Oral Answers to Questions

Catherine McKinnell Excerpts

Tuesday 13th May 2014 Commons Chamber

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

The outgoing chief executive of the North Eastern local enterprise partnership has said:

“I have six big programmes, most are £100 million-plus, with a six-person team. That simply does not work.”

Does the Deputy Prime Minister agree with those comments and, if so, what are the Government going to do about it?

[The Deputy Prime Minister]

If I understand it correctly, that is an issue about the resources which are allocated in the council to those big projects. One of the answers—the Minister of State, Cabinet Office, my right hon. Friend the Member for Tunbridge Wells (Greg Clark) alluded to this earlier—is ensuring that there is greater devolution, greater control, greater autonomy and freedom to local councils and local areas. That is why the city deal, for instance, has been so warmly welcomed in the north-east.

Oral Answers to Questions

Catherine McKinnell Excerpts

Wednesday 30th April 2014 Commons Chamber

[The Prime Minister]

My right hon. Friend is absolutely right on that issue. We have set out a clear set of sanctions as a result of Russia’s behaviour towards Ukraine. We have taken a series of steps so far in terms of putting asset freezes and travel bans on named individuals. We have taken a series of diplomatic and other steps, and we have set out the so-called stage 3 sanctions that should be taken if further incursions and further destabilisation of south and eastern Ukraine are set out, and restrictions on arms sales should certainly be part of that.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Q2. The Prime Minister promised that by the end of this Parliament a third of his Cabinet would be women. We know that the former Culture Secretary had to go, but now only three of his 22 Departments are run by women. Does he agree with the new Culture Secretary that that is because Government appointments should always be made on merit?

[The Prime Minister]

What I said was that I wanted to see a third of my Front-Bench Ministers being women at the end of a Conservative Government. We have made some important progress on the numbers of people on the Front Bench. With respect to my coalition partner, I have to say that, in terms of Cabinet numbers, the Liberal Democrats need to do a bit more to pull their weight on that issue, but I hope to make further progress.

Oral Answers to Questions

Catherine McKinnell Excerpts

Wednesday 26th March 2014 Commons Chamber

[The Prime Minister]

We want a fair tax system, and under this Government the rich have paid more in tax—specifically more in income tax—than they ever did in any year under Labour. We have made sure we have raised taxes fairly, not least through stamp duty, but we do not support a tax on the family home; we do not think that is the right step forward and we will fight it very vigorously.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Q6. Seventy per cent. of stay-at-home mums say going back to work just would not add up because rising child care costs would leave them worse off. With maternal employment rates going down on the Prime Minister’s watch, why is he doing nothing before the general election to help with rising child care costs?

[The Prime Minister]

We are helping families with child care, not least by giving 15 hours—[Interruption.] That is happening before the election; it has happened under this Government in this Parliament—15 hours of free nursery care for three-year-olds and four-year-olds. [Interruption.] Opposition Members say it is not enough; it is more than Labour ever provided. [Interruption.] It is good to see the shadow Chancellor gesticulating in favour of his leader now; he will be outside in a minute briefing against him.

Oral Answers to Questions

Catherine McKinnell Excerpts

Wednesday 12th March 2014 Commons Chamber

[Mr Maude]

All organisations that run a pension scheme have to live in the real world. I am sure that the leadership of the PCS will take pleasure in the fact that its members in the civil service continue to enjoy a pension scheme that is significantly better than the one that the PCS offers to its own staff.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

T6. There is huge concern about the Government’s proposals to sell or part-privatise the Land Registry, putting 400 civil service jobs in Durham at risk. It works and even turns a profit for the Treasury. Why fix what is not broken? Has the Minister discussed this with his Department for Business, Innovation and Skills colleagues, and if not, why not?

[Mr Maude]

I have indeed discussed this with my colleagues in BIS. I do not take the gloomy view that the hon. Lady takes, that any involvement of the private sector means that the Land Registry will be less effective or have less opportunity to grow. A lot of what the Land Registry does is excellent, and there is a real opportunity for it to grow. If that involves bringing in a private sector partner, or private sector capital of one form or another, I hope that she would support that.

