International Doctors: Visas

Jim Shannon Excerpts

Wednesday 2nd November 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank you for allowing me to participate in the debate, Mr Stringer. I thank the hon. Member for Boston and Skegness (Matt Warman) for bringing this matter to light. It is good to see the Minister in his place—a return to duty in his ministerial role—and I am confident that, like the rest of us, he will be keen to address the key issues of the debate and why this issue is so important. I wish him well in this new role and look forward to his response to our questions.

The issue of visas is always a difficult one. I am incredibly aware of the need to protect our country and ensure that only those who have a desire to enjoy British life and to enhance it should be given visas. I understand the system of immigration and agree that it should be rigorously implemented. However, within that, we very much need to have the appropriate systems for the appropriate types of visa. That is why I believe that changes need to be made, as outlined by the hon. Member. Talented and skilled doctors want to come here and contribute to our society but unfortunately, due to the visa system, they are not always able to do so. For me, the issue is: how can we help them to help us in the United Kingdom of Great Britain and Northern Ireland?

[Margaret Ferrier]

As the hon. Member for Boston and Skegness (Matt Warman) said, a difficulty that many international medical graduates face is that many GP practices do not have a visa sponsorship licence in place, making it harder to meet the requirements before the student’s studies end. Does the hon. Member share my concerns about the general level of the Home Office backlog and the associated impact on IMGs?

[Jim Shannon]

I agree with the hon. Lady. I hope that through today’s debate and contributions, this issue can be addressed. Again, we look to the Minister to give us some help, direction or support in how we can go through the vigorous bureaucracy that is clearly there. People with talent and skills want to come here; it is about how we can make that happen.

I have raised immigration on multiple occasions with Home Office Ministers—in particular, with regard to visas for those working on fishing boats in my constituency and the skilled work done by Filipino fishermen. The previous Minister was most helpful. That work is undoubtedly skilled, but it is under the pay threshold, so visa requirements sometimes restrict that opportunity.

Junior doctors, nurses and others do work that is not highly paid but highly skilled and necessary. That is why there must be time-sensitive application systems for those vital jobs and staff members. We need flexibility in the system. I say this again because it is important: those highly skilled and highly talented people who wish to come here will add to society and enable us to fill some of the vacancies.

I cannot speak for the United Kingdom mainland, but I can certainly speak with some knowledge of Northern Ireland. I am my party’s health spokesperson, and the research we did for this debate shows that 6,613 vacancies are listed for the five trusts in Northern Ireland. I know that they are not entirely for medical staff, but it is clear that we are desperately in need of staff, and there are many opportunities for doctors.

In my constituency and neighbouring constituencies, we are having problems in relation to GPs. I absolutely agree that there is a need for restrictive immigration, but we must not cut off our nose to spite our face. I am sure those numbers are replicated throughout the entire UK; perhaps the Minister will give us some figures for GP vacancies. I know that the Government have set out a strategy for employing and recruiting more GPs—that is good news.

During the Brexit discussions, we were told that there would be distinct differences between the visa systems. That is as it should be. The hon. Member for Boston and Skegness said that the system needs to be altered to meet the need, and that is what we need to do today.

The hon. Gentleman mentioned GPs, and we are of the same mindset. In a neighbouring constituency, a GP surgery, which is 10 minutes from my office, is set to close down because there are not enough GPs. In response, the GPs in my area have issued a moratorium on joining or leaving local practices. In other words, they will not take any more patients, and in some cases they are directing patients who live outside the area—that was okay a few years ago—to go elsewhere.

The trust is hopeful that it will get more GPs to take over the practice, but the fact is that we simply do not have enough GPs. That puts more pressure on the existing ones, which leads to more burnout, and the vicious cycle continues. GPs are under incredible pressure. Patients want to meet their GP; they want face-to-face appointments. That has been lost to them over the past two and a half years due to covid, but they are trying hard to get back in the queue.

The hon. Gentleman said that 40% of all GP trainees are international medical graduates—the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) referred to that—but they have difficulties obtaining visas. I do not have the exact numbers for Northern Ireland, but I do know that we cannot afford the loss of any more GPs. I therefore add my voice to those of others in the Chamber requesting that a special dispensation be granted not simply to allow those trainees to stay but to enable us to recruit further.

If there a block of trainee GPs who have almost completed their degrees and courses and are ready to come here, let us encourage them to do so. The question is not why it cannot happen, but how we can make it happen. The thought of training GPs to understand how we do medicine and run our practices, only for them to leave—not because they want to but because the system is not working for them—is madness. That needs to be addressed through this debate.

Recently, medical professionals outlined to me that the mental health and self- esteem of our medical community are at an all-time low because the staff are simply burned out. I have met many nurses, GPs and surgeons who are absolutely exhausted with the work they do. For those who are on call and have a duty rota to complete, being sent an SOS text to cover shifts is no longer exceptional; it is standard. That tells us that the GPs need to be employed and some of the pressure taken off.

