Oral Answers to Questions

Justine Greening Excerpts

Wednesday 12th June 2013 Commons Chamber

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

2. What steps she is taking to help developing countries improve their tax systems.

[The Secretary of State for International Development (Justine Greening)]

The UK Government are committed to ensuring that developing countries have the ability to collect the tax that they are owed. The UK is using our G8 presidency to promote tax transparency, tackle tax avoidance and ensure tax compliance.

[Katy Clark]

The Secretary of State will be aware that developing countries lose more than £160 billion each year through tax avoidance, more than one and a half times what they receive in aid. What is she doing to ensure that we get country-by-country reporting so that we see how much those multinationals are taking from developing countries?

[Justine Greening]

Addressing tax avoidance and encouraging tax compliance will be one of the key elements of the G8 agenda, and transparency sits alongside that. We will look at how we can obtain more transparency, including sectoral transparency through measures such as the extractive industries transparency initiative. All those measures together have the potential to ensure that we can help developing countries to collect the tax they are owed.

[Dr Thérèse Coffey]

Does my right hon. Friend agree that developing countries will be able to end their dependence on aid only if they can raise enough revenues through the tax system?

[Justine Greening]

My hon. Friend is absolutely right. If we are to have sustainable development and developing countries are to have the tax revenues to fund and invest in their own public services, we need a thriving economy that creates those revenues. That is why economic development is such a key part of what my Department is now focusing on. Along with Her Majesty’s Revenue and Customs, we are investing to ensure that developing countries have the tax expertise they need to collect the taxes that are due.

[Anas Sarwar (Glasgow Central) (Lab)]

I back the call from my hon. Friend the Member for North Ayrshire and Arran (Katy Clark) for country-by-country reporting by all multinational companies. Can the Secretary of State guarantee that no money from DFID goes to any organisation or company that is not fully tax transparent?

[Justine Greening]

We are very clear that we want companies to behave responsibly across the board, including on tax, and I can assure the hon. Gentleman that there is such due diligence. We cannot simply ignore those problems, and if we are to shape private sector investment in the developing world so that it can help drive development, as I think we should, we will have to engage with the private sector more in the future than we have in the past.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

The Secretary of State will know that the OECD has been charged with coming up with a scheme to tackle base erosion and profit shifting and to consider corporate taxation. Last week in a meeting with the organisation it confirmed to me that it is working to a timetable of just two years. Does she agree with that timetable, or does she agree with me that it is an over optimistic timetable for trying to get a multilateral convention to replace 3,000 tax treaties?

[Justine Greening]

My right hon. Friend is right that the timetable is ambitious and that is why we need to put the political momentum behind it that the G8 meeting can bring. The work that the OECD is doing has been commissioned by the G20 and it shows that if we are to reach a sustainable solution, leading economies and world leaders must come together. That is precisely why we have put the subject on our G8 agenda.

[Mr Ivan Lewis (Bury South) (Lab)]

The Prime Minister and the Secretary of State have said that the main objective of this weekend’s summit on tax and transparency and next week’s G8 meeting is for G8 countries to put their houses in order. That would strengthen the moral authority of the G8 and send a strong message to the rest of the world that the time has come to get serious about tax dodging. Will the Secretary of State ask the Chancellor today to bolster the Prime Minister’s moral authority and undertake an urgent review of the changes he made to the UK’s controlled foreign company rules, which are estimated to have cost developing countries £4 billion in lost tax revenue?

[Justine Greening]

I should have thought that the hon. Gentleman would ask me about the success of the G8 event on nutrition we held last Saturday, which saw huge progress on providing funding for that issue. Let me answer the question he has asked, however. I reassure him that we are taking a structured approach to the discussions at the G8. We are looking at addressing tax avoidance—in other words, dealing with the problem. We are looking at developing better approaches to tax evasion—in other words, once the problems happen we need to ensure that we can sort them out. We are also looking at how we can ensure that developing countries, once they have made progress, are in a position to collect tax. Our Government has put the question on the agenda and I think the hon. Gentleman should congratulate us on that.

