(7 years ago)
Commons ChamberHowever we got here, it cannot be made better by there being a blockade and millions of starving children. It is my view—and I believe the view of this House—that the blockade should be lifted and that we must find a peace process and a way of moving the sides apart to allow these children to survive over the winter.
When a tactic of surrender or survive was used by President Assad in Syria, the Foreign Secretary was happy to condemn it, but he has uttered not a single word of criticism when the same tactic has been used by his friend Crown Prince Salman of Saudi Arabia, the architect of the Yemen conflict, or, as the Foreign Secretary likes to call him, “a remarkable young man.” So let me ask the Minister this specifically: while the blockade was fully in place over the past three weeks, apparently in clear breach of international humanitarian law, were any export licences granted for the sale of arms from the UK to the Saudi-led coalition?
When my hon. Friend the Member for Leeds North East raised this issue last week, the Minister seemed to suggest that the blockade was justified from a military point of view because of the alleged smuggling of missiles from Iran to the Houthi rebels. But I ask him again why he disagrees with the confidential briefing prepared by the panel of experts appointed by the UN Security Council and circulated on 10 November. That briefing has been referred to already, but let me quote from it:
“The panel finds that imposition of access restrictions is another attempt by the Saudi Arabia-led coalition to use…resolution 2216 as justification for obstructing the delivery of commodities that are essentially civilian in nature.”
It goes on to say that, while the Houthis undoubtedly possess some ballistic missile capacity:
“The panel has seen no evidence to support claims of”
ballistic missiles
“having been transferred to the Houthi-Saleh alliance from external sources”.
If the Minister disagrees with that assessment, which I understand he does, can he state the evidence on which he does so, and will he undertake to share that evidence with the UN panel of experts? However, if there is no such evidence, I ask him again: how can the blockade be justified from the perspective of international humanitarian law, and how can the Government justify selling Saudi Arabia the arms that were used to enforce that blockade?
We know that, even if the blockade of Yemen’s ports is permanently lifted, the civilian population of Yemen will continue to suffer as long as this conflict carries on, and the only way that suffering will finally end is through a lasting ceasefire and political agreement. As the whole House knows, it is the UK’s ordained role to act as the penholder for a UN ceasefire resolution on Yemen. That is a matter I have raised many times in this House, and I raise it again today. It has now been one year and one month since Britain’s ambassador to the United Nations, Matthew Rycroft, circulated Britain’s draft resolution to other members of the UN Security Council, and this is what he said back then:
“We have decided…to put forward a draft Security Council resolution…calling for an immediate cessation of hostilities and a resumption of the political process.”
That was a year and a month ago, and still no resolution has been presented. That is one year and one month when no progress has been made towards peace, and when the conflict has continued to escalate and the humanitarian crisis has become the worst in the world.
I thank my right hon. Friend very much for what she is saying, and she is absolutely right. Twelve months have elapsed since the promise that there would be a resolution before the UN. The Quint met last night in London, and the Foreign Secretary tweeted a photograph of himself with the participants, but there is no timetable. Does my right hon. Friend agree that these meetings are meaningless without a timetable for peace with all the parties at the table at the same time?
My right hon. Friend is right: warm words butter no parsnips, as my grandmother used to say. Matthew Rycroft says now that
“the political track…is at a dead-end. There is no meaningful political process going on”.
If we are wrong about that, we would be very grateful for some reassurance from the Minister, but we have been waiting and waiting, and children are dying, and we have to do something about it.
We are bound to ask, for example, what has happened to that draft resolution: why has it been killed off—indeed, has it been killed off? Is the situation as the Saudi ambassador to the UN said when first asked about the UK’s draft resolution this time last year:
“There is a continuous and joint agreement with Britain concerning the draft resolution, and whether there is a need for it or not”?
We must ask this Minister: is that “continuous and joint agreement” with Saudi Arabia still in place? If so, why has it never been disclosed to the House?
The fear is that Saudi Arabia does not want a ceasefire and that it sees no value in negotiating a peace—not when Crown Prince Salman believes that the rebellion can still be crushed, whatever the humanitarian cost. If he does believe that, are we really to accept that the UK Government are going along with that judgment?
The Minister will, of course, point to the so-called peace forum chaired by the Foreign Secretary this week—the Quint—and say that that is evidence that the UK is doing its job to move the political process forward, but when the only participants in the peace forum are Saudi Arabia, two of its allies, and two of the countries supplying most of its arms, that is not a “peace forum.” I respectfully suggest that far from being a peace forum, it is a council of war. What we really need—what we urgently need and have needed for more than a year and a month—is the moral and political force which comes from a UN Security Council resolution obliging all parties to cease hostilities, obliging all parties to allow humanitarian relief, and obliging all parties to work towards a political solution.
I ask the Minister: how much longer do we have to wait? When will the Government finally bring forward the resolution? If the answer is that, because of opposition from the Saudis and the Americans, they will never present that resolution, do they not at least owe it to fellow members of the UN Security Council, and to Members of this House—and, indeed, to the children of Yemen—to admit that the role of penholder on Yemen is no longer a position they can in good conscience occupy and that they should pass on that role of drafting a resolution to another country which is less joined at the hip to Crown Prince Salman and President Donald Trump?
