Economic Crime (Transparency and Enforcement) Bill

Debate between John Baron and Jonathan Reynolds

2nd reading
Monday 7th March 2022 Commons Chamber

[Jonathan Reynolds]

My right hon. Friend’s point about donations is absolutely well made. His earlier point was about how some of the things we are seeking to address with this legislation we know about because of whistleblowers and investigative journalists. It is only because of them that we have been able to get some sense of the scale of the problem, and that is what should worry us, because we have to decide, as British Members of Parliament, about the proportionality of the concerns about this. I would ask those people who have such concerns to understand that the lack of transparency in the UK, as things currently operate, does not just open us up to risks of criminal activity, but is now a threat to our national security.

Like many people, I once believed that, as countries developed and became wealthier, that created an irresistible pressure for political reforms—for strong institutions, independent courts and the rule of law—but the fact is that that has not happened in many parts of the world. We are all too familiar with stories of people who have looted the national wealth of their countries, and then stashed those assets safely here in the west. There are examples from Nigeria, Kenya, Indonesia, China, Afghanistan, Russia and many others, and I would like to thank Transparency International for its campaigning and advocacy on these matters. Ukraine itself was once a major victim of this under the corrupt presidency of Viktor Yanukovych. Such corruption often leaves behind countries that are poor and dysfunctional, where the state is starved of the resources and legitimacy it needs to function properly, and where millions are denied the path to prosperity that they deserve. In that space, extremism and terrorism can thrive, so we simply cannot allow this to go on.

Tackling this properly clearly requires international co-operation, but when it comes to registers of beneficial ownership, that co-operation does now exist. That is why there is clear consensus on this happening in relation to property in the UK. This debate has shown that the principal difference of view between ourselves and the Government, which we will obviously discuss in Committee, is what length of time is reasonable to give people to register the beneficial ownership of the near 100,000 properties that will be affected. I think people know that we want 28 days. The Government originally proposed 18 months, and I do acknowledge that they have moved some way in reducing that to six months. I also acknowledge that this is a significant change for some people in relation to their property rights.

However, I would say that this change was announced in 2016 by David Cameron. The pre-legislative scrutiny took place in 2018, and my right hon. Friend the Member for Barking (Dame Margaret Hodge) outlined some of the history of that. So this change has been a long time coming, and people have known it was coming. It is not really the 28-day implementation period we are seeking, but the six years and 28 days that that adds up to. That is why I believe it is reasonable, proportionate and necessary to ask the Government to act at speed.

The second part of the Bill proposes changes to unexplained wealth orders. I raised the problems with these orders when we had the urgent question. I am pleased to see them included as part of this Bill, and I again acknowledge that the Government have already accepted several Labour amendments on this matter. The problems with these orders relate to issues with implementation that have occurred in the courts, so it is clearly good to see those addressed. However, many Members went further in their speeches because there are concerns, because of the way that Russia operated in the 1990s, that it can be hard to use unexplained wealth orders to take the action required now. Several Members have proposed a new set of powers that could freeze relevant assets while cases are made, and again we can deal with those amendments in Committee, but I am sympathetic to the arguments put forward.

The third part of the Bill relates to sanctions and their application. People are asking us as Members of Parliament why those who have been subject to sanction by the US and the EU are not currently sanctioned by the UK. The debate today recognises that the regime laid out in the Sanctions and Anti-Money Laundering Act 2018 is not sufficient. There is clearly a widespread desire to see this improved, and proposals in this area are welcome. However, I would also say, separate to this, that there are the issues of resources and enforcement. My right hon. Friend the Member for North Durham (Mr Jones) and the hon. Member for Basildon and Billericay (Mr Baron) made that point in detail. My understanding is that, as a country, we are under-powered in the resources and capacity we devote to this. Just last month, the former Leader of the House—now the Minister for Brexit Opportunities and Government Efficiency —said he wanted to cut 65,000 civil servants over the next three years. However, this is a clear example of an area where we need more capacity, as well as the right legal regime, to do what is required. The seriousness of these matters means that the Government must devote the resources required to do that.