We need to change the way that things are done, by giving GPs more admin support and funding for on-site nutritionists, physios and mental health teams, which we need within all health clinics. In my constituency, they are trying to do that regularly, and it should help to diagnose early, whether the problem is diabetes, arthritis or dementia. Whatever the issue, doing that correctly in GP surgeries is the way forward.

It is impossible to imagine that things can go on much longer the way they have for the past two and a half to three years throughout the United Kingdom of Great Britain and Northern Ireland. We need change, flexibility and help, Minister. We do not want to put all the pressure on the Minister, but in this case there are ways forward. The hon. Member for Boston and Skegness has outlined them, as have I and others. We look forward to a successful conclusion to this debate, with a way forward from which we can all benefit across this great United Kingdom of Great Britain and Northern Ireland.

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[Stuart C. McDonald]

That is a valid proposition, and we could do the same with health boards in Scotland. If we knock our heads together, we can come up with a way to fix this. It just requires a little bit of pragmatism.

There is a second issue I wanted to raise—when I saw the motion for this debate, I wondered if the hon. Member for Boston and Skegness would raise it. That issue relates to recent reports from the BBC flagging complaints of poor treatment and conditions for international doctors in private hospitals, as well as highly questionable recruitment practices. I will touch upon it briefly because it has not been raised, although it is important to draw it to the House’s attention and to see if the Minister will investigate and respond. There were reports from 11 October suggesting that doctors from some of the world’s poorest countries were being recruited, by Nuffield Health in particular, to work in private hospitals under conditions prohibited in the NHS. There are reports of doctors being on call 24 hours a day for a week at a time, not being able to leave the hospital grounds and, unsurprisingly, suffering from extreme tiredness, putting both patients and doctors at risk.

Nuffield Health denies those allegations, but a British Medical Association and Doctors’ Association UK questionnaire of 188 resident medical officers adds some credence to the claims. It shows that 81% of respondents were recruited from Nigeria, and most complained of extreme working hours and unfair salary deductions. The conclusion of the Doctors’ Association UK was that we now have a two-tier system: one for the NHS and one for other international recruits in the private sector. I ask the Minister to look into that.

That issue highlighted to me another fundamental problem with how the immigration system operates. We have all sorts of checks and regulations that focus on ensuring that people who come to work here abide by their visa conditions, and they include the doctors we have been talking about—the IMGs—where the Home Office is on their case as soon as they have qualified to see what they are doing next. However, little or no checks are done to protect people who come here. That is not just in the NHS and with doctors; I have been firing off parliamentary questions and freedom of information requests in relation to the agricultural sector. That is a sector wide open to exploitation, but as far as I can see there is no concerted effort to protect people from that exploitation.

As the Minister will appreciate, Nigeria is a red-list country for recruitment. According to both the World Health Organisation and the Government, that is not where we should be finding doctors.

[Jim Shannon]

Does the hon. Member agree that, when it comes to the criteria used, one thing we should perhaps be seeking from the Minister is an assurance that greater weight will be given to the skills that people have, as opposed to the money they could earn?

[Stuart C. McDonald]

That is absolutely fair. The point I am making is that we should also consider—and in fairness, we do—where it is that we are recruiting from. We do not want to leave some of the poorer countries in the world without the skills they need.

Nigeria is a red-list country, but the report highlighted that both the General Medical Council and the British Council are involved in establishing and overseeing a professional and linguistic assessment board test in Lagos. I encourage the Minister to look into those reports. I appreciate that he might not be able to tell us about them today.

Various broader issues have been raised, including visa fees, pensions and so on. We could talk about the impact of free movement and how that has mired certain services, including GP practices, in red tape and bureaucracy, but we will keep that discussion for another day.

I again congratulate the hon. Member for Boston and Skegness on securing the debate. Throwing out skilled and desperately needed GPs in whom we have invested tens of thousands of pounds in training is utterly absurd. The hon. Member for Strangford (Jim Shannon) put it very nicely, as he always does. The question is how we can help them to help us. There are pragmatic solutions available. This is an early test for the Minister on whether he will be a pragmatist or take what I would characterise as the more dogmatic approach of the previous Home Office regime. I very much hope it is the former and that he is a pragmatist.

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[Jim Shannon]

I recently chaired an event in Portcullis House on a completely different matter. When I came out, the people taking over the room were getting ready to give a presentation about how Ukrainians with medical skills could help the UK. I am not sure who the sponsor was, but I will try to find out, and the Minister’s staff might do the same. It took place at 2 pm in room Q in PCH. I had to go to another event, so I could not stay, but it seems that there are a number of Ukrainians here who have medical skills that could be used in the NHS. That is just a thought.

[Robert Jenrick]

Of course, adults who come to the UK on the Homes for Ukraine scheme have the right to work, and we actively encourage them to do so while they are here. There has also been an exercise across Government, which I have not been personally involved in, to help them to find equivalent professional qualifications while they are here, and to break down any barriers. I would be happy to look into whether there are remaining issues for doctors and nurses from Ukraine while they live here on the three-year visas that we are granting.

