Finance (No. 2) Bill
Debate between Jim Shannon and Lord Stunell(11 years, 3 months ago)
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Andrew Stunell
Indeed, and I will move on to that shortly. Based on all that has gone before, I think that the Minister will say that the Government have every intention of ensuring that those things happen and that the work being promoted by the IF campaign becomes mainstream in this House and the outcome we all wish to see. I support that campaign and its objectives and am keen for the Government to adopt them and be supportive as well. Indeed, my hon. Friend the Under-Secretary of State for International Development is sitting just in front of me on the Front Bench, and I know that she works very hard on those matters as well.
I do not think that the trinket presented to us in amendment 6 is the core of what we need. I challenge the Government to give an undertaking that the proposals in the Finance Bill will be moved on so that multinationals are required to reveal the tax avoidance schemes they are using in the developing world and developing countries are helped to collect more of the tax they are owed. I pay tribute to the work, which I think was initially promoted by the International Development Committee in the previous Parliament, and which I know this Government have taken up with some enthusiasm, of supporting developing countries to create effective tax systems of their own. I know that the work that has been done in Zambia is seen as a template for other countries around the world. I encourage the Government to move forward in that direction.
Jim Shannon
The right hon. Gentleman is bringing to the Committee’s attention the issue of large multinational companies avoiding tax in other countries around the world. Does he agree that it is an issue not only for this House, but for other investment countries, such as the United States, and that together we can address the problem of big companies trying to avoid tax in third-world countries?
Andrew Stunell
Yes, I very much agree. Indeed, I have heard Ministers say that they agree. It is why it is important to work through the G8, the OECD and even the UN to get some level of international engagement on that. As is so often the case, those necessary and important international outcomes cannot be achieved by one country taking an initiative on its own. That does not deter me from arguing that the United Kingdom should be giving the necessary leadership, but I think that we have to be realistic about how we can achieve those outcomes.
Localism Bill
Debate between Jim Shannon and Lord Stunell
Andrew Stunell
The Local Government Association has given notice that it sees itself as—I do not want to put words into its mouth and say the custodian—the focal point for ensuring that a standard code of practice is available. I would have thought that the huge majority of local authorities will continue to have a published and open code of conduct. Indeed, I should have thought that it would reflect adversely on the reputation of a local authority if it chose not to do so. However, the right place for that decision to be taken is in that local authority in the light of the views of its electorate; it is not something that should be imposed from above.
Jim Shannon (Strangford) (DUP)
In Northern Ireland, we have a stringent code of conduct for local authorities. Has the Minister had any discussions with local authorities in Northern Ireland on using that blueprint for a code of conduct under these proposals?
Andrew Stunell
I am sure that the hon. Gentleman is aware that the Bill is not applicable in Northern Ireland. Currently, every local authority in England has to have a statutory code of conduct, so we are not for want of an example. We are saying that there should be flexibility about the shape and nature of the code, and that that flexibility should be exercised by the local authority.
On EU fines and infractions, I assure the House and the hon. Member for Worsley and Eccles South that we will ensure that any process to pass on an EU fine is fair, reasonable and proportionate, and we will consult on that. We will pass on a fine only if an authority has clearly caused or contributed to causing it, and has the power to remedy the situation and can afford to pay. That is set out in new clauses 13 and 14 and in Government amendments 132 to 143. The measure is not about Ministers reclaiming every penny; it is about giving a strong encouragement not to incur fines in the first place. Local authorities must not be able to assume that if they make a mistake and are in the wrong, the UK taxpayer will pay their bill for them.
It is perhaps worth rehearsing what the process is. EU grants are given with conditions attached. At present, the monitoring, and therefore the risk, falls to central Government and their agencies. In the new, devolved world, that will not always be the case, and with the transfer of control has to come a transfer of risk. The Government do not seek to offload risks that are beyond a local authority’s control—mention has been made of air pollution targets and so on.
That will all be set out in a policy statement, and I can say today that we are making good progress on that. I am placing in the Library a paper from the Greater London authority that has emerged from some of our earlier discussions, and I would very much welcome comments on it. We do not necessarily agree with every single part of it, but it will provide a strong basis for discussion over the next few weeks and we are committed to taking that discussion forward. We have also engaged with the Local Government Association and will continue to do so.
We debated fire and rescue authorities in Committee, and our amendments 92 and 93 are a response to the concerns that the Opposition raised and feedback that we have received from industry partners. They relate to authorities’ powers to charge for attending persistently malfunctioning or wrongly installed automatic fire alarms. It is not in dispute that there should be such a provision for non-domestic premises, but the point was made that domestic premises would also be caught by that power, and probably wrongly so. The amendments simply remove that option from fire and rescue authorities.
We also discussed pay accountability in Committee, and we undertook to return to the House on the matter of greater accountability on low pay in light of Will Hutton’s report on fair pay in the public sector. His report made some clear recommendations, particularly about the benefit of setting decisions on senior pay in the context of the pay of the rest of a body’s work force. Some of the Opposition’s amendments are in the same tone. We are sympathetic to that idea, particularly the potential for linking lower pay with senior pay, and we will consider the best way to take that forward. If necessary, we will return to it in the other place. As we do so, we will remain mindful of the level of burden placed on authorities and ensure that pay decisions remain ones for the appropriate local employer to take and are not dictated by us.
On the other hand, we do not think it would be helpful to use the Bill to address the pay of contracting bodies. Councils, the voluntary sector and businesses, especially small firms, have called on the Government to remove unnecessary burdens and break down barriers in local authority contracting, not increase them. That does not prevent a local authority from developing a local policy to ensure that bodies with which it contracts are open about their rates of pay as a matter of contract. That should remain an issue for local decision making, not central determination.
We have a very large group of amendments, and you no doubt have a large group of Members wishing to speak, Mr Deputy Speaker. I apologise to the House on the one hand for taking so long and on the other for dealing with some very important topics only in skeleton form. I am pleased to move new clause 12, and in due time I will wish to move the other Government new clauses and amendments in the group. I undertake to listen carefully to Members’ contributions as the debate proceeds.