Tax Avoidance and HSBC

Baroness Williams of Crosby Excerpts

Monday 23rd February 2015 Lords Chamber

[Baroness Williams of Crosby (LD)]

My Lords, does my noble friend agree that the issue before us is much greater than the particular case that has been raised? The City of London was for long regarded as having the greatest integrity and as one of the most honest financial centres in the world. To this day it plays a large part in the economy of this country. Does he agree that it is absolutely crucial that the integrity and honour of the City of London must be rebuilt? Sadly, it is not only about the case of HSBC and the allegations of money-laundering—incidentally, money-laundering in areas which are clearly criminal, such as the laundering of money from drugs and trafficking. Does he also agree that it is crucial that the Government should pursue their policy of mounting a vigorous attack on those who avoid or escape paying their taxes?

I should like to ask my noble friend two questions, because no doubt he shares with me the view that it is absolutely critical that the City of London should be seen as a centre of honour and not a centre of rather clever dodges to escape the law, both national and international. The first question is whether the suggestions made by my noble friend Lord Macdonald that what we are now seeing adds up to something of a conspiracy does indeed provide proper grounds for prosecution. The second question is whether, in the light of Mr Stuart Gulliver’s response and indeed admission that he himself was a client of the Swiss bank, and that in addition he is now considering the right to receive the great bonuses coming up from the considerable profits of HSBC, it would be sensible for the bank and its shareholders to consider very carefully whether those substantial bonuses should be paid in full. I say that given the record of HSBC not only in this matter but, equally disturbingly, in the heavy fines it has had to pay for being part of the so-called forex scandal earlier last year.

[Baroness Farrington of Ribbleton (Lab)]

My Lords, before the Minister replies, can he inform the House of how many minutes are available for Back-Benchers?

[Baroness Williams of Crosby]

My Lords, I am waiting for a reply from my noble friend.

[Lord Newby]

My Lords, there are 10 minutes for everybody, so let me be brief. I agree with my noble friend in her core view. I have not read in any detail what my noble friend Lord Macdonald has said, but HMRC has made it clear that now that the restrictions on the use of the information from France have been lifted, it is looking closely at that new information and will refer cases to the CPS for prosecution as appropriate. I think that bonuses at HSBC are matters for its board and shareholders.