(9 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I recognise the diversity, but that does not mean that all those diverse opinions are acceptable within democratic principles. Indeed, the President of Israel himself believes in a greater Israel stretching from the Mediterranean to the River Jordan. That, in my view, is not in the interests of Israel. I hope that the very same voices who oppose the law will now oppose settlements, demolitions, the destruction of olive groves and the disproportionate reactions. Why cannot a democracy such as Israel learn to underdo its reactions from time to time, rather than overdo them?
Does the right hon. Gentleman share my concern and the concern of many others that, despite what happened in the summer, the blockade of Gaza has made it incredibly challenging for people to rebuild their lives. Time and again, we see a cycle of violence devastating people’s lives. The European Union, including the UK, continues to give aid to restore people’s lives, but without a solution to the conflict, the cycle will continue and prevent humanitarian assistance.
Let me make it clear that Gaza is not the Palestinian Authority, and nor is Hamas. I have known Mahmoud Abbas for more than 20 years. He essentially recognises the state of Israel. He wants peace. I have seen the maps, the proposals and the details that have consistently been rejected by the Israeli Government. If only the Israeli Government could step forward and say yes, we would have a two-state solution with two countries living side-by-side in peace. Mahmoud Abbas has even offered a demilitarised Palestine with some other kind of security guarantee, so there would never need to be a single Palestinian soldier posing a risk—
(11 years, 6 months ago)
Commons ChamberMore than 650,000 people have fled Syria and 60,000 have been killed since the conflict began. Serious food and medicine shortages, and freezing weather conditions, are making access to basic services increasingly difficult. The Opposition welcome today’s announcement to increase humanitarian assistance to Syria, but what steps are the Government taking to assist UN agencies and NGOs to provide access to Syria?
As the House appreciates, because of the security situation inside Syria the humanitarian effort is primarily UN-led and it is working through respectable non-governmental organisations. If we were there ourselves it could put that effort at risk, so this requires careful diplomatic consideration. We have to ensure that the flow of aid, and the protection of those who deliver it, is paramount and retained.
(11 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I congratulate the Chair of the International Development Committee, the right hon. Member for Gordon (Sir Malcolm Bruce), on opening the debate. I commend the work of the Committee members on this important report and its insights into and contribution to the subject of tax in developing countries. The Opposition very much welcome the nature of the report and its hard-hitting recommendations. Alongside the recommendations already adopted by the Government, we hope that the Minister and her colleagues will look hard and closely at the others discussed by hon. Members, including my hon. Friend the Member for Birmingham, Northfield (Richard Burden), which have the potential to make a significant contribution if furthered by the UK Government.
Government Members and my hon. Friend have highlighted in the debate and through their work in the Committee and elsewhere that tax and public finance are the backbone of governance, state-building and effectiveness in any society. They are a vital component of public accountability and democracy. If the international community can do one thing to transform positively the politics and governance of developing countries, enabling them to become self-sufficient, it is to support efforts to collect the correct tax revenue and to ensure that it is spent properly, free from corruption.
The right hon. Member for Gordon mentioned a number of examples of progress being made thanks to investment over a number of years by DFID and others. Countries such as Rwanda and Tanzania, among others, give us signs of hope about how much progress can be made if we make the right investments and help with capacity building, supporting those countries to make the transformative changes to build their states and systems so as to be able to generate the kind of revenues to which they are entitled but which are currently being lost. As made clear by the Committee, we can therefore genuinely look forward to the opportunity for developing countries to be much less dependent on aid, which is surely in the best interests of the countries concerned, as well as of those countries contributing to the aid budget. It would not mean that developing countries will not need our support, but it would mean that they become more independent and self-sufficient, which is exactly what people in those countries want. Our duty is to ensure that we make the contribution and the changes, and to show the leadership required to enable that to happen.
