Economic Crime (Transparency and Enforcement) Bill

Lord Thomas of Gresford Excerpts

Committee stage
Monday 14th March 2022 Lords Chamber

[Lord Cromwell (CB)]

My mistake; I struggle with joined-up writing.

Since I get only bite of the cherry and have an amendment coming up in my name, I will tackle both Amendments 93 and 95 on resources. It is widely acknowledged and was highlighted emphatically by speakers at Second Reading that the resourcing of those responsible for the difficult work of identifying, investigating and prosecuting those covered by the Bill are currently inadequate. In the Minister’s letter of 11 March, which I referred to earlier, page 6 refers to an overall package of £400 million and the creation of a kleptocracy cell in the National Crime Agency and says that the NCA has “surged additional officers”. I am aware that the NCA has obtained fewer than five prosecutions for economic crime offences in the last five years and has seen its budget cut, despite calls for increases. The number of investigators at the proceeds of crime centre has declined, despite Parliament raising concerns. I simply do not know whether the resourcing now referred to is sufficient, but I am told that a figure of £1.7 billion is a more realistic amount to get this job done.

Amendment 95, to which I have added my name, calls for an annual review of the suitability of funding arrangements for enforcement agencies. A theme of our debates has been the need to revisit what we have discussed and agreed to here. It is pure vanity to pass legislation that cannot be enforced and resourced effectively. This amendment will be useful in making sure that a proper focus on resourcing is maintained. I therefore support Amendment 95 or, if it is preferred, Amendment 93, which has much the same effect.

Turning finally to Amendment 94 in my name, I am very grateful to the noble Lord, Lord Thomas, for adding his name to it. We have heard an awful lot about enablers during our debate, which draws a pantomime hiss that used to be reserved for lawyers, accountants and bankers—but, unfortunately, we all fall into that category of enablers now.

A number of speakers, myself included, raised the issue of SLAPPs, or lawfare, at Second Reading. As is appropriate at this stage, I do not propose to rehearse in detail what was said then. Nevertheless, it is a well-established fact that UK law firms and others—some, anyway—undertake deliberate intimidation tactics known as lawfare to prevent journalists and others bringing matters of public interest to light.

It is further well known that this has ensured that information in the public interest is regularly neutered or hidden. The rule of law requires equality before the law, but this behaviour goes well beyond any reasonable approach to a defence of reputation. It is the dark side of our legal system, where inequality of arms means that the wealthy can—at times, using ill-gotten gains—out-resource those on whom we as a society rely to find out the truth and shine a light into dark places.

The Defamation Act 2013 sought to introduce some protective measures, but this is a complex area of law that not only is costly but carries the risk of liability for the other party’s costs. It is this prospect of bankruptcy or insolvency that is primarily used to intimidate journalists and other organisations. Furthermore, such a defendant against a claim may be unable even to obtain a legal representative willing to take on the risk of cost recovery from the other side. Even what are known as “trials of preliminary issue” regularly run up costs of £25,000 or more, and a full trial will often cost well above £500,000. Even if successful, the defendant will be faced with the irrecoverable portion of their costs, which can also be very substantial—and we should remember that this does not take into account all the work, time, disturbance and anxiety before a court action even arises.

We must not allow the Bill’s purpose—tackling dirty money and illicit practices of the sort that it covers—to be undermined by allowing the wealthy to abuse our legal system in order to intimidate and muzzle the free press in this way. Amendment 94 would require the Government to assess how the Bill might be frustrated, have its impact blunted and its implementation thwarted by such conduct, and it would require the Government to share their findings with Parliament.

The Bill is operating in a very compressed timeline, and I am grateful to the Minister for his email exchange with me over the weekend on this issue. I note that the Deputy Prime Minister announced on Friday the launch of an urgent call for evidence in this area, and I have the Minister’s assurance that this call for evidence will not be just a listening exercise but that:

“Where action is needed, we will take it quickly and effectively”.