Some 30,700 nurses and 14,900 doctors obtained a health and care visa up to the end of August this year. In total, including care workers and other professionals, 96,000 such visas have been issued—a very significant number, which accounts for 52% of all skilled worker visas that have been issued to people taking up work in the health sector. I would like to think that that innovation has been a success, but we take seriously the legitimate concerns that have been raised in the debate and that we have heard from royal colleges and others. Let me now turn to some of those concerns and what we might be able to do to assist.

As my hon. Friend the Member for Boston and Skegness said, the Royal College of General Practitioners has made a number of suggestions. We believe that the best way to increase the number of international GPs taking up places in the UK is for GP practices to register as Home Office-approved sponsors. The Government have run a number of engagement events that aim to explain the sponsorship process. Sponsorship is not supposed to be onerous, and the Home Office believes that it is not as onerous as some people clearly perceive it to be. Over 48,000 organisations are licensed sponsors of skilled workers, and many are high-pressure, small organisations, such as GP practices. However, there is clearly an issue—whether in reality or in perception—so I have two proposals to answer the concerns raised by my hon. Friend.

First, I am prepared to consider other sponsorship arrangements suggested by the sector, provided that they are consistent with the sponsorship system and that the sponsor can continue to discharge the important duties of a sponsor, which enables us to ensure that the overall system is robust and defensible. In principle, the sponsor could be an appropriate national body, such as Health Education England. It has not approached us to ask to be such a body, but I would be open to considering that. As my hon. Friend the Member for Winchester (Steve Brine) suggested, the sponsor could be an integrated care board in England or an appropriate body in Scotland, Wales or Northern Ireland, or it could be a royal college. I will therefore ask my officials to work with the sector to see whether there is a way forward to create umbrella bodies, if there is mutual support on both sides, with the caveat that any umbrella body would need to discharge the required duties in law to ensure the robustness of the system.

Secondly, in the interim my officials would be happy to run further engagement events with the sector to talk them through how straightforward they believe it is to be a sponsor. I encourage anyone listening to the debate to get in touch with the Home Office if they would like us to host an event in their area or with their part of the health sector. I have asked my officials to organise at least one such event in the weeks ahead. We will take account of any feedback that we receive at these events, and if it is true that the system is simply too complex and burdensome, I have asked them to report back to me with that feedback and we will take it into consideration.

The shadow Minister—the hon. Member for Aberavon —and others, including my hon. Friend the Member for Boston and Skegness, raised the fundamental question of whether five years is the right length of time to demonstrate an individual’s commitment to the UK. That is a profound question, and it is important that we approach it fairly, rather than hiving out individual sectors, however important they might be for our economy or our public services. Although I am sympathetic to the arguments around granting GPs settlement on completion of their training, my view today is that it is better to stick to five years because that has been, by the long-standing convention of this Government and their predecessors, considered the right length of time for an individual to demonstrate sufficient commitment to the United Kingdom to obtain indefinite leave to remain. We should value indefinite leave to remain, because it is an important and significant moment for anyone committing to life in our country.

Drug Reclassification: Monkey Dust

Jim Shannon Excerpts

Tuesday 1st November 2022 Westminster Hall

[Jack Brereton (Stoke-on-Trent South) (Con)]

I beg to move,

That this House has considered the reclassification of the drug Monkey Dust.

It is a pleasure to speak with you in the Chair, Dame Maria, although this is not a pleasurable subject for debate. My aim is to see monkey dust, a new psychoactive substance that is currently a class B drug, reclassified as class A. There are compelling reasons for doing so. I have received considerable local support in my constituency for reclassification, including through the survey and petition that is currently live on my website, which calls for the reclassification of that horrific drug.

If I explain that up to two thirds of all monkey dust-related incidents in the west midlands region are reported to occur in Stoke-on-Trent, the House will understand why local feelings in my home city are running so high. Monkey dust is a class B drug from a set of stimulants known as cathinones, which include the class C drug khat. Unlike khat, which is a reasonably mild, natural stimulant, monkey dust is a powerful synthetic drug. It is a stimulant that can make the user euphoric or hallucinate, lose control of their body, become aggressive and/or fall into a deep depression. It is a fine off-white powder costing £10 to £15 per gram, with only 3 mg needed for a hit. That means that a hit can cost as little as £2 on the street, making it cheaper than alcohol. Its effects usually last a few hours, but they can last for several days.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for securing this debate. He is absolutely right to refer to the cost factor. Does he not agree that the fact that monkey dust can be bought for such a small fee means that our young teenagers can afford to use that toxic substance, which can spiral to using other drugs? Immediate reclassification is needed to send a clear message that any abuse of drugs will not be tolerated, that the consequences will be substantial and that it is simply not worth the risk to sell or buy monkey dust, Spice, or any other new fad that is making the rounds.

[Jack Brereton]

I entirely agree with the hon. Member. That is a key factor. It is very sad to see that a lot of the people who are addicted and taking the drug are very young. That is one of the biggest tragedies.

