global community has previously acknowledged the failure to prevent tragedies such as the Rwandan genocide in 1994 and the Srebrenica genocide in 1995. I have been working on the United Nations for the last year for the Labour Front Bench, and I was struck by Kofi Annan’s report from 2000 on the role of the UN in the 21st century. He posed the question,

“if humanitarian intervention is, indeed, an unacceptable assault on sovereignty, how should we respond to a Rwanda, to a Srebrenica—to gross and systematic violations of human rights that offend every precept of our common humanity?”

The result of that question was the 2005 world summit to address the four key concerns: to prevent genocide, war crimes, ethnic cleansing and crimes against humanity. The outcome was a global political commitment, endorsed by all member states, called the responsibility to protect, referred to by the noble Baroness, Lady Sheehan. That commitment had three pillars. First, there are the protection responsibilities of the state. Each individual state has a responsibility to protect its population from genocide, war crimes, ethnic cleansing and crimes against humanity. The second is international assistance and capacity building. States pledged to assist each other in their protection responsibilities. The third pillar is a timely and decisive collective response. If any state is manifestly failing in its protection responsibilities, states should take collective action to protect that population.

Despite the apparent consensus about the responsibility to protect, there is a persistent contention over the application of the third pillar in practice. In preparing for today’s debate, I thought I would reread the Secretary-General’s annual report on the responsibility to protect that was published last year. Key points in the report were:

“Systematic and grave human rights violations, widespread impunity, hate speech, exclusion and discrimination can all increase the risk of atrocity crimes. Prioritization of prevention remains crucial. Atrocity prevention should be integrated into all relevant fields of the work of the UN.”


Can the Minister tell us today what assessment the FCDO made of last year’s report? How is it influencing our engagement with the UN and underpinning the principles of the right to protect?

As we have heard, since 2005 and that global consensus, we have seen clear evidence of genocide in Myanmar, Syria, Iraq and China. Yet, in the face of all this, the UK Government’s stance remains unchanged. Impunity begets further crimes, and the lack of action will only empower those seeking to commit this crime. I read in today’s Guardian about the crimes in Syria and the appalling video evidence of the case of Major Yousef, who committed and filmed a massacre. I understand that the French Government are looking at preparing a case and taking action.

That leads me to my other point. I hope that, in supporting the pathway the noble Lord, Lord Alton, is pursuing through this Bill, we do not have to wait for his legislation to act. I know that the Minister will come back on some of the practical things in terms of evidence, but what are we doing to work with other Governments and our allies to pursue cases such as Syria—for example, co-operating with the French Government? I hope the Minister can reassure us this afternoon that this Government will work with their allies.

Whatever happens, I wish this Bill a successful passage. It does not give us all the answers—I think the noble Lord, Lord Alton, would be the first to admit that—but it provides a pathway. What we cannot do is continue to stand by and watch these horrendous crimes being committed. I support the Bill.

Women, Peace and Security Bill [HL]

Lord Collins of Highbury Excerpts

2nd reading
Friday 28th October 2022 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I too thank the noble Baroness, Lady Hodgson, for bringing this Bill before Parliament. I also thank her for all her work on this agenda; she has worked tirelessly on a cross-party basis. As noble Lords have said, I hope that the response to the Bill, from these Benches and from the Government Benches, will be at one in seeking to deliver this agenda.

The denial of the rights of women and girls remains the most widespread driver of inequality in today’s world. Gender-based violence is a major element of this massive and continuing failure of human rights. Delivering this agenda, as action plans have recognised, is not a matter for government alone. The ingredients of a thriving democracy are not limited to Parliaments and parliamentarians. As the noble Baroness, Lady Coussins, rightly highlighted, civil society organisations such as women’s rights groups and trade unions remain an important part of democratic life and are frequently the only guarantors of human rights in society.

Women endure discrimination, violence and the denial of their rights simply because they are women. We must tackle the underlying problem of a lack of empowerment, education and inclusion. As my noble friend Lord McConnell has frequently argued,

“development is the mortar of peace.”—[Official Report, 8/7/10; col. 360]

I also welcome Andrew Mitchell’s appointment. He certainly has a tremendous track record on this issue, both as a Minister and a Back-Bencher. I echo the comments of all noble Lords, and I hope he will see his focus as establishing a very clear timetable for the return to 0.7%.

