G7

Debate between Lord Hill of Oareford and Lord Higgins

Thursday 12th June 2014 Lords Chamber

[Lord Hill of Oareford]

I very much agree with the noble Lord on the importance of doing that. In the short term, I know that the Minister in the Foreign Office is meeting the Iraqi Foreign Minister today. Clearly, we need to do what we can to provide what assistance we can. In the first instance, this is very much the responsibility of the Iraqis to take the lead on; they have a properly elected Government and they have their own security forces. But on the noble Lord’s broad point about the need to focus on this within the G7 or EU or whatever, and to work up a concerted approach and devote energy to doing that, I agree with him entirely.

[Lord Higgins (Con)]

My Lords, clearly, the action by the Russian Government in relation to Crimea and Ukraine has totally changed the position on the G7’s relationship with Russia. That being so, it is obviously important to look at our defence position. While I hope that we have a clear position with regard to NATO and military matters, we appear to be absurdly vulnerable on economic matters, where President Putin is said to have shown a considerable interest in the ability of countries to use economic pressure to achieve their aims. That being so, was our response to the Russian actions not really very inadequate? Indeed, the only real sanctions were largely imposed by the markets, rather than by Governments. The vulnerability of Germany in particular, and other European countries, to the control by the Russians of gas to those countries, means that we have not been able to respond as would have been appropriate.

The Statement refers to diversification of supply of gas. I hope that my noble friend can spell it out a little more that we really are taking positive action to make sure that we are not dependent on Russian gas within the G7 countries generally, as we are at present.

[Lord Hill of Oareford]

I very much take the point about the importance of ensuring that there is diversification around energy supply, and a number of measures are in hand in the EU and through the G7 to try to take that forward. On sanctions more generally, I would argue that the steps taken so far have made a contribution. I understand my noble friend’s point about the importance of the power of markets to drive that, as well, but the combination of sanctions and markets is having the effect that I alluded to on the Russian economy. It is also the case, with regard to the adequacy of that response, that work is going on through the European Union. If Russia either destabilises the situation further or causes more difficulties with Ukraine over its signing of the accession agreement, urgent work has been going on to work up a range of sector-wide sanctions to hit various areas, whether it is defence, finance or energy. Therefore, I agree with my noble friend that we need to do that work and make it clear to Russia that, if we have to take further steps, we will do so.

G8 Summit

Debate between Lord Hill of Oareford and Lord Higgins

Wednesday 19th June 2013 Lords Chamber

[Lord Hill of Oareford]

My Lords, I had not heard those latest figures on Northern Ireland, and I am delighted to hear them. They are further evidence of the benefits of holding the G8 there and the wisdom of doing so. I am very grateful for the remarks made by the noble Lord. On his more general point about tax avoidance and so on, this whole approach will clearly only work if it is applied on a level basis across all countries. The aim of much greater transparency is at the heart of this approach. An example is publishing information on where countries pay tax in order to work out where the profits are. Trying to make that approach across a broad front lies at the heart of what was agreed at the G8.

[Lord Higgins]

My Lords, this has been an usually successful and constructive conference. The proposals being made on taxation regarding transparency and so on should certainly have a pretty rapid and significant effect on tax evasion, but they will have only a relatively limited effect on aggressive tax avoidance. Consulting internationally is certainly welcome, as the Statement says in relation to the OECD. However, at the end of the day, it is a matter for taxation in this country. Multinationals which use these aggressive techniques in this country have said that doing so is within the law. This is true, but it means that our law needs to be changed, which is a very technical subject. The law needs to relate to profits made in this country, and in some way enact a tax on the profits of online transactions which originate in this country. I hope that we will not overlook that side when looking at the international aspect of the matter.

[Lord Hill of Oareford]

That point is well made. I hope that the drive towards greater transparency will flush out and illustrate some of the problems to which my noble friend refers, solutions to which can then be worked on in the way that he suggests.