The origin of the Bill’s arrival here is the Russian invasion of Ukraine. An immediate step by the Putin regime has been to shut down the channels of free communication and free media within Russia. Surely we must ensure that we do not allow the same regime to do the same in the UK. I therefore invite the Minister to confirm on the record the Government’s commitment to this, not just as a one-off inquiry but on a regular basis, as foreseen in Amendment 94. I also ask him to confirm that the action he has referred to will include specific provision for it in ECB 2. I beg to move.

[Lord Thomas of Gresford (LD)]

It is a real pleasure to follow the noble Lord, Lord Cromwell. I spoke at length on this matter last Wednesday and I do not propose to speak on it again. Three things have happened since then. The Lord Chancellor has called for evidence, as the noble Lord pointed out. My Private Member’s Bill, which I referred to, seems to have reached its final form, and I hope it will be progressed quickly. I very much hope that this problem is properly dealt with in a very short time, and I await the Minister’s response.

[Lord Agnew of Oulton (Con)]

My Lords, I shall speak in support of my amendment, which seeks to achieve two things: an annual review of the funding adequacy of our crime-fighting agencies in this area, and a report within three months of the Bill, and annually thereafter, to set out how well we are managing this whole area.

I know we will hear warm words from the Minister about various sums of money—£400 million and so on—but the brutal reality is that this whole thing has been abysmally funded; that is the only way we can describe it. The noble Lord, Lord Cromwell, is right that the NCA’s own funding has fallen by some 4% in real terms at a time when international crime has been soaring.

Economic Crime (Transparency and Enforcement) Bill

Lord Thomas of Gresford Excerpts

2nd reading
Wednesday 9th March 2022 Lords Chamber

[Lord Thomas of Gresford (LD)]

My Lords, for over 50 years, it has always been a privilege and a pleasure to speak either before or after the noble Lord, Lord Carlile.

Last Friday, the Guardian reported that the Foreign Secretary, Liz Truss, has asked government lawyers to “find literally any way” to crack down on SLAPPs—strategic lawsuits against public participation. On the same day, Reuters reported the view expressed by a number of Members of Parliament, including Conservative MPs, that British sanctions on Russian oligarchs are being partly delayed over concerns that wealthy businessmen will take the Government to court unless they have built solid legal cases against those targeted. As the noble Lord, Lord Carlile, pointed out, they do not have the cash—or the organisation within the police departments which deal with this—to do that. I ask the Minister: does this account for the Government dragging their feet on sanctions—particularly now, as others have already mentioned, that they are giving six months to Russian oligarchs in this country to liquidate their assets? I regret that the Government have not taken the opportunity in this Bill to deal with the urgent problem of SLAPPs; nor was it in the list announced for Part 2 by the Minister.

The British justice system is undoubtedly not world-leading in this area. Other common-law countries, including the United States and Canada, have brought in anti-SLAPP laws which enable a journalist or publisher to apply to the court at an early stage for a law suit to be dismissed, if it relates to content which is in the public interest. Consequently, the Foreign Policy Centre has described the UK as

“the most frequent country of origin”

for foreign legal threats against investigative journalists. The journalist Catherine Belton wrote a book called Putin’s People: How the KGB Took Back Russia and Then Took on the West. Among other things, she wrote that sources had informed her of Putin’s plan to acquire Chelsea Football Club through Abramovich to increase his influence and to raise Russia’s profile, not only with the elite but with the British people. If that was his plan, the chanting of Chelsea supporters last weekend, interrupting the applause for Ukraine at Burnley, shows that Putin has succeeded in his object. Putin has succeeded in distorting British values of freedom and democracy, at least among Chelsea fans. Catherine Belton’s book was highlighted by the opposition leader Alexei Navalny from his prison cell in January last year when he revealed, among other things, that Putin secretly owned a £1 billion Black Sea palace. She was hit with libel actions from Abramovich, who was quickly joined by other oligarchs and the leading state oil company, Rosneft. Abramovich also sued her in Australia, where the book had been published. Miss Belton’s publishers, HarperCollins, stood bravely by her. The result of this hugely expensive litigation was some minor alterations to a few sentences in her book without the payment of any damages or costs. Another similar case was brought against the Financial Times investigative journalist Tom Burgis by the Kazakh mining company ENRC. As my noble friend Lady Kramer said, there are enablers. Solicitors for the oligarchs in this litigation include the well-known London firms Mishcon de Reya, Schillings, Harbottle & Lewis, CMS and Carter-Ruck.

