Overseas Territories: Tax Transparency

Jim Shannon Excerpts

Wednesday 5th February 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a real pleasure to serve under your chairship, Mr Turner. This is the third time for me this afternoon, but the first time for you—we wish you well in the job you have been elevated to. I thank the hon. Member for Kensington and Bayswater (Joe Powell) for highting the concerns. I say well done on his speech and introduction to the subject matter; we do not hear enough about it in this House, but today gives us an opportunity.

I have been incredibly interested in the hon. Member’s goal to rid the UK of so-called dirty money. In Northern Ireland we have had more than our share of that, of course, through the paramilitary organisations—on both sides of the community, by the way. I remember a case that “Panorama” covered. Dirty money went from Estonia and Poland to the UK and then to Northern Ireland. That money flowed in either direction.

There is estimated to be at least £1.5 billion of UK property owned by Russians accused of financial crime or with links to the Kremlin. Along with others in this House—I can think of someone not too far away—I have already been sanctioned by the Russians. It is almost a badge of honour. I can be free with my words; I am not worried what they say about me. I think we should seize their properties, sell them and use the money to fund the needy in our palliative care units, or to build special education units throughout the UK—anything other than allow our nation to be used in such despicable ways.

I will come back to the point of the debate, which is the need to ensure that overseas tax havens are not providing more scope for tax evasion, or worse, for scurrilous, illegal behaviour. Sometimes it frustrates me, Mr Turner—I suspect it frustrates you every bit as much —when HMRC pursues someone for a slight overpayment or underpayment of tax, yet we have guys sucking away hundreds of millions of pounds and not a word about it.

Just last week I had a constituent in my office with his HMRC tax bill. He owed just over £500 in tax, and part of the reason was that he had not reckoned on the fact that the savings that he and his wife put aside for their pension, as they do not have private pensions, are being taxed. He said to me, “How do I get my hands on one of those foreign tax havens? The Government are taxing the money that I have saved for my future after they have taxed it before it goes into the bank account.” We all smiled—I know he does not mean it because I know him well—but the fact is that there are those who can use accounts in overseas territories to avoid taxes while hard-working middle-class families must pay twice on their income.

Members can understand my frustration on behalf of my constituents whenever they are getting squeezed by HMRC. It is not that we are against paying tax—we pay the tax; that is the way it is—but that we see others blatantly abusing the system. Unfortunately, our British overseas territories have become tax havens to which the money is siphoned off to avoid tax. There is something wrong with that scenario.

I realise that other hon. Members want to speak, so I will finish with this point: it is despicable that overseas territories act as jurisdictions of secrecy because they do not have strong financial reporting rules. I very much look forward to what the Minister will say: he is a good Minister with an understanding of the issues and of these broken questions that I ask him. Others will ask them much more expertly than I can; I just want clarity and transparency, and I want to see those who do wrong held accountable. As a Christian, I know that those who do wrong in this world will be accountable in the next world to God himself, but there is something wrong in this world if they are not accountable under the systems that we have laid down.

People do not have to declare where their money comes from. That has to change, not only for the sake of our constituents, but to ensure justice for all. To those who use the overseas territories to avoid the taxes they should pay, I say, “Your time has come.” I want to see what the Minister can do about that. How many times will working families be taxed while others with more money pay less because of loopholes?

I very much support the hon. Member for Kensington and Bayswater in his fight, and I look forward to hearing from the Minister. I also look forward to hearing from the shadow Minister, the hon. Member for Wyre Forest (Mark Garnier). He is a man of integrity, and he is always there to uphold the issues that we bring forward.

UK-US Bilateral Relationship

Jim Shannon Excerpts

Tuesday 4th February 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a real pleasure to serve under your chairship, Sir John. I thank the hon. Member for Dumfries and Galloway (John Cooper) for raising this topic at such a timely moment, as we look to the start of the new US Administration.

The new Administration offers an opportunity for greater UK-US relations, which is something we should jump at. Although I have not always been the greatest supporter of the Donald Trump portrayed in the media, I certainly admire some of the steps already taken by the Administration. I am pleased to have a presidency that seems to have a grasp of the special relationship with the United Kingdom of Great Britain and Northern Ireland that we should treasure. We have moved from a former President who called us Brits—that was meant as a slur, by the way—and promised that no orange feet would ever be in the White House, so I could never have gone because I am an Orangeman. He had a very clear, biased opinion. We now have President Trump—a man who treasures his Ulster Scots roots and has the respect for our monarchy that we all hold. What a difference a year makes.