Ethiopia is an example of how quickly incredible levels of development can fall apart when conflict re-emerges. A really sad and horrific example of that conflict has been the sexual violence we have seen, particularly in the Tigray region. I know that is something we will be focusing on in the Bill which we will be considering later. In the Ukraine conflict we have also seen rising levels of sexual violence. Yesterday we had a very short debate on the situation in Iran, where the shameful killing of Mahsa Amini was followed by alarming reports of the continued use of disproportionate force, particularly against women, opposing the restrictions on their rights. This is all evidence of how women and girls pay a very heavy price in conflict and instability. There is more; sadly, I could go into a long list.

The UN Secretary-General’s 2020 annual report on the responsibility to protect focused on the role of women in peace and security. The report was published on the 15th anniversary of the responsibility to protect, as well as the 20th anniversary of UN Security Council Resolution 1325 on women, peace and security. The report recognised that the full and equal participation of women in peace processes and in decision-making, as well as in the design of preventive measures, is important in closing any gender-based gaps in atrocity prevention. Globally, only 13% of negotiators, 6% of mediators and 6% of signatories in major peace processes are women. Women deserve to be part of peacebuilding and conflict response because, unless they are given the opportunity to voice their demands and needs, they may be left in danger, even though the fighting appears to have stopped.

As the noble Baroness, Lady Sugg, said, the United Kingdom has a proud record of supporting the women, peace and security agenda for many years, including setting up a network of women mediators. It is currently the pen holder at the UN Security Council. Noble Lords have referenced the forthcoming conference in November of the international Preventing Sexual Violence in Conflict Initiative, which focuses on ending conflict-related sexual violence. The Minister and I have talked about the conference and stressed the obvious importance of hearing the voices of those most affected, ensuring that we make it clear that these are the ones the world needs to hear. I have also stressed to him the importance of civil society being properly engaged in that conference, and I hope that he will give us some idea in his response about the conference’s shape and agenda.

Labour has argued and believes in foreign and development policies based on the principles of gender justice, rights, intersectionality and solidarity. That is why we support the Bill transforming words into actions. As the noble Baroness, Lady Hodgson, said, we have signed up to the conventions, but we have to make sure that those commitments are a “must” rather than a “should”. That is why the evidence she highlighted is so important and why we need to make it clear that this is not a desirable objective but an absolutely necessary one.

Of course, as the noble Baroness, Lady Hodgson, highlighted, the delay in the national action plan report to Parliament, which was not published until July this year, is just one part of the evidence that she presented. It is an important and crucial mechanism of accountability, which is why we support the Bill. I hope the Minister will also commit to supporting it and to giving it a successful passage through Parliament.

Zimbabwe

Lord Collins of Highbury Excerpts

Thursday 27th October 2022 Lords Chamber

[Lord Goldsmith of Richmond Park (Con)]

My Lords, Zimbabwe is a country with extraordinary potential and an extraordinary history, and of course it is right that the current political approach inhibits that potential. The UK is a long-standing partner of Zimbabwe and we provide significant levels of ODA. However, I want to be clear to the House that we do so in a way that avoids government-to-government bilateral financial aid. In other words, none of the money that we provide is channelled through the Government. Instead, we work through multilateral organisations, and wherever we possibly can we support civil society and NGOs in the private sector.

[Lord Collins of Highbury (Lab)]

My Lords, just to pick up on that point, I have raised on numerous occasions with Ministers the continued repression of civil society in Zimbabwe, including of trade unionists. Can the Minister tell us the latest FCDO assessment of the passage of the Private Voluntary Organisations Amendment Bill, which Ministers have acknowledged could be used to restrict civil space? Could he tell us also how we are working with allies, global civil society and interfaith groups to ensure that it is their voice that is heard in Zimbabwe and not simply government voices?

[Lord Goldsmith of Richmond Park (Con)]

The Government very much agree with the opening remarks of the noble Lord. We are concerned that the Private Voluntary Organisations Amendment Bill, if it becomes law and is implemented, could very easily be used to undermine the ability of civil society to operate effectively in Zimbabwe. It also puts at risk its ability to deliver development and humanitarian assistance. We engage very widely, not only with civil society within Zimbabwe and through our overseas development assistance, which I mentioned earlier, but also, importantly, with South Africa. As noble Lords will know, we have deep and long-standing ties with South Africa, recognising the important role that the African Union and the Southern African Development Community have in relation to Zimbabwe. UK officials speak very often on a broad range of issues, including of course on Zimbabwe.