Apprenticeships and Skills (Public Procurement Contracts) Bill

Catherine McKinnell Excerpts

Friday 1st November 2013 Commons Chamber

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

My hon. Friend is making an excellent speech and a very reasoned case for the Bill, which, it seems to me, will also create a level playing field for businesses. Businesses want legislation such as this because, although there are patches of good practice, if that good practice existed throughout the country, there would be a level playing field not only for the young people who will benefit from the Bill, but for the businesses that invest in them and, at present, must compete with those that do not bother to do so.

[Andrew Gwynne]

My hon. Friend is right. Over the past few months, when I was drafting the Bill, I spoke to numerous companies, large and small, which were bidding for public procurement contracts. They made precisely the point that my hon. Friend has made. If a public body requires apprenticeships to be part of the tendering process, the standards of the bids will be levelled upwards, so that a company that pursues good practice by providing apprenticeships will no longer be undercut by another that does not invest in skills and training.

Oral Answers to Questions

Catherine McKinnell Excerpts

Tuesday 4th June 2013 Commons Chamber

[The Deputy Prime Minister]

I know that my colleagues, notably my right hon. Friends the Secretaries of State for Communities and Local Government and for Business, Innovation and Skills are in constant dialogue with leading figures from local enterprise partnerships around the country in order to explore ways in which we can work together. The city deals, the creation of local enterprise partnerships, the enterprise zones, the single pot flowing from the Heseltine recommendations and the industrial strategy promulgated by my right hon. Friend the Business Secretary all feed into that.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Will the Deputy Prime Minister join me in backing the NEvolution campaign launched yesterday by the north-east’s newspapers, which calls on the Chancellor to devolve more funding and spending decisions to regions like the north-east, as recommended by Lord Heseltine?

[The Deputy Prime Minister]

Yes, I strongly endorse that. In fact, we have already announced that we are going to implement the vast majority of the Heseltine recommendations—81 of the 89. That really will be a significant moment, when we break from that long, long tradition, which has prevailed under Governments of all persuasions, of over-centralisation in England. In addition to the radical moves—the city deals, the LEPs and the devolution of business rates—it will leave this country significantly more devolved by the end of this Parliament than we found it at the beginning of the Parliament.

Oral Answers to Questions

Catherine McKinnell Excerpts

Tuesday 26th March 2013 Commons Chamber

[The Attorney-General]

The Home Office is responsible for producing official statistics on casework outcomes in terrorism. The latest published Home Office data for the year ending September 2012 indicate that 24 out of 29 defendants were convicted, at a conviction rate of 82.8%. At that time, 134 prisoners classified as terrorists or domestic extremists were convicted and remanded. On fraud, the number of prosecutions has increased by 25% since 2010 and the conviction rate remains at 86.2%. On tax evasion, in the financial year to date 86% of cases originating with Her Majesty’s Revenue and Customs have resulted in conviction. I should like to write to my hon. Friend about the overall figures on this.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Does the Attorney-General share my concern about the memo leaked by the CPS that showed there was a risk of CPS prosecutors deliberately choosing cases that were likely to crack because of lack of evidence, in order to save costs?

[The Attorney-General]

I think that the conviction rates speak for the efficiency of the CPS. I have seen nothing to suggest that cases are not being pursued outside the ordinary tests of public interest and the reasonable prospect of getting a conviction. Obviously, if those do not apply then there should not be a prosecution at all. I am certainly not aware of there being any fiddling and of decisions being made not to prosecute certain cases that should be prosecuted.

