Bermuda: Same-sex Marriage

Lord Collins of Highbury Excerpts

Thursday 8th February 2018 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I thank the Minister for repeating the response to the Urgent Question. I also thank my right honourable friend Chris Bryant for securing it in the other place. I have a special interest in Bermuda. My grandfather spent his whole working life in the naval dockyards there and my father was born there, so I have a deep interest in the affairs of Bermuda and this is a terrible backwards step. It turns same-sex couples into second-class citizens just a year after winning equality through the courts. We are told by the Minister in the other place that these are not “exceptional circumstances” for the governor to withhold consent. Surely protecting the rights of British citizens are exactly the circumstances in which to act, especially when those rights have been affirmed by the courts. I remind the Minister that not so long ago, on the sanctions Bill, he outlined LGBT rights as being an exception for the Government to act. So I have two straightforward questions for the Minister. What steps will the Government now take to mitigate or reverse this decision? Will the Government give financial support to British citizens who may wish to launch a legal challenge on this matter?

[Lord Scriven (LD)]

My Lords, I too thank the Minister for repeating the reply to the Question in the other place. This is clearly a backward step, not just for LGBT rights but for human rights of LGBT citizens across the Commonwealth. Therefore, the Government are beholden to make a direct and forceful intervention in this situation. I have two questions for the Minister. First, what direct action did either the Prime Minister or the Foreign Secretary take to contact Bermuda’s Prime Minister or any other Minister of that area? Secondly, will the Government commit to ensure that this issue is now on the agenda of the Commonwealth Heads of Government Meeting this April so that it can be addressed as a human rights issue for every LGBT citizen in the Commonwealth?

Turkey: Human Rights

Lord Collins of Highbury Excerpts

Monday 29th January 2018 Lords Chamber

[Lord Ahmad of Wimbledon]

Britain’s position with Turkey goes beyond our membership of the European Union. Let it not be forgotten that the United Kingdom has been the strongest voice for Turkey’s membership, to broaden the base of the European Union. I disagree with my noble friend: it is not a small decision or issue. Leaving the European Union, with the opportunities that provides to global Britain, will present the United Kingdom with a new way of defining relationships; we will continue to strengthen our existing relationship and influence with Turkey.

[Lord Collins of Highbury (Lab)]

My Lords, for a long time the United Kingdom’s policy towards Turkey was to encourage it to join the European Union, for the very good reason that it improved standards, held people to account and applied the rule of law. By leaving, we will be saying to Turkey: “Do what we say”. That is not good enough. Surely, we need to act collectively to defend human rights.

[Lord Ahmad of Wimbledon]

The noble Lord is aware that we will act to defend human rights, not just with our European Union partners—we will continue to have a strong relationship with them on this important issue once we have left the Union—but also through other bodies such as the UN body on human rights. We will continue to make the case for human rights across the piece. That also means that when we see human rights abuses in countries such as Turkey, with which we have relationships, we stand up and make our position absolutely clear.

Brexit: Foreign Policy

Lord Collins of Highbury Excerpts

Thursday 25th January 2018 Lords Chamber

[Lord Ahmad of Wimbledon]

First, I disagree with the noble Baroness’s final point that the influence is decreasing. On the contrary, I have not found that when I have travelled across the world. For example, when I was in Ghana, we had various meetings with the EU representative as well as our high commissioner on the ground. The noble Baroness will know that the specifics are yet to be determined, but it is very clear to me and the Government that we will continue to have very strong ties with our European partners. Recent events such as the UK-French summit and the meeting in Poland demonstrated that other European partners take the same view.

[Lord Collins of Highbury (Lab)]

My Lords, the key point is that our deep relationship and partnership has added value to collective action. The world faces its biggest refugee crisis, and leaving the EU will weaken our ability to act collectively. What are the Government doing to ensure that in the future, working with DfID and the ODA budget, we can act collectively in Europe to protect our security interests, not least the humanitarian concerns facing the world?

[Lord Ahmad of Wimbledon]

We are, I believe, one of only a few leading nations that fully manifest our commitment to our defence spending and our development spending, which I know all noble Lords support. On the noble Lord’s substantive point about how we will continue to work with our European partners on important issues which he raises such as the refugee crisis that we have seen on European borders, again, if he was to look at the detail of the recent summit with the French, he would see that these kinds of issues come to the fore and decisions are being taken. While, yes, we are leaving the European Union, we will look to work in a collaborative way with our European Union partners once we leave.

Hong Kong

Lord Collins of Highbury Excerpts

Wednesday 24th January 2018 Lords Chamber

[Lord Collins of Highbury (Lab)]

As the noble Lord, Lord Ashdown, said, this is an international treaty. In the debate in Westminster Hall yesterday, Mark Field said that we will continue to raise with the Chinese authorities our concerns, particularly on the Ben Rogers situation, but also about the ongoing arrests—28 last month. If we are to continue to raise our concerns, is it not about time that we escalated this so that the Prime Minister demands answers from China on these breaches of an international treaty?

[Lord Ahmad of Wimbledon]

As the noble Lord may be aware, at the last G20 meeting my right honourable friend the Prime Minister raised various issues in this respect. On his point about escalation and Ben Rogers, he may be aware that, at that time, the Chinese ambassador to the UK was also summoned to the Foreign Office. I have met Ben Rogers, as have other Ministers, since this incident took place. Let me reassure the noble Lord—indeed, all noble Lords—that we continue to use every opportunity, both bilaterally and through international fora, to raise the important issue of the international agreement, to which both countries are signatories.

Sanctions and Anti-Money Laundering Bill [HL]

Lord Collins of Highbury Excerpts

3rd reading (Hansard): House of Lords
Wednesday 24th January 2018 Lords Chamber

[Baroness Kramer (LD)]

My Lords, I will speak exceedingly briefly because so much has been said. In fact, it has all been said, but it has not been said by me—and I refer of course to the thanks. I thank in particular the Minister, who took the view from the beginning that, if we worked together, we could improve the Bill. I appreciate so much that approach to this piece of legislation. It has been reflected in his Bill team, which, I may say, is made up of people of exceptional quality. They understood the issues we raised and recognised that we were not being either party political or pernickety but, rather, that our points touched on fundamental issues. They also understood that changes could be made to the Bill that would meet the requirements not only of the Government but also of those of us who thought that the way the Bill had been drafted achieved a transfer of power from Parliament to the Executive that was not appropriate—and I suspect in this case was probably not intended. Members of the Bill team also responded with very creative language rather than casually accepting our wording. They did not take what we provided and simply print it; they went back and looked closely at the issues, and came forward with very satisfactory language.