A legitimate and accountable system for tax revenue is therefore critical to alleviating poverty, which my hon. Friend the Member for Birmingham, Northfield highlighted eloquently in his speech. He also spoke highly of the contributions of campaigning organisations such as Christian Aid, and I want to mention the campaign efforts of ActionAid, which has done a great deal of work with political parties across the board and with the Committee.
The report points out that in excess of $13 trillion may be hidden in tax havens and that the estimated cost to developing countries per annum is likely to be around £160 billion, a figure far exceeding the global aid budget. Imagine what could be achieved if that money was available to deal with global poverty.
I want to focus on a number of themes, some of which have already been discussed. I shall pick out three key recommendations of the Committee. I want to discuss controlled foreign companies and the Government’s response to the Committee’s recommendation of UK candidateship of the extractive industries transparency initiative. Hon. Members have raised both issues, but I have a few questions. The third area is the Government’s response to the Committee’s recommendation on the Commonwealth Development Corporation.
The report addresses the Government’s relaxation of their anti-tax-haven law—the controlled foreign companies rules. As my hon. Friend said, the Prime Minister demanded bold steps from his fellow G8 leaders when the UK took over its presidency. He pledged that the UK chairmanship would, among other things, focus on tackling tax dodging. However, the current reforms to CFC rules do not meet the Government’s rhetoric. Although we appreciate the need to reform those rules to provide certainty and an attractive climate for businesses based in the UK, there are, as the report and hon. Members here today pointed out, real concerns among Members of Parliament and organisations that campaign on the issue that that will lead to a setback and damage the prospect of developing countries being able to raise the sort of revenue that they have raised in the past.
Action Aid said of the changes that
“a significant deterrent that discourages UK-based companies from shifting profits from developing countries to tax havens”
will be lost and estimates that reforms may cost developing countries as much as £4 billion. If that is true, as many have indicated is likely, it is a scandal that the Government will preside over the change, and shameful that they will not consider the matter and take on board the Committee’s recommendation to carry out the impact assessment. That recommendation was also made by my party during discussion of the 2012 Finance Bill when an amendment was tabled to ask the Government to reconsider.
Will the Minister work with her colleagues in the Treasury and consider the matter again? As hon. Members have said today, the climate is right, and the opportunity exists—the British public are becoming increasingly aware of the dangers and immorality of tax avoidance as well as tax evasion—for the Minister to work with her colleagues to ensure that the change does not damage prospects for people in developing countries and that the loss of revenue does not happen. The sum is £4 billion, although the Government dispute that, but even if it is less it is a significant sum, which could make a difference to some of the poorest people in some of the poorest countries in the world.
The hon. Member for Mid Derbyshire (Pauline Latham) raised the important issue of the EITI, and I want to reiterate her point. Given the leadership role taken by the former Labour Secretary of State, Clare Short, and others—the British Government are recognised as having achieved this important development—it is right and it is time that the Government signed up to the EITI. We would show not only that we were the initiator, but that successive Governments have led by example, and this seems to be an opportune time to do so. Will the Minister work with her colleagues to reconsider the recommendation, and move from disagreeing to agreeing?
The right hon. Member for Hazel Grove (Andrew Stunell) referred to a key recommendation on CDCs, and it is clear that there are inconsistencies in what the Government are saying. Surely it is more appropriate and sensible to put serious weight behind transparency, and this is an important way in which to do so. Will the Minister say whether the Government will reconsider? The issue is tied in with country-by-country reporting by multinationals, not only in the extractive industries, but multinationals generally. Many are increasingly under public scrutiny for some of their actions, which people believe are unethical, and are attempting to improve their behaviour. The Government should show leadership, and one way of doing so is to increase country-by-country reporting and transparency. I hope that the Minister will look at the matter again, consider the views represented in the Chamber and expressed by the Select Committee, and rethink the Government’s position.