Oral Answers to Questions

Catherine McKinnell Excerpts

Wednesday 27th February 2013 Commons Chamber

[The Prime Minister]

My hon. Friend is right to raise this tragic case of a nine-year-old constituent of his, Cerys Potter, who died in 2010 in Turkey. I want to send my sincere condolences to the family in these terrible circumstances. I know that he has been speaking to the Minister for Europe about this case, and that our embassy in Turkey is monitoring the case and can again approach the Turkish authorities and ask them to keep the Potter family fully informed of any progress. I am sure that the Foreign Office will have listened very carefully to what my hon. Friend has said today, standing up for this family’s interests.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Q8. A vulnerable constituent of mine is near pension age and has lived in the same house his whole life. His parents have now died and he is willing to be re-housed but cannot find an alternative. He now faces homelessness because he simply cannot afford the Government’s bedroom tax. Can the Prime Minister explain why he has prioritised a tax cut for millionaires while devastating the lives of vulnerable people?

[The Prime Minister]

The point I would make to the hon. Lady is that 250,000 families live in overcrowded accommodation and 386,000 people live in under-occupied homes. There are 1.8 million people who would love to have a council house but cannot get one. Of course we need to build more social homes, and we are doing exactly that, but in the meantime we should do everything we can to make sure those homes are used in the most efficient and fair way. That is what our changes will help to achieve and that is why they deserve our support.

Oral Answers to Questions

Catherine McKinnell Excerpts

Tuesday 12th February 2013 Commons Chamber

[The Deputy Prime Minister]

As my hon. Friend will know, we are in the final stages of announcing the next wave of city deals. I very much agree with him. The city deals that we have already signed and launched are proving to be very valuable for the creation of jobs and prosperity in our local areas. In Sheffield alone, the scheme is worth about half a billion pounds to the people of the city. That represents a fantastic boost for job creation in communities up and down the country.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

T3. I have been interested to see local Liberal Democrats in Newcastle campaigning to save public services put at risk by the Government’s disproportionate and unfair funding settlement for Newcastle city council. Will the Deputy Prime Minister therefore confirm that his party will be voting against the local government settlement Bill tomorrow? Otherwise his party and councillors will end up looking extremely opportunistic.

[The Deputy Prime Minister]

They are Labour cuts in Newcastle, which if I read the newspapers this morning, I see that the right hon. and learned Member for Camberwell and Peckham (Ms Harman) is intervening to stop in a shameless act of political opportunism and cynicism. The Labour party in Newcastle is closing every single arts and cultural institution, which other non-Labour councils are not doing, and simply pointing the finger of blame at the coalition Government. When is the Labour party going to start taking responsibility for the mess that it created in the first place?

Tackling Corruption

Catherine McKinnell Excerpts

Tuesday 11th December 2012 Westminster Hall

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Leigh.

Sunday 9 December marked the United Nation’s international anti-corruption day. This year, the UN Secretary-General, Ban Ki-moon, called on us all to pledge to do our part by cracking down on corruption, shaming those who practise it and engendering a culture that values ethical behaviour. Those words are poignant when considering the general feeling in the public, who have been protesting about fairness and ethical behaviour, particularly among multinational corporations.

According to the Christian relief and development agency, Tearfund, corruption hits the poorest sectors of society the hardest. It reduces access to and quality of essential public services, such as education and health care, prevents resources from reaching their intended destinations, undermines trust and harms economic growth. In Africa alone, the cost of corruption has been estimated at nearly £100 billion a year, or £3,000 a second, representing 25% of the continent’s GDP.

Tackling corruption is particularly important to ensure that money, whether tax, investment or aid, is used for economic growth and to tackle poverty. For example, the 2009 extractive industries transparency initiative report showed that in Nigeria there was a discrepancy of $800 million—equivalent to the health budget—between what companies said they pay to the Government and what the Government said that they received. That Government are rightly working to recover that money.

As co-chair of the all-party parliamentary group on anti-corruption—my fellow co-chair, my hon. Friend the Member for Glasgow Central (Anas Sarwar), is also in the Chamber—I say that we need much greater focus on this issue. The Prime Minister made it clear recently that, together, transparency and fighting corruption are part of

“‘the golden thread’ of conditions enabling open economies and open societies to thrive”.