Like others in the House, I thank the noble and learned Lord, Lord Judge, and the noble Lord, Lord Pannick, for leading the charge on removing the powers for Ministers to create criminal offences—something that is so fundamental to our underlying constitution. I hope that the Minister has taken on board that there seems to have been a slip, so that consequentials have remained in the Bill when they should have slipped out. I hope that it will not be necessary for this House to have to deal with them. When the whole issue of criminal offences is considered in the Commons, I hope that it will be dealt with in the appropriate way and in the spirit in which the Bill has moved forward.

I have one last set of particular thanks. Obviously my noble friend Lady Northover will make formal thanks to everyone later, but a key player in all of this has been my great friend and colleague, my noble friend Lady Bowles. The attention that she has paid to the detail of the Bill, and her assiduity, have unlocked everyone’s thinking by demonstrating that you could use reasonable language and sensible approaches to shape the Bill into something better. It has been an exceptional example of the work that this House does in an extraordinary way. I know that my noble friend is relatively new to the House—although she is not new to politics or to Parliament—and I am grateful to her and I really appreciate the fact that the Minister has recognised the contribution that she has made.

[Lord Collins of Highbury (Lab)]

My Lords, I will save my thanks for later, when we consider the Motion that the Bill do pass. Before then, I want to echo the comments about how this Bill has proceeded in terms of the concerns of noble Lords which, of course, have turned on how we as a Parliament can constrain the Executive when they are seeking powers. Of course, this is the first Brexit Bill that the House has considered, and we heard earlier that we have another Bill on its way here. It is my intention to speak in the debate on Second Reading of that Bill to raise again our concerns about an Executive power grab, in particular when it concerns the important issue that the noble and learned Lord, Lord Judge, raised about powers to create criminal offences.

In one of those debates, the noble and learned Lord—of course, the noble Lord, Lord Pannick, also raised these issues—gave us a history lesson about Henry VIII. What struck me was when he said that not even Henry VIII had the nerve to take these powers. Not only have this Government had the nerve, but even when the House spoke overwhelmingly on this subject, we still have errors creeping into the Bill as it has been presented to us today. I hope that this is an error and that, when the Bill goes to the other place, we will not see an attempt to grab power back and that we will get this sorted out in accordance with the wishes of this House.

On the anti-money laundering provisions, as I said, this House, across the board, has done an excellent job of scrutiny, and I think the Minister has done an excellent job of listening to our concerns.

--- Later in debate ---

[Baroness Kramer]

My Lords, I want to make a short intervention on this issue. Your Lordships will remember that the amendment, moved with great energy and skill by the noble Baroness, Lady Stern, to extend public registers to overseas territories—by order, if necessary—was defeated in this House by a narrow margin. It was notable in the speeches of those who stood up to support the government position that we should focus on central registers and that public registers would not be part of that agenda. Speaker after speaker—the majority—spoke against public registers of every kind. I noticed a lot of nodding on some Benches because the arguments were around the importance of privacy, non-intrusion and the protection of identity. Anyone listening to that debate would have assumed that this House was taking a stand against public registers. It is crucial that we see urgent action by the Government on this public register, which the noble Lords, Lord Faulks and Lord Hodgson, have so eloquently described as necessary to expose and, presumably, drive out the abuse of property and government contracts in the UK by those who see them as excellent mechanisms for laundering money obtained through corruption or other nefarious activity.

I hope the Government will understand that they need to defend public registers—I was somewhat stunned that the Minister did not do so in his response—and demonstrate to all of us that this is the mechanism that can deal with this problem. I hope that other locations will understand that and will take up the baton, but one of the best ways to make sure that happens is to demonstrate the change it can deliver for us in the UK.

[Lord Collins of Highbury]

I will be very brief. I congratulate the noble Lord, Lord Faulks, on pushing this issue. I do not think he owes anyone an apology for doing so because it is vital that we tackle this. This amendment is about the commitment that was made but has been delayed for a long time. My concern, and that of the noble Lord, Lord Hodgson, is that the wording of the amendment potentially takes us to 2022 before we see something. I think all noble Lords will be behind the noble Lord, Lord Faulks, in putting pressure on the Government to ensure that they properly meet their commitment.

Still on public registers, I agree with the noble Baroness, Lady Kramer. I am glad to see that the noble Baroness, Lady Stern, is in her place. She made a powerful case for public registers in overseas territories. The front page of today’s Guardian has an article about Appleby and FBME Bank, which was banned from the US financial system. Appleby is a Cayman Islands-registered holding company. Anyone who reads that article will know that this issue will not go away and we will have to come back to it.

[Lord Ahmad of Wimbledon]

My Lords, I am grateful to noble Lords. I reiterate my thanks to my noble friends Lord Faulks and Lord Hodgson for pressing the Government and holding us to account in this respect and ensuring that we move forward. I am also grateful to my noble friend Lord Naseby, who sought clarification. I have looked carefully at his amendment and I think what the Government have tabled and his amendment have the same intent. However, in the interests of ensuring thoroughness and completeness, I have asked officials to look again to make sure that the intent behind his amendment is achieved.

The Government have committed to the new Bill establishing the register. It will be primary legislation and will pass through your Lordships’ House, so I am sure there will be further discussions and plenty of opportunity to ensure that all issues, particularly those raised by my noble friend, are addressed. I assure him that we feel the intent behind his amendment has been achieved. I will, however, look at this again, and if there is a need to do anything further, we will seek to do that in the other place.

My noble friend Lord Hodgson asked me when Royal Assent might be granted. It is not within my gift as the Minister at the Dispatch Box to confirm that, but we are expecting Royal Assent at the end of this Session. On accountability, I reassure my noble friend that through the additional ministerial Statement laid today, I have sought to provide as much detail as I can at this juncture in the parliamentary timetable. However, as I said to him in our bilateral meetings—I believe this was communicated to him subsequently in other meetings we had—we have worked back, and as the Written Ministerial Statement again confirms, we are looking to have the register operational by 2021. I am sure there will be other opportunities. As for the Government laying a report, I confirm that the 12- month clock—the countdown—will commence as soon as Her Majesty has signed off on the Bill. However, it would be beyond the scope of my responsibilities to give an absolute, cast-iron guarantee as to when Royal Assent will be. I am sure my noble friend appreciates and respects that we have to follow due process. However, the Government are committed to the register being operational in 2021. From the points made by other noble Lords, I appreciate that wherever one is sitting in your Lordships’ House, there is no disagreement on the need to move forward on this and to do so as rapidly as we can.