Both the effect of monkey dust and its duration are unpredictable. In Stoke-on-Trent, it is known simply as “dust”, and it comes in sub-categories that include the street names of fluff and tan. Dust can be snorted, injected, piped or bombed. Piped, as it sounds, means smoked in a small pipe, and bombed, also called parachuted, means wrapped in edible paper and swallowed. That can include the use of cigarette paper or toilet tissue, which are not obviously palatable, but such is the strength of the addition that synthetic cathinones can hold, users will endure great indignities to consume it, never mind acquire it, and there is scant dignity in the effects.

Dust can lead to a psychotic state. Because it dulls all pain, it can lead users to harm themselves while feeling nothing short of invincible. Police officers have described tackling those under the influence as like trying to wrestle with the Incredible Hulk. Dust can also cause convulsions and lead users to overheat. Death from hyperthermia is a result of the most extreme cases of overheating.

Sometimes users will combat the feeling of heat by stripping off clothing—which, as they are totally disinhibited by the drug, can mean any and all clothing. There are also the risks of hypoventilation and acute respiratory distress. The collapse of users into a seemingly comatose state is a sight that residents fear is becoming normalised in our city.

National Security

Jim Shannon Excerpts

Tuesday 1st November 2022 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

And now, in his traditional place, Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

Thank you, Madam Deputy Speaker. A taskforce for all the United Kingdom of Great Britain and Northern Ireland has to be excellent news, and I welcome it.

The Northern Ireland protocol is stirring up tensions in Northern Ireland. What steps will the Minister and the Government take to deal with the people who chant in support of the IRA—the same IRA, the same fifth columnists, who want to destroy our United Kingdom of Great Britain and Northern Ireland, and who carried out the indiscriminate murder campaign of pure evil with which they devastated Northern Ireland during the troubles—and what steps have been taken to ensure support for the Police Service of Northern Ireland at all times to combat the very real threat of terrorism from republicans or, indeed, from any mindset in Northern Ireland?

[Tom Tugendhat]

I thank the hon. Gentleman for his second question today; I hope I will be privileged to take many more. He can be assured that all security policy will include the whole of the United Kingdom, and that I will be absolutely committed to working with the PSNI and numerous other police forces.

Overseas Chinese Police Stations in UK: Legal Status

Jim Shannon Excerpts

Tuesday 1st November 2022 Commons Chamber

[Tom Tugendhat]

I entirely agree with the hon. Member about there being one law across this country. After all, that was the point of the common law and the reforms of hundreds of years ago that have seen liberty flourish and opportunity prosper in these islands. He will forgive me but, since I gave up the chairmanship of the Committee, I have forfeited the right to have personal opinions, but the Government have absolutely the commitment that he mentioned that all laws in this country will be voted for and allowed only by this House or the devolved Administrations, and that all citizens here and all those visiting will be under the same law.

[Jim Shannon (Strangford) (DUP)]

I congratulate the right hon. Member on his long-awaited elevation to Minister. It is genuinely, truly well deserved. Further to my business question last Thursday on the despicable actions taking place in Chinese buildings in the UK, while we all recognise the right of an embassy never to have foreign influence, will he confirm that our underlying moral duty is to ensure that torture is not carried out on any inch of our soil? In accepting that, what diplomatic and legal steps can be taken to prevent torture?

Western Jet Foil and Manston Asylum Processing Centres

Jim Shannon Excerpts

Monday 31st October 2022 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I am trying to get everyone in, but Members are going to have help me. I ask them please to focus on the question rather than a long preface.

[Jim Shannon (Strangford) (DUP)]

I thank the Home Secretary for her endeavours to deal with a truly difficult and complex situation. May I ask her what steps are in place to ensure that asylum centres are able to provide a basic standard of mental health care for those affected by the disgraceful action that took place at the weekend? Can she ensure that asylum seekers are safe while they are waiting for the determination of their applications, as is the law in this great nation of the United Kingdom of Great Britain and Northern Ireland?

[Suella Braverman]

As I have said—and I will reiterate it again and again—I am very grateful for the brilliant response from the emergency services, the authorities and everyone at Western Jet Foil and Manston, yesterday and subsequently, in dealing with this incident. We are making sure that they are well supported. We will need more staff because of the increased numbers—I am not going to mislead the hon. Member on that—but we are trying to make arrangements to ensure that they are supported so they are not overburdened.

Cross-Channel Migrants: Manston Facility

Jim Shannon Excerpts

Thursday 27th October 2022 Commons Chamber

[Robert Jenrick]

That is a very important question and one to which I will be giving a lot of thought in the coming days. As I said earlier, around a quarter of those individuals who have crossed the short strait this year alone have come from Albania. On some boats, 80% of the individuals are coming from Albania. As my hon. Friend said, Albania is quite clearly a safe country, and those individuals have crossed through multiple other safe countries before arriving in the United Kingdom. Some reports suggest that as much as 1% or even 2% of the adult male population of Albania either have attempted to leave the country in this manner, or are contemplating doing so.