To reiterate a point that others have made, this issue is critical, but some people will say that it is not the most—
The Minister used the word, and I will not repeat it. The issue is significant. If we get it right, tax and revenue raising for development will be a major contribution. It is not a magic bullet, but if there were something close to one, this is it. The Select Committee’s contribution in pulling the evidence together and highlighting the scope for action comes at an important moment. The public are leading the debate through their campaigning in the domestic arena, and people are increasingly recognising the immorality of tax evasion and avoidance, and this is an opportunity for the Minister and her Government to consider how to close those tax loopholes and to ensure that countries receive the revenue that is generated but that they are losing. The Government must provide the necessary support to make that happen. I hope that she will take on board the questions and issues that have been raised today.
(11 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I do not think that that is immediately relevant to the topic on the Order Paper for this debate, but it is an important issue, so I am happy to write to the hon. Gentleman with as much information as we have on that question.
The hon. Member for Bethnal Green and Bow (Rushanara Ali) discussed jobs and economic opportunities. I assure her that the issue will be addressed through a dedicated session during the panel’s meeting here in London next week. That panel will draw on this year’s comprehensive world development report by the World Bank, which deals specifically with jobs.
Although the high-level panel report is an important input into the international debate on the post-2015 framework, it is not the only one. The UN Secretary-General will produce his own report for the special session of the General Assembly next September. Numerous other forums are discussing the post-2015 development framework, but the UK Government will work hard to maintain coherence among the different processes.
To reply to some of the comments made earlier, the hon. Members for Edinburgh North and Leith and for Workington (Sir Tony Cunningham) both mentioned climate change. The Rio+20 meetings have established an open working group specifically to propose sustainable development goals, as that is another strand of the activity in play at the moment. On inequality, we must focus on the poorest and not just measure average success, which can disguise a lot of facts beneath a simple headline figure.
My hon. Friend the Member for Cheltenham (Martin Horwood) gave us a master class on how the MDGs might be broadened after 2015 by the introduction of some more thoughtful concepts of sustainable development. He said that they might include planetary boundaries and zones of ecological stress. [Laughter.] Although some might laugh, I assure him and the House that the team at DFID are very familiar with planetary boundaries, and particularly with the idea of doughnut economics, as it is described, which combines planetary boundaries with social minimums—in other words, the constraints of the environment with some of the basic needs of human life. I have to say that when it comes to doughnut economics, I prefer to keep it simple.
The hon. Member for Bethnal Green and Bow mentioned our withdrawal from the International Labour Organisation. I urge her to stop repeating her party’s mantra. Let me say it one more time so that she understands the decision that we took after the multilateral aid review. Our conclusion after considering the ILO was that its main activity does not coincide sufficiently with DFID’s prime objectives, so it is true to say that we have terminated our core funding, but we work with the ILO on a case-by-case basis in countries and on programmes where its work is useful for the elimination of poverty.
On labour conditions, a number of people were killed in an accident at a factory in Pakistan, to use a recent example. There is a role for organisations such as the ILO or domestic organisations to campaign for basic human rights and working conditions to be maintained in garment factories, for example, in Pakistan, Bangladesh and many other countries. Does the Minister agree that development funding should support such organisations to ensure that people can go to work and expect to leave in safety without their lives being at risk? Surely he ought to agree that our efforts should support organisations that campaign to ensure decent labour conditions and labour rights and challenge companies to do the right thing and protect the lives of people at work.
No one questions the objectives that the hon. Lady has just outlined, which is why they are contained in the programmes and actions of DFID, and in all the bilateral programmes relative to such issues. That is why we have a pioneering initiative called RAGS, the responsible and accountable garment sector challenge fund, which covers employment conditions. Where the ILO can contribute to helping us in the field, we will work with it. However, where we get better value for taxpayers’ money working with other people, we will work with other people. It is on that case-by-case basis that we are happy to work with the ILO. Core funding given centrally does not represent value for taxpayers’ money.
Let me finish by saying a few words about what we hope the panel will achieve on the main topic of the debate. The three co-chairs of the panel believe that ending absolute poverty should still be the primary objective of any new framework for development. We hope that the panel can agree on that key message and rally support from Governments, citizens, civil society and business around the world.
