Newport Wafer Fab

Lord Cormack Excerpts

Thursday 7th April 2022 Lords Chamber

[Lord Callanan (Con)]

The Prime Minister announced that the National Security Adviser would be asked to look at the transaction, and he is indeed doing that.

[Lord Cormack (Con)]

My Lord, some of us find it difficult to understand why Chinese involvement is even being considered.

[Lord Callanan (Con)]

This is a commercial transaction. Nexperia already has existing semiconductor facilities in the United Kingdom. It entered into an additional commercial transaction and, therefore, that is being considered under the terms of the National Security and Investment Act.

Gazprom Energy

Lord Cormack Excerpts

Thursday 24th March 2022 Lords Chamber

[Lord Callanan (Con)]

We are—that is the answer to the noble Baroness’s question. We have the Industrial Energy Transformation Fund, and we are working with many of these difficult-to-decarbonise industries, such as steel, which of course plays a vital role in many of our deprived communities. We want to help them transition to clean forms of production such as hydrogen, so we are. I add that, even if gas is supplied by Gazprom UK, it is not Russian gas. Gazprom buys gas on the wholesale gas markets here, as many other retail suppliers do. We are dependent only by about 3% to 4% on gas supplies from Russia.

[Lord Cormack (Con)]

Can my noble friend assure the House that there will be no prodigal distribution of permissions for onshore wind farms?

[Lord Callanan (Con)]

I am not sure exactly what my noble friend means by that; there are very tight planning constraints on onshore wind farms. I am sure he will want to await any future announcements on energy policy which may be coming in the near future. However, we opened the contracts for difference round to onshore wind bids in the last round.

Trade with the European Union

Lord Cormack Excerpts

Monday 21st March 2022 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My Lords, with all due respect, I sometimes feel that perhaps noble Lords hope that these arrangements will not work smoothly. However, I can confirm that we want a positive relationship with the EU and that we want this to be underpinned by trade and, of course, by our shared belief in freedom and democracy.

[Lord Cormack (Con)]

My Lords, if we want these things—and I am quite confident that my noble friend does—would it not be wise to cease making stupid analogies, such as comparing those who, by a narrow majority, voted for Brexit with those who are today laying down their lives for democracy?

[Lord Grimstone of Boscobel (Con)]

My Lords, I of course respect my noble friend’s opinion on that, but it is not something with which I agree.

Economic Crime (Transparency and Enforcement) Bill

Lord Cormack Excerpts

Committee stage
Monday 14th March 2022 Lords Chamber

[Lord Cromwell (CB)]

I will just underline one point that the noble Lord, Lord Coaker, made. At Second Reading we got the impression that there was quite a limited list of items that were going to go into the second economic crime Bill. Can we have an assurance at this opening stage from the Minister that he will remain open-minded as to the shopping list of items—if I may use the phrase—which will need to be included, some of which may be revisiting what we have done today but others of which will be entirely new? Can he assure us that it is not a short shopping list?

[Lord Cormack (Con)]

I just make a very brief point to my noble friend. Because of migraine, I was unable to take part in Second Reading; I had to go home. I was going to make the point then that, if ever a Bill needed continuous post-legislative scrutiny, it is this one. Can my noble friend give an assurance that he will try to set up a special sort of post-legislative scrutiny to look continuously at how the Bill comes into force, what effect it has and where it fails?

[Lord Callanan (Con)]

First, I thank noble Lords for their comments. I do not disagree with the sentiments of a lot of what has been said. I say to the noble Lord, Lord Coaker, that I absolutely appreciate the points that he has made. This is a very complicated and technical area of law, and I assure noble Lords that we have gone into it in great detail. This morning, I met my noble friend Lord Wolfson, who is a trusts expert, to go through the provisions, and I have examined them closely with Treasury and BEIS officials.

We are doing this to close potential loopholes in trusts; the Government have no other agenda here. This is a difficult area. HMRC has recently established a trusts register for UK trusts, and we want to try to make sure that the same visibility exists for overseas trusts. If an overseas trust buys UK property, its interest is clearly covered and will need to be declared, but there is a potential problem with an overseas entity holding a property, and then that being owned by a trust. It is an attempt to control and close those particular loopholes in this complicated area of law, and what I totally accept are complicated amendments have been worked on at great pace to try to do that. So there is no difficulty and no difference between any of us in what we are trying to achieve with this legislation.