Armenia and Azerbaijan

Lord Collins of Highbury Excerpts

Wednesday 26th October 2022 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, I do not agree with the noble Viscount on the UK’s position. We are active in our engagement with our EU partners, but we are also central to, and support, the efforts of the OSCE. In terms of stability and security, we need peace between those two countries, which will see the resumption of inward investment, boosting the economies of both Armenia and Azerbaijan.

[Lord Collins of Highbury (Lab)]

The Government’s efforts to de-escalate are certainly welcome, as are their efforts to work with the EU and the civilian mission that will go there. One of the advantages of the Minister’s longevity in post is that he will remember my repeated questions to him about Russian involvement in this area. What is the Government’s assessment of this, and what is being done to ensure that Russia does not provoke even more violence than it already has?

[Lord Ahmad of Wimbledon (Con)]

On the noble Lord’s first point, time shall tell. On the more substantive point of Russia’s role, we have been very clear, and I appreciate His Majesty’s Opposition’s strong support for the position on Russia. Russia is playing a particular role in the region, between those two countries. We have made no attempts to engage with Russia—we are very clear on this issue—while other partners do so. The important role for Russia, or anyone else mediating or keeping the peace, is to do exactly that.

China: Security and Trade (IRDC Report)

Lord Collins of Highbury Excerpts

Thursday 20th October 2022 Grand Committee

[Lord Collins of Highbury (Lab)]

My Lords, I start by commenting that we have of course all been looking at our mobile phones during this debate. I agree with the noble Lord, Lord Howell, that the Prime Minister’s resignation earlier today is not a matter for debate now, but I also agree with the noble Lord, Lord Purvis, that we should not underestimate the impact of the Government’s actions on our global reputation and credibility. It will come back to haunt us.

I very much welcome this report, and certainly the excellent introduction by the noble Baroness, Lady Anelay. We have discussed elements of the report in previous debates, and I repeat what we said then: this is about making a very clear case for a consistent written strategy setting out the Government’s security relationship with China. As long as Ministers maintain their policy of ambiguity, we cannot be confident that they are properly balancing the need for economic engagement with the importance of the UK’s interests and values.

Unfortunately, as noble Lords mentioned, the response to the report gave no further indication of a wide-ranging strategy—far from it. Instead, there were only piecemeal points about the UK’s interests and values. It focused on things such as the importance of avoiding strategic dependency on China. The Government argued that the National Security Council provided clear direction for their China policy, and that it was supported by the work of the integrated review. I too welcome the fact that events have overtaken us and the integrated review will be re-examined in the light of Russian aggression. I accept that that does not undermine the case that the committee has made. The fact that events have overtaken us does not undermine the fundamental case for a clear strategy in dealing with China.

As the noble Baroness said in her contribution and in her follow-up letter to the Minister, ambiguity and uncertainty are

“damaging to businesses and detrimental to our partnerships and alliances in the region.”

I hear what the noble Lord, Lord Howell, said about those alliances, but unless we are clear, they will not know what we stand for. The noble Baroness wrote that it was unclear how the Government intended to balance human rights issues with the economic relationship with China, and how they

“will prioritise when these considerations clash.”

Amanda Milling said:

“We will uphold our values and protect our national security while promoting a positive and reliable economic relationship”.


As I have asked in previous debates, can the Minister say what exactly is the extensive programme of engagement with UK businesses to ensure that our policy is fully understood? The noble Baroness was absolutely right: the ambiguity continues to damage both our business interests and our political interests. Noble Lords will want to hear some concrete examples from the Minister, not just vague words.

The noble Baroness, Lady Coussins, mentioned the language deficit. It is a sad fact that, under the Conservative Government, the number of Mandarin speakers in the Foreign Office has fallen to a pitiful 14, the deployment of personnel to the strategically vital Pacific region has shrunk, and the often-mentioned China strategy is nowhere to be seen. The resultant drift and confusion undermine our position on the world stage, leave our allies unable to rely on British support and risk our technological and industrial advantages, while Chinese companies single out emerging technological advantages in areas such as semiconductors and biotech. Let me be clear. Labour will take a strong, clear-eyed and consistent approach to China, standing firm in defence of human rights, national security and international law while, as my noble friend, whose name I have forgotten—I am sorry.