The UK also believes that there are five principles that a new framework needs to uphold. First, poverty eradication should remain at the centre of a new global framework for development. Secondly, any new framework needs to speed up efforts to reach the targets in the current MDGs, and hold Governments to account for the promises that were made to achieve them. Thirdly, it should tackle the root causes of poverty, not just the symptoms. Fourthly, it must be based on, and take account of, the views of the poorest people in the world. Finally, simplicity is essential. The new framework should be bold and ambitious, but must maintain the clarity of the current MDGs.
I conclude by once again thanking the hon. Member for Edinburgh North and Leith for securing the debate. It is interesting, stimulating and important, and I am sure we will come back to it in the months ahead.
(12 years, 10 months ago)
Commons ChamberNegotiations on designing the green climate fund instrument are not due to be concluded until the UN framework convention on climate change conference in Durban this December. The proposal that will be submitted to the conference would make resources for adaptation and mitigation available for all developing countries, including those in the Caribbean, and hence should also include other small island developing states.
As well as prioritising the need for developing greener economies in the Caribbean and other islands ahead of the Durban conference, what are the Government doing—I want to reiterate this point—to provide international leadership to ensure that the commitment made in Copenhagen to raise $100 billion per year by 2020 is met by the international community, so that, as has been said, the most vulnerable countries get the support that they need for adaptation and mitigation?
I can assure the House, and the hon. Lady, that climate change is one of the three pillars of our development policy in the Caribbean. The UK is working bilaterally in the overseas territories, as well as regionally across the Caribbean with institutions such as the Caribbean Community Climate Change Centre and the Caribbean Development Bank, as well as other donors, to promote green economies in the Caribbean and address the broader challenges of climate change.
(13 years, 2 months ago)
Commons ChamberMy hon. Friend is absolutely right, and that is exactly why we have set up the Independent Commission for Aid Impact, which can evaluate the impact and value for money of UK aid. Transparency sheds light on all that is done and reduces the sort of corruption that my hon. Friend describes.
Does the Minister accept that the welcome continued emphasis on transparency in Government aid must also apply to businesses? Given the OECD estimate that poor countries lose $120 billion each year to tax havens, three times more than the aid that they receive, what is he doing to require companies to publish what they pay to Governments in developing countries?
(13 years, 4 months ago)
Commons ChamberThe Chancellor of the Exchequer has already been driving this issue very hard and DFID fully supports a process that is designed to reach agreement at EU level. We want such legislation to require, for example, extractive industries to disclose all their payments to the host Government. That is a very important step and the impact of such measures is greatest when applied to the widest range of countries.
We all agree that tackling corruption is vital to ensuring that development delivers for the people who need it most. As the Government are finally publishing the guidelines on the Bribery Act, may I press the Minister again to assure us that the guidelines will not water down that important legislation?
(13 years, 6 months ago)
Commons ChamberI do not share my hon. Friend’s conclusion. We are very careful how we spend our money in the occupied Palestinian territories and have done our utmost to support the legitimate government of Salam Fayyad with, I think, great success. We would abhor any money falling into the hands of extremists, and we do everything possible to ensure that such an accusation can never be verified or proved valid.
The Minister will know that many in the House and beyond continue to be deeply concerned about the desperate situation in Gaza. What efforts are the Government making to ensure that Israel lifts the blockade of Gaza, which leaves many dependent on UN aid? Given the situation in Egypt, will the Minister update us on the position at the Rafah crossing, and on what action will be taken to ensure that humanitarian aid can be delivered to those who need it most?
My right hon. Friend the Foreign Secretary and all Ministers make our views clear on this matter. Prime Minister Netanyahu and Tony Blair announced a package covering the west bank, Gaza and East Jerusalem on 4 February. Gaza measures included new reconstruction project approvals and a timetable for exports. We have welcomed that, but implementation in practice will be the key.