European Union (Notification of Withdrawal) Bill

Debate between Caroline Flint and Angus Brendan MacNeil

3rd reading: House of Commons & Committee: 3rd sitting: House of Commons & Report stage: House of Commons
Wednesday 8th February 2017 Commons Chamber

[Caroline Flint]

I will make a bit of progress, then I might take a few interventions.

In the Prime Minister’s Lancaster House speech, she pledged that the UK would keep workers’ rights after Brexit. She also pledged to avoid a cliff edge by seeking a period of stability after we leave, while our trading arrangements with the EU single market are sorted out. She pledged to seek good access to the single market with no extra tariffs or bureaucracy. There might be some disagreements on my own side of the House about what all that should look like, but none of us should be in any doubt about the importance of our trading arrangements—not only for exports, but for imports.

This is not just about our cities; it is about places such as Doncaster and the other towns and communities around the country in which these arrangements are vital for jobs. When I did a survey of my constituents after the referendum campaign, I asked them what my three priorities should be. Jobs and investment came first. Tackling immigration came second. The £350 million a week that was apparently going to come back to the NHS came third. We heard about that in yesterday’s debate. I am not sure what I can do about that last one, but the first two are certainly going to get my full attention.

I believe that we have to look at freedom of movement. I have been saying for many years that immigration has not been attended to, by my party or by others, in the way that it should have been. The Prime Minister has said that she wants the negotiations to guarantee that EU workers currently living here can stay. I agree with that. Many of my constituents have particular issues about freedom of movement and they want them to receive attention in a way that they have not done before. However, the Prime Minister could lead her MPs through the Lobby today and vote to guarantee the rights of EU nationals here. As others have said, she could make it clear that they will not be used as a bargaining chip and could end their uncertainty. Likewise, we also want to safeguard the rights of Brits living in Europe, and by adopting a positive approach today we would make it more likely that Brits living in the EU were treated fairly.

[Mr MacNeil]

The right hon. Lady touches on EU nationals. It has been misunderstood several times in this House, not just today, that Europe should make the first step. Which European state did those people mean? Should it be Bulgaria, Sweden, Portugal or wherever? The reality is that the UK is making a move with Brexit, so the UK should be leading and showing good will to the citizens of all European countries. We are talking not about two places—the UK and the EU—but about the UK and 27 other places.

[Caroline Flint]

The tone of the debate as we move forward is crucial not only to how we in this country work together for the best deal, but to how we are perceived in the other 27 member states. Something will have to be done about EU nationals living here and Brits living in the other member states. That is a fact. There will have to be a deal. There are those on the Government Benches—remain voters and leave voters—who cannot understand why the Prime Minister is not stepping up and a making a decision to make that clear.

Finance Bill

Debate between Caroline Flint and Angus Brendan MacNeil

Tuesday 28th June 2016 Commons Chamber

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I hope to be helpful, but the right hon. Lady said that companies would have to publish their tax information on their websites. What if a company does not have a website? Could that give the company a loophole, or would there be a way around that if a company did not have a website?

[Caroline Flint]

I hope that the companies that we are talking about would be big enough to have a website; if not, we might get an opportunity to discuss that later. My goodness, in terms of their reputation, if they do not have a website, they are on a hiding to nothing.

The Minister tried to suggest that the amendment would relate only to UK companies, but it is in line with HMRC guidance that already affects the reporting strategies that the whole House has supported and includes multinational enterprises over a certain turnover. In that sense, we are working with the grain of how the Government have proceeded in these important areas.

There is widespread concern in the House, across all parties, that multinationals operate by different rules from the majority of hard-working, tax-paying businesses, large and small, in the UK. The greatest weapon of multinational enterprises is that their tax arrangements are shrouded in secrecy. The problem is that, in today’s world, as leaks emerge and information comes out, it is death by 1,000 cuts, whereas the amendment is about getting businesses and their reputations back on track. Not only would this be good for business, but it would ensure that those businesses that are playing fair have a chance to set out their claim and what they are doing in a very public way.

Governments across the world face a particular problem with multinationals. The common factor is that revenues are shifted to countries with poor governance, poor monitoring and low or no corporate tax rates. Why in 2010 did Bermuda have total reported corporate profits that were the equivalent of 1,643% of its actual GDP? Could that be because that country has a zero rate of corporation tax? Is there not something odd about a company—let us say, Google—that has huge numbers of sale staff in one country, but all the revenues reportedly received in another? It would surprise no one to find that the revenues are recorded in a country that has a corporate tax rate of 12.5%, as opposed to the UK’s 20%.