I was heartened to hear the interview in which the President highlighted massive concerns with the EU, which many of us share, yet he indicated his belief that the relationship with the UK could be retained. There is a real possibility of the friendship between our nations being restored to what it once was, which can only benefit us on both sides of the ocean.

[Carla Lockhart (Upper Bann) (DUP)]

Does my hon. Friend agree that it would be utterly outrageous if the benefits of any trade deal with the US were not felt equally in Northern Ireland—an integral part of the United Kingdom—because of the protocol? Does he agree that this Labour Government need to take action and remove the Irish sea border, so that Northern Ireland can benefit from any trade deal done with the US?

[Jim Shannon]

I thank my hon. Friend for raising that point. She stands alongside the rest of us in relation to this issue.

I am further encouraged that Vice-President J. D. Vance has close Ulster Scots roots that have shaped him. Now is the time to highlight the fact that so much good in America has a foundation in our shared Ulster Scots values of hard work, courage, family, commitment and fairness. There are multiple large businesses in my constituency, such as Rich Sauces and Lakeland Dairies, that have a great business co-operation with the United States of America. There is so much space for greater investment and economic improvement for both Northern Ireland and the US.

The US and Canada are two of Northern Ireland’s important markets both for exports and inward investment, with over 320 North American firms choosing to establish themselves there—that is the relationship that we have. In the 12 months leading up to March 2024, exports to those markets reached £2.3 billion, highlighting the wealth of opportunities available for local companies. We have a new opportunity, under a new Administration, to make new conditions and make Northern Ireland even greater and bigger within this great United Kingdom of Great Britain.

Many Americans have their roots in what is now Northern Ireland and in Scotland. Their Scots Irish or Ulster Scots roots are something to be proud of, and I believe that we can and should build on those links to bring greater cultural tourism to Northern Ireland. The Northern Ireland Assembly will work on that as well, but there is more to be done. We are a place of peace and open for business, and that needs to be highlighted not simply by the Northern Ireland Executive, but by this Parliament and in this debate.

I will finish with this point, because I am conscious of the numbers who want to speak and the time limit. Donald Trump is a businessman of action, and he responds to that. His Administration have been working hard since day one to bring about change, so let us ensure that greater friendship and business co-operation with the United Kingdom, particularly with Northern Ireland, is brought to his attention and acted upon as a matter of urgency, not left to linger in the ether—to use an Ulster Scotsism. The time to act is now, so let us get going and improve our mutually beneficial relationship.

I look forward to the Minister’s response; he always tries to give us the answers that we request. I also look forward to the response from the shadow Minister, the right hon. Member for Aldridge-Brownhills (Wendy Morton), a lady of integrity.

[John Slinger (Rugby) (Lab)]

It is a pleasure to serve under your chairship, Sir John. I thank the hon. Member for Dumfries and Galloway (John Cooper) for bringing such an important subject to this Chamber.

No political party has a monopoly on patriotism, the flag or, certainly, the UK-US relationship. It is a relationship vested in our shared values of democracy, freedom and the international rules-based system. It is based on our shared history of defending and nurturing these values; frequently we have done so by fighting side by side in wars. It is a relationship based on our armed forces co-operating and our intelligence services working closely together in our mutual national interests. Most fundamentally, it is a relationship between two peoples that is based on friendship, exchange and respect.

In that context, I must refer to the words of the hon. Member for Dumfries and Galloway, which I felt were hyperbolic and unbecoming of such an important subject. He spoke about “supine Britain” and “national humiliation”, and said our defence was, compared with the United States, merely “a precision scalpel”. That is somewhat hypocritical, given that his party saw our Army shrink to the smallest size since the Napoleonic wars. We on the Labour Benches will not take any lectures on our armed forces from him.

The hon. Member spoke about “toadying diplomats”. I regard that as deeply offensive to the diplomats around the world who work around the clock to look after our national interests and our citizens when they are in peril, doing everything they can to enhance our international relationships. He spoke about Labour Ministers having made comments in the past about President Trump. I merely ask whether he has ever investigated the comments of the former British Prime Minister and Mayor of London regarding President Trump. Referring to the torpedoing of Labour’s policy was also unfortunate and dangerous language.

