Salisbury Incident

Ed Davey Excerpts

Wednesday 12th September 2018 Commons Chamber

[Mr Wallace]

The hon. Gentleman makes a fair point. I am trying to be as pragmatic and as accurate as possible about my view. I made it clear what my view was of the particular statement by the Leader of the Opposition. I have also said that I do not characterise that as the collective view of the Labour party. We will see what the statements are, and they may be different from the response that we heard last week. But I want to move on. I said that that was the only political point I was going to make, because it was important, but I want to move on now to where we have got with the investigation.

Following the work of the police and the intelligence services, which identified these individuals, the Crown Prosecution Service concluded that there was sufficient basis on which to bring charges against the two men for the attempted murder of Sergei and Yulia Skripal in Salisbury on that day. The two men identified by police are also the prime suspects in the poisoning of Dawn Sturgess and Charlie Rowley. Our world-class experts at the Defence Science and Technology Laboratory at Porton Down and the OPCW have confirmed that the exact same chemical nerve agent was used in both cases. The two incidents now form a single investigation, and there is no other line of inquiry.

The security and intelligence agencies have carried out their own investigations into the organisation behind the attack. Based on that work, the Government have concluded that the two individuals named by the police and the CPS are officers from the Russian military intelligence service, also known as the GRU, which is a highly disciplined organisation with a clear and effective chain of command.

This was not a rogue operation. The attack was almost certainly approved outside the GRU at a senior level of the Russian state. Although I cannot go into operational detail about the work of our security and intelligence agencies, I can say that this conclusion is based on a clear body of intelligence.

This was a despicable act in which a deadly and illegal nerve agent known as Novichok was used on the streets of Britain. I know the whole House will join me in recognising the remarkable resilience shown by the people of Salisbury in the face of this act. The Government stand ready to assist Salisbury in getting back to normal. We have released £7.5 million to support business and tourism in the town and a further £5 million to support the cost of policing. I know that, throughout this process, my hon. Friend the Member for Salisbury (John Glen) has been keenly and eagerly active in making sure that Salisbury, along with the county council, gets the resource and support it needs to deal with this.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

I want to take the Minister back to how we counter the Russian threat to security in this country and elsewhere. As Secretary of State for Energy in March 2015, I used powers never used before to force the sale by LetterOne of its North sea oil assets. This was in the context of Ukraine-related sanctions against Russia. Following the terrorist outrage in Salisbury, are the Government looking at using powers such as unexplained wealth orders to investigate the cronies of Putin whose presence here brings our country into disrepute and does not help the fight against Russian aggression?

[Mr Wallace]

I will get to my response later on, but the right hon. Gentleman makes the point that we have to deal with Russian state aggression across a wide front. We have said that we will use all legal powers within the rule of law to push back the malign action of the Russian state. The Criminal Finances Act 2017, which had cross-party support, gives us tools to deal with illicit finance. It is a fact that some of the two biggest flows of illicit finance into this country come from Russia and China. Therefore, it is obvious that we will be looking in those areas and making sure that we deal with such illicit activity, but we also look elsewhere. I cannot comment on individual investigations, but where we see a break in the law, whether it be illicit finance or any other type of malign activity, we will act using those powers and push it back.

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[Mr Wallace]

We have made it very clear that we will use the powers set out in the Act. I am not going to say that we are about to fire a starting gun or say, “Here’s the list.” That will be for the Foreign Secretary and the Government collectively. We now have the power to act through our sanctions Act. We will not hesitate to use it, and there is more to come. I am trying to ensure that the legislation coming before the House over the next few months will include serious crime as a factor for laying a sanction, because it is important to see what the Americans have done around cyber-crime and serious organised criminals in that space.

[Sir Edward Davey]

Will the Minister give way?

[Stephen Kinnock]

Will the Minister give way?

[Mr Wallace]

No, I am going to move on.

We introduced many provisions in the Criminal Finances Act 2017. They included asset-freezing orders, of which we have used many, and unexplained wealth orders, which we used within six weeks against what I shall describe as an overseas individual—obviously the court decides how much I can tell hon. Members about individuals—and there are more in the pipeline. I know that Members are impatient to know why we cannot just issue lots of unexplained wealth orders. The simple reason is that the provision became law at the beginning of this year. We used it very quickly and we have to work it through the judiciary. At the high end, the oligarchs and their type use lawyers, and lots of them, to test these things. The wheels grind and there are more orders in the pipeline, but we have to ensure that this is tested, that the judiciary gets used to it and that we learn from the first use—which, by the way, has gone well to date.