I have answered Ms Truss’s call by drafting a Bill which is currently in the queue for a First Reading in this House. I am very happy to share this with the Government at this early stage. It is based on the Ontario legislation which was recently considered and approved in the Supreme Court of Canada. Essentially, my Bill provides for a defendant to apply to the court at an early stage to dismiss the proceedings where the judge is satisfied that the proceedings arise from a publication relating to a matter of public interest. It is then for the claimant to satisfy the judge that the proceeding has substantial merit, and that the public interest in permitting the proceedings to continue outweighs the public interest in protecting the publication. In weighing the public interest, the judge may take into account a variety of factors, including the chilling effect of the proceedings on any future investigative journalism and any disproportion between the resources deployed and the amount of damages likely to be awarded. The judge would have power to award damages to the journalist or publisher where he concludes that the proceeding has been brought in bad faith or for an improper purpose. I had thought of seeking to amend this Bill with these provisions, but I do not think they would come within the Long Title, nor would there be time—as the noble Lord, Lord Carlile, said—to adequately debate them. But this is a way to crack down on this abuse of our judicial system, and I look forward to the Government giving time for my Bill, or their own time to deal with the matter.

Republic of Cameroon: Economic Partnership Agreement

Lord Thomas of Gresford Excerpts

Tuesday 29th June 2021 Lords Chamber

[Lord Thomas of Gresford (LD) [V]]

My Lords, I must thank the noble Lord, Lord Grantchester, and my noble friend Lord Purvis for obtaining this debate, and also express my appreciation to the committee for its reports.

At the time that it achieved independence, Ghana ran on British imports, and Kwame Nkrumah was determined to develop home-produced wares. With that in view, he encouraged textiles, which, through a number of state-owned enterprises, provided a great deal of employment. The coup which ousted him in 1966 unhappily let those developments rust away, so that today only 2% of Ghana’s high-quality cotton is processed in the country; most is exported to China and other south-east Asian countries.

In the Covid epidemic, the Ghanaian Government adopted a policy of self-reliance. For example, they developed the production of PPE in their factories and are trying to produce their own pharmaceuticals. Can the Minister tell us to what extent this trade agreement assists this policy of self-reliance? It is clearly in the interests of this country, by reason of our colonial history, not to regard Ghana simply as a customer for our exports; it is important that we use trade to support stability and prosperity in this region, beyond buying their bananas. At the moment, Ghana is less impacted by the terrorist raids and atrocities that undermine some of its neighbours to the north. Let us hope it remains so. The imposition of tariffs on its banana exports, at the beginning of the year, was not helpful. What steps have the Government taken to reimburse those producers whose businesses were hit?

As for the trade deal with Cameroon, can the Minister explain why we have entered into a rollover agreement with a country whose administration is so mired by human rights abuses that even Donald Trump withdrew trade privileges from them? The protection of human rights is said to be an essential element in the agreement, but words are not enough in the face of ongoing human rights abuses, as outlined by the noble Lord, Lord Grantchester.

The arrests, arbitrary detentions and prosecutions in military courts of opposition members, in the latter part of last year, is just one more example. Another is the violent clearing by police and military, with the use of tear gas, of a magistrates’ court last December, when a group of a hundred lawyers protested against refusal of bail for two of their number, who had been arrested for exercising freedom of speech. The harsh repression of opposition and dissenting voices shows no sign of abating. I am afraid this Government lack the moral compass to do anything to discourage it.