I will defer to my hon. Friend the Minister on the Government’s bilateral relationship with the USA, but I want to touch on a couple of personal aspects of the relationship. In 2009, 16 years ago, I was fortunate to be invited by the US State Department to take part in an international visitor leadership programme—a three-week visit to the United States. That is an example of the US investing in the bilateral relationship. The rumour is that those who go on the IVLP visits are deemed to be people who may one day have some influence; well, 16 years later, I am an MP, so there must have been something right about that.

[Jim Shannon]

Three Members who are present were in the Northern Ireland Assembly back in the late ’90s and early 2000s, when the United States Government sponsored us to go to America and learn how to govern, so it is not just the hon. Gentleman who benefited from that.

[John Slinger]

I thank the hon. Gentleman for his intervention. I support all such schemes, which strengthen the relationship between our two countries.

I saw the military co-operation between our two countries in operation in Iraq, when I visited Baghdad in 2005 and 2006 with Prime Minister Blair’s special envoy to Iraq, the late right hon. Ann Clwyd. I also have good friends in the United States, as I am sure we all do. I want to refer to my late friend Michael McCarthy, whom I got to know when we were both studying for master’s degrees—in my case, in international studies—at Durham University in 2001, and in whose memory I established a lecture at my old college at Durham, University College. The lecture raises money for a travel bursary in his name, which allows students who would not otherwise be able to do so to visit the United States during their studies. That is the special relationship in action—investing in the special relationship to develop friendships.

The bilateral relationship is a relationship that transcends party-political boundaries. It is not owned by one party. It should not be exploited for political purposes or political gain, particularly given that the United States and the United Kingdom have so much to gain from it. Indeed, the rest of the free world depends in some ways on a very healthy, strong bilateral relationship between our two great countries.

UK-Ukraine 100-year Partnership

Jim Shannon Excerpts

Monday 20th January 2025 Commons Chamber

[Mr Lammy]

I recognise why hon. Members have raised this issue, but that must rightly be a determination for the Home Secretary at the appropriate time. However, I want to strongly indicate our support for those families in this country, and our recognition, as the war continues and may go on for some time, of the huge contribution they continue to make. I hope that the 100-year partnership that we have signed is an indication of the inextricable link that we think now exists between Ukraine and the United Kingdom.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for his statement. It will give the almost 300 Ukrainian families living in my constituency the encouragement they need. It is our desire and their desire that the war in Ukraine will come to an end shortly, for which I am a known advocate, along with many other Members. Do we still intend to send the £3 billion annual military assistance until 2031 whether the war is being fought or not? What will “no less than £3 billion” mean, and will we be expected to fund the Ukraine defence wholly if allies such as the United States of America do not make the same deals?

[Mr Lammy]

Our commitment is for that £3 billion for as long as it takes. It is a solemn and important commitment to Ukraine, and it underlines the cross-party support in the House and the strength of support among the British people.

Middle East

Jim Shannon Excerpts

Thursday 16th January 2025 Commons Chamber

[Mr Lammy]

It is important to continue to remember the tremendous trauma in Israel as a result of 7 October—the worst atrocity for the Jewish people since the Holocaust. It is important to remember, in the wake of this deal, which we want to see over the line, that, yes, Hamas fighters have been on the streets firing their rifles and saying that they would do it again, and that does not lead to a context in which the Israeli people feel safe in their own land. My hon. Friend is absolutely right that Iran continues to destabilise the region through its political, financial and military support for Hamas and other partners in the region. Very sadly, if we do not do all we can to come together here in the United Kingdom, play our role internationally and get to that political process, it is my judgment that in 25 years’ time, another generation of politicians, including some younger politicians in this House, will be here again debating the same issue—more violence, more pain, more loss of life, and still no two states.

[Jim Shannon (Strangford) (DUP)]

I thank the Foreign Secretary for his sombre tone and for his soft but strong words—we all appreciate them. I very much welcome the fact that a ceasefire is imminent and that the hostages will soon be returned home. Will the Foreign Secretary outline what discussions have taken place with our American allies to ensure that aid gets to where it is needed in a safe and concerted effort, and what does he imagine our role to be in ongoing negotiations to support Israel and find a peaceful way forward?