Let me close by quoting my right hon. Friend the Leader of the Opposition in his last letter to the Prime Minister on the subject of Yemen:
“Whilst the immediate priority should be humanitarian assistance…it is time the Government takes immediate steps to play its part in ending the suffering of the Yemeni people, ends its support of the Saudi coalition’s conduct in the war and take appropriate action”
through the UN
“to bring the conflict to a peaceful, negotiated resolution.”
Those are the three tests of whether the Government are willing to take action today, and I hope that by the end of this emergency debate we will have some indication of whether they are going to take that action, or whether it is just going to be more of the same.
(7 years, 11 months ago)
Commons ChamberI am very interested to hear what the hon. Gentleman says, and I will listen with some care to his speech. I know that the Government have said on many occasions that the Saudi-led intervention in Yemen is backed by the UN, and that they rely on the same resolution. I would be interested to hear where that is in the resolution, and how it can be claimed that Saudi intervention in Yemen is—[Interruption.]
I do not think that there is a huge gap between what my hon. Friend and the Minister are saying. When I was at the Security Council, what was in the draft resolution was certainly common knowledge, and every member of the Security Council spoke in favour of the ceasefire. Given that everyone knows what is in the draft resolution—it is in the public domain—there is no reason why this cannot be tabled.
I respectfully agree. For 50 days, we have all known what is in the draft resolution, and we wait and wait for the British to put the resolution on the table. There is support for it, and it has a number of elements in it. During the rest of my speech, I wish to explain why the British are not putting it on the table. I will take interventions as necessary if the Minister wishes to explain.
(8 years, 1 month ago)
Commons ChamberI beg to move,
That this House supports efforts to bring about a cessation of hostilities and provide humanitarian relief in Yemen, and notes that the country is now on the brink of famine; condemns the reported bombings of civilian areas that have exacerbated this crisis; believes that a full independent UN-led investigation must be established into alleged violations of international humanitarian law in the conflict in Yemen; and calls on the Government to suspend its support for the Saudi Arabia-led coalition forces in Yemen until it has been determined whether they have been responsible for any such violations.
When we discussed Yemen in this House last week, we did so in the hope that the 72-hour ceasefire negotiated by the UN envoy to Yemen, Ismail Ahmed, could lead to a lasting cessation of hostilities from all sides and desperately needed access for humanitarian aid. These hopes, unfortunately, were dashed almost immediately. Regardless of who was first responsible for breaking the ceasefire, it is the ordinary civilians of Yemen who will pay the price. It is distressing to learn that on top of all the other threats they face from air strikes, cluster bombs, acute malnutrition and the risk of famine, the Yemeni population now face an epidemic of cholera. I believe that, wherever any Member stands on the justification for this conflict, on the UN mandate for the Saudi-led military action and on the threat to regional stability caused by the Houthi uprising, the lives of tens of thousands, if not hundreds of thousands, of children are directly at risk if this conflict carries on in its present form—and none of us can tolerate that.
My hon. Friend is right that the ceasefire was critical. The efforts of the Foreign Secretary, John Kerry and the Saudi Foreign Minister as well as the special envoy were vital to ensuring that we had that ceasefire. Does she agree with me that the involvement of the British Government and the American Government is crucial to ensure that we get a permanent ceasefire?
I applaud my right hon. Friend’s commitment on this issue. I know that he was born in Yemen and that he feels very strongly about it. His approach is, of course, absolutely right: the British and the Americans have a very important influence, although most important of all is the fact that we support the efforts of the United Nations.
(8 years, 2 months ago)
Commons ChamberThat is a very important point. The Chair of the Committees on Arms Export Controls will have heard what the hon. Gentleman has said. I think that this is one of the issues that the Committees, and other Committees of the House, will have to examine—indeed, they are doing so as we speak.
Will my right hon. Friend give way?
(11 years, 5 months ago)
Commons ChamberIn beginning this debate, my hon. Friend the Member for Bassetlaw (John Mann) pointed out that the responsibilities of the two Front Benchers relate to different Departments. The reason why I am speaking on behalf of the Opposition is that it is our view that too many of the matters under discussion are crimes, should be crimes, should be prosecuted and are not being prosecuted at the moment. My presence underlines the emphasis that the Opposition put on that.
We welcome the fact that tax evasion was on the agenda at the G8 and the Prime Minister is right that we need to pierce the corporate veil. Lack of transparency enables criminals to hide behind shell companies and launder the proceeds of crime. In our view, however, the Prime Minister left the heavy lobbying until too late and the international commitment to breaking down corporate secrecy was weak. In fact, as my right hon. Friend the Member for Oldham West and Royton (Mr Meacher) has said, it was feeble. The G8 members only agreed to consider national registries of the beneficial ownership of companies, which, to be frank, is very little commitment at all.