[Baroness Blackstone (Lab)]

Do not worry.

[Lord Collins of Highbury (Lab)]

I had a mental block; it is age, I fear. As my noble friend Lady Blackstone urged, we will engage with China where it is in our interests to do so, particularly, as noble Lords have highlighted, in the global challenges we face that we cannot address unless we work with it, such as climate change, trade and especially global health. For years, the Government have turned a blind eye to human rights and national security concerns. Now they are divided and have no strategy, lurching between U-turns on issues such as Huawei and nuclear power.

In government, Labour will carry out a complete audit of UK-China relationships so that we can ensure the relationship reflects our interests and values and set a consistent strategy for the long term. China remains crucial to addressing those global challenges I have mentioned and is deeply integrated into the global economy. We will engage with China on the basis of our national interest and those clear principles but will not be afraid to speak out on human rights, particularly in Xinjiang, Hong Kong and Tibet. It is simply wrong that China has brought sanctions against UK parliamentarians for raising those concerns. I too pay tribute to the noble Lord, Lord Alton.

The brutal campaign of oppression in Xinjiang is a scar on the conscience of the world. In this House we have consistently raised the plight of the Uighur people, which the UN has said constitutes a crime against humanity and which our Parliament has voted to recognise as genocide. We support absolute, strong action, including a ban on cotton produced with forced labour, and the extension of human rights sanctions against the individuals responsible. As part of that strategy, a Labour Government will increase our independence in critical national infrastructure and will not repeat the sort of mistakes the Government have made in the past, particularly over nuclear power.

However, as the report and noble Lords have mentioned, it is really important that we underline our soft power activity, particularly the British Council and the BBC, which are key elements of an overall integrated strategy. I noticed in today’s Guardian an article showing how the Chinese Communist Party was using influencers in social media—it spreads without us even noticing that it is happening. What is our strategy in response to that? I do not see one. It is really important that we work cross-departmentally and across government to have that absolutely clear strategy.

As the noble Lords, Lord Howell and Lord Hannay, mentioned, we cannot do this on our own: it is really important that we work with our allies to provide real alternatives to China’s finance and investment in the developing world. Again, we have sort of turned a blind eye to that. The noble Lord, Lord Howell, is also absolutely right to mention the Commonwealth; our response to that has been minimal. In fact, as noble Lords have mentioned, we have seen how we have cut our influence by going to 0.5%. We use a statistic such as 0.5% and 0.7% but those bilateral programmes, particularly in Africa, were cut overnight. There was no plan or strategy—no understanding of the impact. Instead, they were cut straightaway. The speed of those cuts, not just the amount, was incredibly dangerous.

I repeat what has been said about the importance of our relationship with Taiwan. We absolutely support and want to see dialogue and peaceful moves to address those issues across the Taiwan Strait. We have been clear about our serious concern about China’s increasingly aggressive actions towards Taiwan and the attempts to intimidate its democratic leaders. We need to be clear about our support for that beacon of democracy. We also need to understand—I have said this about the global challenges—that we are not challenging the recognition issues that we addressed, but it is important that the globe does not miss out on the expertise that Taiwan has developed, particularly on global health. We should ensure that it is included in our discussions wherever possible.

I conclude by addressing the discussion this afternoon in the other place on the Urgent Question on the events in the Chinese consulate in Manchester. We had the Urgent Question repeat here, and I made the point to the noble Lord that it was absolutely essential that Ministers and the Foreign Secretary took responsibility and communicated the Government’s concern about these actions. The fact that it was left to officials and the ambassador was not summoned was a disgrace. It is time for the government to be very clear. Jesse Norman said in the other place that the ambassador is not in this country. We have seen clear evidence of what has happened in Manchester, and we cannot tolerate that those sorts of people who conduct themselves in that manner should be allowed to stay in this country for a day longer.