He announced, rightly, that he is putting transparency at the heart of the G8. In addition, the UK Government have set themselves the ambitious target of becoming the most open, transparent Government in the world. We will hold the Prime Minister to that statement.

The Bribery Act 2010 is a strong piece of legislation. The Department for International Development, created by the previous Labour Government, came top in the recent ranking for aid transparency. The UK Government came third in the 2010 open budget index for transparency in budgeting. The UK is also showing strong leadership in pushing for effective transparency legislation in the European Union, so that oil, gas and mining companies publish what they pay to Governments. However, 2013 is an opportunity to continue this progress, because as chair of the G8 and co-chair of the Open Government Partnership, the UK has a unique opportunity to harness the energy and commitment of Governments, the private sector and citizens to ensure that resources are used to tackle poverty.

The UK Bribery Act has, in many ways, set the standard globally. Now, effective implementation of the Act requires sufficient resources for enforcement. The Serious Fraud Office is responsible for enforcing the new legislation, but its budget has been cut from £52 million in 2008, to approximately £33 million in 2012 and it is expected to be further reduced in forthcoming years, which is a huge worry. Without sufficient funding, the SFO will not be able to do its job of enforcement, however good the legislation may be. Given the importance of the issue at stake, I hope that the Minister will give assurances that the SFO will have sufficient funding to implement the Bribery Act effectively. What steps are the Government taking to ensure that that happens?

With at least 11 Departments and public bodies having the remit of tackling corruption, there is clearly a need for cross-departmental co-ordination and an overarching anti-corruption strategy. The Prime Minister’s commitment in June 2010 to make the then Secretary of State for Justice, now the Minister without Portfolio, the right hon. and learned Member for Rushcliffe (Mr Clarke), the Government’s anti-corruption champion was welcome. However, the role lacks clarity and after the summer’s reshuffle we heard little more about it. The all-party group recently wrote to the Prime Minister about that and, although it was reconfirmed that the right hon. and learned Member for Rushcliffe will remain anti-corruption champion, we have yet to see further details about the remit of the role or any cross-Government strategy to tackle corruption at home and overseas. Will the Minister confirm when further details of the role of anti-corruption champion will become available and when we can expect the production of a cross-departmental anti-corruption strategy?

Some 3.5 billion people live in countries rich in oil, gas and minerals. Revenue from those sectors is often one of the greatest sources of wealth generated within developing countries. In 2010, for example, exports of oil and minerals from Africa were estimated at $333 billion, nearly seven times the value of international aid to the continent, which is currently valued at $48 billion. However, such wealth provides little benefit to the people living there, especially the poor, in part due to lack of transparency.

The UK has shown leadership in Europe in pushing for strong EU transparency legislation, for oil, gas and mining companies to publish what they pay, and has received cross-party support in the UK. We in the all-party group wrote to the then Department for Business, Innovation and Skills Minister, the hon. Member for North Norfolk (Norman Lamb), to show our support for strong Government leadership in Europe on the matter. Nevertheless, more can be done. The recently passed US Dodd-Frank Act, together with the EU transparency legislation, will cover all extractive industry companies listed on the US and EU stock exchanges, including many from G8 and G20 countries, such as Australia, Canada, China and Brazil.

[Anas Sarwar (Glasgow Central) (Lab)]

I congratulate my hon. Friend on securing this important debate. It is said that developing countries lose three times as much in tax revenues as they receive in aid. We need to rush this legislation through so that we can start developing such countries and they can start raising their own income to allow their economies to prosper.

[Catherine McKinnell]

That is the crux of the issue. The Government have rightly supported the previous Labour Government’s calls for committing 0.7% of our GDP in aid to developing countries, but until we get the international structures right—the transparency—to ensure that that money goes to the right people and is spent in the right places, and that countries are able to protect their own resources and tax revenues, we will not make the progress that we would like and aid will not have the greatest effect. To win the argument on many fronts, work must be done on the anti-corruption agenda and increased transparency to improve the efficacy of that aid, which we are rightly committed to as a country.

