Economic Crime (Transparency and Enforcement) Bill

Lord Sentamu Excerpts

Committee stage
Monday 14th March 2022 Lords Chamber

[Lord Callanan (Con)]

I thank the noble Lord for his legal advice; I should not let my prejudices against lawyers get in the way here, but no doubt there are others who one might want to employ who might give a different opinion. All I can say is that we are acting under the advice that we have received. I am told that while people may have had an idea in advance that we would be introduce such legislation, the fact of Parliament actually passing it will, I suspect, be the legal test for when the register starts and when the requirements come into force—whether or not it had been flagged up in advance. However, that would be my opinion as a mere engineer, not a lawyer; I am sure that other opinions are no doubt available.

I turn now to Amendment 92—

[Lord Sentamu (CB)]

My Lords, I apologise that I was not here for Second Reading. I went down with a very bad cold and I wrote to the Convener’s office to say that I could not be here, so I apologise.

Can the Minister explain why the Government had gone for 18 months instead of six? Was the legal advice for 18 months that someone could challenge, so a longer transitional period was needed? Yes, there could be cases that come up, but if the intention is quite obvious and very clear why the decision is being taken, could he tell us why—no matter the number of days that you give for the transition—a very rich oligarch could not still bring a case regardless? I cannot understand why we have gone from 18 to six months, and now the Government are saying to stick at six because there will be a legal case. As a legislator, I just do not understand that.

[Lord Callanan (Con)]

I am happy to explain it to the noble and right reverend Lord. This is a severe piece of legislation retrospectively interfering with someone’s property rights going back—in the case of England and Wales—to 1999. Somebody could not have known when they entered into that transaction that we would wish to retrospectively legislate for that. There is a section in the Human Rights Act—I think it is the section quoted by my noble friend—about enjoyment of property and we are interfering with that. Bearing in mind that these are overseas entities for which contact details are sometimes not available, my advice is that we need a reasonable period for the entity concerned to become aware of their legal obligations. The rich oligarch mentioned by the noble and right reverend Lord may wish to bring a challenge against us on the basis that we had not allowed a reasonable period. What a “reasonable period” is then becomes a matter of legal definition and argument, for which there are obviously a variety of views. That is probably the best summation I can give of the case. I hope that satisfies the noble and right reverend Lord.

Moving on to the famous Amendment 92, I thank the noble Lord, Lord Coaker, for his innovative suggestion for a wide-ranging power for the Secretary of State aimed at preventing asset flight before the formal imposition of sanctions. I hope the measures we have added in the other House go a significant way towards dealing with the kinds of situations the noble Lord may have in mind. The sanctions measures in the Bill are designed to ensure that we are able to respond even more effectively to world events using those sanctions. While, of course, we are living in unprecedented times, I am concerned that his proposals would give huge amounts of power not just to the Secretary of State in relation to Putin’s regime but to future Secretaries of State with regard to people who are not yet the subject of sanctions regimes. Much as I hate to admit it, I think I agree with the noble Lord, Lord Pannick—for a change—on this one. We need to tread carefully on such matters. Indeed, this amendment would provide an open-ended power to freeze assets for an unspecified period prior to sanctions being imposed and includes custodial penalties for those who breach it.

I think we have led the world in sanctioning Putin and his cronies. In some areas we have gone further than the EU; for example, we have banned all 3 million-plus Russian companies from getting loans in the UK or from listing. The Government strongly support measures to ensure that sanctions are effective and will continue to keep under consideration all steps necessary to achieve that. In light of what I have said, I hope the noble Lord will not press the amendment, but this is on the understanding and with the commitment that the Government will continue to keep under review how we ensure that we have all the tools at our disposal to ensure that sanctions are as effective as possible.

In conclusion, I am aware of the strength of feeling in the House on this issue of the transition period. It has been made clear to me in meetings, in particular with the noble Lord, Lord Coaker, and the Opposition Front Bench, and the noble Lord, Lord Fox, and the Liberal Democrat Front Bench. I have listened carefully to the points made in this debate, particularly the powerful remarks made by the noble Lord, Lord Coaker, and I am grateful for the constructive approach that the Opposition in particular have adopted on this matter. I will, of course, continue discussions with the noble Lord, and I am sure we will continue to talk these matters through before we commence Report on the Bill. I beg leave to withdraw the amendment.

National Living Wage

Lord Sentamu Excerpts

Monday 17th January 2022 Lords Chamber

Asked by

[Lord Sentamu]

To ask Her Majesty’s Government, further to the recent rise in the rate of inflation, what plans they have to sustain the increase in the national living wage.

[Lord Sentamu (CB)]

In asking this Question, I declare my interests. I chair the Living Wage Commission and led a debate in your Lordships’ House on 5 May 2020, when 52 Members of the House asked the Government to take action on income inequality and sustainability.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, on 1 April 2022, the Government will increase the national living wage by 6.6% to £9.50. Following this increase, the annual earnings of a full-time worker on the national living wage will have increased by around £5,000 since 2015. The Government are committed to further increasing the national living wage in line with their manifesto commitment to equal two-thirds of median earnings by 2024, and we are on track to achieve this ambitious target.

[Lord Sentamu (CB)]

My Lords, I thank the Minister for that Answer, but given that it was in September 2016 that the Living Wage Commission published its findings, that the Government took six years to raise the minimum wage to the recommended living wage, and that national insurance contributions will increase in April, are the Government, in their levelling-up agenda, going to match their rhetoric on income inequality?

[Lord Callanan (Con)]

I pay tribute to the work that the noble and right reverend Lord does on these matters, and it is important that he raises them; we are grateful for that. As the noble and right reverend Lord is aware, we take advice from the Low Pay Commission—comprising business representatives, worker representatives and independent members—on the appropriate increases, taking into account all the various issues: what is affordable for business, rates of inflation, et cetera. I am proud of the record that we have in increasing the national minimum wage.