I also happily concede that we may not have got every last dot and comma absolutely accurate and right. One point that my noble friend made to me this morning was that we are if not the first then possibly the second in the world to attempt to do something like this, and it will be an iterative process—it is fair to accept that. A lot of international lawyers and others will be carefully studying this legislation and trying to find ways around it. I can certainly say that, if there are loopholes and if something is presented that we think needs closing, we will absolutely do that, if necessary, in the next Bill—although the full extent of the legislation may not be visible at that stage. But we are committed to doing this, providing that information and giving law enforcement the opportunity carefully to scrutinise many of these arrangements.

In particular, I give the assurance that the noble Lord, Lord Vaux, and possibly my noble friend Lord Cormack, were looking for: the further economic crime Bill, which the Government intend to introduce in the next Session, will be broad. We will, of course, carefully examine and consider any amendments proposed in either House that serve to strengthen our framework for tackling economic crime. I know from my long experience in this House that noble Lords will not be shy in coming forward where they can see improvements that could be made to legislation and where they identify any potential loopholes. There are some fine minds in this House and I am sure that they, along with some of our excellent officials, will turn their attention to doing just that.

I agree with the sentiments; there is no difference between us and what we want to try to achieve, and I am grateful in particular to the opposition parties’ Front Benches, with whom I have had extensive discussions, for their forbearance. I will happily concede that this is not necessarily emergency legislation; we have been trying to introduce this register for a while but until now it has not managed to get the prominence in the public sphere and sufficient priority in the legislative programme to allow it to be brought before this House. As the Minister responsible for it in the House and in my department, I am grateful that we have now managed finally to bring it forward. It will be a useful tool of transparency and of benefit to, first of all, the public, and then to the law enforcement community in attempting to target the small minority of overseas entities that hold property in the UK. Something like 59,000 overseas entities hold property, and the vast majority do so for perfectly legitimate, lawful and legal reasons—but within that there is, of course, a tiny minority we all want to target, and this is our transparency contribution to an attempt to do just that.

I move on to look at the amendments in detail. I thank the noble Lords, Lord Clement-Jones and Lord Fox, and my noble friend Lord Agnew, for their Amendment 17. I am grateful for the meeting that I was able to have with my noble friend Lord Agnew earlier to talk about this issue. As I said, I can see the good intent behind this amendment, but it would be ineffective as tabled—and I shall explain why.

It does not fit within the legislative scheme of the Bill. For example, the Bill provides five conditions for “beneficial owner” in Part 2 of Schedule 2. These five conditions, in general terms, relate to shareholdings, rights or control over legal entities, or other arrangements. Amendment 17 seeks to apply the term “beneficial owner” in the context of a qualifying estate—that is, the land itself—which would not work. Further, the amendment fails to empower overseas entities to obtain the information required which, for the most part, remains undefined.

To be clear, this Bill was designed specifically to capture the beneficial owners of overseas entities. This is because, if the land is held in the name of an overseas entity registered in a jurisdiction with poor levels of corporate transparency, law enforcement agencies here may struggle when investigating the affairs of someone of interest. If they cannot obtain information about the entity itself, they will almost certainly never be able to identify any ultimate economic beneficiary of the land. This register aims to ensure that investigators can find out about the overseas entity to further their investigations. There may be a wider policy debate to be had about capturing ultimate economic beneficiaries of land, but this register, focused as it is on overseas entities and not on land held by individuals or UK companies, would not be the appropriate vehicle.

The government amendments provide robust provisions to ensure that overseas entities provide information about beneficiaries, settlors and other persons who can appoint or remove trustees or have rights over the exercise of trustees’ functions, which some may refer to as protectors, where there is a trustee who is a registrable beneficial owner. These amendments go one step further and also apply where there are overseas arrangements with similar characteristics to a trust and those arrangements’ trustee equivalents are registrable beneficial owners.

The noble Lord, Lord Clement-Jones, suggested that nominees will be used to hide true beneficial owners of property. I point out to the noble Lord that there are regulation-making powers within the Bill allowing for amendments to prevent such abuse, if that is needed. I therefore hope that, with the information that I have provided, the noble Lord and his supporters will feel able not to press Amendment 17.

I turn to Amendments 1A, 22A and 29A, which seek to require a director who is acting as a nominee to provide a statement that they are satisfied by the legitimacy of the financial affairs of the beneficial owner and that the nominee will cease to act if information validating legitimacy is not forthcoming on a timely basis. I appreciate the intent of my noble friend Lord Agnew in tabling these amendments, and I understand that his intention is to further verify the legitimacy of the beneficial owner, to create an obligation for a nominee director to have regard to the financial affairs of those they are acting for, and to validate this legitimacy on a timely basis.

