Register of Arms Brokers Bill [HL]

Debate between Lord Judd and Baroness Mobarik

Committee: 1st sitting (Hansard): House of Lords
Friday 18th November 2016 Lords Chamber

[Baroness Mobarik]

My Lords, this amendment would remove references to the consideration of criminal history and tax status to leave the determination of who is a fit and proper person to guidance that would be issued by the Secretary of State. Any fit and proper person test as a prerequisite for inclusion on a register would need to apply to all categories of applicant, including businesses, individuals, non-governmental organisations and other entities, and be robust enough to hold up to legal challenge if necessary. The Government, who remain committed to better regulation where it is necessary, consider the existing control regime to be sufficiently robust and fully in line with our obligations under the international Arms Trade Treaty. Requiring brokers to register in the way proposed would make the system considerably more complex.

I will pick up on a couple of points the noble Baroness made. The first we referred to earlier, which is brass-plating. Existing legislation would, in certain circumstances, allow enforcement action to be taken against brass-plate companies and their officers. However, there needs to be sufficient evidence to justify any such action. On her other point on tax evasion, HM Revenue & Customs considers all credible information regarding potential breaches of UK strategic export and trade controls, and takes a range of enforcement action based on the particular factors of each case.

I will refer to something that the noble Lord, Lord Judd, raised on human rights issues. Risks around human rights abuses are a key part of our assessment. We do not export equipment where we assess that there is a clear risk that it might be used for internal repression, would provoke or prolong conflict in a country, or would be used aggressively against another country.

Each licensing decision is currently considered on its own merits against the consolidated EU and national arms export licensing criteria, known as the consolidated criteria. This provides a thorough risk assessment framework and requires us to think hard about the impact of providing or brokering arms and equipment and their capabilities. These are decisions we never take lightly.

I should make it clear that the UK operates one of the most robust and transparent export and trade control systems in the world. We are confident that, by considering all applications against the consolidated criteria, we employ a thorough risk-based approach to determine whether to grant a licence to a particular end-user or broker.

Finally, we are proud of the fact that the UK has been at the forefront of addressing concerns on arms brokering by introducing controls that apply not only in the UK but extraterritorially. That was the point that the noble Lords, Lord Wallace and Lord Stevenson, made. It is quite a technical issue and I can write to noble Lords to clarify further. As I said, it applies not only to the UK, but extraterritorially to UK persons overseas. This signifies our clear intention to prevent UK persons escaping brokering controls by simply operating outside the UK.

[Lord Judd]

I thank the Minister for responding to my intervention, but I do not believe she has quite taken the point. My concern is that weapons are so dangerous and potentially negative in their effect that they should be exported only in situations in which peace and stability are at risk, or an agreed necessary military action, in the context of an alliance, is undertaken. I cannot see really, logically, why anyone else would come in with a desire to export arms if it did not fit into that context. If it did fit into that context, why would somebody else have to apply? It therefore seems to me that if we are going to have these free-standing individuals operating in the market, they need to be incredibly responsible citizens who fully understand what the purposes of foreign defence policy, stability policy and all the rest really are. Otherwise, we are in a situation in which the conveyed message is that it is okay to export arms, unless we establish through our very effective controls systems that there is a very good reason for not doing it, whereas I think there has to be a very good reason for doing it. From that standpoint, this amendment moves in the right direction.