Cyclone Idai

Debate between Lord Howell of Guildford and Lord Bates

Thursday 28th March 2019 Lords Chamber

[Lord Bates]

Absolutely—I am happy to give that commitment. The UK Met Office has a significant relationship in Mozambique as far as that is concerned. We have commitments already on the ground there from previous instances of providing resilience support. We have a £150 million DfID package of programmes which is supporting building resilience, and we will build that up further as we move to the UN climate summit in September.

[Lord Howell of Guildford (Con)]

As we are chair-in-office of the Commonwealth, will my noble friend the Minister encourage the Government to encourage the richer Commonwealth countries to work closely together now and rally round to help a stricken member of the Commonwealth family?

[Lord Bates]

I am happy to do that in relation to Mozambique and Malawi. Canada has contributed some $2 million, but the scale and response internationally is just not meeting the level of crisis that we are seeing on the ground.

Yemen: Humanitarian Situation

Debate between Lord Howell of Guildford and Lord Bates

Monday 14th January 2019 Lords Chamber

[Lord Bates]

The noble Lord is right to focus on the humanitarian situation. It is the worst in the world—a crisis. Ten million are one step away from famine, and there are massive cholera outbreaks. It is a dreadful situation. The drone attacks, and breaches he has referred to, continue to exercise concern. The UN redeployment mission there is headed by General Cammaert, who is experienced in these areas. He is working with the Government of Yemen and the Houthi forces to try to ensure that, initially in Hodeidah, there is peace and it holds, as that is where most of the supplies come through. It remains an immensely fragile situation, and the UK, as penholder at the UN Security Council on Yemen, will continue to do everything it can to support the peace efforts.

[Lord Howell of Guildford (Con)]

Does my noble friend recall that back in October the UN co-ordinator said that between 12 million and 13 million people would starve in Yemen? Since then, we have had the Stockholm agreement; can he update us on where that has got to? Has the airport in Sanaa been opened? Is there evidence that the Houthis have been manipulating the aid provided? Will the Hodeidah ceasefire hold, or is it breaking down? Are there other plans to reconvene that Stockholm agreement if the present one begins to be pulled apart?

[Lord Bates]

Stockholm is a process, not an event, so it needs to be ongoing. The situation in Hodeidah remains fragile, but we believe there is still a commitment from all parties to keep it open. Yemen is in this predicament because it relies so heavily on imports of food and fuel to serve its population, through the Red Sea ports. The latest figures we have for December show that 81% of food and 89% of fuel managed to get through. That is a reason for cautious hope, but it remains fragile, and the consequences of this not holding are well stated.

Brexit: Bank of England Report

Debate between Lord Howell of Guildford and Lord Bates

Thursday 29th November 2018 Lords Chamber

[Lord Bates]

The noble Lord is absolutely right: the Bank of England has a statutory duty to inform its own analysis and to look at the worst-case outcomes to ensure that the economy is resilient to meet them. That is for the Financial Policy Committee and the Monetary Policy Committee to undertake, and they do so routinely. What is different about this analysis is that it was prepared at the request of the Treasury Committee in another place to inform the wider debate that it will have. Next week, the committee is taking evidence from the Chancellor of the Exchequer, and that will all be thoroughly debated ahead of the vote on 11 December.

[Lord Howell of Guildford (Con)]

My Lords, I greatly admire the economic acumen of the noble Baroness, Lady Kramer, and I agree that these long-term projections for GDP are a bit scary—but they are probably not very accurate. However, is she not, along with many other people, confusing the narrow and misleading measure of GDP with the real drivers of our welfare and prosperity? Does my noble friend agree that many economists today realise that, to measure our welfare and prosperity, we have to look at much wider factors that assess our national dynamism and innovation? Economists today are facing an economics revolution, and are putting in its place the wrong-headedness of focusing just on the old GDP figure, which frankly belongs to another age.

[Lord Bates]

We do indeed need to look at a range of figures. The most reliable measure is what business is doing. Businesses are hiring people, which is why we have record levels of employment; businesses are exporting, which is why we have record levels of exports; and businesses from overseas are investing in Britain, which is why we have the largest stock of FDI in Europe. That is the true evidence that we need to look at.

Development Co-operation: European Union

Debate between Lord Howell of Guildford and Lord Bates

Wednesday 14th November 2018 Lords Chamber

[Lord Bates]

I absolutely agree with the latter point about the importance of our British NGOs and that they should continue to have access to those funds. Yes, we are participating in the discussion which the noble Baroness referenced. We have said that we want to participate, we want to be able to work in areas of common interest, but changes need to be made not just on our side but in how the EDF and Heading 4 funds operate to allow us to participate as a third country. If we are to do that, we have been clear that it is only right to look after the interests of the British taxpayer, so we should have some say in how the funds are overseen, and that UK entities should be able to bid for them, as she suggests.