My noble friend raised another issue, about procurement. Again, to reassure him on that, I draw his attention to the Written Ministerial Statement laid today by my noble friend Lord Henley, which says:

“I am today confirming to Parliament the Government’s timetable for implementation of its policy to achieve greater transparency around foreign entities that own or buy property in the UK or participate in UK Government procurement”.


As the Bill is drafted and pre-legislative scrutiny takes place on it—if that is the process which is agreed—that will allow further discussion to address the very points my noble friend raises in that primary piece of legislation.

The point about local government is well made. As someone who served 10 years in local government, I am acutely aware of how procurement works. It will reflect the very policies adopted by the UK Government. With those reassurances, I hope my noble friend will be minded to withdraw his amendment.

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[Lord Patten (Con)]

My Lords, your Lordships may need reminding that, before this excellent Bill was introduced, between April and June last year, some 30,000 people and companies were asked for their views. Just 34 responded with any views in writing. Since its introduction, however, the Bill has received the line-by-line scrutiny expected of your Lordships’ House in Committee. Even I had a go, once or twice.

No one could fairly say that it has not been scrutinised thoroughly before it journeys to another place. There certainly have been some tussles but, below the surface, it has received broad all-party support. This is welcome from the Opposition Benches and Cross Benches, of course—just as some of us, a few years back, in opposition, spoke in equally strong support of the eventual Bribery Act 2010, when ably introduced to Parliament by the then Justice Secretary Jack Straw, whose contribution certainly should not be forgotten. I believe the Bribery Act is still the toughest anti-corruption legislation anywhere in the world, raising the bar far above the earlier US Foreign Corrupt Practices Act. Similarly, if passed by another place and then passed by us again, the Sanctions and Anti-Money Laundering Bill will become its absolute twin, as it were, giving us again another globally tough measure to match the Bribery Act, and marching in step with it.

We must remember that bribery, sanctions breaking and money laundering are very often in practice very closely intertwined. One key test of the legislation before your Lordships’ House is its ability to go beyond the big or top players, right down through the supply chains of corruption via intermediaries, and then down through them to minor actors and mere runners—indeed, that cascade of responsibility referred to so aptly by the noble Baroness, Lady Bowles of Berkhamsted. How right she was. The Bill as amended by your Lordships does just that, as globally we work against terrorism and in favour of maintaining and strengthening the integrity of our financial system, as we have since 1989, when the UK as a key player was one of the G7, which first set up the Financial Action Task Force.

[Lord Collins of Highbury]

My Lords, I add my thanks to everyone involved in the Bill. I start by thanking my own team, my noble friend Lord Lennie and my noble and learned friend Lord Davidson. These people do not often get thanked publicly, but I thank also the team in the Labour opposition office, including Catherine Johnson, who did a particularly good job in helping me to be well prepared for my numerous meetings with the Minister.

I also thank the Lib Dem Benches, particularly the noble Baronesses, Lady Northover, Lady Kramer and Lady Bowles. We, again, had numerous meetings. One thing that the Minister omitted to mention—he mentioned all the time that we spent in Committee, in the Chamber, scrutinising the Bill—was that we spent substantial time in meetings outside the Chamber. In fact, the Minister got quite anxious at one point when I turned up to meetings with the noble Lord, Lord Faulks. I am sure he felt that I was in the wrong meeting at the time. We had very good cross-party and cross-Bench support, and I add my thanks to the noble Lord, Lord Pannick, and the noble and learned Lord, Lord Judge. We now have a better Bill. It is not necessarily a good Bill in all respects, but it is a much better one than what was originally delivered.

I also pay tribute and thanks to the Bill team, particularly Louise Williams, Adam Morley and Jennifer Budniak, and of course the lawyers. I think I had the most pleasure dealing with the lawyers, and I hope Luke Barfoot and Michael Atkins enjoyed those exchanges as well. They did a terrific job; they are great public servants and, again, they deserve our thanks and gratitude. Obviously, as the noble Baroness, Lady Northover, said, their work will continue.

One thing that surprised me was that at one of the lengthy meetings I had with the Minister, the BBC fly-on-the-wall cameras were there. I hope to God it is better than the programme it did on the House of Lords. I certainly hope I come across much better than some noble Lords did, but let us wait and see—I do not know when it will come out.

My final thanks, of course, go to the Minister. He said at the beginning of this Bill, “I am in listening mode” and I know we joked about that, but honestly, he has listened and his responses prove how much he listened. I am very grateful to him for dealing with us so well on this Bill.

[Lord Ahmad of Wimbledon]

My Lords, I want again to thank all noble Lords.

Freedom of Religion and Belief

Lord Collins of Highbury Excerpts

Thursday 18th January 2018 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I declare an interest as a member of the APPG. I certainly support its work and its report, but religion is often used as a cover for oppressing other minorities, particularly the LGBT community. A charity I am a patron of, an HIV centre in the East End of London, is working with faith groups on practical ways we can build respect and address concerns. Does the Foreign Office see the benefit of this sort of work, and is it supporting such work in other countries?

[Lord Ahmad of Wimbledon]

The noble Lord knows I agree with him totally. We have seen exactly those kinds of initiatives working domestically, which are of great value. In discussions we have had—and he will be aware of this—I have often said that faith communities should approach all these issues, including those of LGBT rights, as defined human rights issues. When we look at these issues through the prism of religion, the issues of fairness, equality and justice should prevail.

United States: Foreign Policy

Lord Collins of Highbury Excerpts

Thursday 18th January 2018 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I too thank the noble Lord, Lord Ashdown, for initiating this debate, which has been wide ranging and important. One of the good things about House of Lords debates on subjects such as this are that we are not confined. We hear from a wide range of expertise on a number of subjects. I particularly welcome the excellent maiden speech by the noble and gallant Lord, Lord Houghton of Richmond. As the noble Lord, Lord Hennessy, said, he is a welcome addition to our military Benches, and I look forward to his future contributions.