The House can take a stand against this entirely lawful but—I think we would all agree—unethical manipulation of different countries’ tax rules. As the OECD has rightly pointed out in its work on base erosion and profit shifting, the impact is to create unfair competition. Multinational enterprises that transfer profits to low-tax dominions gain a competitive advantage over, say, a UK rival, which pays 20% tax on its profits. We can seek to level that playing field today.

The whole House supported the Chancellor’s legislation to require financial reporting to HMRC from UK-based multinationals with revenues in excess of approximately £600 million and UK units of such companies where the parent company is based in a country that does not yet agree to country-by-country reporting. That reporting, in accordance with the guidelines that I have mentioned, would include showing for each tax jurisdiction in which they do business the amount of revenue, profit before income tax and income tax paid and accrued, and their total employment, capital, retained earnings and tangible assets. They would be required to identify each entity within the group doing business in a tax jurisdiction and to provide an indication of business activities within a selection of broad areas in which each entity engages. That information must already be provided to HMRC. We are saying, “Let’s go public.” I want the HMRC to be armed with all the necessary information to secure fair tax contributions from these companies, based on their UK activity, but we need more than the HMRC to have a confidential look; we all deserve to see the bigger picture, and by publishing, we will see that.

Publishing is one way to persuade some of these companies to restore their corporate reputations. Was it because of the extraordinary focus on Google that Facebook announced a welcome change to the recording of its profits in the UK? I believe so. If a company is reporting profits in tax havens where they have only a PO box and a name plate but no apparent staff or activity, do we not want to know that? Let us follow our convictions; let us do what we know to be right. Let us shine a light on the activities of these large multinationals which—let us be honest—run rings around revenue and customs authorities around the world. Let us not flinch, play for time, and hope that some international agreement will eventually be reached by the EU or the OECD.

I remind Members that so often during the referendum on the UK’s EU membership, we heard a lot from both sides about our Parliament’s sovereignty and our power to make laws and to tackle issues big and small. Well, this is the test. Is Britain still a leader or are we followers? This amendment is a pro-business measure. If we adopted it, Parliament would be saying that every business big and small must play by the same set of rules. The tide of opinion is changing in the business world. I am delighted that this week I have received support from SSE for the principle of public country-by-country reporting. I am delighted when major firms such as the cosmetics company Lush, which operates in 49 countries, sign up to the Fair Tax Mark and pledge never to use tax havens. I welcome the fact that since 2014, a quarter of the FTSE 100 companies have published information about their tax arrangements, with long-standing British firms such as Barclays foremost among them.

I commend the Minister for the steps that have been taken in the past six years to improve the level of transparency and for the clampdown on the secretive tax deals that have thwarted fair taxation for so long. In our hearts, do we not all know what the Googles of this world will be hoping? They will hope that we sidestep this issue and duck the opportunity for Britain to set a standard, to lead and to demand more openness. This House knows what those who want fair taxes from large and small businesses alike will want. Every right hon. and hon. Member knows what their constituents would say about these firms shifting their profits to low-tax and no-tax dominions. Let us spare a thought, importantly, for the developing countries, which reportedly lose as much in lost tax revenues as they receive in aid each year. That cannot be right.

Finally, in February, the Chancellor told an international meeting of Finance Ministers:

“I think we should be moving to more public country-by-country reporting. This is something which the UK will seek to promote internationally.”

I hear what the Minister says, but there comes a point when we have to show leadership. Much of our tax rules and other rules affecting companies are not applied worldwide. They are British home-grown rules that seek to provide fairness as well as competition.

I welcome the EU’s activities in this area, although I am not sure where we will fit in. We might have to accept whatever the EU says if we are part of the single market. That is a debate for another day. Unfortunately, the present state of the EU’s negotiations does not tackle the problems of those developing countries that lose out. As I understand it, some of the European discussions have not included the publishing of information on the activities of EU-based companies in developing countries. That does not go as far as what we require from companies reporting to our own tax authority, which we are asking to be put in the public domain.

The change that I am calling for would be part of the Minister’s and the Chancellor’s legacy—a chance to lead where other countries are sure to follow. Let us ensure that the age of secrecy is gone. Let us force the multinationals into the light. I humbly request a Division on this amendment, and I urge the Minister and Conservative Members to join right hon. and hon. Members from nine parties in the Lobby with me today to make a historic change. In years to come, we will ask ourselves why we did not do this earlier. Today is the day. Let us stand up for fairness. Today is a day for lions, not lambs. Let us see the British Parliament roar. I urge the Committee to support this amendment.