--- Later in debate ---

[Lord Callanan (Con)]

Yes. Obviously, a number of different government departments would be involved in doing this, but a number have been involved in putting the provisions into this Bill, and a number will be involved in the provisions of the next economic crime Bill. Of course, we want to take action against lawyers and accountants who abuse their positions to benefit some of these oligarchs and others. We have all seen the press reports and we all know the people that we are concerned about. I would not seek to defend them in the slightest, and I hope that we will be able to put the appropriate sanctions in place to deal with them.

[Lord Cormack (Con)]

Does my noble friend think it would be a good idea to set up a Committee of your Lordships’ House immediately after the Bill has gone on to the statute book, like these special Select Committees that are set up for specific purposes, so that you have a number of knowledgeable Members of your Lordships’ House, among whom I do not include myself, who will be able to provide expert examination of this Bill on a continuous basis?

[Lord Callanan (Con)]

The noble Lord often suggests setting up special Committees of this House. He will know that it is way above my pay grade to dictate to the House authorities what committees they wish to set up for examining particular Bills. I know from appearances that there are some extremely good and effective committees already in this House examining all parts of the Government’s legislative agenda and all departments—but, if the noble Lord can forgive me, I will not get into instructing the House authorities on what committees to set up to future scrutinise our work.

Relevant firms, including financial institutions, law firms, accountancy firms and estate agents, under the anti-money laundering framework, must inform Her Majesty’s Treasury as soon as practicable if they know, or have reasonable cause to suspect while carrying out their business, that they have encountered a person subject to financial sanctions, or a person who has committed a financial sanctions offence. They must state the information on which the knowledge or suspicion is based, and any information they hold about the person by which they can be identified. It is already an offence to fail to comply with this reporting obligation. I understand that the noble Lord does not think that the legislation is applied properly—perhaps we can look at that—but there is already an offence on the statute book.

Activity which seeks to evade these new beneficial ownership reporting obligations should be taken into account in the course of these firms taking a risk-based approach to anti-money laundering, and any suspicions of sanctions evasion should be reported in accordance with their legal obligations. I am pleased to say that Treasury Ministers will be writing to the anti-money-laundering supervisors of the relevant professional enablers on this matter, highlighting that the Government will be expecting everyone in these sectors to be particularly vigilant.

I hope that, with the reassurances that I have provided on this important issue, the noble Lord will feel able to withdraw his amendment.

Russian Oil and Gas Imports

Lord Cormack Excerpts

Monday 7th March 2022 Lords Chamber

[Lord Callanan (Con)]

I will leave the setting of taxation policies to the Chancellor, but the noble Baroness makes a good point. Of course, we have already announced a record-breaking £9.1 billion package to alleviate some of the worst excesses of the current increases in fuel prices, but I do not want to mislead anyone: this will not solve all of the problem. This is a global crisis and we cannot insulate ourselves completely from international pricing.

[Lord Cormack (Con)]

My Lords, as the Question put by my noble friend Lord Forsyth of Drumlean indicates, this is an urgent crisis. We do not have time to develop many things but we do have time to stop Russian imports full stop and, although it may be painful, the sooner that is done, the better.

[Lord Callanan (Con)]

We are looking at this seriously and decisions will be announced shortly but it is important to bear in mind that, while we would all love there to be quick and easy solutions, the building, construction and implementation of energy infrastructure takes many years, sometimes even decades. I am afraid there are no quick solutions to any of this.

Lithium Ion Batteries: Fire Safety Standards

Lord Cormack Excerpts

Thursday 3rd March 2022 Lords Chamber

[Lord Callanan (Con)]

If I heard the noble Baroness wrong, I apologise of course. We support responsible regulation. If that is what she supports us in doing, it is welcome news.

[Lord Cormack (Con)]

As one who does want annihilation, can I ask my noble friend to ensure that when these wretched machines, which go up to 40 mph, are on the roads, they are all properly registered and numbered, with their drivers fined if they are not wearing helmets?

Post Office: Horizon

Lord Cormack Excerpts

Thursday 24th February 2022 Lords Chamber

[Lord Callanan (Con)]

I thank the noble Lord for his praise for me, but it is slightly unjust; it is the Minister for Small Business who is responsible for the Post Office and is putting in the hard yards on this issue, and I will certainly pass on the noble Lord’s commendations.

I have considerable sympathy for the view that the noble Lord, Lord Fox, outlines. A public inquiry is taking place and that is the proper place for blame to be apportioned. We all have our suspicions and views, but let us wait for the outcome of the inquiry to see exactly where fault lies—whether with Ministers, officials, Post Office executives, Fujitsu or whoever—and then we can take the appropriate action.

