Sanctions

Kevin Hollinrake Excerpts

Thursday 22nd September 2022 Commons Chamber

[Jesse Norman]

I am extremely grateful to my hon. Friend for his question, and the House recognises his great expertise in this area. He will understand that I am not going to comment on the future sanctions policy of this Government, but he can take it as read that we are looking extremely closely not just at ways of further extending this escalating programme of sanctions that has elaborated itself over the last few months, but at closing some of the loopholes. If he wishes, I will make certain that my officials have sight of the letter he has written and will write to him on the matter specifically.

I turn to the No. 13 regulations, which widen the definition of scope of activities for which a person can be designated. His Majesty’s Government have expanded the definition of destabilising, undermining or threatening Ukraine and supporting or obtaining a benefit from the Russian regime. This brings into scope many individuals and entities in the Russian Government, its agencies and its armed forces. The regulations make minor amendments to the definitions of being involved in, obtaining a benefit from or supporting the Government of Russia. These have the effect of broadening the interpretation of being associated with a designated person to include immediate family members who may, and often do, hold assets on their behalf. The regulations also provide an exception from trade sanctions for humanitarian assistance actively delivered in non-Government controlled areas of the Donetsk and Luhansk oblasts. Finally, they expand the definition of ownership in relation to ships and aircraft, and they correct errors and omissions in previous regulations.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I welcome my right hon. Friend to his place. He mentions family members who are associated with sanctioned individuals. He will probably be aware of, but unable to comment on, the case of Alisher Usmanov, who is sanctioned by the UK, the EU and the US but has passed on some of his wealth—£2.1 billion, I think—to his sister, who is outside the scope of our current sanctions regimes. Will my right hon. Friend’s tightening up of sanctions, which I welcome, mean that we can go after people such as Alisher Usmanov’s sister and the assets she holds on his behalf?

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[Kevin Hollinrake (Thirsk and Malton) (Con)]

I will not detain the House for long. I very much welcome the measures and the reasons for them. As the briefing states, the current measures we have imposed through sanctions are insufficient and we need to go further. The sanctions are effective, however, as evidence given to the Treasury Committee has shown. They are putting further pressure on Putin, who is clearly now under huge pressure anyway. However, they are a dimmer switch rather than a traditional light switch, so it is important that we improve the dimmer switch’s efficacy.

I raised the case of Alisher Usmanov earlier because it is a case in point and not because I wanted a direct answer on it. These are clever people, with very large resources, and they can employ the best people to help them to try to evade sanctions. They look to do that in two principal ways. They either use associates, relatives and the rest—it is good to hear that the provisions will tighten up on family members, and I will follow with interest whether that works with Mr Usmanov—or they use very complex corporate vehicles. Again, the Government intend to legislate in that area to improve the transparency around companies. Mr Usmanov has a £600 million yacht—that is some yacht—which is currently moored in Hamburg. Even though the German authorities know that it is his, they cannot identify his direct linkage to the ownership of the yacht, so they cannot impound it, which is disappointing. The Italians have taken his villa in the Italian riviera away from him, but we cannot identify his direct connection with that yacht, so we need to tighten things up in various areas to make this easier.

I will suggest a couple of measures to the Minister and his officials, who are hopefully listening. There was a suggestion from Bill Browder—his name will be familiar to many of us in this debate—who has been a fantastic champion for tackling dirty money around the world. Clearly, following the money is so difficult because these people are very clever and use very clever advisers to hide the money. If we introduced legislation so that all UK professional advisers who had dealt with a sanctioned individual had to open their books to the authorities, that would make it much easier to track that money through very complex shell companies and the like—so we could follow the money and properly sanction people. It would also potentially deter some of our professional advisers in this country from dealing with these highly suspect characters in the first place. Hopefully, the Minister will consider that.

In terms of following the money, I am also very concerned by the push from the Treasury to make the UK an international, world-leading crypto hub. One thing we know about crypto is that it is designed not to be regulated. Although people will say that there is a log, so there is an audit trail for all the money, the regulators cannot see it and that is how it is designed. In my view, our regulators will therefore never be able to track the stuff through crypto, yet we seem to be saying that we want the UK to be a leading crypto finance centre. We should reconsider that.