Sanctions (Damages Cap) Regulations 2022

Lord Collins of Highbury Excerpts

Tuesday 18th October 2022 Grand Committee

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)]

My Lords, this instrument, which is subject to the affirmative procedure, was laid before Parliament in draft on 20 July 2022, under Section 55(5) of the Sanctions and Anti-Money Laundering Act 2018—the sanctions Act. It will be made once it is approved by both Houses.

The instrument represents further action to strengthen the UK’s sanctions regime in response to Vladimir Putin’s illegal and abhorrent war against the people of Ukraine. Since the invasion, the UK has worked with international partners to deliver an unprecedented package of sanctions against Putin’s regime and his allies who are complicit in its brutality.

As noble Lords will be aware, the Economic Crime (Transparency and Enforcement) Act 2022 proceeded quickly through Parliament following Russia’s invasion and received Royal Assent on 15 March. That Act amended the sanctions Act to reform how sanctions are imposed and reviewed and how challenges to them are dealt with. Those amendments received cross-party support, including across the Benches in this House.

The economic crime Act created a power for the Government to set a limit on the amount of damages that a court can award for designations made in bad faith. In exercise of that power, the instrument before us introduces a cap of £10,000. This cap will apply to any proceedings challenging the Government’s use of designation powers under the sanctions Act or to the specification of a ship issued on or after 4 March 2022. It will minimise the risks to His Majesty’s Government of spurious or vexatious litigation from deep-pocketed oligarchs, as we continue to ratchet up the pressure on Putin. It is right and proper that the Government protect public funds in this way.

To be clear, this will not affect the right of a designated person to challenge their designation in a court or, if appropriate, have the designation lifted. Furthermore, the courts will have the power to disapply the damages cap to avoid any potential breaches of human rights, where necessary, in individual cases. But the cap will send a strong signal that Putin’s oligarchs and kleptocrats cannot draw on the public purse in this country to boost their coffers, that this Government will not be distracted from the task in hand by endless litigation and that we will not be knocked off course by the risk of damages claims. Noble Lords should make no mistake: this is not about protecting the Government from acting in bad faith. It is about sending a clear message to friends of Putin who are tempted to bring claims without merit.

To conclude, the UK Government will not hesitate in bringing forward further sanctions to target those who participate in or facilitate Putin’s illegal war of choice. On 26 September, the UK announced further sanctions targeting those responsible for Putin’s sham referenda. They included four Russian Government officials, four further oligarchs, 55 state board executives, and 29 individuals and organisations working for illegitimate proxy groups in Donetsk, Luhansk and Zaporizhzhia. On 30 September, the Foreign Secretary announced a new set of sanctions that further limited Russia’s access to the foreign services on which it depends.

Taken alongside previous action, the UK is now preventing Russian access to advertising, architectural, auditing, engineering and IT consultancy services, as well as various commercial legal services. The announcement included a new ban on the export of nearly 700 goods that are crucial to Russia’s industrial and technological capabilities. It also included new sanctions on Elvira Nabiullina—with apologies for the pronunciation—the governor of the Central Bank of the Russian Federation, who has been instrumental in managing the Russian economy throughout the war and in the rouble being imposed on Ukrainian territories that have been seized by Russia.

I trust that the Committee will support this instrument, which strengthens the UK’s ability to sanction those responsible for Putin’s illegal and brutal war. I beg to move.

[Lord Collins of Highbury (Lab)]

I thank the Minister for introducing this statutory instrument. Yesterday, we debated other sanctions and focused particularly on Russia. Of course, around the time of that debate, 28 unmanned drones reaped further unnecessary destruction in the capital, Kyiv. A young couple, who were expecting their first child in a matter of months, were among those killed by the senseless barbarity that is driving Putin’s war effort. I know that such crimes will strengthen the resolve not only of the people and Government of Ukraine but that of our Government, this House and all Members of Parliament to ensure that we continue to support Ukraine.

Before I cover the substance of this SI, last night the Minister kindly promised to let me have sight of a letter to my honourable friend Stephen Doughty that answered several of his questions, which I had repeated. By the time I got back to my office, I had received it; I thank the Minister. I specifically raised the issue of mixers, which scramble the origins of crypto transactions to make them virtually untraceable. I asked why two of those mixers—Tornado and Blender—are not on our sanctions list, despite being targeted by the United States. Short of the letter saying that it would be wrong of the Minister to speculate about the targets of future sanctions, there was no mention of them. I will keep repeating the point I have made before: if we do not act in concert with our allies, such as the United States, these mixers will have the capacity to funnel billions to Putin and his cronies. I hope the Minister can reassure us tonight that the Government will act on this.

