Sanctions and Anti-Money Laundering Bill [HL]

Baroness Sheehan Excerpts

2nd reading (Hansard): House of Lords
Wednesday 1st November 2017 Lords Chamber

[Baroness Sheehan (LD)]

My Lords, my opening remarks will echo those of my noble friend Lord McNally and the noble and learned Lord, Lord Judge—but much less eloquently, I fear. Two years ago last week was an eventful time in your Lordships’ House. The day of 26 October 2015 was remarkable not just because it saw the introduction into your Lordships’ House of the first lady Bishop in history, which caused the House very unusually to erupt in applause, but because it was marked by the controversial vote to delay tax credit cuts in order to protect the poor, which the Government lost. I should also say that the day is indelibly ingrained in my memory because it was when I, too, was introduced into your Lordships’ House. I had not expected such excitement here.

Upon losing the vote on tax credit cuts, the Prime Minister accused Peers of breaking a constitutional convention. Noble Lords will recall that a rapid review was set up to find ways to ensure that financial measures cannot be overturned by the House of Lords. Those who voted against the Government argued that that viewpoint was nonsensical because the tax credits were being introduced through a statutory instrument and had not been declared a formal financial measure. The review was asked to look at ways of guaranteeing that statutory instruments cannot be overturned by Peers, who have done so on only five occasions.

We were told that this presented no less than a constitutional crisis—all caused by controversy over one statutory instrument. I fear that we are in for many such crises, as many similar controversial measures are coming down the line.

We have before us a Bill that threatens to overturn certainly my admittedly meagre understanding of how we, in this mother of all Parliaments, have operated for centuries. It drives a coach and horses through previous practice and risks reducing our elected representatives and noble Lords to mere spectators. We are told that it is an enabling Bill. My fear is that it will enable precedents that will diminish democracy and hand over too great a power to the Executive. It begs the question: who is taking back control and what relationship does that control bear to parliamentary sovereignty?

The Bill in this respect is deeply flawed. As we have heard, many safeguards that should appear in it are missing. Nevertheless, it is before us. My focus on it will primarily reflect my role as my party’s spokesperson for international development. I will restrict my remarks accordingly.

The case for ensuring that the sanctions regime is replicated meaningfully and strengthened was well made by the noble Baroness, Lady Anelay, and the noble Lord, Lord Hain. I would like to see a Bill that explicitly gives the Government flexibility and legal powers to permit NGOs and charities to deliver humanitarian, development and peacebuilding activities through general exemptions, permissions and licences so that they are not prevented from doing their work. Essentially, we want them to be able to buy petrol and mobile phones, access banks et cetera, and to ensure that their work is not hindered.

I will add my voice on the issue of how we can use the anti-money laundering part of the Bill at the outset to deliver on the UK’s commitment to introduce a register of the beneficial owners of UK property. I, too, have benefited from the very useful briefing from Transparency International. At the 2016 anti-corruption summit in London, led by the then Prime Minister David Cameron, the UK Government committed to introducing legislation by April 2018 that would bring greater transparency to the housing market by requiring overseas companies owning property here to declare publicly their beneficial owners. This has wide support and the Government should take the opportunity to deliver on that commitment.

Developing countries are often accused of corruption—the noble Lord, Lord Hain, gave us a graphic example—but we must acknowledge that corrupt leaders would soon be out of business if they did not have laundry facilities. We have been a laundry and facilitated those options for long enough. Let us use this Bill to end corrupt practices that divert billions of pounds from the poorest people on the planet. The Bill presents an opportunity that will not come again any time soon.