Much more can be done. The UK has been a leader in spearheading and supporting the extractive industries transparency initiative, a mechanism by which companies report the payments that they make to Governments, host Governments report their revenues, and any discrepancies can be resolved. That has led to large differences being identified between payments made and revenues reported and, as a result, money has been recovered, as shown in the Nigeria example that I mentioned. However, despite supporting the EITI, the UK is not yet one of its 36 current members; only one G20 country is. Although many warm noises are coming from the G8 and G20 Governments on the transparency agenda, it is questionable whether we can provide global leadership without putting our own houses in order. What plans do the UK Government have to use the G8 to encourage other rich countries to pass transparency laws and to reach global standards on transparency for oil, gas and mining companies? Is there an existing timetable that the Government are using to sign up to the EITI?

Open and transparent budget systems promote development by enabling citizens in developing countries to help their Governments to formulate budgets that reflect public priorities, to reduce money lost due to corruption, and to hold their Governments to account on spending. Such systems ensure the optimal use of resources gained from tax, aid and investment, which is even more vital now in times of austerity. For example, Mexico made details of agricultural subsidies to small farmers publicly available, showing a high concentration of recipients among the wealthiest 10% of farmers, who received nearly 20 times what the bottom 80% received. In 2007, under public pressure from the International Budget Partnership, the local non-governmental organisation Fundar, and Congress, maximum and minimum limits for farm subsidies were introduced and the recipient list was then cleaned up. In Uganda, public expenditure tracking surveys led to a reduction in leaked funds from 80% to 20% in five years, from 1995 to 2000, which was connected to Government grants for school fees. Many Governments, however, do not have transparent budgets, and nor do they allow citizen participation in the process. According to the 2010 open budget index, 74 out of the 94 countries surveyed failed to meet even the most basic standards of transparency and accountability. Only seven provided extensive information, of which the UK was one.

Clearly, much more needs to be done at an international level. The UK has an opportunity to make sure that that happens through its role as chair of the G8 and co-chair of the Open Government Partnership. The partnership, with 58 member countries, had its first steering group meeting under the UK chairmanship on 3 and 4 December, led by the Minister for the Cabinet Office. Countries have committed to publish data on Government spending in a way that the public can use, but the commitment is still limited and only includes the Executive’s budget proposal and audit report, while missing other key documents. Most importantly, the commitment does not require member Governments to develop practical ways of engaging their citizens and Parliaments in the process. As a result, the Open Government Partnership eligibility criteria need to be strengthened, so that countries show year-on-year progress and reach the highest standards of budget transparency, and to state clearly how citizens and parliamentarians can be involved in the budget process. For that to work, other key G8 and G20 countries need to commit to joining—fewer than half are currently members. Greater support is also needed to support civil society groups in using the information produced to hold their Governments to account. That could also be done, for example, through DFID programmes.

The process is comprehensive but crucial, and I will welcome further information regarding the Government’s plans to support its development in the years ahead as part of their wider anti-corruption strategy. A cross-governmental commitment to fighting corruption, throughout all Departments and across parties, is vital. I look forward to hearing the Minister’s response to the various questions and challenges that I have put to her today.

--- Later in debate ---

[Miss Smith]

The hon. Gentleman raises a wise point. If he will forgive me, I will allow a Minister from the Department for International Development to respond in more detail than I can today.

Let me turn to what we are doing on enforcement and what we are doing in the UK, because both are vital. We are playing a key role in the tracing, seizing, recovering and return of illicit assets. That is important, and in September the Prime Minister launched a taskforce to work with the Egyptian Government to gather evidence on stolen money, for example. That builds on the work of two police units that DFID has funded in that arena.

Effective enforcement is central and essential in the trustworthiness of the whole process. Laws mean very little if they are not enforced by every official who might come into contact with the process. The UK targets foreign and corrupt officials who launder the proceeds of corruption and bribery through our country, and I will give an example. James Ibori, the former Governor of Delta state in Nigeria, became one of its richest men by embezzlement. Following a British police investigation, he was sentenced to 13 years in jail, which sends a clear message to those who might seek to use the UK as a refuge for criminal acts.