This is a serious issue on which we need to get a grip, and there are a number of fronts on which we are doing that. We are considering whether there is a bespoke route for Albanians to have their cases heard quickly and to be removed from the country if they are not found to be successful—returned to Albania. We are also looking diplomatically at how we can work with the Government in Albania and in coalition with like-minded countries such as France to reach an agreement with Albania. I would be happy to update my hon. Friend as soon as we make further progress.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his answers and wish him well in his new role; I am sure he will do well with it. With the turmoil of winter about to arrive, my real fear is the loss of life that will take place among those who cross illegally in unfit boats. The need to prevent the crossings before they begin is stronger than ever, and I know he also understands that. What more can we do with our French allies to take more proactive steps at those ports and launching locations? Will he task our allies with taking those enhanced steps that are very much needed?

[Robert Jenrick]

I intend to have the most constructive approach possible with our friends in France to try to address the issue together. Our progress will always be limited if we cannot have a good relationship across the channel. A number of steps have been taken in recent weeks and months; in fact, the French authorities deter up to half the crossings attempted from French beaches, but clearly that is not enough, because far too many people still make that perilous journey. It will be an early priority for me and the Home Secretary to speak to our counterparts in France and see what further steps we can take.

Independent Inquiry into Child Sexual Abuse: Final Report

Jim Shannon Excerpts

Monday 24th October 2022 Commons Chamber

[Grant Shapps]

My hon. Friend is absolutely right. I think I am right in saying that it was Professor Jay who carried out the work on the report on Rotherham. She was very clear that things such as cultural sensitivities and political sensitivities were all too often barriers to dealing properly with systemic sexual abuse. My hon. Friend asks specifically about things such as mandatory reporting. As I mentioned, I will come back to that within the time guideline in the report, or earlier if I can.

[Jim Shannon (Strangford) (DUP)]

I welcome the Secretary of State to his place and wish him well. I commend the right hon. Member for Maidenhead (Mrs May) for her initiative, and I thank all those who made contributions and statements to the independent inquiry. One in six girls and one in 20 boys suffers sexual abuse before they reach the age of 16. I would have assumed that that statistic was for a third-world country, but unfortunately it is not; I was shocked to discover that it describes the country we live in—this nation. It makes my heart ache in my chest to think of the robbery of innocence, which we have all referred to. How do we start to address that horrific fact? What steps will the Secretary of State take to address it in every corner of the United Kingdom, along with all the devolved Administrations?

[Grant Shapps]

The hon. Gentleman is absolutely right about the scale of the problem, which may surprise people who have not been involved in the subject before when they read the report. Some 7.5% of adults in England and Wales are estimated to have been sexually abused before they were 16—approximately 5% of boys and 15% of girls. That equates to probably over 3 million people in this country. To answer the hon. Gentleman’s specific question, I do not think that there is one single thing that can be done to solve that. As I mentioned, the problem of sexual abuse happens in so many different settings, so we have to act simultaneously on all fronts. This seven-year report—brilliantly commissioned by my right hon. Friend the Member for Maidenhead, as many colleagues have mentioned—is just the start. We now need to make sure that we enact all the recommendations.

Economic Crime and Corporate Transparency Bill

Jim Shannon Excerpts

2nd reading
Thursday 13th October 2022 Commons Chamber

[Suella Braverman]

The hon. Gentleman raises a really important and valid point. The Bill will go some way to dealing with cryptocurrency, but he is right that cryptoassets are increasingly being used for malign and terrorist purposes. We intend to crack down on that and will be bringing forward a Government amendment that will mirror the changes in Part 4 of this Bill in counter-terrorism legislation, but we are very happy to review that further.

The Government have already undertaken unprecedented action to stop kleptocrats and criminals.

[Jim Shannon (Strangford) (DUP)]

Just last year, as everyone in the House will remember very well, the Police Service of Northern Ireland seized £215 million from a money laundering scheme that started in eastern Europe, came right across into the United Kingdom and ended up in Northern Ireland. The Home Secretary said clearly that money laundering will be addressed directly. In Northern Ireland we seem to have a problem in relation to that. Will she enter into discussions with the Finance and Justice Ministers back home in Northern Ireland to ensure that they can work together to beat money laundering everywhere?

[Suella Braverman]

I thank the hon. Gentleman for raising that point. I am very happy to build further and closer engagement with Northern Ireland on this particular issue. In the case of anti-money laundering and other investigations, and prosecutions in relation to standalone money laundering cases or where money laundering is the principal offence, the agencies have recovered considerable amounts. £1.3 billion has been recovered in those cases since 2015-16 using the Proceeds of Crime Act 2002 powers. That is good progress, but of course there is further to go and, as I said, I am very keen to engage more closely.

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[Suella Braverman]

I accept what the right hon. Lady says, but the Government have already taken steps to establish the case for change on corporate criminal liability. In 2020, we commissioned the Law Commission to undertake a detailed review of how the legislative system could be improved to appropriately capture and punish criminal offences committed by corporations, with a particular focus on economic crime. The Law Commission published that paper on 10 June 2022. The Government are carefully assessing the options that were presented and are committed to working quickly to reform criminal corporate liability.