[Noble Lords]

Warrior Benches!

[Lord Collins of Highbury]

Was it warrior Benches? There you go: that shows the difference between us. I will not go any further.

Trump’s attack today on the free press, backed by Rupert Murdoch’s media empire, is full of irony. Twelve months ago, the Chatham House report on America’s international role under Trump said that his foreign policy path would be hard to predict. It pointed out his fondness for,

“unpredictability—a characteristic long noted as dangerous in foreign policy—and has a tendency towards inflammatory and escalatory rhetoric. He is transactional and short-termist in outlook, has little respect for long-standing alliances and partnerships”.

Twelve months on, Trump started 2018 with a flurry of tweets that sparked protests across the world, caught allies off guard and further divided opinion in Washington. As we heard in this debate this afternoon, he has split the international community and inflamed Palestinians when he recognised Jerusalem as Israel’s capital by moving the embassy. He then threatened to punish those who voted against the move at the United Nations General Assembly by cutting aid.

I say all this because the excellent contribution from my noble friend Lord Robertson was a telling point about this debate. We need to focus on the reactions to these things, not just what Trump intended. There is a positive reaction. It causes us to focus on what we have and the important things that we value. Trump’s own view of his first 12 months was to praise his own Administration for victories against ISIS in the Middle East and for bringing unprecedented pressure to bear on the North Korean regime. The national security strategy unveiled in December also labelled Russia and China among the chief challenges facing the US, despite Trump’s overtures towards their leaders. That has been reflected in today’s debate.

Ryan Crocker, the former US ambassador to Iraq and to Afghanistan, who served both the George Bush and the Obama Administrations, said:

“Other than the neo-isolationism I do not think there is a pattern to his foreign policy … I think he is purely reactive”.


But our reaction must be about what that vacuum is creating. That is the important role of Britain internationally in supporting a rules-based system and human rights. In our debates on the Sanctions and Anti-Money Laundering Bill this week, I was pleased that this House focused on the importance of championing human rights, which will be at the core of our activity.

Another consequence of Trump’s actions over the past 12 months has been the deep cuts to the State Department budget and the dearth of high-level diplomatic appointments—the failure to make key important appointments. As my noble friend Lord Robertson reflected, we have also seen cuts to our foreign and diplomatic services which will impact on our ability to fill that vacuum. There is no doubt that Trump’s lack of interest in established diplomatic protocols has put a strain on the close relationship between No. 10 and the White House. However, as the noble Lord, Lord Hennessy, pointed out, UK national security strategy is largely designed to work this special relationship from force structure to intelligence sharing. It is critical.

On Trump’s “America first” agenda and the new national security strategy published at the end of last year, we have heard, as the US National Security Adviser Lieutenant-General HR McMaster said last year, that “America First Doesn’t Mean America Alone”, and that the US would continue to work closely with allies in pursuit of a global leadership. That is another key element of today’s debate. We have the rhetoric and the tweets, but we also have effective co-ordination at a range of levels in our special relationship, which is something that we should not miss.

The highest priority in the strategy was given to the protection of the American homeland from attack. Another overriding theme was a focus on American prosperity as the core national security goal. I welcome the contribution of the noble Lord, Lord Kerr. He is absolutely right that there is an additional threat to the rules-based system, which is about trade. Trade has become one of the key focuses of President Trump. It fits in well with the presidential election narrative targeted at the working classes in the US with growing concerns about stagnation and declining competitiveness. I will return to this theme at the end of my speech.

One of the things we have seen in the excellent House of Lords briefing that we had for this debate are Professor John Bew’s observations that one can see subtler themes in the strategy that McMaster highlighted. They are talking about peace through strength—a conscious sort of reminder of the Reagan era, reflecting Trump’s demands for more effectiveness and utility in the international game. McMaster is also keen to stress that the US will expect reciprocity from its allies in terms of supporting NATO for example, as we have heard in this debate.

From our point of view there are synergies in terms of our concerns, particularly about the security challenge posed to American interests referred to in its national security strategy, and to its allies by Russia. From our point of view, that also links to cyber and the policing of the internet, which is becoming an increasingly important aspect, not only of defence issues but of defending our liberal democracy and the values that we have talked about.

The Doug Stokes article in the latest volume of International Affairs, published by Chatham House, said that Trump’s administration,

“combines elements of isolationism with cost-benefit bilateralism and, most strongly of all, a deep ambivalence towards the liberal international regimes that America has helped bring to birth and sustain since the end of the Second World War”.

But I think what I have heard in this debate is that our special relationship with the United States is not about one man; it is about our common heritage, our shared values and democracy. It is important to reflect on that. Our focus on that relationship cannot just be seen in terms of that individual relationship; it must be seen much more in terms of that soft power that we have been talking about, and certainly we had an excellent debate in this House on the report of the Select Committee on soft power. I think it is still worth reading that report because it focuses on a number of key issues. I think, for peace and security, our relationship remains very important. As James Landale of the BBC put it:

“It is almost as if the Trump modus vivendi has made it even more obvious that the transatlantic relations that matter are the historic state-to-state contacts between the different agencies of government rather than the personal relations between individual leaders”.


The noble Lord, Lord Howell, said it absolutely perfectly. We have new networks that are developing. We need to reach out to those networks, and not only new networks of countries. One of the things that Trump’s campaign has taught us is that there are new means of communications. As a foreign policy objective, we should reach out not only to all politicians but to civil society, because that is how we maintain our liberal rules-based organisations in the world. Reaching out through new media and new contacts—that is what our soft power should focus on.

I commend the debate and I conclude by thanking the noble Lord for initiating it, but it is not the end and the last word. This debate will continue over the next three years of Trump’s Administration.

Sanctions and Anti-Money Laundering Bill [HL]

Lord Collins of Highbury Excerpts

Wednesday 17th January 2018 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, my name is attached to Amendment 74, and of course to Amendment 71A. I will not repeat what the noble Baroness, Lady Bowles, said on Amendment 74, but this demand has been made for some considerable time. It is important that we act to ensure that all players involved in such criminal activity are brought to justice. That was reinforced by the Serious Fraud Office, too. On Amendment 71A, I concur wholeheartedly with the noble and learned Lord, Lord Judge, but the noble Lord, Lord Pannick, hit the nail on the head. On Monday this House spoke very clearly on this principle. It is of concern that the Minister, who has been in effective listening mode on a lot of the amendments, particularly in this group, has not reflected properly on Monday’s decision. How do we constrain these powers, as the noble Lord, Lord Pannick, said? If the Minister is not prepared to say how he will do that, I have no doubt that this House will speak with the same voice as it did on Monday.

