Oral Answers to Questions

Emma Reynolds Excerpts

Tuesday 9th November 2010 Commons Chamber

[Mr Bellingham]

I am grateful to the hon. Gentleman, my coalition colleague, for that question. I will do all that I can to facilitate his visit to St Helena, which is an important overseas territory. I am delighted that one of the first things that DFID did was to put an end to the prevarication and delays in the announcement of the airport. The project, which will cost a substantial amount of money, will hopefully go forward apace. Although I do not want to prejudge the commercial negotiations that will have to take place, the news is, none the less, good.

[Emma Reynolds (Wolverhampton North East) (Lab)]

The Chief Secretary to the Treasury recently said that tax evasion and avoidance were unacceptable, and he announced a crackdown on those hiding money offshore. Will the Minister explain to the House why his Government have abandoned the demands of the previous Government for the Cayman Islands to give up their tax haven status and introduce some form of direct taxation?

[Mr Bellingham]

I am grateful to the hon. Lady for her question, and I congratulate her on her appointment. Having been a special adviser at the Foreign Office, she will have a great deal to bring to her new Front-Bench job. The previous Minister with responsibility for the overseas territories, the hon. Member for Rhondda (Chris Bryant), approved last year’s Cayman Islands’ borrowings at £217 million with conditions attached. This year, I approved borrowings of £123 million, with the same conditions attached. For the Cayman Islands to get their economy moving again, we strongly feel that they need to maintain their offshore status, and we are following the policy of the previous Government.