Paris Climate Change Conference

Debate between Caroline Flint and Angus Brendan MacNeil

Thursday 19th November 2015 Commons Chamber

[Mr MacNeil]

Will the right hon. Lady give way?

[Caroline Flint]

I am going to make a bit of progress because I have been forewarned by Mr Deputy Speaker, who said that we should try to limit our time.

I thank my hon. Friend the Member for Bishop Auckland (Helen Goodman) and the Backbench Business Committee for securing this debate. I was happy to sponsor it. I would also like to mention some people from my constituency. I recently received a copy of a CAFOD petition organised by Gillian McCallum, a constituent, on behalf of two parishes in Don Valley, Christ the King Church Rossington, and Holy Family, Finningley. It called on the Prime Minister to show leadership on climate change. I know they will be pleased that the House is taking note of the Pope’s encyclical today.

I was also delighted to welcome students from McAuley school, a Catholic school in my constituency, when they were here for the “For the love of” Climate Coalition event in June and talked about how important the issue was to them. Last year, I was at that school and met some people from Peru, who vividly talked about the impacts of climate change on their communities and livelihoods. Speaking to those bright young pupils about climate change—all of us have probably spoken to such pupils in our constituencies—provided a vivid reminder of the fact that, although we are seeing the effects of climate change already, it is their generation and their children and beyond who will have to live with the consequences if we do not get this right now.

I also pay tribute to the city of Paris, which has been defiant in the face of the brutal murders there last weekend, and I commend its decision to go ahead with holding the Paris conference in a few weeks.

As shadow Secretary of State for Energy and Climate Change, I led a debate on the road to Paris on the first Opposition day of this Parliament. I did so because the Paris conference means that this year is a vital year for climate change, but also because I wanted to voice the concerns of many that a Conservative majority Government might lead to the consensus on climate change formed in 2008 becoming less secure. In that debate, I asked for a number of reassurances about the Government’s approach in this vital year.

It is important to the success of Paris that the agreement includes a review every five years, so that ambition can be ramped up as progress is made, and that it includes robust and consistent reporting mechanisms so that every country can have confidence others are playing by the rules. I was pleased to see the Secretary of State commit to that as part of the UK’s demands. However, with weeks to go, this debate gives us the chance to look at what else has happened since that June debate.

We now have 140 intended nationally determined contributions submitted by countries that will be attending the talks. Although we know those submissions do not achieve the crucial target of keeping us under 2° of warming, significant progress has been made. The bilateral agreement between the US and China is one important step that would not have taken place without the process we have. When we think of the many years fighting for climate action, and the long road from Kyoto, we know this is no small step.

For the US, Obama has signalled the intention to ramp up investment in renewables, alongside a role for nuclear and carbon capture and storage, and to prioritise energy efficiency to cut bills as well as emissions. China has pledged up to 1,000 GW of new clean capacity by 2030. However, we have a long way to go, as the opposition of India and Saudi Arabia to a review mechanism in the G20 communiqué last week shows. But the momentum being generated is important in and of itself. If the direction of travel is right, 2° can be kept within touching distance. Not only that but we can reduce the atmospheric pollutants that kill people here and in the developing world, a point made recently by the eminent Lord Stern, as well as by the Pope.

The hon. Member for Warrington South (David Mowat) made an important point. He is right: the EU submission is lower in terms of its ambition on targets than our own enshrined in the Climate Change Act 2008, but that is why we need leadership. I would still like to see the EU raise its ambition but it does have in its submission the line, “at least” a 40% reduction in emissions by 2030, so there is still scope for the Prime Minister to press the point home that we can do better than that and we can do more. I am not ashamed, and I am not suggesting the hon. Gentleman is, that we are leading from the front. We should tackle those individual countries that talk the talk but do not walk the walk and point out when there are inconsistencies in the way they are delivering their energy supply and reducing their emissions as a result.

However, the Prime Minister’s leadership has to be backed by leadership at home. I was concerned when the Secretary of State said that the UK should cease to play a leadership role and move “in step” with the rest of the world. As we have heard, since the election, a number of policy changes are affecting our ability to meet climate change targets and to create that important investment and those important jobs. We have seen the two cheapest forms of renewables undermined, onshore wind and solar. We have seen the green deal axed. I will make no bones about it: I thought the green deal was never a good deal anyway and we tried to effect some changes in the previous Parliament, but the fact is that it has been axed and there has been nothing to replace it.