[Mr Lammy]

I am grateful to the hon. Gentleman, who is always on top of these issues, particularly terrorism, conflict and peace. I have worked very closely with the US Secretary of State, Antony Blinken, and I pay tribute to him—I suspect for the last time—for all his work. I sent him a message last night saying what a pleasure it was to see him standing behind Joe Biden. More than many, I know—as do my predecessors—how much work he put into getting this agreement over the line. I also know how important it was that President-elect Trump and his team stepped up in the last few days. There is a critical role for the UK for the reasons that I have set out, and we will play that role.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 14th January 2025 Commons Chamber

[Mr Lammy]

It was important to be with Mandy Damari in Israel yesterday and to speak to the Israelis, and to be in Saudi Arabia just before that, particularly to speak to my Egyptian counterpart and to press these issues. As Joe Biden has said, we may well be on the brink of a deal, and I know that the whole House will want to see that deal emerge in the coming days and to see Emily come home. My hon. Friend can be assured that humanitarian access, for which we have continued to press for the people of Gaza, is hugely important, and it is as important for the hostages. It will take some time for them to come out, and they need that humanitarian access.

[Jim Shannon (Strangford) (DUP)]

At Easter last year I had the opportunity to meet Amanda Damari in Israel and to speak to some of the families of the hostages who were kidnapped by Hamas on that terrible and unfortunately memorable day, 7 October. The families have had a yo-yo of emotions: will the hostages be freed, or will they not be freed? Now, all of a sudden, there is a possibility. After the rollercoaster of emotion that the families have been on over the last year and a half, how can we ensure that they get the direct help that they need from our Government?

[Mr Lammy]

The hon. Gentleman is right. We want to see Emily Damari free, and all the hostages, particularly the UK-linked hostages. We know from our contact with their families—I am thinking about the moving event that we had in No. 10 on 30 September—that there will be deep psychological scars, and we must commit to doing all we can through our ongoing humanitarian effort to support those hostages in their process of recovery.

Northern Gaza

Jim Shannon Excerpts

Tuesday 7th January 2025 Commons Chamber

[Mr Falconer]

Perhaps the right hon. Member has a solution for ensuring a Palestinian state without talking to the Israeli Government, but I think he would be outwith the view of most international scholars on that question.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his patient answers to everyone in the Chamber. Does he agree that the only way to preserve peace and stability in north Gaza is to ensure the complete dismantling and destruction of the Hamas terrorist network, which is a threat to Israeli and Palestinian civilians. The principal way to achieve that is through robust international co-operation and targeted action. Furthermore, what measures will the UK Government put in place to support a sustainable peace framework that prioritises security for Israel while addressing the urgent humanitarian needs of the Gaza civilian population?

Pro-democracy Campaigners: Arrests

Jim Shannon Excerpts

Tuesday 7th January 2025 Commons Chamber

[Catherine West]

I thank my hon. Friend for his excellent constituency work, and for knowing his constituents so well such a short time after being elected. I can reassure him that if he feels that the advice that his constituent has been given is in any way lacking, he can write to me so that I can secure a specially designed package of safety for that vulnerable 19-year-old.

[Jim Shannon (Strangford) (DUP)]

How far are the Government prepared to go before the United Kingdom of Great Britain and Northern Ireland decides to push back in relation to this issue? I have heard many reports, in my constituency and across Northern Ireland, of the targeting of families and friends of mine by Chinese authorities. They feel vulnerable in this great United Kingdom of Great Britain and Northern Ireland, all of which is now on the frontline. The Government must step up and protect our citizens.

[Catherine West]

I thank the hon. Member for relentlessly raising in the House the issue of human rights and the concerns of his constituents. May I refer them to the excellent welcome programme, which is run through local authorities? It was introduced by the last Government and is being continued by this Government. Its purpose is to provide a warm welcome and help people with employability and some of the softer skills—English language courses, for instance—but it has a hard edge to it as well: it is linked with community policing, so that we can be absolutely sure that no one here in the UK is afraid for their safety owing to intimidation from a Government many miles away.

Frozen Russian Assets: Ukraine

Jim Shannon Excerpts

Monday 6th January 2025 Commons Chamber

[Mike Martin]

I agree. This is a war crime of stupendous scale, breadth and width. There is a question of not only justice, but getting those children back to their families in Ukraine. That is part of the work that we all must do once the war is over, with Russia defeated and Ukraine victorious.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for bringing the debate forward; I was happy to be a signatory to the request for it to the Backbench Business Committee. Does he agree that the ongoing humanitarian crisis in Ukraine since the start of the war has escalated, with thousands injured and killed, millions fleeing for better lives elsewhere—some 300 such families are working and living in my constituency of Strangford—shortages of medical supplies, hospitals overwhelmed, and an energy and food crisis? The thrust of the debate is that freezing Russian assets does not work; they have to be seized.