United Kingdom Internal Market Bill

Lord Thomas of Gresford Excerpts

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Wednesday 28th October 2020 Lords Chamber

[The Deputy Chairman of Committees (Baroness Fookes) (Con)]

The noble Baroness, Lady Noakes, has withdrawn, so I now call the noble Lord, Lord Thomas of Gresford.

[Lord Thomas of Gresford (LD) [V]]

My Lords, the House of Lords is coming to a watershed. When we threw out the statutory instrument in relation to tax credits in 2015, the reaction of the Government was to wheel in the noble Lord, Lord Strathclyde, to set up a review. His report advised that the House of Commons should be given the power to overrule this House should it ever have the temerity to do the same thing again. Since then, the Labour Party has followed an unwavering policy of abstaining on fatal amendments to statutory instruments.

--- Later in debate ---

[Lord Judd (Lab) [V]]

My Lords, I want to put on record my admiration for the consistent, valiant work done by the noble Baroness, Lady McIntosh of Pickering. She has proved herself over recent weeks as a champion, almost second to none, of the principle of accountability to Parliament, the importance of Parliament and the importance of always being cautious lest power drifts back to the Executive. If we are to have these new arrangements for regulation and supervision, what she has talked about is a prime candidate for this. I believe it is a test of whether the Government really do believe in parliamentary authority and the accountability and supremacy of Parliament, and whether they really believe that there is no attempt by the Executive to take back power. I thank the noble Baroness for having given us another opportunity to raise this, which I hope the Government will take seriously.

I have immense respect for my noble friends who are working so hard and consistently on our behalf on the Bill. The rest of us who have strong feelings therefore have to be very cautious about getting in their way and making generalised statements that hold up proceedings and in the end undermine the effectiveness of what they are trying to do.

I want to make this point: anyone who believes that the Bill is simply about an internal market must face the reality, given that history will judge the effectiveness of this Chamber as a scrutinising Chamber, that it is about more than that. It is about a determined drive, as I see it, by the present Government all the time to increase the powers of the Executive. We must therefore be on our toes strategically if we are not, in our preoccupation with the detail of the Bill, to lose sight of this major challenge that we constantly have to face. I thank the noble Baroness once again.

[Lord Thomas of Gresford (LD) [V]]

My Lords, it is always a delight to follow the noble Lord, Lord Judd, who always helps us with his wisdom and experience. I join him in commending this understandable attempt by the noble Baroness, Lady McIntosh of Pickering, to strengthen the scrutiny of any regulations made by the Minister under the proposed Bill, whether in the exercise of Henry VIII powers or otherwise. While I entirely support their purpose, I cannot support the precise method that the noble Baroness puts forward. The trouble is that there is no single super-affirmative procedure; there are, as the noble Lord, Lord Naseby, pointed out, a whole host of procedures.

United Kingdom Internal Market Bill

Lord Thomas of Gresford Excerpts

2nd reading & 2nd reading (Hansard): House of Lords
Monday 19th October 2020 Lords Chamber

[Lord Thomas of Gresford (LD) [V]]

My Lords, since I am speaking from Hayman House, my home in Gresford, it would be churlish of me not to welcome the noble Baroness, Lady Hayman, and congratulate her on her excellent maiden speech.

On 2 October 2019 the Brexit Secretary, Stephen Barclay, told the EU Committee of this House that Northern Ireland businesses would have to complete export declarations for goods moving from Northern Ireland to the rest of the UK. Shortly afterwards, on 7 November, the Prime Minister told exporters in Northern Ireland, in answer to a question, that if any business was asked to fill in customs declarations, he would direct them to throw the forms in the bin. That is his typical jocularity. He said:

“There will be no forms, no checks, no barriers of any kind. You will have unfettered access.”