[Mr Baron]

Very briefly, we are going to see a second economic crime Bill come through, and I think it would do the House a great service if the Labour party actually put forward concrete proposals when it comes to funding that would perhaps gather more support across the House than the hon. Member imagines. At the moment, the Opposition are just talking in very vague terms, but everybody seems agreed, so we need to see some concrete action.

[Jonathan Reynolds]

I am always happy to be of service to the hon. Gentleman, and we will be looking to do that. He will of course know that a comprehensive spending review is imminent.

Finance (No. 3) Bill

Debate between John Baron and Jonathan Reynolds

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 8th January 2019 Commons Chamber

[Jonathan Reynolds]

This group of amendments relates to the tax and fiscal implications of the UK’s withdrawal from the EU.

Throughout the last year Parliament has been asked to approve a series of Bills giving the Government the power to deliver every type of Brexit deal conceivable, and this Finance Bill is no different. I said when closing the Second Reading debate on the Bill for the Opposition that this approach was one of “give us the powers now and we will make the decisions later,” and as it currently stands Brexit represents the biggest transfer of power to the Executive in modern constitutional history. That is disappointing for anyone who thought Brexit would see greater powers for this Parliament, but it is also a recipe for very bad decisions, and there is a classic culprit in this Finance Bill in the form of clause 89. Innocently named “Minor amendments in consequence of EU withdrawal”, it gives the Government power to amend tax legislation without any of the usual due process in the event that the UK leaves the EU without a deal.

The Government always tell us—I am sure they will do so again—that this is simply a safeguarding provision that we will never have to use, but all of us here today know that as it stands the Government have absolutely no chance of getting their deal through, because that deal does not deliver the basics of what this country needs. It does not deliver smooth, low-friction borders for manufacturing and supply chains, nor does it deliver market access for financial services. It also fails to resolve the big question: after we leave the EU, will we prioritise market access or trade autonomy? Because of that, we will almost certainly end up in the backstop arrangements, a halfway house without any say for the UK—the very worst of all worlds.

The new clauses and amendments are therefore of seminal importance, and I am extremely grateful to the Chair of the Home Affairs Committee, my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper), for laying amendment 7 before the House today. It is clearly a cross-party amendment, supported by the Chairs of the Treasury, Exiting the European Union and Business, Energy and Industrial Strategy Committees, but it has the Opposition’s support because it offers Parliament a chance to make a clear statement rejecting a no-deal outcome—a statement that cannot come soon enough.

Anyone pretending that crashing out without a deal is simply about resorting to World Trade Organisation schedules is dangerously misinformed. As The Economist magazine said last month:

“A no-deal Brexit is about a lot more than trade—it would see many legal obligations and definitions lapse immediately, potentially putting at risk air travel, electricity interconnections and a raft of financial services”.

It would mean tariffs on trade with the EU, but it would also affect trade beyond the EU as all our current trade agreements negotiated as an EU member would immediately cease to apply. Agriculture, aerospace, the automotive sector—all these major sectors of our economy—would face potentially irreparable damage, and while tariffs may be reduced over time, excise duties and health checks on food, plants and livestock cannot be reduced so easily. Researchers at Imperial College London have calculated that just two minutes more transit time per lorry at Dover and the Channel tunnel translates into a 47 km traffic jam, and for perishable items like food, delays of that magnitude simply could not be sustained. When we add to that higher prices through tariffs and further inflationary pressure from another inevitable fall in the value of the pound, it is a recipe for significant pressure on living standards. That is why the Opposition say that no deal is not a real option.

There has been some suggestion that the Government might accept amendment 7.

[Mr John Baron (Basildon and Billericay) (Con)]

Does the hon. Gentleman not acknowledge that by ruling out preparations for no deal one is in effect tying the hands of one’s negotiating team, which in effect makes a trade deal—which we all, I think, would prefer to leaving on WTO terms—more difficult to achieve and therefore makes leaving on WTO terms more likely?