In addition, the UK operates a comprehensive anti-money laundering framework which, in accordance with the revised international standards of the Financial Action Task Force, helps us to combat money laundering and terrorist financing.

[Catherine McKinnell]

Will the Minister clarify that the action that she is outlining and has given examples of is pursued under the Bribery Act 2010 and through the Serious Fraud Office? If so, will she clarify the SFO’s funding situation, and whether it has sufficient resources properly to tackle corruption on an international scale, an example of which she has given?

[Miss Smith]

I am conscious that the hon. Lady asked that question earlier, and perhaps I can return to it. I have just mentioned one case, and I can furnish plenty more than what I have been able to give on my feet this afternoon. She will appreciate from her role on the Front Bench that it will be hard for me to pre-empt future spending decisions, but we are putting a serious focus on the new UK National Crime Agency, which I am about to come on to. I hope that she will find reassurance in that.

As well as telling other countries to put their houses in order, the UK must put its house in order. We should not be complacent. According to Transparency International’s work, we are perceived to be less vulnerable to corruption than some of our friends, such as the US, France and Ireland, but we remain behind other counterparts with whom we might seek to compete. We have subjected and continue to subject our domestic systems to peer review by the OECD, the UN convention against corruption and the Council of Europe’s anti-corruption experts.

We are already working across Departments and law enforcement and prosecution agencies to see how we can make it easier for UK residents and businesses to identify, prevent and report bribery and corruption. We need to improve the intelligence picture through a more joined-up and co-ordinated approach that gives us a clearer picture of the true nature and scale of domestic bribery and corruption. We can then use that to support a stronger law enforcement response.

From next year, the new UK National Crime Agency will have a part to play, and while the details are being developed, it will seek to reduce the threat from corruption and bribery within the UK and internationally.

--- Later in debate ---

[Miss Smith]

I see the force of the hon. Gentleman’s argument. If he will allow me, I will ensure that in due course he receives a fuller answer than I can give him in the three minutes remaining.

I want to add to some points about what has just been announced in the autumn statement. The Government have reinvested more than £900 million in HMRC to tackle evasion, unpaid tax debts and avoidance. That allocation of extra resources to HMRC during this spending review period will add a real element to what we have discussed today. Our serious compliance activity shows that the Government are committed to clamping down on tax avoidance wherever it is identified, and that is an important plank in what we are talking about in the most general terms and in preventing corruption.

The autumn statement announced the closure with immediate effect of some newly identified loopholes that were being exploited, and that will protect hundreds of millions of pounds for the UK. It also announced the introduction of the UK’s first general anti-abuse rule, which provides a significant new deterrent to abusive avoidance schemes and strengthens HMRC’s means of tackling them wherever they persist. Finally, we are cracking down on the marketing of tax avoidance schemes through proposals to introduce new information disclosure measures.

[Catherine McKinnell]

The Minister is aware that very little time is left for this debate. Apart from the measures that she has just outlined on activities at HMRC, she has not told us whether there is a cross-departmental anti-corruption strategy, or whether one is likely to be published. That would be useful information to have before we run out of time in this debate.

[Miss Smith]

I endeavoured to address that in my opening words. As the hon. Lady and the hon. Gentleman know, my right hon. and learned Friend the Minister without Portfolio is delighted to continue to be the anti-corruption champion; there has been no change in that respect following the ministerial reshuffle in September. It is with his full support that I am here today answering the hon. Lady’s questions.

It has been difficult to give a full overview of everything the Government are doing, but that is what I have endeavoured to do in this debate. I will convey to my right hon. and learned Friend her desire for a fuller response. I am sure that the all-party group’s work, which is supported across parties, will be well recognised, and I am sure that its desire for that strategy can be discussed in greater detail at a later date.

Question put and agreed to.