G7

Heidi Allen Excerpts

Wednesday 10th June 2015 Commons Chamber

[The Prime Minister]

I thank the right hon. Gentleman for his question. The mechanism that we need is to have a partner with whom we can work. Frankly, until there is a Libyan Government and an ability to go after the criminal gangs and to turn people back as they get into boats, all the other steps we take—picking people up and all the rest of it—are vital for humanitarian reasons but will not add up to a policy that will reduce this migration flow. We have to recognise that the one place where that has worked in the past, the Spanish efforts to stop people going to the Canary islands, was where they were able to work with Governments, invest in those Governments and invest in the necessary security. That is the model we need to follow.

[Heidi Allen (South Cambridgeshire) (Con)]

The Prime Minister has spoken about the conversations that he is having about stopping companies, particularly large companies, artificially shifting profits abroad. That made the British people very angry recently. Can my right hon. Friend give us a little more detail about the content of the discussions?

[The Prime Minister]

We are doing two things. One is working internationally to get that done; the OECD has been leading a piece of work on base erosion and profit shifting, trying to stop companies shifting their profits artificially around the world. The 90 countries that have signed up to automatic tax information exchange will give that work real teeth, but we have not waited for that. In this country in the last Budget the Chancellor introduced what was called the diverted profits tax, so that if we see a company that is making lots of money in the UK but not paying taxes in the UK, we can present it with a tax bill. So we are taking international action but we are not waiting for it here domestically. This is changing the culture of the companies concerned.