I turn now to the substance of today’s SIs. It is absolutely right to disincentivise oligarchs and other designated persons from pursuing the Government through the courts by capping the damages that they could receive if they prove that they were sanctioned in bad faith. For far too long, oligarchs from Russia and beyond have acted with complete impunity, their wealth a symbol of global failure to tackle the illicit finance channels which span our economy, politics and society.

Last month, it was revealed that at least 21 Russian businessmen were engaged in legal proceedings across the European Union to overturn sanctions against them, according to filings at the European Court of Justice. I absolutely agree with the noble Lord that today’s action is a welcome step in constraining their ability to tie up these designations in legal showdowns and limit our ability to act. Given that they operate within the parameters of the ECHR, Labour welcomes these changes.

However, it makes no sense to make these changes without acting against illicit Russian finance, which still pollutes the City of London. Labour welcomed the economic crime Act, but the measures it sets out are only the beginning in addressing the chronic problem of dirty money. Minimising what an oligarch can glean from a protracted legal battle is one thing but driving illicit finance out of our institutions is another matter entirely.

As I have repeatedly stated in the Chamber, we must reform Companies House, with new powers to verify information and remove corporate entities from the register once rules are broken. It is vital to ensure that our enforcement bodies are funded for the long term and are no longer outgunned by the seemingly endless resources of oligarchs that we are up against. Spotlight on Corruption highlighted that money laundering prosecutions have dropped by 35% over the last five years. The United Kingdom is by far the most frequent country of origin of SLAPPs—strategic lawsuits against public participation, also known as intimidation lawsuits—with 31% of these cases originating in the UK, according to the Anti-SLAPP Coalition.

The existing budget for economic crime law enforcement is £400 million, with only £100 million of that coming from the Treasury. Given that this is supposed to be a priority of the Government, that amount seems entirely inadequate. I hope the Minister can reassure us that we will build capacity to tackle these oligarchs.

Before I conclude, I have a couple of questions. The cap on damages appears to apply to any proceedings after 4 March. Does the Minister know how many proceedings this will apply to? When the then Minister of State at the Home Office, the noble Baroness, Lady Williams, introduced the relevant sections of the economic crime Act, she said that the cap on damages would limit the oligarchs’ claims, but it is not clear what will have been paid out before the cap comes into effect. Is there information on that amount? Can the Minister tell us exactly how the Government concluded that £10,000 is an appropriate level for a cap?

With these comments, I reiterate that we are strongly supportive of the Government’s actions, and we certainly support the adoption of this SI.

[Lord Goldsmith of Richmond Park (Con)]

I thank the noble Lord for his comments and support for the measure. We have acted swiftly to hold Russia to account for its attack on Ukraine. The UK is inflicting devastating pain in areas of strategic importance to Putin and Russia following the unprovoked and illegal invasion. The Government brought forward this legislation before the Summer Recess and, as the noble Lord said, the cap will apply to all proceedings brought before 4 March.

We continue to make maximum use of our sanctions powers to ensure the strongest possible response to Putin’s illegal invasion of Ukraine. We must ensure that the measures and cases are carefully targeted on the basis of robust evidence before we sanction individuals, goods or companies. That is why we are taking it step by step but noble Lords may rest assured that we will continue to sanction where it will have maximum impact.

It is important to recall that, when this House decided to restrict damages to cases of bad faith, it also gave the Government the power to set a cap. That was done precisely to send the message that no one should benefit from massive payouts from sanctions litigation. We have concluded that £10,000 is appropriate. I am confident in the integrity of our process but this is about sending a message. By imposing a cap, we are removing incentives for deep-pocketed oligarchs or financial institutions to bring unfounded or vexatious litigation. A court cannot neglect to apply the damages cap except in specific circumstances where failure to do so would be in breach of the individual’s human rights.

The starting point will always be that the damages cap applies and will be disapplied only in those very particular circumstances. Any designated person may challenge their designation in court and have it removed if it is not justified, and has the right to receive damages where the Government have acted in bad faith. The core right remains for any designated person to challenge their designation in court and have it removed if it is not justified. This House considered the arguments and supported without objection the Government’s proposal to exclude damages for negligence during the passage of the Economic Crime (Transparency and Enforcement) Act.