[Jim Shannon]

I thank the Secretary of State for generously giving way again. I understand that 929 companies registered with Companies House were identified as taking part in 89 economic crime incidents, which amounted to £137 billion of potential economic damage. I know that the Secretary of State, like me and others in the House, is keen to ensure that we get the change we want, but will that mean that that can no longer happen in relation to Companies House?

[Suella Braverman]

We want to ensure that there are more restrictions on who can register with Companies House so that we prevent the abuse of the regime. As I said, we have one of the most open, liberal and business-friendly economies, but we are exposed to some degree. The reforms in the Bill very much address the issue that the hon. Member raises.

Furthermore, the Bill introduces a regulatory objective into the Legal Services Act 2007; removes the statutory cap on the Solicitors Regulation Authority’s fining power for disciplinary matters relating to economic crime offences; extends pre-investigation powers to all Serious Fraud Office cases; and streamlines the process for updating the UK’s high-risk third country list. The Bill will also ensure that we have more effective and targeted information sharing to tackle money laundering and economic crime. It provides new intelligence-gathering powers for law enforcement and removes regulatory burdens on businesses. Altogether, the Bill is a formidable tool in the fight against illicit finance.

The Government have consulted widely on the Bill and won broad support from business and professional groups, law enforcement agencies and civil society. We are, of course, working closely with the devolved Administrations on this legislation, as the Bill contains several provisions that engage devolved powers in Wales, Scotland and Northern Ireland.

I will now set out the Bill’s measures in more detail, turning first to Companies House reform. Companies House is one of the foundations of the UK’s business environment. It operates the UK’s open and flexible corporate registration framework. The UK’s business community enjoys a simple system for creating and maintaining companies and other legal entities. Information on those entities is made available for the benefit of investors, lenders, regulators and the public. The companies register was accessed 12 billion times last year. Inevitably, that makes it a target. In recent years, the Companies House framework has been manipulated, particularly with the use of anonymous or fraudulent shell companies and partnerships. That gives criminals a veneer of legitimacy to help them to commit crimes, ranging from grand corruption and money laundering to fraud and identity theft.

We will reform the role of Companies House and improve the transparency of UK companies. The Bill will ensure that we can bear down on the use of thousands of UK companies and other corporate structures as vehicles for economic crime, including fraud, international money laundering, illicit Russian finance, corruption, terrorist financing and illegal arms movements. These are the most significant reforms to the UK’s framework for registering companies in 170 years. We will introduce identity verification for new and existing directors.

Leaving the EU: UK Language Schools

Jim Shannon Excerpts

Tuesday 19th July 2022 Westminster Hall

[Wera Hobhouse (Bath) (LD)]

rose—

[Jim Shannon (Strangford) (DUP)]

rose—

[Dr Huq]

The hon. Member for Bath (Wera Hobhouse) was first.

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[Dr Huq]

My apologies: I think the hon. Member for Strangford (Jim Shannon) wanted to intervene next.

[Jim Shannon]

I thank the hon. Lady for bringing the debate forward. Does she agree—I think she does—that there is undoubtedly work to do to highlight the benefits of learning English and other languages in the superior schools that we have? Consideration must be given to fast-track visas and discounted fees, which may be a necessary push to make that happen and to bring about what she is trying to achieve.

[Dr Huq]

I completely concur with the hon. Member. We have all heard about the backlog—perhaps the Minister will talk about it—of people waiting to get passports at this time of year when they want to go on holiday. The laborious, ponderous hoops that people have to jump through seem a bit too much, compared with what used to be a relatively simple thing when we had freedom of movement.

Economic Crime: Law Enforcement

Jim Shannon Excerpts

Thursday 7th July 2022 Commons Chamber

[Kevin Hollinrake]

That is the right question. These problems are not difficult to solve if people are willing to apply the right rules. On the money taken from my hon. Friend’s constituents, there is probably an organised criminal gang behind that, contacting the constituent, saying they should move the money, and when they do that the money is probably moved through a mule account in one of the major banks and then off somewhere else, offshore, and it then disappears into the ether. The reality, of course, is that the banks would clamp down on mule accounts if they had the right incentive or the willingness to do so. These crimes can be stopped, but people will not stop them until that is in their interests to do so, and we need to make sure that is the case. Yes, we need the enforcement and enough people, but we need the people who are currently facilitating this, who are largely UK-based in this context, to be willing to prevent it.

The UK plays a particular role in all this economic crime. It is seen as a place where money is laundered, not necessarily where it is kept, although that is different in the case of kleptocrats or Russian oligarchs. The money is usually laundered in the UK and then goes off to other jurisdictions, largely the US. That is because of the consolidation of expertise in the City of London—we should be very proud of the City—and the financial organisations and the advisers who sit around them, who are also culpable in this regard. We have strong regulation in some areas and very weak regulation in others, particularly on offshore regulation, where in the UK there is a particular relationship between its domestic regulations and what happens offshore.