[Lord Howell of Guildford (Con)]

My Lords, regardless of the Brexit outcome, the European partnership agreements are immensely valuable to many smaller island states, including many in the Commonwealth. Can the Minister assure us that, whatever happens, we will manage a smooth transition and enable those partnerships to continue, which have helped many small and very vulnerable states in the past?

[Lord Bates]

My noble friend is absolutely right. The trade preferences element of the economic partnerships have already been covered by legislation which we passed in this House in September on taxation and cross-border trade. We are currently negotiating seven economic partnership arrangements impacting on 29 countries. When the Prime Minister was in Africa, she announced the first, which had been agreed with the Southern African Customs Union and Mozambique. We are working to achieve more, because we passionately believe that one of the best routes out of poverty is trade, prosperity and giving people free access to our developed markets. That will continue to be the policy of Her Majesty’s Government.

Brexit: Economic Forecasts

Debate between Lord Howell of Guildford and Lord Bates

Wednesday 24th October 2018 Lords Chamber

[Lord Bates]

As far as we are concerned on this negotiation, we want a deal, we expect a deal and we want good, positive relations with our European friends. If it is important that we continue to have access for goods worth £423 billion into the EU, is it not also crucial that it continue to have access so that it can sell us goods worth £518 billion each year? It is in the enlightened self-interest of both parties to reach a deal, and that is what the Prime Minister seeks.

[Lord Howell of Guildford (Con)]

My Lords, in dealing with this Question, would it not be best to ask what will happen to the European Union over the next 10 years? Visegrad countries are pulling away, nationalism is growing in many European member states, Italy is considering whether it should leave the European Union, and Greece continues to have difficulties. Would it not be wise for us to work for a modern and completely different kind of European co-operation in the future, which might be better for Europe and us?

[Lord Bates]

My noble friend speaks with great knowledge and expertise in these areas. Of course, one of his points is the one I made right at the beginning: the fastest-growing economies will be outside the European Union. Last year, our exports to India rose by 31% and to China by 15%. Those are significant sums. Not just the UK but the EU needs to wake up to the competition around the world, and to ensure that we have markets that can compete in that new environment.

Paradise Papers

Debate between Lord Howell of Guildford and Lord Bates

Monday 6th November 2017 Lords Chamber

[Lord Bates]

Of course it is right that the overseas territories and Crown dependencies take the correct approach on this. That is why the common reporting standard I mentioned—which has just come into effect and on which we led the way through the G7 and various initiatives through that—is coming into effect. That means that the Crown dependencies and overseas territories must inform HMRC about any person from the UK who is registered for tax in the UK but has an account in a different jurisdiction—one of a hundred, including all the overseas territories and Crown dependencies. That is just the type of action we need to ensure that people pay the taxes they are due to pay.

[Lord Howell of Guildford (Con)]

My Lords, of course it is right that companies and entities that operate here in the UK should pay their full weight of tax. However, if the proposition is that all offshore investment is somehow to be disapproved of or stopped altogether, would that not require a return of full capital controls of the kind we had in the distant past, and would it not be a strong disincentive to the inward investment on which this economy strongly relies and a disaster for the UK economy?

[Lord Bates]

My noble friend is right. Indeed the ICIJ, which I mentioned and which released this leak, was keen to point out that it is not suggesting any wrongdoing and that there is legitimate use for these facilities, such as purchasing assets in currencies other than sterling, avoiding double taxation and pooling of investments from different tax jurisdictions. It is important to draw the line between that avoidance and the evasion which we talked about earlier.

Public Sector Pay Cap

Debate between Lord Howell of Guildford and Lord Bates

Wednesday 5th July 2017 Lords Chamber

[Lord Bates]

I seem to remember that when we were in coalition with the noble Baroness’s party, there was in fact a pay freeze for two years, which was then loosened to a 1% cap. We now want to move forward: there needs to be public sector pay restraint but we want to make sure that, through progression pay and other benefits, public sector work is recognised and rewarded.

[Lord Howell of Guildford (Con)]

Does my noble friend agree that the surest way to higher pay for all, including in the public and the private sectors, must be through higher growth and lower inflation? Is not the quickest way to higher growth efficient and systematic control of all public expenditure programmes and lots of new enterprise and new investment? Is it not time for some new language to explain that simple fact?

[Lord Bates]

My noble friend has explained it rather well. Maintaining a good solid economy is good for the economy. It controls inflation and interest rates, which are at an historic low. It has contributed to the fact that we have record levels of employment and has also enabled us to cut taxes for some of the lowest paid, taking 1.3 million people out of tax altogether.