The ECO—energy company obligation—has not served the needs of those most affected by fuel poverty. As a result of changes to the structure of that scheme, 400,000 fewer homes have been insulated. The zero carbon homes plan has been scrapped, an issue I feel close to as a former Housing Minister. When we set the target on that, in some ways, for the construction sector, it was not about the target date; it just galvanised the sector to think differently about how construction could play a part in ensuring that we have more energy-efficient homes that reduce emissions as well. Renewables have been forced to pay the climate change levy and the contracts for difference auction has been delayed.

The news from Government that a date has been set for phasing out unabated coal generation is welcome, as we know coal is the biggest emitter and the dirtiest pollutant. However, it is ironic to say the least that the Drax power station, which relies on coal to create its electricity, has been so undermined in recent times in its efforts to move to renewables and its support as an important partner for CCS. I urge the Government: please do not give up on CCS. We need it for industrial processes such as steel production as well as for electricity generation. Also, there is huge potential for the by-products from that process to create a market that could be good for our economy as well. It seems that that is an important area in which we can lead and not just follow others.

Nuclear is important, too. The hon. Member for Warrington South and I agree on that, but again let us look at the history. Part of the reason that this country and Parliament decided to look at nuclear again was that we wanted to commit to more ambitious climate change goals. I am proud that the last Labour Government took a very difficult decision on that. I remind the House that the Prime Minister said that it should be a last resort and the Liberal Democrats were against it, full stop. So I will not take any lectures about how slow the process has been. It has been difficult. We need to know now what the Government are going to do to ensure that that can play a part in decarbonising our generation.

The last six months have been disappointing, and the policy framework and certainty just are not there. His Holiness said:

“Never have we so hurt and mistreated our common home as we have in the last two hundred years.”

None of us can dispute that. He then expressed a shared love of our planet, saying

“The entire material universe...the soil, water, mountains, everything is, as it were, a caress of God.”

He also said:

“Humanity still has the ability to work together in building our common home... Truly, much can be done”.

His words speak to those of faith and of no faith. What they all share is an optimism that humankind, with the knowledge we have today, can save our planet. I stand with those people. I hope the Government will stand with them too.

Climate Change

Debate between Caroline Flint and Angus Brendan MacNeil

Wednesday 10th June 2015 Commons Chamber

[Caroline Flint]

As the hon. Gentleman knows, I am pleased to have visited Hinkley, and to have recently visited Anglesey as well. My hon. Friend the Member for Ynys Môn (Albert Owen) speaks up very much for his constituents and the jobs that would derive from the power that the nuclear power station generated for the future. Because nuclear power is a difficult issue, I am proud that the previous Labour Government decided that it had to be part of the mix if we were going to meet our climate change targets. Labour took that position when this Prime Minister said it should be a last resort and the Liberal Democrats were against it. They have obviously changed their tune in the intervening years, and I am pleased about that. However, as the hon. Gentleman will be aware, a lot of outstanding issues need to be resolved in the months ahead. I hope that the Secretary of State will give this due care and attention to make sure that we do not stall in what should be an important part of the mix in our energy generation.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

One of the outstanding issues that we are facing was mentioned last week in The Sunday Telegraph, which carried a story about the potential threats to onshore wind if the Government change the financial support mechanisms. No clarity has apparently come from the Government since then. From within the industry, I am being told that civil servants are uncertain as to what the steer is from Ministers. Do we not need a statement from the Government, or some other clarification as to what exactly they mean, because investment in the sector is being frozen? What is the right hon. Lady’s view?

[Caroline Flint]

I will come to that shortly, and I hope that I will answer all the hon. Gentleman’s questions.

In Paris we need to agree a set of tough, ambitious targets that will keep us under 2 °C and we need a goal of net zero global emissions in the second half of the century, but those ambitious targets must also be strengthened every five years on the basis of a scientific assessment of the progress towards that 2 °C goal. We cannot just keep relying on crunch moments, as we saw in Copenhagen, to deliver the targets we want. Fighting to limit climate change is part of an ongoing process that will require continual commitment. Transparent rules for measuring, verifying and reporting emissions are vital to that. This is going to work only if there is widespread confidence that everyone is playing by the same rules. We need a fair deal between richer and poorer nations, because the richer nations have a duty to help poorer countries get access to clean heat and power.

There are reasons to be optimistic, but only 39 countries have put in plans for emissions reductions to the United Nations framework convention on climate change, despite the fact that the deadline has passed. We welcome those plans, but an analysis submitted earlier this year shows that we are not on track.

What should we do both at home and abroad to set the right example and to give the talks the best possible chance of success? First, we need to show leadership at home on clean energy: we need to walk the walk as well as talk the talk. Yesterday, we got the news that the Swansea Bay Tidal Lagoon project had received development consent from the Secretary of State, which is very welcome.