G20

Andrew Gwynne Excerpts

Monday 17th November 2014 Commons Chamber

[The Prime Minister]

I do not believe that a military escalation is the answer to this problem. I think the answer to this problem is a robust, firm and united response from the countries of the European Union and from the United States to make it absolutely clear that if Russia persists in this destabilisation, its relationship with Europe, with Britain and with America, in terms of trade and normal contact, will be radically different in the future from what it has been in the past. I simply do not think that the idea that this cannot work or cannot have the effect is right; in the end, Russia needs the European Union and America more than America and the European Union need Russia. We need to make that relationship pay, and I think we can, therefore, get the right result.

[Andrew Gwynne (Denton and Reddish) (Lab)]

As the Member responsible for introducing the Debt Relief (Developing Countries) Act 2010, I have a long-standing interest in tackling the vulture funds that prey on historical debts, often those of the poorest countries or countries in severe economic difficulty. Argentina is one of the latest being preyed upon and pursued. Will the Prime Minister set out for the House whether he fully supports the principles in the G20 statement on tackling this issue? Does it show a change in the UK’s position on vulture funds, after his Government voted against the United Nations resolution on sovereign debt restructuring earlier this year?

[The Prime Minister]

The hon. Gentleman raises a very important point, about which there was a long discussion at the G20. Of course I support what is in the communiqué—we fully agreed that. The problem we have is that there is sympathy for countries such as Argentina, which have tried to restructure their debt but then have vulture funds taking them to court in other countries and winning judgments that make it almost impossible for them to proceed and tip them into another technical default. The right position to take is not to override contract law and the way these things are dealt with in courts, because of course our whole system depends on that, but to try to find a workaround so that countries such as Argentina can get back on a proper footing.