Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts

Wednesday 30th March 2011 Commons Chamber

[Mr Duncan]

We share the right hon. Gentleman’s objectives in trying to deliver assistance wherever we possibly can, which we are continuing to do through the social fund for development, which is not Government-run. We have, however, had to withdraw our DFID staff from Sana’a given the security situation, but we remain committed to doing everything we possibly can to help the people of Yemen once the security position and the political position become clearer and appropriate.

[Katy Clark (North Ayrshire and Arran) (Lab)]

14. What recent representations he has received on the effect on the economies of developing countries of the tax avoidance practices of UK companies.

[The Parliamentary Under-Secretary of State for International Development (Mr Stephen O'Brien)]

Ministers discuss taxation and development with various parties, with the Exchequer Secretary to the Treasury most recently meeting Christian Aid on 8 March. Discussions on protecting developing countries’ tax bases also take place in the OECD tax and development task force and the G20 development working group.

[Katy Clark]

The Minister will be aware that developing countries lose more through the tax avoidance of multinationals than they receive in aid each year. The Business Secretary has in the past supported country-by-country reporting of both profits and tax paid. Is that something the Minister would consider?

[Mr O'Brien]

I can certainly confirm that we expect all companies and individuals to pay the tax they owe in the countries where it falls due. There is a lot of work now going on, particularly with the G20 development action plan and the global forum on tax transparency, precisely to address the issues that the hon. Lady rightly highlights, and which we must all seek to find the most effective ways of tackling.