[The Minister of State, Foreign and Commonwealth Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, the opening line here says “I wish to thank noble Lords for putting forward this amendment”. I am not sure whether that best reflects the sentiments of the House. However, as I have said before, I deeply appreciate that this is a matter of great interest and concern to many in your Lordships’ House. In proceeding, I hope that in part I can reassure noble Lords that the powers in the Bill are taken with the utmost regard to your Lordships’ concerns. In the wider context, I also thank noble Lords for the practical, helpful and constructive engagement we have had. As a government Minister, I always approach legislation with the view that there will be times when we will disagree, but equally, we disagree with great respect to the House and to the incredible experience and wisdom in it. Where we are unable to agree, that does not mean that we have not listened. The Government’s position is a listening one, as the noble Lord, Lord Collins, said, and as we have demonstrably shown on both parts of the Bill. I also thank the noble Baronesses, Lady Kramer and Lady Bowles, for the constructive engagement we have had on the anti-money laundering aspects, and I am grateful for the key co-ordination role—I hope she will not hold this against me—that the noble Baroness, Lady Northover, played on this. I also very much appreciated the expertise that the noble Baroness, Lady Bowles, in particular, brought to this group.

Amendment 71A seeks to prevent regulations from making provisions that create new criminal offences. It is not unusual for requirements to be set in delegated legislation which can be enforced using criminal penalties, both in financial services legislation and other regimes such as health and safety. As I am sure all noble Lords are aware, in accordance with standard practice when implementing EU directives, criminal offences in this area have already been created in delegated legislation, in the Money Laundering Regulations 2017, made under the powers given by the European Communities Act 1972. This was also the case in their precursor, the Money Laundering Regulations 2007, which were brought into force—notwithstanding the contribution made by the noble Lord, Lord Collins—by the then Labour Government. The Bill therefore makes no changes to the current position in this sense and reflects the Government’s firm intention to continue imposing criminal penalties for breaches of anti-money laundering requirements.

These detailed provisions, setting standards and procedures for regulated businesses, should also be seen in the context of a separate penalty regime for the key substantive money laundering offences. Such offences are established under Part 7 of the Proceeds of Crime Act 2002, which provides for more punitive prison sentences of up to 14 years—for example, for those guilty of directly laundering the proceeds of crime.

The Government’s view is that removing their power to create criminal offences under secondary legislation would seriously weaken the enforceability of new regulations and therefore lower the effectiveness of the UK’s anti-money laundering regime.

--- Later in debate ---

I hope very much that this House will today support this measure, which gives the Government the opportunity to work closely with the overseas territories. I accept part of what the noble Lord, Lord Naseby, said: that those who have something to hide will flee the various territories if they know that there is going to be a public register. That may well be damaging to their economies and we should step in to consider the issues that surround that. But long-term sustainability of our overseas territories and their economies requires that they work fully within the white economy, not the white, grey and black economies. That is crucial to their long-term prosperity and opportunities. I hope very much that this House will take the opportunity today to support this crucial measure.

[Lord Collins of Highbury]

My Lords, I do not want to take up too much time. The noble Baroness, Lady Stern, made an incredibly powerful speech in support of her amendment, to which I added my name. I want to say something in relation to setting international standards and trying to reach international agreement. Ultimately, that is the correct way. It is the solution. But there are many ways of achieving that. David Cameron realised that, actually, setting the standards and taking the lead is the way to reach international agreement—not sitting on our hands and saying, “Let’s see what others do first”. We need to take the lead and set the standards. When we talk about reputation, it is our family of nations that will suffer reputationally if we do not adopt this amendment tonight.

[Lord Ahmad of Wimbledon]

My Lords, I am grateful to all noble Lords who have taken the time to contribute to this important debate. The amendment would require the Secretary of State to provide all reasonable assistance to the Governments of certain of the British Overseas Territories with significant financial centres to enable each of those named overseas territories to establish a public register of company beneficial ownership. It further provides that, if by 1 January 2020 such overseas territories have not established such a register, the UK Secretary of State should take all reasonable steps to ensure that the Privy Council legislates to require the overseas territory to do so.

I am again grateful to the noble Baroness, Lady Stern. We have had a constructive discussion where we laid out the differences over our approach. I do not object to the fact that we are all seeking—that is clear from all contributions today—to ensure fairness and transparency but also to do the right thing to ensure progress in this regard. I appreciate that the deadline set in this revised amendment for preparation of an Order in Council has been put back by one year compared with the amendment tabled by the noble Baroness and others in Committee. I previously addressed many of these points in Committee. But I hope that the House will bear with me if I reiterate certain key points.

I first want to inform noble Lords of the commitments that the territories have made to advance transparency in the company and tax fields. We heard the noble Baroness, Lady Kramer, talk about taking leadership, having that relationship and allowing the British Government to work with the overseas territories and that this amendment is the way to achieve that. But we are already doing it. The overseas territories are part of my responsibilities as a Minister. They are totally engaged on this agenda. With respect, the noble Baroness laid out a series of assertions on how money laundering and certain activities occur. Is it right that these six territories alone are singled out? Where is the evidence base? That is important, but so is the action that is being taken. We need to focus on that.

For example, the overseas territories with financial centres are leading the world. They are among the early adopters of the OECD common reporting standard. I say to the noble Lord, Lord Collins, that the overseas territories, working with the British Government, are taking the lead. There is an agreement under which they automatically exchange offshore financial account information with taxpayers’ jurisdictions of residence. They started exchanging information with third jurisdictions in September last year. I join many noble Lords in the Chamber in commending our previous Prime Minister, David Cameron, and the steps that he took. But the process that we are now following is exactly the same process that was agreed during the coalition years with the Liberal Democrats. Since September 2016—in other words, a year before the common reporting standard came into effect, so I say to the noble Lord, Lord Collins, that this is another example of taking the lead—HMRC has been receiving data on accounts held in the overseas territories by UK taxpayers and has used this to further its compliance work.