[Mr Lewis]

I do not know about tax dodging but the Secretary of State is getting a reputation for question dodging—we will try this one, Mr Speaker. The Government have identified the public registration of beneficial company owners as one of their top priorities for the G8. There can be no excuse for this basic information about company directors being shrouded in secrecy. Does that remain the Government’s priority? Will she confirm that if they are unable to secure agreement, the UK will take unilateral steps on the issue of public registration?

[Justine Greening]

We have made beneficial ownership one of the key elements of our G8 agenda, and it is right to do so. I do not recall the hon. Gentleman’s Government particularly pushing on the issue during their 13 years in office. I can assure him that the best way to make a difference for developing countries is to get international agreement. That is what they want and that is why we are trying to get it.

[Sir Malcolm Bruce (Gordon) (LD)]

In the light of the Select Committee on International Development’s recent report, and following the election, will the Secretary of State engage with the Government of Pakistan to ensure that Ministers, MPs and the leaders of the community there pay their fair share of taxes to match the contribution that British development aid is making to Pakistan?

[Justine Greening]

We have a question on the Order Paper later about Pakistan, Mr Speaker. I have already spoken with Ministers in the Pakistani Government, and the Committee’s report was right to highlight this issue.

[John Robertson (Glasgow North West) (Lab)]

4. What recent assessment she has made of the humanitarian situation in Syria.

[The Secretary of State for International Development (Justine Greening)]

The humanitarian situation in Syria has now reached catastrophic proportions. More than 80,000 people have been killed—that is nearly 1,000 a month—6.8 million are in need, including at least 4.25 million internally displaced persons, half of whom are children, and a further 1.6 million refugees are in the region, of whom 75% are women and children. UK support is providing food, health care, water and shelter for refugees, both inside and outside Syria.

[John Robertson]

I thank the Secretary of State for her answer, and I am pleased to see that she is well up with what is happening. She will also be well up with what is being done by the UN commission of inquiry, which mentioned the killing of 13 children because of lack of food and medication. Will she confirm that the Government will press for an agreement at the G8 summit on improving humanitarian access for the estimated 4 million people who need it in Syria today?

[Justine Greening]

I am sure we will be raising those issues at the G8, as I did when I was at the UN a couple of weeks ago. It is simply unacceptable that the Syrian Government continue to refuse to allow humanitarian deliveries across the border from Turkey, and we need all sides in this conflict to agree to give unfettered access to humanitarian agencies and to do that free from violence.

[Dame Angela Watkinson (Hornchurch and Upminster) (Con)]

The number of refugees coming across the border from Syria into Turkey is way beyond Turkey’s ability to provide for them. Has my right hon. Friend had any discussions with her counterparts in Turkey, the European Union or the wider international community on how these refugees might be catered for?

[Justine Greening]

My hon. Friend is right to recognise the impact that refugees are having on several countries in the region. Some 370,000-plus refugees have arrived in Turkey, and we have spoken with the Turkish Government about what we can do to provide support. They have played a leading role in providing humanitarian support to those refugees, and that should be acknowledged, too.

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

In addition to the information that the right hon. Lady has just given the House, is she aware that World Vision estimates that 1.5 million people are displaced? Does she agree that in the event of any removal of arms embargoes, there will be no less emphasis on the crucial need for humanitarian aid?

[Justine Greening]

I think I can absolutely reassure the right hon. Gentleman on that point. My Department is looking at what needs to happen in not only the immediate time frame, but the far longer term. We know that more than half the hospitals in Syria have been damaged, and that the water and sanitation systems are essentially no longer working. There needs to be not only a short-term plan to examine humanitarian needs in all circumstances—he is right about that—but a longer-term plan to examine what Syria’s needs will be afterwards.

[Mr Philip Hollobone (Kettering) (Con)]

With the Council for European Palestinian Relations, I recently visited Palestinian refugees in Lebanon who had fled from Syria. Is the Secretary of State satisfied that the United Nations Relief and Works Agency is doing all that it can to help those people, who are living in miserable conditions?