[Jim Shannon (Strangford) (DUP)]

Banks are very strict with local customers, and rightly so, but not with the movement of large sums of money, unfortunately, including the £200 million sent from Estonia to Northern Ireland, which I understand has been highlighted on “Panorama”. The Government seem to focus on the ordinary account holders being regulated strictly, but they do not seem to have any level of regulation for the big money movements. Does the hon. Gentleman agree that we need to focus on that bigger picture?

[Kevin Hollinrake]

The hon. Gentleman is right. The regulations are there but the penalties are not sufficient. The people within Danske Bank knew that they were doing wrong when they moved €200 billion out of Russia and into other parts of the world, but there was no incentive to do anything about it because they made a huge amount of money as it flew through their systems. A local manager, a mid-tier manager or even a senior executive would think, “Well, we’re making money and nobody’s going to find out, and if we are found out there will be a fine down the line and I will have gone by then anyway.” So where is the incentive to clamp down if they are going to make lots of money out of it? After all, everybody has budgets and targets to hit, and bonuses on the back of them. That is the problem: the penalties and enforcement need to be different.

Another key reason why money is washed through the UK is that we have the overseas territories, tax havens that work on the same basis of common law—Jersey, the Cayman Islands and the British Virgin Islands. Money launderers do not want to pay tax on their money, so they put it through a jurisdiction with low or zero taxation. That is why the UK plays a major role in facilitating this, and also why it must play a major role in clamping down on it.

We do not do clamping down very well here, however. Our enforcement agencies have success in some regards, but they are nowhere near as successful as other jurisdictions, for example the USA, which is far more focused on this. The US has similar bribery laws to the UK, introduced in 2011. In 2020 the US fined organisations in the US £1.85 billion for bribery offences, which is more than the UK has fined in 10 years. The situation for money laundering sanctions is very similar: in 2019 the UK fined our banks £260 million in the entire year for money laundering offences, while the US fined £7.5 billion, including £2.5 billion of criminal sanctions. Almost every one of our agencies is underfunded and under-resourced in tackling this problem.

What do we need to do? My colleague the right hon. Member for Barking will talk about some of the measures, but I will focus on the key things that I think we need. We must ringfence a budget for tackling economic crime right across the piece in the UK, to see exactly how much we are spending on tackling organised crime. We need fewer agencies, too; the effort must be more consolidated so the lines of reporting are less fragmented and more direct.

Action Fraud must not just be a rebadged enterprise. It needs to be meaningful, and people need to have confidence that the offences reported to it will be dealt with. I was recently nearly scammed through WhatsApp when I thought my son had contacted me, but it was another person. I wondered whether to report it to Action Fraud, but I thought, “What’s the point? It’s not going to do anything about it.” That is why people do not report such incidents. Clearly, therefore, there are many more offences than the number reported.

The No. 1 thing we need to do is something the Government have talked about. We already have a failure to prevent offence. There is corporate criminal liability in the UK if people fail to prevent bribery in their organisation—that offence was introduced some years ago, I think in 2011—and also an offence of failure to prevent tax evasion. People cannot just stop that happening; they have to put the rules in place to stop it happening. The key thing is what they can do to stop this. They therefore put systems in their organisation to alert them to certain things happening, and they train staff that they cannot get involved in bribery or facilitate tax evasion. We need to extend that to failure to prevent economic crime.

The Government have been talking about this for some time, and the Law Commission has reported on it. It said we should introduce such an offence but probably for fraud alone, not for money laundering or things like false accounting. I think that is a big mistake. It is also very mealy-mouthed on including personal liability for directors; it says it could be added if they have the mental something—what is the word?

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[Jim Shannon (Strangford) (DUP)]

It is a pleasure to follow the hon. Member for Bromley and Chislehurst (Sir Robert Neill). He always brings a wealth and breadth of knowledge to these debates and we thank him for that; it certainly adds to the focus and the direction in which we wish to go. I also give my sincere thanks to the hon. Member for Thirsk and Malton (Kevin Hollinrake) and the right hon. Member for Barking (Dame Margaret Hodge) for their contributions. They have been terribly helpful to the debate today and we thank them for that. Others have contributed as well, and they have all added their experience and knowledge to the debate.

The Government stated in July 2020 that economic crime represents

“a significant threat to the security and the prosperity of the UK … This has a significant impact on the UK’s economy, competitiveness, citizens and institutions”.

It is therefore imperative for our own economic progress that we have an efficient strategy and proper guidelines to enforce punishment for economic crime. All right hon. and hon. Members who have spoken have indicated the direction in which we want to go and what needs to be done.

I would like to start with some figures, to give a real insight into the depth of economic crime in the UK. A total of 14.5% of the UK’s annual £2 trillion GDP is taken in economic crime. That gives us an idea of the magnitude of the issue. Some £190 billion of our losses come from fraud and a further £100 billion from money laundering. London has been described as a laundromat for corrupt money, and in 2019 the Treasury found many failings in relation to legislative guidance on tackling economic crime. We must do more to ensure that the resources are there to tackle economic crime properly. They are clearly not up to scratch at the moment, hence the billions of pounds that have been lost to theft over the last period of time. I very much look forward to the contributions from the shadow Minister and, in particular, from the Under-Secretary of State for the Home Department, the hon. Member for Torbay (Kevin Foster), who will endeavour to answer our questions, as he always does.