British Indian Ocean Territory: Sovereignty

Jim Shannon Excerpts

Wednesday 18th December 2024 Commons Chamber

[Stephen Doughty]

I gently suggest that the hon. Gentleman spends a bit more time reflecting on the failures of his Administration on this and a series of other issues, from the public finances to our national security. This Government are clearing up the mess that his party left behind on not only this issue but so many others.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his answers; however, I am a sponsor of the British Indian Ocean Territory (Citizenship) Bill, which calls for descendants born to individuals within the British Indian Ocean Territory to be able to register as BIOT. There is now an even greater imperative because of the Chagos decision, which was made with no input from local people. What discussions will take place with those who consider themselves British? The Chagossians seem not to be assured, so what will be done to ensure that they receive all the necessary information in a timely manner, and will not get answers to their questions through news media outlets?

[Stephen Doughty]

I have a deep respect for the hon. Gentleman. As I have said a number of times, the Government deeply regret the way that Chagossians were removed from the islands and treated thereafter. We have always been clear on respecting the interests of Chagossian communities. I have engaged, and will continue to engage, with Chagossian communities. Their interests are at the heart of the deal, from the trust fund to the ability to resettle on and visit the islands, and a series of other measures that we have taken here in the United Kingdom. I am confident that their interests are being respected.

Israel and Palestine

Jim Shannon Excerpts

Monday 16th December 2024 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I start by making my position abundantly clear: I am, and always have been, a steadfast friend of Israel. My commitment to the state of Israel is rooted in its right to exist as a secure and democratic homeland for the Jewish people. For me, that principle is non-negotiable. I hope that my remarks will reflect both my empathy and my unwavering belief in Israel’s right to defend itself.

Those who champion such measures as a ban on arms sales to Israel fail to acknowledge the existential threats that Israel faces daily. To remind the House, on 7 October Hamas murdered some 1,200 people. Babies, children and elderly civilians were slaughtered on that day. I have to be blunt: the scale of the barbarism was unthinkable. The world witnessed graphic evidence of men beheaded, women raped and children murdered. If we in this House fail to stand unequivocally against that level of evil, we fail humanity itself. Hamas do not aim for co-existence or peace; their very charter calls for Israel’s destruction.

[Ms Diane Abbott (Hackney North and Stoke Newington) (Lab)]

Will the hon. Member give way?

[Jim Shannon]

I am going to keep to the four minutes—I am sorry. I would normally give way, but I am going to follow Mrs Harris’s rules.

It is deeply misguided to suggest, as one of the petitions does, that we should deny Israel the tools it needs to protect its citizens. At the same time, it is essential to acknowledge the human cost of the conflict in Gaza. Thousands of innocent Palestinian civilians, many of them children, have tragically lost their lives as well. Their suffering cannot and must not be ignored.

Hamas’s strategy is to use civilians as human shields and embed their terror infrastructure in hospitals, schools and residential areas. As Brigadier General Doron Gavish said, Hamas deliberately target civilians while hiding behind their own population. They hide among the skirts of women and among children. That is what Hamas do, because their goal is the destruction of Israel.

Although I respect the aspirations of Palestinian people, I firmly believe that the path to peace lies in negotiations, not unilateral declarations. Israel has repeatedly extended its hand in peace, most notably through the Oslo accords, but it has been met time and again with rejection and violence.

That brings me to the concept of a two-state solution. I believe in and support a two-state solution in principle, but let us be clear: peace cannot co-exist with the likes of Hamas. Any discussion of a future Palestinian state must begin with the dismantling of terrorist organisations that perpetuate hatred and violence. Can we hope for a lasting peace that allows Palestinians to thrive along alongside Israelis in safety, dignity and prosperity? I hope we can.

Abandoning Israel would have dire consequences not only for the middle east but for global stability. Israel is a cornerstone of western values in a region plagued by extremism and authoritarianism. To weaken Israel is to embolden its enemies, including Iran, Hezbollah, Hamas and other forces of radicalisation that threaten not just Israel but the wider world. Israel’s existence is not just a matter of geopolitics; it is a beacon of hope and freedom in a turbulent region. We must not allow that beacon to be extinguished by those who seek its destruction.

As we debate these petitions, let us do so with compassion for all those affected by this conflict, but let us also stand firm in our support for Israel’s right to self-defence and its quest for peace. That is critical, and that is what Israel wants, but it has to be a peace with justice. To abandon Israel now, in its hour of need, would be a betrayal not just of an ally but of the principles of freedom and democracy that this House holds dear.