The issue of public registers is relevant here. None of this means that we do not want to see the overseas territories take further action to move forward on the transparency agenda. We should, however, acknowledge the significant steps that they have already taken in this area and build incrementally on that progress, in partnership and with support.

As noble Lords will acknowledge, the UK is at the forefront of promoting corporate transparency. The UK is the only G20 country to have fully established a public register of company beneficial ownership and we continue to push for this to become—in the words of the noble Lord—a global standard. As I noted in Committee, however, the international standards set by the Financial Action Task Force do not require this, reflecting a lack of international consensus in this area. I am grateful to noble Lords who contributed on this. These standards state:

“Countries should ensure that there is adequate, accurate and timely information on the beneficial ownership and control of legal persons that can be obtained or accessed in a timely fashion by competent authorities”—


for example, tax authorities and law enforcement authorities. The OTs are moving ahead on this agenda. Nevertheless, should public registers become the global standard, we would of course expect the overseas territories and Crown dependencies to meet this standard. The territories themselves have indicated their willingness to adopt a public register in that event.

I will highlight something important to this debate: namely, the progress that the overseas territories have already made on the beneficial ownership agenda in a relatively short time. Since we concluded our arrangements with them in the run-up to the Anti-Corruption Summit of 2016, the territories, which have their own legislative bodies and elected representatives, have passed new primary legislation and delivered technological improvements to comply with the terms of the arrangements known as the exchange of notes. I am grateful to my noble friends Lord Leigh and Lord Flight for highlighting the positive progress that the OTs have made in this respect. My noble friend Lord Naseby also pointed to the positive steps taken by Cayman.

Under these arrangements, each of the overseas territories with a significant financial centre committed to hold beneficial ownership information in a central register or a similarly effective system and to provide UK law enforcement authorities with automatic access to such information within 24 hours of a request being made—or within one hour in urgent cases. These arrangements, which have been put in place since 2016, are already bringing benefits to UK law enforcement. They mark a significant increase in the ability of UK law enforcement authorities to investigate bribery and corruption, money laundering and tax evasion. I am sorry that I do not share the opinion of the noble Baroness, Lady Kramer, that somehow these law authorities are very limited in scope. They make an incredible contribution.

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[Baroness Bowles of Berkhamsted]

My Lords, I put my name to this amendment but I acknowledge that it is the noble Lords who have already spoken who have made the running on this recently, so I do not wish to be seen just to piggyback. I shall simply tell the House that the noble Lords have my support and that of these Benches.

[Lord Collins of Highbury]

My Lords, I agree with all the sentiments that have been expressed. This is about a very strong commitment given by David Cameron, and what we want to hear from the Minister is a clear timetable. The noble Lords, Lord Faulks and Lord Hodgson, are absolutely right. In the previous debate we talked about transparency and those who pay. On this issue, it is not just those in the poorest countries who are paying because of this hidden money; it is our own communities. I have said before in this Chamber that to look down the river and see a skyscraper that is 60% foreign-owned, with 40% of that ownership hidden through companies, is clearly scandalous. We do not have to look far. So we need action and a very clear timetable. I hope the Minister will give us that timetable tonight.

[Lord Ahmad of Wimbledon]

My Lords, this amendment seeks to set down in legislation the commitment made at the 2016 anti-corruption summit to establish a public register of company beneficial ownership information for foreign companies that already own or buy property in the UK or that bid on UK central government contracts.

As we have readily acknowledged in various debates during the passage of this Bill and others, the UK is a world leader in promoting corporate transparency. As I said in the previous debate, we are the only country in the G20 to have established a fully publicly accessible company beneficial ownership register. I assure noble Lords that the Government are committed to leading the world in improving this transparency.

First—and here, I refer to my noble friends Lord Faulks and Lord Hodgson but also to noble Lords across the House—I know this issue has been debated and discussed through various vehicles. I congratulate them on ensuring that the Government remain accountable and the issue remains in the public eye. Let me assure my noble friends and all noble Lords that the Government appreciate the work that all have done in this respect, particularly my noble friend. I assure him that we share his desire, the desire expressed by all noble Lords, to reduce the opportunity for money laundering through UK property as swiftly and effectively as possible. We all acknowledge that it is a serious issue, so let me address that question head-on.

First, what has happened? Following last year’s call for evidence, the Department for Business, Energy and Industrial Strategy sent more than 100 pages of drafting instructions to the Office of the Parliamentary Counsel, and work preparing the clauses for the Bill is under way. The drafting instructions prepared so far cover just the application of the land registration elements of the policy in England and Wales. Once the clauses for England and Wales are complete, an exercise will be undertaken to make specific provision for how they will apply in Scotland and Northern Ireland, both of which have different land registration systems and their own Land Registries. The approaches taken to land registration and overseas entities by the Land Registries have differed until now, so all three approaches will need to be brought together to deliver a streamlined policy, consistent across the UK. I anticipate that exercise taking some months and it will involve expertise from many different teams across the UK Government and the devolved Administrations.

The department has also commissioned a piece of research on potential impacts of the policy, including on investment decisions. That research is ongoing and will feed directly into an impact assessment, work on which is also under way. I am sure my noble friend will agree that this is a crucial moment for the UK’s future trading relationship with the rest of the world, and we must proceed with as good an understanding as possible of the potential impacts on legitimate inward investment.

Having brought noble Lords up to date with the Government’s work so far, let me turn to our next steps. Since our last debate on the matter in Committee, the Government have considered carefully the proposals in front of us and had detailed discussion with my noble friend in this regard. Noble Lords were quite right to point out that the anti-corruption strategy published last month stated that we would publish a draft Bill during the current Session of Parliament. Doing so will help to ensure that any potential weaknesses in the policy are spotted and addressed in what will be new and complex legislation.

Let me now provide some of the certainty requested by my noble friends Lord Faulks and Lord Hodgson. I can confirm that we will publish the draft Bill by the Summer Recess this year. I can also confirm that formal introduction of the Bill will be a priority for the second Session of this Parliament. We anticipate that being in summer 2019, and doing so will put us on track to implement the register itself, which will be operational by early 2021. I further recognise noble Lords’ concern for greater certainty of the Government’s intention. We will shortly formally confirm our intention to meet these deadlines—a point mentioned by the noble Lord, Lord Collins—through a Written Ministerial Statement. We will continue to look at both legislative and delivery timetables for opportunities to implement sooner if at all possible.