[Justine Greening]

I thank my hon. Friend for that question, because that important aspect of the crisis is often not recognised. We have provided £5 million to UNRWA particularly to support its work with Palestinian refugees. That will support more than 350,000 Palestinian refugees in Syria, and will go on food parcels and other relief items.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

I wish to declare an interest: I have just returned from a visit to Lebanon, courtesy of World Vision, on which I witnessed at first hand the impact of the heavy influx of Syrian refugees on that country. The number of refugees in Lebanon has reached half a million and is set to reach 1 million by Christmas. Last week, the UN appealed for £3.2 billion to deal with the humanitarian emergency. Will the Secretary of State tell the House how much the UK Government will contribute to this appeal?

[Justine Greening]

I thank the hon. Lady for that question. We are looking now at what we can do to continue playing a leading role in providing humanitarian support, but I think that all Members of the House would agree that we need to put pressure on other countries in the region, and the international community more broadly, to step up to the plate and provide support, and we need to make sure that they fulfil commitments that they have already made.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

5. When the Government plan to bring forward legislative proposals to enshrine in law their commitment to spend 0.7% of gross national income on official development assistance.

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[Alun Cairns (Vale of Glamorgan) (Con)]

6. What her Department’s spending priorities are for 2012-13.

[The Secretary of State for International Development (Justine Greening)]

In 2012-13, the Department focused its investment on poverty reduction through improving the lives of girls and women, boosting economic development and creating jobs, building open societies and institutions, combating climate change, responding to humanitarian emergencies, and building peaceful states and societies.

[Alun Cairns]

The Government have rightly prioritised money for some of the most deprived people around the globe, but can my right hon. Friend reassure me that the Government will also prioritise the ungoverned states in the conflict-affected areas around the world?

[Justine Greening]

I can; 30% of our bilateral aid by 2014-15 will be invested in precisely those states. When the multilateral investment is added, that comes to about half the Department’s budget.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

As the Secretary of State will be aware, the Nutrition for Growth event in London last weekend highlighted the importance of investing in nutrition. The Secretary of State will also know that in the countries with which DFID has a bilateral relationship, only about half have an investment in nutrition programme. Will the Department be expanding its commitment to invest in nutrition in developing countries?

[Justine Greening]

We made our own commitments, alongside those of many other countries last Saturday. In total that brought in $4.1 billion of investment between now and 2020, and we will be looking to work with developing countries to develop nutrition plans where there are none, but interestingly, last Saturday we saw many countries with existing plans in which they are already investing.

[Martin Horwood (Cheltenham) (LD)]

In the year when we will achieve the historic 0.7% target, does the Secretary of State agree that her Department can get more bang for its development bucks by also championing development right across Government—for instance, with the Department for Business, Innovation and Skills, on tackling the issue of modern-day slavery in the business supply chain?

[Justine Greening]

We need to make sure that all Departments are pulling in the same direction on this agenda, as I am trying to do. The hon. Gentleman is right. Modern-day slavery is a disgrace and my Department will look at what role we can play in relation to human trafficking.

[Andrew Selous (South West Bedfordshire) (Con)]

7. What recent contact she has had with the Pakistani Government about UK aid.

[The Secretary of State for International Development (Justine Greening)]

Following Pakistan’s historic elections on 11 May, I have spoken with incoming Government Ministers about their priorities, as have my officials. The federal and provincial governments made clear manifesto commitments to reform and now have a clear democratic mandate. The people of Pakistan have put their faith in democracy and they now want to see Governments delivering on those promises.

[Andrew Selous]

Tax collection is very weak in Pakistan, with apparently 70% of its MPs not even filing a tax return. Given that Pakistan promised back in 2008 to close its tax loopholes as a condition of an International Monetary Fund loan, why should we believe Pakistan on this occasion that it will be better at collecting the taxes due to it?

[Justine Greening]

My hon. Friend is right to raise the issue, as the International Development Committee did. The incoming Government have a clear-cut manifesto commitment to increase the proportion of GDP from tax collected. We support that, and we hope and expect that they will get on with it.

[Jim Shannon (Strangford) (DUP)]

There have been reports from Pakistan of Christian groups who say they have not had access to the aid coming from the United Kingdom Government. What steps have the Government taken to address that issue directly with the Pakistani Government to ensure that Christian groups get the aid that they should get?

[Justine Greening]

We intend to make sure that our aid reaches all the people who need it, irrespective of ethnic background or anything else. We raised all such issues with the Pakistani Government in the past and will continue to do so with the new Government, now that they are in place. I hope I can do that when I visit Pakistan in the coming weeks.

