Tax Avoidance (HSBC)

Debate between George Osborne and Frank Dobson

Monday 23rd February 2015 Commons Chamber

[Frank Dobson (Holborn and St Pancras) (Lab)]

Does the Chancellor agree that obtaining financial advantage by deception is a criminal offence even when carried out by bankers? Does he recognise that HSBC has 556 subsidiary companies in tax havens? We know what has happened with one of them, but when will there be an inquiry into the other 555?

[Mr Osborne]

Some very serious allegations have been made about HSBC Swiss and its role in knowingly advising people on tax evasion. Of course, our prosecuting authorities will want to look into the matter, but the House needs to know that the information that was received from the French authorities under the last Government—[Interruption.] This is important, and it is relevant to the right hon. Gentleman’s question. The information was received as the result of a negotiation with the French authorities about what use it could be put to, and the French agreement struck by the last Government said that we could use it only for prosecuting or pursuing individuals with regard to their tax affairs. We are currently in active discussion, which I think will come to a fruitful end, to get the French to allow us to pass some of that information to the Serious Fraud Office and other prosecuting authorities, to address the concern that he rightly raises about the potential or alleged role of banks in the affair.

Economic Policy

Debate between George Osborne and Frank Dobson

Monday 25th February 2013 Commons Chamber

[Mr Osborne]

My hon. Friend is right that what is completely extraordinary is that we have constant criticism from the shadow Chancellor of our fiscal policy but not a clue from him about what he would do except add to borrowing. He has made it very clear that he would add to borrowing, although he has not said by how much, and he has not said which of the cuts he would stick with and which he would oppose, so until we have a credible alternative, we will not have a credible shadow Chancellor.

[Frank Dobson (Holborn and St Pancras) (Lab)]

The Chancellor, having abandoned the triple A rating as a benchmark, appears to have adopted the claim that he has created 1 million private sector jobs. Will he tell us how many of those jobs have in fact been transferred to the private sector, or franchised out to it, from the public sector?

[Mr Osborne]

Private sector employment is up by 1 million since the election, the unemployment rate is lower than when we came into office, female employment is at the highest level in our history and the inactivity rate is at its lowest since 1991, so even though there has been a necessary reduction in public sector jobs, which I think even the Opposition accept had to happen—at least, they used to—we have actually seen very healthy jobs growth in the economy.

LIBOR (FSA Investigation)

Debate between George Osborne and Frank Dobson

Monday 2nd July 2012 Commons Chamber

[Frank Dobson (Holborn and St Pancras) (Lab)]

Would the Chancellor of the Exchequer authorise Her Majesty’s Revenue and Customs to examine the personal taxation position of all the people involved in this scandal, because if they are willing to swindle everybody, the chances are that they are trying to swindle the Revenue?

[Mr Osborne]

The Chancellor of the Exchequer, hon. Members will be glad to know, under any Government, cannot direct the Revenue towards any individual. It would be a very sorry state in this country if I could direct the Revenue to the tax affairs of individuals, so I am not proposing to do that. However, as I have said at this Dispatch Box, and as others have said, this Government are introducing a general anti-avoidance rule, we are clamping down on stamp duty evasion and we have increased the resources from the budget we inherited from Labour when it comes to tackling tax evasion, and the Revenue is therefore well resourced to do its work.

LIBOR (FSA Investigation)

Debate between George Osborne and Frank Dobson

Thursday 28th June 2012 Commons Chamber

[Mr Osborne]

It is true that the tripartite regulatory system—and one of the three parts was the Government of the day—failed. That is self-evident, which is why we are making these changes. It is disappointing that they do not command the full support of the Opposition Front Bench, but perhaps the hon. Member for Nottingham East (Chris Leslie), on his 40th birthday, will reconsider his position now that he has reached a new age of maturity.

[Frank Dobson (Holborn and St Pancras) (Lab)]

Does the Chancellor of the Exchequer agree, in view of the fact that the already overpaid bankers have been revealed to have bolstered their bonuses by corruption and criminal conspiracy, that it is about time that the Government and, in particular, the news media gave far less credence to bankers and their apologists when they come out urging austerity on everyone else?

[Mr Osborne]

Of course, the credibility of the industry has quite rightly taken a hit because of what happened. However, we have a new pay regime so that we can claw back some of that money from the traders and bank chiefs involved, which is a good thing. Secondly—and we are all rightly concerned about what has happened, and we need to change it—we have to change the financial services industry from one that was part of the age of irresponsibility to an industry that employs many hundreds of thousands of people and which creates jobs and prosperity in this country. It is the largest private sector employer. Knowing the right hon. Gentleman’s constituency, it is almost certainly the largest private sector employer there. Yes, we have to hold those responsible to account, but we must also rebuild the industry, because it is absolutely vital to our economy.

Banking Commission Report

Debate between George Osborne and Frank Dobson

Monday 19th December 2011 Commons Chamber

[Mr Osborne]

I do not think that I have received a single submission on banking reform from the shadow Chancellor since he took up his job.

[Frank Dobson (Holborn and St Pancras) (Lab)]

Will the Chancellor of the Exchequer confirm that nothing he has announced today will for the next five years reduce in any way the risk to the British taxpayer in the event of a British bank losing out on sovereign debt in the European Union in a way that damages its retail operations?

[Mr Osborne]

There are things that we have done and are doing now to make our banking system safer. Banks are required to hold more capital—more cushion—to protect them against losses, whether from sovereign debt or anything else. We regularly take part in pan-European stress tests, and actually the British banks pass those tests when other European banks do not. I think that that is because the British banking system is well capitalised and liquid.

We are also introducing a new system of regulation, which, as I say, will be operational in 2013; once the legislation has passed through the House of Commons, the Bank of England will be in charge. Furthermore, we are introducing the Vickers requirements over the next three and half years, until the general election at the end of this Parliament—we are getting all that legislation through as well. We are doing a huge amount to make the British banking system safer now, but also safer in future.

Jobs and Growth

Debate between George Osborne and Frank Dobson

Wednesday 12th October 2011 Commons Chamber

[Mr Osborne]

I give way to the right hon. Member for Holborn and St Pancras (Frank Dobson).

[Frank Dobson (Holborn and St Pancras) (Lab)]

Why does the Chancellor give such credence to Standard & Poor’s, which gave triple A ratings to every stupid, risk-taking banker, including those in Northern Rock? Standard & Poor’s advised Northern Rock on one of its products for about a year, and then surprisingly gave Northern Rock a triple A rating. Why should we take any notice of people like that?

[Mr Osborne]

That, of course, is the attitude of the Labour party. It ignores entirely the views of the world bond markets and the credit rating agencies. That is exactly the approach that got Britain into this economic mess. Because the Government have a credible plan, we are pulling this country out of that mess.