G20

Jack Straw Excerpts

Monday 17th November 2014 Commons Chamber

[The Prime Minister]

What I would say is that we have one of the top five defence budgets anywhere in the world. We spend more than £30 billion on defence and people know that we have hugely capable armed forces. Because of the difficult decisions we have made, we will see a drumbeat of new destroyers, new frigates, new aircraft carriers and new fighter jets coming off the production lines, so we are in a very strong position.

But I do not actually believe that the solution to Ukraine is a military solution. Of course it is right that NATO is helping to strengthen Ukraine’s defence infrastructure, as we agreed in Cardiff, but crucially what is required is a political settlement that respects the independence of Ukraine. What President Putin will respect is a unity of purpose on behalf of European countries and the United States to maintain the pressure and the sanctions until he changes his behaviour.

[Mr Jack Straw (Blackburn) (Lab)]

On the crucial issue of tax avoidance, could the Prime Minister say whether he is satisfied with the attitude and progress being made by Mr Juncker in respect of the scandalous behaviour by Luxembourg when he was its Prime Minister?

[The Prime Minister]

I am satisfied that every country in the European Union has signed up to the automatic exchange of tax information. For many years, it was not only Luxembourg but one or two other countries in the EU that did not sign up to that. We are making progress, but I will never be fully satisfied, because until every jurisdiction in the world signs up we will not be able to get rid of tax avoidance.