What is the Government’s commitment to that registry? Will it be public? The hon. Member for Banbury (Sir Tony Baldry) has said that the Prime Minister is on record as saying that he wants it to be public, but what does that mean? Will it be rigorous?
Every legal entity is ultimately controlled by a natural person—somebody who lives and breathes and who can go to jail if they do things wrong. Will there be a requirement that the information registered on beneficial ownership always includes a natural person? What penalties will there be for failing to supply the required information? Will there be an obligation to record the owner of bearer shares where the owner is not registered and the issuing firm does not track subsequent transfers of ownership? Will there be an obligation for companies that use nominee directors to reveal on whose behalf those directors are working?
We are told that the Government are reviewing all of this, but it seems to me that there is plenty of wiggle room. Will there be an obligation on the part of the registry to carry out due diligence on the information it receives? In practical terms, will Companies House have the resources to do that? Past studies have revealed that Companies House has not even had sufficient resources to routinely check company directors against a list of disqualified persons.
Will Her Majesty’s Revenue and Customs have the resources to investigate? HMRC currently faces £2 billion of funding cuts this Parliament, leading to a further 10,000 job cuts. Will the Crown Prosecution Service, also cut by more than 27%, have the resources to prosecute? Will the Government strengthen the regulation of corporate service providers that set up sham companies and straw-men directors? We do not know. Will we be told, and if so, when?
What we do know is that a future Labour Government will bring an end to the era of tax smoke and mirrors. As the shadow Chancellor, my right hon. Friend the Member for Morley and Outwood (Ed Balls), and the shadow Exchequer Secretary, my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell), have set out in Labour’s policy review on corporate tax, the Government should ensure that HMRC has the power, resources and capacity it needs. They should also explore how their general anti-abuse rule can be strengthened. The Government should also deliver internationally agreed reporting rules so that large multinational companies have to publish the key pieces of information that people need to assess the amount of tax they pay.
We also need to look at the channels through which the laundered money goes. Of the 17 banks analysed by the FCA, half were found not to have proper processes to prevent money laundering. Four of those were UK banks. I was disappointed that the FCA did not name those banks and have written to it asking it to do so.
Many Members have referred to last year’s US Senate report, which found that HSBC had been used to launder the money of Mexican drug lords. It called HSBC a conduit for
“drug kingpins and rogue nations”.
The US Department of Justice fined HSBC £1.25 billion for money laundering. I am not aware that the UK authorities have taken any action on that, beyond requiring an improved monitoring regime. Of course, the chairman of HSBC at the time became the Minister for Trade and Investment in this Government and continued to be so until recently.
Whether it is LIBOR rigging, money laundering or sanctions evasion, the UK has been slow to investigate British banks. When it has punished them, the fines have been dwarfed by those imposed by the US. For example, Barclays was fined £101 million in the US for LIBOR rigging, whereas the Financial Services Authority in the UK fined it £60 million and the Serious Fraud Office is still investigating. The SFO prosecuted only 20 cases last year and convicted 14 individuals. In the past two years there has not been a single corporate prosecution.
I am getting to that. I am grateful to my right hon. Friend.
Is it any wonder that KPMG has just reported that in the UK, fraud cases totalling more than £500 million were recorded in the first half of 2013, which is up by more than a quarter on the previous year?
We need a change of culture in our law enforcement agencies. We must equip them with the tools and resources that they need to get on the front foot. Under English law, companies are criminally liable only if it can be proved that a director was personally involved in the wrongdoing. That is an extremely high threshold—a problem to which the hon. Member for Wells (Tessa Munt) referred.
There is a good case for holding companies vicariously liable for their employees’ economic crimes, unless they can demonstrate that they had adequate compliance procedures. The last Labour Government did that in relation to bribery with the Bribery Act 2010. We want to build on that, but this Government want to water it down. They say, for some reason, that rules against bribery are red tape. That stopping people bribing one another can be seen as red tape is beyond belief.
If we change the law on corporate responsibility, we may see an increase in the number of companies that are prosecuted, so we must have a penalty structure that is worthy of receiving them. The highest fraud fine to result from an SFO prosecution is £2.2 million. The highest fine clinched by the US Department of Justice is larger than $3 billion. Why do we not introduce a system in which sentences are based on a percentage of the company’s turnover over the past three years?
Although the SFO’s problems are not entirely down to under-resourcing, resources are important because these crimes are expensive to investigate. Last year, the SFO’s budget was £34 million, compared with £40 million in 2009-10. In 2014-15, it will fall to only £30 million. It is so short of money that it has to go cap in hand to the Treasury whenever it wants to take over a major prosecution. That at least gives the impression that the Chancellor has a secret veto on whether fraud investigations take place.
The US approach of topping up the funds of fraud prosecutors is much more appealing. Where possible, confiscated assets are returned to the victims. The proceeds from the many cases in which the victims cannot be traced are poured into a central fund. Each year, teams of prosecutors bid for a portion of that fund for asset tracing and law enforcement investigations. We have the beginnings of such a system in the UK. We could extend that and put large fines or at least part of them into the pool as well. In these austere times, we need to explore such alternative means of funding.