[Jonathan Reynolds]

The facts are as they are. It is far too late for that. Everyone knows the position that this country is in. The Government have run down the clock. They lost their majority through a general election that they did not need to call, and it is far too late to start applying the logic that might have applied several years ago. Because of that, our vulnerability is evident for everyone to see. No one should underestimate the likelihood of a no-deal outcome at this stage. No one should be pretending, through semantics or parliamentary chicanery, that we might be able to present no deal as a way of giving us greater leverage in negotiations. I am afraid that the Government have got us to the point of ruin if that is the strategy that Conservative Members wish to pursue.

2nd Battalion the Royal Regiment of Fusiliers

Debate between John Baron and Jonathan Reynolds

Thursday 18th October 2012 Commons Chamber

[Mr John Baron (Basildon and Billericay) (Con)]

I beg to move,

That this House opposes the disbandment of the 2nd Battalion, the Royal Regiment of Fusiliers (2RRF); notes that 2RRF is the only infantry battalion being cut that was not initially due for disbandment on military grounds; further notes that 2RRF was instead caught by the Government’s additional criteria of only one battalion loss per regiment and no deletion of cap-badges, which has resulted in more poorly-recruited Scottish battalions being saved; further notes the social and economic costs of disbandment; and urges the Government to reverse its decision.

I shall start by thanking a few people. I thank the Backbench Business Committee for granting the debate, and I wholeheartedly thank all Members from both sides of the House who have supported our campaign, especially those who have signed the motion. I also thank the many hundreds of ex-Fusiliers who have participated in the march and lobby today outside Parliament in support of the motion, most of whom have been up since the very early hours of the morning and travelled long distances. Our thanks go to them, and most of them are in the Gallery. We wish them well and thank them for their support. I also thank the many other regiments that volunteered to march with the Fusiliers today. Their kind offer was declined, but their support was very much welcome.

I should perhaps single out one person. It is always unfair to do so, of course, but I would single out Colonel Brian Gorski and his team—they know who they are—for everything that they have done and for their support and tireless efforts. Finally, I thank the Serjeant at Arms and his office; Samantha Howlett, the ticket lady; and everybody else on the parliamentary estate who has engineered an administrative miracle by getting 400-plus Fusiliers into the House today and accommodating them so well.

Why this debate? Needless to say, I am very proud to have served as a Fusilier. As a regiment, we trace our ancestry to the 17th century, and we have won more battle honours than any other regiment in the British Army, including the Guards. We won more Victoria Crosses in the great war than any other regiment, and we completed more operational tours of Northern Ireland than any other regiment.

Looking forward, we perhaps need to remind everyone that the Fusiliers is one of the few regiments to have served in all the recent military campaigns, including both Iraq wars, Kosovo, Bosnia and Afghanistan. Operationally, it is one of the most experienced regiments in the British Army. Our fighting record is second to none—that is undisputed, but it is not the subject of this debate. The subject of the debate is our contention that 2nd Battalion the Royal Regiment of Fusiliers is the only infantry battalion to be cut for non-military reasons as part of the Army 2020 proposals.

We are told that the cuts were based on military logic, notably capability and demographic sustainability, yet answers to written questions, a letter from the Secretary of State and discussions confirm that 2RRF has a better recruitment record than other battalions that have been spared. In fact, in recent years 2RRF has one of the best recruiting records of any battalion, and indeed it was the best recruited battalion when the announcement was made.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

There was one person missing from the list of thank-yous at the beginning of the debate—the hon. Gentleman himself. I thank him for securing the debate and for the campaign that he has led.

This morning, the hon. Gentleman and I presented several petitions to Downing street, including one containing 10,000 signatures of people in Lancashire and Greater Manchester, collated by the Manchester Evening News. Does that not indicate not just the scale of support for the Fusiliers but the unhappiness at the way in which the decision has been made and the unfairness behind it?

[Mr Baron]

I completely agree with the hon. Gentleman. The strength of feeling has been illustrated not just by today’s march but by the number of people who have signed the petitions. There can be no dispute but that feelings run high on the issue, and I thank him and all other Members who have supported the campaign.