That is what the provisions in Clauses 44 to 47 of this Bill are all about: to save face. The Prime Minister cannot admit that he told off-the-cuff porkies—or more likely that he did not understand the written agreement he had signed.

The Government say that the Bill does not in itself breach the written agreement: only potentially, as the noble Lord, Lord Forsyth of Drumlean, argued earlier. The noble Lord, Lord Cavendish of Furness, went further a moment ago and asserted that there was no breach of the law at all. If I give a knife to a person of unstable temperament with the foresight that he will use it to stab somebody, I break the law. It is no defence to say that I thought that he would only use my knife “potentially”. These clauses are an instrument positively designed to empower Ministers, first, to act illegally and, secondly, to ensure that the powers of the court to stop them by judicial review are removed. It is as though I told the potential murderer, “Look, here’s a knife and I guarantee that you will not be prosecuted if you use it”. The noble Lord, Lord Lamont, said, “Well, all they’re doing is threatening to rescind an agreement they should never have made, to strengthen their negotiating position”. Well, it has not worked, has it? As the noble Lord, Lord Butler, said, it is a threat which should never have been made.

It would have been 1945, with Christmas approaching, when my father decided to make me a toy gun. He carved and varnished a wooden stock and added black piping to look like a barrel. On Boxing Day, I proudly took this toy gun out to play, but it was quite a tough area. It is in my mind’s eye now. I was approached by two youths who were four or five years older than me. They threatened to bash my face in if I did not hand the gun over to them. I did so, and you can see that it rankles after 75 years. A threat is not in the long run a good negotiating tactic. You may succeed for the immediate moment, but the resentment lasts for years; the reputation is damaged beyond repair. Why should the European Union believe any compromise the Prime Minister puts forward this coming week on state aid, fisheries or the like? He has weakened his bargaining position.

The Lord Chancellor justifies taking these powers on the basis that there

“could be a material breach by one of the parties”—

he does not say which party or what breach—of the withdrawal agreement. Do you have a better point, Mr Buckland? Robert Buckland comes from Llanelli. When the noble Lord, Lord Campbell of Pittenweem, referred earlier to the oath of Queen’s Counsel, I remembered that it was another Llanelli boy and Lord Chancellor, Lord Elwyn-Jones, who took my oath of office in the Moses Room some 46 years ago. What, I wonder, would he have thought of such a manifest breach of his oath of office, which commences: “I swear by Almighty God to uphold the rule of law”?

Energy Policy

Lord Thomas of Gresford Excerpts

Monday 25th June 2018 Lords Chamber

[Lord Thomas of Gresford (LD)]

I thought the strike price was 8.9p per kilowatt hour, as opposed to Hinkley’s 9.3p or 9.4p per kilowatt hour. Am I wrong in that? That is what my study of the proposals said.

The Minister refers to the production of energy as being intermittent. As I understood the scheme, the tide coming in moved the turbines in one direction, so there was electricity generated and, as the lagoon emptied, the emptying caused the turbines to go the other way. What is intermittent about that?

There is more to it than that. It is the lack of vision in this Government that is so distressing. “The Life Scientific” last week mentioned the fact that in Wrexham, where I come from, back in the mid-18th century, John Wilkinson invented precision engineering by boring cylinders which Watt took over. That led to steam engines and the pumping of mines, so that coal could be produced, and eventually to locomotives. As was said last week, it was the start of the Industrial Revolution in Wrexham. Of course, Wilkinson went to other places—he went to Swansea, among other places. He had vision and could see the future. This Government simply cannot grasp that, and it is highly disappointing that this decision has been made.

[Lord Henley]

My Lords, I do not think that I can take the noble Lord much further in his accusations of lack of vision. I think that he would be one of the first to say that it would show a lack of straightforward common sense and financial honesty to go ahead with a scheme that was going to cost quite so much, and quite so much to the Welsh consumer and Welsh businesses in terms of their costs for electricity.