Let me say why publishing a Bill in draft is the right approach. As I have said before, the register will be first of its kind in the world and will affect people’s property rights. A robust enforcement mechanism will be essential. As set out in last year’s call for evidence, the Government believe that criminal sanctions may not be sufficient in isolation, but that additional enforcement through land registration law will also be needed if the register is to have teeth. A key proposal is that those who own property who do not comply with the register’s requirements will lose the ability to sell the property or create a long lease or legal charge over it. This will be reflected in a restriction on the register of title.

I am sure that my noble friend will recognise that these are significant steps and will constitute a robust enforcement mechanism. As such, the regime must be able to withstand legal challenge from those who have the means and motive to make such a challenge. That is a key reason why delivering the register through dedicated primary legislation, in accordance with the will of Parliament, is preferable to doing so through secondary regulations to the Bill we are debating today. It is also the key reason why this House should welcome the fullest possible scrutiny of the draft clauses and the mechanisms behind a regime which will be a world first.

But that is not the only reason. New functions must be delegated to Companies House and the land registries, and we must ensure they have the tools and time needed to deliver this successfully. A protection regime must be established, balancing legitimate concerns for personal safety with the need for transparency. All those issues were considered in last year’s call for evidence, but only once we can scrutinise the draft clauses can we really stress-test whether they are going to be effective. We anticipate there being in excess of 50 clauses in the Bill.

Let me say why early 2021 is the appropriate timescale. First, it is because a dedicated primary Bill is the right way of delivering such a policy, and that will take time, given other pressures on Parliament at present. The Government will therefore introduce legislation as soon as possible, but it is impossible for me to make commitments to do so in the very near term—and I have already indicated the specific timetable, which will also be qualified in the Written Ministerial Statement.

Secondly, it is appropriate because that must be followed by secondary regulations, in which we will set out the more technical details underpinning the regime, such as the essential changes needed to the land registration rules. New systems must also be built between Companies House and the three land registries. Their design will depend on the precise content of those regulations. While much preparatory work will be done while the legislation and secondary regulations are passed, there are some inevitable lead times, because the systems and processes can be finalised only after Parliament has approved the legislation.

Finally, an appropriate transition period will be needed to ensure that lenders and other stakeholders can adjust to the new requirements. We believe that the policy must be robust, but fair. Overseas entities that have bought property in the UK, in some cases many years ago, will not have had this in their contemplation at the time. In most cases, the property will have been bought for legitimate and innocent purposes and by those who expected the degree of privacy offered by ownership through a legal entity. We should give those entities, and their beneficial owners, time to understand the requirements and consider their options.

There is a parallel with the development of the register of people with significant control. That policy was announced in 2013, following several rounds of consultation and primary and secondary legislation, and a fully populated register was delivered by June 2017. It may have taken four years, but it still put the UK’s framework in a world-leading position. The new register will take a similar path, but there are numerous additional considerations.

I hope that the detail that I have outlined and the timetable that I have given provide the House and my noble friend in particular with the reassurance of the Government’s continued commitment to enact this policy. But to go slightly further, my intention is also to bring forward an amendment on Third Reading to require the Government to provide regular updates to Parliament on progress on the timetable that I have outlined.

I hope that my noble friend feels that we have had a productive engagement and that what I have offered today from the Dispatch Box are not just warm words but specifics. For those reasons, I hope that he is minded to withdraw his amendment.

Commonwealth Summit: Faith Leaders

Lord Collins of Highbury Excerpts

Monday 15th January 2018 Lords Chamber

[Lord Ahmad of Wimbledon]

I assure my noble friend that we are working directly with the Secretary-General and the Commonwealth Secretariat on the very important point that she raises about faith communities. I believe that we all would acknowledge—indeed, celebrate—the fact that over the decades and centuries we have seen diaspora communities contribute incredibly to Britain. The faith communities are part and parcel of that. I look forward to working with them in the run-up to the Commonwealth summit, during the summit and, indeed, afterwards, when the UK has the chair for two years.

[Lord Collins of Highbury (Lab)]

My Lords, I very much welcome what the Government have been doing to ensure that civil society is fully engaged in the Commonwealth summit. Certainly, the fora are very important. The Minister’s predecessor, the noble Baroness, Lady Anelay, undertook to meet the TUC to ensure that all aspects of civil society are fully engaged. Can he update the House on what further meetings have taken place to ensure that civil society in the broadest sense is represented in all the fora?

[Lord Ahmad of Wimbledon]

I assure the noble Lord that, as the Minister for the Commonwealth, I have been engaging in various round tables with civil society leaders across the piece in all elements of ensuring that civil society is fully engaged. Most recently, I met the organiser of the Commonwealth People’s Forum to ensure diversity of participation, both in terms of those participating but also in that the agenda reflects the important priorities of all people represented through civil society across the Commonwealth.

Sanctions and Anti-Money Laundering Bill [HL]

Lord Collins of Highbury Excerpts

Report: 1st sitting: House of Lords
Monday 15th January 2018 Lords Chamber

[Baroness Northover (LD)]

My Lords, I support what the noble Lord, Lord Pannick, said. I welcome, as did he, the moves from the Government in this part of the Bill. I shall speak to Amendments 2 and 5 in my name as well as supporting Amendment 3 in the name of the noble Lord, Lord Collins, myself and the noble Lord, Lord Pannick. Our criticism of the Bill in Committee focused on the way in which Ministers were being granted wide powers unchecked by Parliament. The Minister has made moves to address this at certain points in the Bill but we still do not think that the sanctions for foreign-policy objectives are tightly drawn enough. We made the case in Committee as to how this might be abused, and we still seek reassurance. An amendment that would undoubtedly help is Amendment 3 on the definition of the purpose of sanctions, which has been very effectively summarised by the noble Lord, Lord Pannick. We feel this very strongly, and it is surprising that such a definition is not already in the Bill. In our view it is also important that the purpose should include preventing the violation of sanctions regulations, and that is the other amendment here. As the noble Lord, Lord Pannick, has indicated, if the noble Lord, Lord Collins, chooses to vote, we will support him.

[Lord Collins of Highbury (Lab)]

My Lords, I am particularly grateful to the noble Lord, Lord Pannick, for his comments. He has set me a test here: normally I rely on his powers of persuasion and arguments rather than my own, but on this occasion I will take up the challenge and hope to persuade the Minister why Amendment 3 is important. I was rather hoping that the noble Lord, Lord Faulks, would jump up before me; I am sure he will jump up after me, because he made comments about this in Committee.