In response to Russia’s invasion of Ukraine, the Government fast-tracked the Economic Crime (Transparency and Enforcement) Act 2022 to crack down on the elites and the dirty money in the UK. As a result of today’s debate, I hope that the Minister will give us an update on where we are, how the situation has improved and whether we can take any other steps here in the United Kingdom of Great Britain and Northern Ireland to do better. The Government must make tackling economic crime a much higher priority, especially as it is a threat to our national security. We had some discussions on that in the urgent question this morning, and we have had other discussions in this Chamber and in Westminster Hall on the same issue.

We have seen some of the most intensive sanctions in our history imposed on Russia to ensure that oligarchs and business owners cannot operate in an illicit manner outside their own borders. That is an important and welcome step, but given that economic crime accounts for some 40% of all crime in the UK, there is more regulatory action that we should take. We must have a strategy that encompasses all of the United Kingdom of Great Britain and Northern Ireland. The hon. Member for Thirsk and Malton referred to the “Panorama” programme and to the dirty money that came from Estonia right across Europe and ended up in one of the banks in Northern Ireland. In my intervention I referred to regulation for domestic customers, which is clearly there. I understand the reason for that regulation and I am in no way saying that it should not be there, but I have to question just how this can happen. Is it down to the bank? It happened to be the bank that I am a member of—I know some of the regulations the bank enforces on its customers because I am one of them. I understand that, but when I hear about £200 million moving across, it concerns me.

Paramilitarism in Northern Ireland has been significant in money laundering and in the criminal activity that it is involved in, whether it be money lending, protection money, drugs or, in the case of the IRA along the border, fuel laundering. The Government have made significant attempts to address all those issues, but many of those paramilitary groups have bought properties and businesses across the whole of the United Kingdom. I would love to see more attention being focused, through the legislation, on those paramilitary groups, who are criminals living off the backs of the local communities that they say they protect. They do not protect them; they take advantage of them and brutalise them. As a Northern Ireland MP, I am keen to see how this legislation can squeeze the paramilitaries, on both sides of the community in Northern Ireland, who are taking advantage of good local people.

We also need to consider the impact of cryptocurrency. I am sure that there are many cryptocurrency experts in the House, but I am not one of them. I have little or no knowledge of cryptocurrency. I am old-fashioned in preferring to use cash if at all possible, although I now use cheques and credit cards following covid-19, but cryptocurrency is becoming a more popular mode of finance among younger generations.

Not a week goes by when I do not see a story in the local or national press warning about cryptocurrency. I am not sure whether those warnings are heeded or whether there is regulation to ensure people are not caught by its sting. The Minister will give us his valuable knowledge of cryptocurrency and what is being done to regulate it, to monitor those involved and to ensure that our constituents do not find themselves in bother. There must be proper regulation of crypto-assets, with intensive efforts to ensure that people are not misled by the thousands of online scams. It is all too easy to make an onscreen decision, but people need to be aware that the decision is made once the button is pressed.

Consumers lost £754 million to online scams in the first half of 2021. I have been contacted by numerous constituents who have been victims of scams, and I suspect that others in this House will also have constituents who have been victims. Unfortunately, probably not a week passes without someone in my constituency finding themselves the victim of a scam, whether it is successful or whether it is stopped in time. The police issue a statement in the local press back home every fortnight warning of the latest scam, whether it is people knocking on doors or online scams. People are fairly trusting, by and large. More often than not, the people who are hacked or who find themselves the victim of online scams are of an elderly and vulnerable generation. A few months ago, an elderly gentleman in my constituency lost some £30,000 of his savings to a scam by being trusting. These things happen regularly, and the Police Service of Northern Ireland regularly advises people to be careful.

People should be careful with their information and when using online bank accounts. People are not aware of how much fraud there is in the UK. Our focus is often on large-scale dirty money and money laundering involving oligarchs—the hon. Member for Thirsk and Malton mentioned the “Panorama” programme—and we forget about normal consumers who have their money taken every day and every week. The House must do due diligence to ensure that people are aware of the scale of the problem.

I will now conclude and give the Front Benchers the time they deserve. I welcome the numerous actions that the Home Office, the Treasury and the Minister have taken to ensure more efficient regulation and checks against economic crime. However, we have seen substantial sums of money coming to the UK through fraud and money laundering, so severe action and regulation is needed. We must ensure that the Treasury allocates the correct sustainable funds and staff to enforce proper punishment against economic crime, which is ever-evolving and becoming increasingly advanced.

I call on the Minister and the Government to take this into consideration, as I know they will. I am sure the Minister will answer some of our concerns. As we look to future policies to tackle economic crime, I praise him and the Government for all their work thus far. We need to be smarter than those who try to outsmart us.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson, Alison Thewliss.