[Lord Cormack (Con)]

My Lords, it is a great pity that my noble friend Lord Arbuthnot cannot be here today because we all owe him an enormous amount for his work. That should be firmly on the record. My noble friend Lord Arbuthnot himself raised the point about Fujitsu the last time we discussed this issue. While it is of paramount importance that those who suffered are properly compensated—in so far as they can be, because they can never be fully compensated—that money should come not from the public purse but from those who supplied deficient goods, with anything that is left topped up by the public purse. I want to press a point that I have made several times to the Minister: it really is in everyone’s interest that we get this concluded as soon as we possibly can. People are still suffering and indeed still dying.

[Lord Callanan (Con)]

Again, I find myself agreeing in large part with my noble friend. I am happy to join him in paying tribute to my noble friend Lord Arbuthnot, and to the many other noble Lords on all sides of the Chamber and indeed Members on both sides of the House of Commons as well who have campaigned for many years to draw attention to this outrageous situation. Again, I do not really want to apportion blame until we have the results of the inquiry. The job of the inquiry is to find out who or what was responsible for the case. We all have our suspicions but let us wait and see what the inquiry comes up with and then draw the appropriate conclusion.

Economic Crime: Planned Government Bill

Lord Cormack Excerpts

Monday 31st January 2022 Lords Chamber

[Lord Callanan (Con)]

Well, the issue is being treated with urgency. The Treasury is undertaking a number of different anti-money laundering pieces of work. We have already commenced the reforms required in Companies House. We will spend £12 million in 2023-24 and 2024-25 on economic crime reforms and £63 million in a spending review for Companies House reform. As the Prime Minister said, we are committed to making progress on this urgent and essential legislation, and we will do so when parliamentary time allows.

[Lord Cormack (Con)]

What is my noble friend’s definition of “urgency”?

[Lord Callanan (Con)]

It is an important matter; it is one of many important matters on the Government’s agenda; and, when parliamentary time allows, we will legislate for it.

Post Office: Horizon Compensation

Lord Cormack Excerpts

Monday 24th January 2022 Lords Chamber

[Lord Callanan (Con)]

I do not know whether Fujitsu is still on the tender lists or is the subject of any government contracts, but I will certainly find out and write to the noble Lord on that.

[Lord Cormack (Con)]

My Lords, I have several times urged my noble friend to put a terminal date on this. He talked about the “slowly unfolding” tragedy, and he is right, but it is a slowly ending tragedy as well. Of course we must have the inquiry, but can we please set a date—I have suggested before the end of June—for when this will be resolved and people will get their due deserts?

[Lord Callanan (Con)]

I agree with my noble friend, because I would obviously like to see this all end as much as possible. When I said “slowly unfolding”, I meant that the revelations of the whole scandal came out over many years as a result of a number of different stages of parliamentary action, legal cases, et cetera. I assure him that we are keen to bring this to a resolution as quickly as possible in terms of compensation, but there are a number of different aspects to it, as I explained in my reply to the noble Lord, Lord Fox. Many postmasters are still in the process of having their convictions overturned. That process is ongoing, as is the progress of the historical shortfall scheme, which we have deliberately designed to try to avoid costly, long-drawn-out legal proceedings.

Postmasters with Overturned Convictions: Settlement Funds

Lord Cormack Excerpts

Wednesday 15th December 2021 Lords Chamber

[Lord Callanan (Con)]

I think the answer to my noble friend is that these matters will be considered by the inquiry. I may even be right in saying that court proceedings are ongoing involving Fujitsu, so I had better be careful what I say. Again, I cannot go any further than what I have already been said about the 555. It goes back to the answer that I gave to the noble and learned Lord, Lord Falconer, earlier. One reason why the legal fees incurred in that case were so high is because the Post Office fought every step of the way and put in place the maximum legal barriers to those poor individuals receiving the compensation that they deserved. That is one of the matters that I hope will be inquired into properly and that appropriate conclusions will be drawn.

[Lord Cormack (Con)]

My Lords, like others I pay tribute to my noble friend Lord Arbuthnot for what he has done, and to my noble friend the Minister, who has made his own personal discomfort and sense of collective guilt very plain whenever he has appeared at the Dispatch Box. However, I am always a bit suspicious when words like “as soon as possible” are used. Can we not have a deadline and a realistic date, such as 30 June 2022, when this can be fully settled? People’s futures are in suspense, and people are dying now. We really need proper justice, which must mean that they must have a date by which they will know that this thing has been settled once and for all.