I stress that this is not just about adding words for words’ sake; it is not just about being nice, kind and positive. These words are very important in one vital respect. The Bill—we have heard much criticism of this—is heavily reliant on regulation and the Executive taking powers. We have received many assurances from the Minister that they will use these powers wisely and that Parliament will anyway have the opportunity properly to scrutinise secondary legislation.

These words are important because, when Parliament scrutinises secondary legislation, it must know what it is judging the Government’s actions against. It cannot have vague definitions. I heard what the noble Lord, Lord Faulks, said in Committee: that we do not want to limit the powers of the Executive when it comes to foreign policy matters. These words do not limit, they enable. They enable Parliament to do its job of properly scrutinising regulations proposed under the Bill. Is it meeting the clear objectives that we set ourselves, which we all share, particularly, as the noble Lord, Lord Pannick, said in relation to human rights?

The Minister assured the Committee that the Government,

“do not take their human rights responsibilities lightly … the UK has been a bastion and a beacon for human rights. That should and will remain a cornerstone of British foreign policy in years to come”.—[Official Report, 21/11/17; col. 123.]

That is a powerful argument why we should include these words, because it is about being consistent in future. If I were to be slightly partisan—and I am not usually in these matters, as the Minister knows—there have been doubts about the Government’s commitment, and certainly that of the Conservative Party, to the European Convention on Human Rights, and I want to put it beyond doubt that we are wholeheartedly committed to this vital element of our foreign policy. It is, as the Minister said, the cornerstone. I very much hope that he will think hard about accepting the amendment. It would not cause too much pain, because he is already committed to the principle. It is about how these words can help future scrutiny. If he is unable to accept the amendment, I will certainly wish to test the opinion of the House.

[Lord Faulks (Con)]

My Lords, I do not want to disappoint the noble Lord, Lord Collins, by not intervening, albeit briefly, in this debate. My difficulty comes not with the way that the noble Lord and others have expressed their various objectives, which one would expect to be part of the Government’s approach to sanctions generally. I am concerned by the fact that the noble Baroness, Lady Northover, wants to exclude the specific reference to a foreign policy objective. I return to what I said in Committee, which was that it is important that we accept that foreign policy does not remain entirely stable and standing: there are always changes in the world and foreign policy objectives may vary from time to time. The danger of including these albeit admirable objectives is that there might conceivably be a construction placed on the relevant provision which is that foreign policy is not adequately reflected by the provisions.

I prefer the way the Bill is expressed, which gives the necessary flexibility. While I do not differ on the objectives, I differ on the amendments.

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Moved by

[Lord Collins of Highbury]

3: Clause 1, page 2, line 8, at end insert—
“( ) promote the resolution of armed conflicts or the protection of civilians in conflict zones,( ) promote compliance with international humanitarian and human rights law,( ) contribute to multilateral efforts to prevent the spread and use of weapons and materials of mass destruction, or( ) promote respect for human rights, democracy, the rule of law and good governance.”

[Lord Collins of Highbury]

My Lords, I welcome the Minister’s response. He has been incredibly positive on a number of concerns that noble Lords have raised and we have tried to co-operate. This amendment sets out very clearly our country’s values in respect of the new situation we will be in—and it is a new situation. It is vital that we send out the message not only to our parliamentarians but to our communities and all countries that we remain firmly committed to these values. The amendment would not restrict the Government’s foreign policy objectives and, in my opinion, would certainly not go out of date. These values have been at the core of our foreign policy activity for many years and it is my hope—and, I know, the hope of all noble Lords across the House—that they will remain so. Therefore, in the light of the noble Lord’s comments, I wish to press the matter and test the opinion of the House.

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Moved by

[Lord Collins of Highbury]

8: Clause 1, page 2, line 13, at end insert—
“( ) Regulations under this section must be accompanied by the publication of a humanitarian impact assessment, and such an assessment must be conducted—(a) according to the methodology set out in Chapter 5 of the UN Inter-Agency Standing Committee’s Sanctions Assessment Handbook: Assessing the Humanitarian Implications of Sanctions, published in 2004,(b) in advance of the relevant sanctions regulations being made,(c) again within six months of the date on which the relevant sanctions regulations come into force, and(d) at any time thereafter when the relevant sanctions regulations are subject to any substantial revisions or alterations.”

[Lord Collins of Highbury]

My Lords, this issue is going to be picked up in a later group, so I do not want to detain noble Lords too much on this particular group. Suffice to say that what we have responded to, following Committee, is the concerns of a number of NGOs in relation to their ability to undertake humanitarian work. What the NGOs are seeking from the Government is clarity. We have had discussions with UK Finance, and the amendments under group 9 are where we should focus the debate. Rather than detain the House with comments on this group, I will reserve them until we come to the later group. I beg to move.

[Baroness Northover]

My Lords, indeed this deals with some of the complexities faced by those operating for good reasons in areas where sanctions bite, and we will be returning to these issues in a later group. We will then talk about guidance and how to ensure that it is easier for financial institutions to derisk.

Amendment 39 in my name is about the mutual recognition of licences and streamlining humanitarian licensing, while Amendment 42 deals with the problems that NGOs may run into if multiple authorisations are required. Amendment 43 is about reporting, because if there is a requirement for parliamentary reporting, that assists in terms of highlighting the issues that NGOs are running into. As I say, we will be returning to these issues in a later grouping.

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I hope that I have reassured noble Lords that humanitarian concerns are recognised and catered for by the Bill as drafted, and would accordingly ask noble Lords not to press these amendments. In doing so, I want to put on record my thanks to both the noble Lord, Lord Collins, and the noble Baroness, Lady Northover, for the constructive engagement that we all had with the NGOs themselves. We should continue to engage with them in that spirit as the Bill progresses.

[Lord Collins of Highbury]

My Lords, I thank the Minister for his response. He is right: this is a complex issue. The amendments that we tabled represented the genuine concern of a range of NGOs about the need to seek clarity over a complex situation. But in the light of the Minister’s remarks and his commitments, and because we will return to the question of guidance, which I hope will improve the situation in terms of clarity, I beg leave to withdraw the amendment.

Amendment 8 withdrawn.