I apologise that reference was not made in the letter that the noble Lord, Lord Collins, saw last night to the two mixers he mentioned in his comments yesterday. I am not able to be specific in my answer to him now other than to say that we are working in concert with our allies and will continue to act where appropriate. Absolutely no entity is off the table. We will go further to bring about an end to Putin’s war. I note the recommendation made by the noble Lord; he makes a strong argument. I will make sure that there is appropriate follow-up by government but I hope he understands why I cannot go into more detail now.

The noble Lord asked about 4 March and, I think, how many processes would pre-apply before that date. I think the answer is none. He also asked what has been paid out as a result of actions that precede these measures coming into force. I think the answer to that is also nothing. I think that is correct—I am getting a nod of agreement behind me. That is good news.

The noble Lord rightly raised the question of capacity. I hope I can reassure him by saying that, in December last year, there were 48 substantive roles in the sanctions unit, which has now become the sanctions directorate. We have doubled the number of officials focused on our response. We now have more than 100 permanent staff delivering our response. This number does not include those working across the FCDO and its overseas network, who cover sanctions as part of their wider roles.

The Office of Financial Sanctions Implementation—the OFSI—has also doubled its size this financial year and continues to grow to meet the challenges of the sanctions introduced under the Russia sanctions regime. The recruitment of new permanent staff continues following the former Chancellor’s announcement in March to double the size of the OFSI.

It is the responsibility of the UK and our allies to ensure 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. I once again thank the noble Lord for his insightful contributions and support.

Chinese Consulate: Attack on Hong Kong Protesters

Lord Collins of Highbury Excerpts

Tuesday 18th October 2022 Lords Chamber

[Lord Collins of Highbury (Lab)]

I thank the Minister for repeating that Statement. I share the Government and the Minister’s concerns at the violence at the consulate. While I welcome the fact that the chargé d’affaires has been summoned and that a meeting apparently took place this afternoon, we must show that such behaviour will not be tolerated on our streets. Therefore, I was disappointed that Jesse Norman was today unable to confirm that the Foreign Secretary would immediately summon the Chinese ambassador to demand an explanation for the incident. I hope that the Minister will urge him to do so without delay.

[Lord Goldsmith of Richmond Park (Con)]

I thank the noble Lord for his remarks. As was said in the Statement, the police in Manchester have launched their investigation, and a police patrol plan is in place in the area. The use of police powers and management of demonstrations are obviously operational matters for the police—but, in relation to what happened on the ground, at this stage it would be inappropriate to comment further until that investigation is completed, at which point the noble Lord’s remarks may well become more pertinent.

--- Later in debate ---

[Lord Goldsmith of Richmond Park (Con)]

The noble Lord makes a useful observation on the turning of the tables. The answer is that I do not know. I suspect that there have been peaceful protests. The fact that we have not debated incidents in that venue suggests that the answer to his question is yes, but I will need to get back to him to confirm that.

[Lord Collins of Highbury (Lab)]

My Lords, I want to come back to my original question. I totally understand that it is not the Government’s position to interfere with the operations of the police or their investigations. However, the Government felt it right to summon the chargé d’affaires to make clear our view about this incident. Why is it not right for the Foreign Secretary to summon the ambassador to make this position clear? Surely that must be done immediately.

[Lord Goldsmith of Richmond Park (Con)]

My Lords, that depends on what is discovered. It may well be, as noble Lords are implying, that this was an egregious act of wrongdoing. If that is the case, the Government will respond accordingly and, at that point, our conversation and interaction with China and Chinese representatives would change. However, at this point, it would be premature for me to map out a course of action.

Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2022

Lord Collins of Highbury Excerpts

Monday 17th October 2022 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I, too, welcome the Minister’s introduction of these regulations. I assure him and the Government of our continued support for these measures. In the debate that we had last week, we made our continued support absolutely clear.