[Mr David Ward (Bradford East) (LD)]

8. What research her Department has undertaken into the humanitarian effects of the occupation of the west bank.

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[Chris Evans (Islwyn) (Lab/Co-op)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for International Development (Justine Greening)]

Since the last International Development questions, I have attended the high-level panel meeting in New York, met the CBI to discuss how DFID can work with business on development and attended the G8 social impact forum last Thursday. You, Mr Speaker, will recall the parliamentary reception we held last weekend in advance of the G8 Nutrition for Growth event, where we secured commitments of up to £2.7 billion to tackle under-nutrition between now and 2020.

[Chris Evans]

Last year the Secretary of State said that her top priority was women and girls. What steps is she taking to tackle violence against women and girls, especially in the Democratic Republic of the Congo?

[Justine Greening]

My hon. Friend the Under-Secretary of State visited that region comparatively recently. We are looking at how we can scale up our work on tackling violence against women and girls. The hon. Gentleman will be aware that we are also working hand in hand with the Foreign Office on tackling violence against women and girls in conflict.

[Neil Carmichael (Stroud) (Con)]

T2. In recognition of her achievement in securing the 0.7% of gross domestic product target, will the Secretary of State indicate just how many of her investments are leading to improved trade opportunities for the United Kingdom?

[Justine Greening]

We invest around £1 billion in wealth-creating projects, but I would like us to do more in the area of economic development. We need only look at the increase in our exports to China to see how other countries developing their economies will ultimately benefit us, too.

[Diana Johnson (Kingston upon Hull North) (Lab)]

T9. Following the excellent WaterAid campaign on world water day earlier this year, what progress has the Secretary of State made on ensuring that access to clean water and sanitation remains a central part of the post-2015 development goals?

[Justine Greening]

The hon. Lady will have been as pleased as I was to see that sanitation and water feature strongly in the high-level panel’s report passed to the UN Secretary-General a couple of weeks ago. It is really important that we keep that proposed target, which is precisely what the Government will be pressing for.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

T3. May I commend the Secretary of State and the Prime Minister for last Saturday’s Nutrition for Growth summit, which showed that improving nutrition is not only about state aid, but about bringing the private sector and philanthropists together to solve the problem of over 1 billion people going hungry?

[Justine Greening]

I am grateful to my hon. Friend for that question, because it shows that if we are to make a real difference, we need ultimately to see Governments working in partnership with business and encouraging responsible investment. If we can work together and bring in the best science, we will have a real chance of tackling under-nutrition.

[Jim McGovern (Dundee West) (Lab)]

T10. A member of my staff, Lee Butcher, recently visited Palestine. He was shocked and stunned to see how Palestinians are treated by the Israelis, for example having no water for weeks on end. What can the Government do to help those Palestinians who are suffering such pain?

[Rehman Chishti (Gillingham and Rainham) (Con)]

T4. What discussions have been had with the Government of Pakistan to tackle the issues of population growth, lack of family planning and high maternity deaths?

[Justine Greening]

This Government have focused on family planning; indeed, we hosted a conference on it last year. As regards Pakistan, we have a successful programme in relation to health workers. Of course, the ultimate way to tackle the issues that my hon. Friend talks about is through education. If girls stay in school longer, they get married later and have fewer children and, indeed, healthier children.

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

On a recent delegation to the west bank, we met President Abbas, who confirmed that the Palestinian Authority pays the families of convicted criminals a salary dependent on the length of time they spend in prison. Since DFID provides direct budget support which is indivisible from the Palestinian Authority’s funds, will the Minister explain and justify how British taxpayers’ money can be spent on paying criminals?

[Richard Graham (Gloucester) (Con)]

T5. Does my right hon. Friend agree that it would be possible to link our large aid presence in the British embassy in Jakarta more effectively with our trade presence in order to promote new energy solutions like the first biodiesel plant in the country from Gloucestershire’s Green Fuels?

[Justine Greening]

That sounds like a very sensible thought. We work closely with UK Trade & Investment in Whitehall, and I would like that to happen more on the ground in developing countries such as Indonesia.

The Prime Minister was asked—