Queen’s Speech

Lord Rana Excerpts

Wednesday 25th May 2016 Lords Chamber

[Lord Rana (CB)]

My Lords, I will address the criminal finances Bill and the soft drinks levy, included in the gracious Speech.

After the revelations of the Panama papers, it is all too clear that we must do more to tackle corruption not just in the UK but globally. Some of the UK’s overseas territories facilitate individuals and companies in avoiding tax and allow corrupt leaders and politicians to hide their ill-begotten wealth. The noble Lord, Lord Chidgey, mentioned in his speech yesterday that London is considered by some as the money laundering capital of the world. That must change and we must act against corrupt individuals from abroad who hide their stolen wealth by buying property in London and who settle here mostly with immunity.

I am glad that the UK is now leading in its attempt to tackle corruption on a global scale, and I welcome the criminal finances Bill. It was only a few weeks ago when we hosted the global anti-corruption summit. I hope that the Government’s proposals to reform crime legislation on illicit money and strengthen the UK’s anti-money laundering regime will be translated into unexplained wealth orders. Such measures would reverse the burden of proof on to the suspect and would be a vital step for tackling corruption. Equally, I am heartened to see the Government’s efforts to introduce a corporate offence for tax evasion. This would mean firms would be required to bolster measures against money laundering and corruption.

Strong legislation must have capable enforcement. HMRC is currently making cuts of £100 million, including the closure of 137 offices, and the Office for Budget Responsibility report on this year’s Budget noted that it was not able to follow up on disclosure in tax havens due to underfunding. Similarly, opacity in our overseas territories will continue to hinder progress on corruption unless it becomes more transparent. The Government must resist vested interests that would seek to water down these proposals. Corruption has stymied the development of many Asian and African nations and, of course, those in many other parts of the world. Economic development of these countries would be a great benefit to us all.

I also welcome the Government’s soft drinks levy. Such legislation is an important step in tackling obesity and the unhealthy diets that contribute to it. It has been found that one in three children between the ages of two and 15 is obese, and that 20% of the NHS budget is spent on dealing with health problems that are a direct result of unhealthy lifestyles. However, if the logic of the sugar tax is to help tackle the growing health problems in the UK, it is sad to see that other measures are not included. Why are there no other proposals on high-sugar products, such as chocolate and confectionary? The soft drinks levy should be the beginning rather than the end of financial legislation and seek to promote a healthy lifestyle. But fiscal measures alone cannot solve our health problems. Legislation must be complemented by education on a holistic approach to healthy living. India has long practised this through Ayurveda and yoga. Such practices would save lives and money in the long run. Last year, 21 June was declared International Yoga Day by the UN.

Finally, there has been a lot of debate about the implication of the referendum on the UK’s economy. I believe that the world is more interconnected than ever before and that to pull out of the European Union would be an unbelievable risk. However, whatever the result of the referendum, we need to make more consistent efforts in developing our trade relations with the Commonwealth countries. The Commonwealth is undervalued and underutilised. Despite the economic recession in many developed countries, many Commonwealth countries such as India are growing at around 7% per annum. This offers a unique opportunity for the UK to partner with the development process and it would be a win-win situation for all—promoting growth that looks forward to the future and builds on our shared past.

Queen’s Speech

Lord Rana Excerpts

Wednesday 11th June 2014 Lords Chamber

[Lord Rana (CB)]

My Lords, I welcome the gracious Speech. In the past few weeks there has been all manner and shape of talk about the United Kingdom’s membership of the European Union and the resulting benefits or disadvantages. However, there is hardly any talk about another equally important organisation—the Commonwealth.

Her Majesty the Queen has provided outstanding leadership to the Commonwealth over the past 60-plus years. The Commonwealth has proved a great asset and is a potential source of strength for all its member nations. Of the 53 members, four are developed countries—the United Kingdom, Canada, Australia and New Zealand. There are some fast-developing major economies such as India, South Africa and Nigeria, and many other member countries rich in natural resources and cultural heritage are now developing their economies. However, there could be a much more vibrant, closer, practical and beneficial relationship between the member states in the Commonwealth and there is much more scope to develop business between the Commonwealth countries. A focused and strategic effort to develop trade between the member countries would help all round. This would supplement the increasing exchange of students, academics and research scholars between Commonwealth countries and encourage the development of new knowledge-based enterprises.

The Prime Minister led a large delegation to India last year aimed at developing business, educational and tourism links. However, the level of business between the two countries is nowhere near what it should be. There is a new Government in Delhi after the recent elections whose main focus is on development and business. Of approximately 814 million voters in India, nearly 550 million actually voted. That is about 66% of the total. The result was a clear mandate for the Bharatiya Janata Party. There has, however, been much negative comment in the press about the BJP and, indeed, its leader, Mr Narendra Modi. Various malign and unjustified allegations have been made against him. The BJP was commonly labelled as a Hindu fundamentalist party and Mr Modi was unjustly blamed for the communal riots in Gujarat in 2002. This charge against him has been proved untrue.

Mr David Cameron, our Prime Minister, was the first world leader to congratulate Mr Modi on his success. Her Majesty’s Government need to work hard to strengthen their relations with Mr Modi. Indeed, the Government will no doubt wish to build on their relations with all the major democratic parties of India. Mr Modi is pro business. The electorate have given him a clear mandate to carry on the economic development of India and the national and international business community has shown confidence in the new Government. The stock market value in India has gone up approximately 20% in the past few weeks. It is predicted that India’s GDP will double in less than 10 years’ time.

The UK has an outstanding opportunity to play an active role in developing trade with India and so become a partner in India’s economic growth and welfare. It should be a win-win situation for both countries. India is a union of 29 states and seven union territories with a population of 1.2 billion. To develop trade, we here in the UK would best have representation in each state. Here, I would like to express an interest, having led many trade delegations from Northern Ireland to India since 2001. As a result, Northern Ireland has attracted many more IT companies, employing about 6,000 people. There is no reason why the trade between India and the UK cannot double over the next five years. There is little barrier to such growth. Most barriers are more imaginary than real. There is so much in common between the two countries and a tremendous amount of good will which will readily facilitate working together even more closely.