There are a couple of points I want to focus on. These were raised by my honourable friend Stephen Doughty in the other place in relation to cryptocurrencies being used to evade sanctions and particularly how they can be used to inject capital into the democracies of the world for the purposes of swaying elections. During the Commons debate, Stephen Doughty asked why the Government have not yet sanctioned Tornado Cash and Blender, two cryptocurrency services already sanctioned by the United States. While I am pleased that the Minister confirmed that the Government are looking at sanctioning those two organisations, I hope the Minister can update tonight about when we can expect further legislation in this regard.

Just picking up the point made by the noble Baroness, Lady Kramer, the Minister in the Commons was unable to update the House on the steps taken to pursue greater global regulation of cryptocurrencies. I hope the Minister can tell us whether the United Kingdom mission to the United Nations has taken part in any discussions on this and whether the point was raised at the annual meeting of the IMF and the World Bank earlier this month, in addition to answering some of the other points that the noble Baroness has raised.

Since the invasion of Ukraine by Putin’s regime, there has been a huge increase in rouble to crypto trades resulting from individuals and businesses wanting to evade sanctions on cross-border payments. Will the Minister tell us what the Government are doing to monitor the providers used for these exchanges?

Finally, earlier this month the US Government fined Bittrex, a cryptocurrency exchange, for repeated violations of sanctions. Will the Minister tell us, specifically and in a more general sense, how we are working with the United States and other allies on investigations such as these so that we can ensure that our measures have full compliance? As the noble Lord, Lord Ahmad, repeatedly says, sanctions are not effective unless we act in concert with others, so I hope the Minister can respond on these points.

[Lord Goldsmith of Richmond Park (Con)]

My Lords, I thank noble Lords who have contributed to this debate today. I will do my best to address the issues that were raised by noble Lords.

Crypto asset exchange providers and custodian wallet providers have been added to the definition of relevant firms in all UK sanctions regulations, and relevant firms must report certain information to the Treasury when encountering a designated person in the course of their business or where they become aware of a breach of financial sanctions regulations. Reporting obligations themselves have not changed.

The instrument that we are debating today strengthens our sanctions in two ways: first, the measure further supports the UK’s technical implementation of recommendation 15 of the Financial Action Task Force standards. It is the international standard-setting body for all anti-money laundering, counterterrorist financing and counterproliferation financing. Recommendation 15 requires the Government to ensure that certain financial sanctions reporting obligations are applied not only to financial institutions and designated non-financial businesses and professions but to virtual assets service providers. These regulations bring crypto asset exchange providers and custodians wallet providers into the scope of those obligations.

The second area in which this strengthens our regime relates to enforcement. The instrument seeks to address the risk of crypto assets being used to breach or circumvent financial sanctions. The definition of “relevant firm” now covers firms that either record holdings of or enable the transfer of crypto assets and are therefore most likely to hold relevant information.

I will address some of the specific points raised by the noble Baroness, Lady Kramer. I felt she made an interesting point about the possibility of the FCA and the NCA sharing the proceeds of fines to build up their capacity, and I will certainly convey that suggestion to my colleague in the other place. I believe the Office of Financial Sanctions Implementation has doubled in capacity this year, and we have seen that mirrored through the infrastructure we have to counter these forms of crime in the UK.

The noble Baroness gave a very effective plug for her Private Member’s Bill to protect whistleblowers. I will not pretend that I know chapter and verse of her Bill, but it certainly sounds sensible and worthy of serious consideration. I will also pass that to colleagues and do my best to ensure that it is treated with the seriousness it no doubt deserves.

The noble Lord, Lord Beith, asked a couple of questions about Burundi. As he acknowledged, the view—I think it is a consensus—is that the 2019 Burundi sanctions regulations remain in place. On the second point, the issue about guidance online has been brought to the attention of the FCDO. Colleagues in the FCDO are now working with those websites to ensure that the right guidance is available, so I think the point he made has already been registered in the Foreign Office by the relevant department.

The noble Lord, Lord Collins, repeated the question put to colleagues in the other place by Stephen Doughty in relation to two firms in particular. Although I do not have the answer for him now, I know that a letter is winging its way across to Stephen Doughty—I am told it will reach him this evening—and addresses the points he raised. I hope that is satisfactory. I will make sure that the noble Lord receives a copy of the letter.

The noble Viscount, Lord Waverley, made a number of interesting points. I flag to him that a new combating kleptocracy cell has been set up this year in the National Crime Agency. I hope it will be able to fulfil some of the roles and functions he outlined in his contribution.