EU Council and Woolwich

Charlie Elphicke Excerpts

Monday 3rd June 2013 Commons Chamber

[The Prime Minister]

There was a discussion about unemployment because, of course, the rising unemployment in many European countries is an issue of huge concern. The rates of youth unemployment in some southern European countries, such as Spain, Portugal, Greece and Italy, are truly horrific, so more work will be done, including at the next European Council, to look at what lessons we can learn from each other—at what we can learn from countries such as Holland and Germany, which have very low rates of youth unemployment—and I will take a full part in those discussions.

[Charlie Elphicke (Dover) (Con)]

I congratulate the Prime Minister on the excellent work that he has done in the European Union on tax transparency. Has he had a look at the comments made recently by Tim Cook of Apple and Eric Schmidt of Google, who say that it is worth reworking the tax system as a whole and making it fit for the internet and globalised age? Would my right hon. Friend consider making it much simpler, and enabling a much lower rate of corporation tax, to make this country even more competitive?

[The Prime Minister]

I thank my hon. Friend very much for that question. Of course, we are cutting the rate of corporation tax down to 20%, and I think we therefore have an even greater right than usual to say to companies, “Look, we have a low tax rate in this country; you now really should be paying it.” The point that I would make is this: of course tax evasion is illegal, but I think there is a case for saying that very aggressive tax avoidance also raises moral issues that companies should consider. That is a conversation that I have had with the CBI and others, who back that view, but we should make it easier for these companies by having international agreements that make it easier for them to make the right choice.