[Sir Edward Davey]

The Minister is absolutely right; I found that the legal issues around the use of such orders requires a little bit of time, and I have sympathy with him on that point. However, can he at least reassure the House that the Government are absolutely determined to use unexplained wealth orders and other powers to chase down dirty money and stop Britain being used as a haven for it?

[Mr Wallace]

There is a reason why my title has changed from Minister of State for Security to Minister for Security and Economic Crime. The Prime Minister said not so long ago in a speech that she is determined to step up the response to illicit finance in this country and target those individuals. We have put some resource behind that. We have put in place the National Economic Crime Centre, and we are absolutely targeting and driving investigations in that area in a much more aggressive way than in the past. I have been very clear with the National Crime Agency and the other agencies that this is about targeted cases and sending messages, but it is also about going after facilitators—those who allow those crooks to enjoy their money in London. We must ensure that we deal with them all—not just the far-distant crime baron, but the smart, perhaps sharp-suited individuals who think they are just helping and not really engaged, but who in fact are absolutely corrupting our system, littering our streets with dirty money and then allowing those crooks to enjoy it.

[Mr Wallace]

Tempting as my hon. Friend’s suggestion is, vilifying people who carry out the role of defending plaintiffs is not how we do business in this country. We are not Russia. Reputation is clearly important to some of those companies, and no doubt they will bear that in mind. However, everyone has a right to a defence. It is up to us to make sure that the law is in the right place to deal with this.

I fully expect that in some of these cases we will be successful, while in others we will probably try but not be successful. That is partly because of the myriad facilitators, shell companies, foreign jurisdictions and corrupt jurisdictions that this money comes through. One challenge is that in some cases the money is already cleaned when it comes here. It is not being washed here; it is cleaned, has come into the system, and has bought nice houses and everything else. That is why we squeeze at one end with the unexplained wealth orders and the asset-cleaning orders, which have also been used quite successfully recently, and then, at the other end, we have better regulation through the use of the suspicious activity reports regime. That regime has, for far too long, been in need of reform to make sure that people are making those reports when they see suspicious activities. I see some horrendous stories where people have handed over hundreds of thousands of pounds in cash and people have not thought that it is remotely suspicious, so have not made any report. People have bought houses with cash, and somehow some estate agents have not thought that that is remotely suspicious. There is an obligation—a legal obligation—on them to report these issues. Funnily enough, when we follow up on those cash purchases, they are, more often than not, a dodgy purchase.

[Sir Edward Davey]

The Minister is describing a situation where the people who wish to do our country harm are very creative and have very expensive advisers to quickly get round the rules. Can he assure this House that the economic crime unit that he described in a previous answer to me will, within the law, be as creative as possible to chase down these people?

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[Mr Wallace]

It is just good energy policy for any country not to be dependent on one single source, either because of political exposure or just because of differences on energy. It is really important that we always make sure that our energy policy is diverse. Obviously, our European partners have tried to do the same, and I would urge them to continue with that.

[Sir Edward Davey]

As Secretary of State for Energy, working at the EU Energy Council, I helped the European Commission to draft Europe’s energy security strategy, which is very much aimed at reducing Europe’s dependence on imports of Russian fossil fuels. That is good for climate change and good for security. Can the Minister assure the House that after Brexit, that level of influence on Europe’s energy policy will be there in some other way, because by being at the table we were able to hit Putin in the pocket very effectively?

[Mr Wallace]

I think that, in the middle of the negotiations, that is what we are trying to do. Our relationship with Europe post Brexit is not just about taking or giving—it is still going to be a partnership. Our security will be a partnership. Our relationships with NATO and many of the countries in NATO will be a partnership. On strategic issues like energy, it is in the interests of both the European continent, as it will be then, and us to have that strategic dialogue. We will need each other for energy policy whether we are in or out of the European Union. I would certainly share the right hon. Gentleman’s view that we must continue to work at delivering that.

This was a chemical weapons attack that left four people fighting for their lives and one innocent woman dead. I know that the thoughts of the House will be with the friends and family of Dawn Sturgess, in particular. We will never stop pursuing justice for Dawn Sturgess and other victims, nor will we ever stop pursuing the people responsible for this malign attack. As the Prime Minister told this House last week, were the two suspects within our jurisdiction, there would be a clear basis in law for their arrest for murder.