Another measure is the Magnitsky Act, which the EU and the UK have, although we do not call it that. That currently only covers human rights, but the EU is adding corruption to it, so asset freezes and travel restrictions could then be used for somebody who is guilty of—or even suspected of—corruption.

The shadow Minister, the hon. Member for Cardiff South and Penarth (Stephen Doughty), and my hon. Friend the Member for Isle of Wight (Bob Seely) mentioned sequestering, confiscating and redistributing assets. That is a really interesting point. Most of us in the House absolutely believe in property rights, so taking assets off people and giving them to somebody else is pretty tricky stuff. We cannot undermine our values in attempting, rightly, to use some of that money to pay reparations to Ukraine. There is one thing that we could do much more easily. We hold about £30 billion of Russian foreign currency reserves, which is currently seized. That is protected by sovereign immunity, but we could change those rules pretty quickly. It would not be difficult for us to establish criteria around which we can set aside such measures. Clearly, Russia is guilty under international law with its illegal invasion of Ukraine. It cannot be difficult for us to say, “On that basis, the £30 billion of assets can go to help Ukraine, instead of British taxpayers having to fund the help that we are providing to Ukraine.”

Finally, the Economic Crime and Corporate Transparency Bill, which is to have a Second Reading on 13 October, is missing some measures that would have a profound effect. All the money that came out of Russia and flowed into oligarchs’ back pockets went through some major banks around the world, not least Danske Bank. Some £200 billion of laundered money went through the bank’s division in Estonia. The people who run the bank must have known, because a bank’s normal return on capital employed is approximately 20%, whereas the return on capital employed in that branch in Estonia was 426%. That must have stood out pretty clearly to the people who run those banks.

If we introduced measures in the Bill to say “If you fail to prevent money laundering, fraud or false accounting, you could be held to account not only as a corporation but as an individual,” it would have a profound effect on the people facilitating this stuff. It would allow us to clamp down on it and stop it happening. I know that that is not a matter for the Minister on duty today, but I will certainly be mentioning it on 13 October. Thank you for giving me time to speak, Madam Deputy Speaker.

Sanctions

Kevin Hollinrake Excerpts

Tuesday 22nd February 2022 Commons Chamber

[James Cleverly]

I will make progress.

In response to President Putin’s decision last night to recognise sovereign regions of Ukraine as what he claimed—but we do not agree—to be independent states and to order troops into those areas, my right hon. Friend the Prime Minister today announced the initial set of sanctions that with immediate effect will freeze the assets of five Russian banks. Four of those banks are involved in bankrolling the Russian occupation. They include Bank Rossiya, which is particularly close to the Kremlin, the Black Sea bank for development and reconstruction, IS Bank and Genbank.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I am very grateful to the Minister for giving way; he is being very generous. I am interested to know the criteria we have applied in choosing those five banks, which are relatively small. He talked earlier about sanctions on entities of economic significance. The big banks in Russia are Sberbank and VTB. Why have we chosen five small banks, rather than the two largest ones?

[James Cleverly]

I would make the point that the sanctions regime set out today is the initial range of sanctions. We reserve the right to extend the individuals and entities that come under this sanctions package. I will make the point shortly that we do intend to extend the measures available to us.

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[Tom Tugendhat (Tonbridge and Malling) (Con)]

I welcome the Government’s plans for sanctions and increased action to try to clean up the mess in which we find ourselves here in the UK. This is certainly a welcome step in the right direction, and my right hon. Friend the Minister will remember that the Foreign Affairs Committee set out various options for how we should begin to think about this in May 2018, when we published our “Moscow’s Gold” report.

I welcome the direction we are taking but, along with many others on both sides of the House, I am afraid that I find myself asking, “Why not more? Why not further?” In many ways, we are using the actions of a hostile state in eastern Ukraine to justify something we should have done years ago. The UK, sadly, has for too long been an avenue for money laundering by despots and criminals around the world. For too long and on too many occasions, we have seen our institutions, our City and our service sector used to hide the gains from corrupt practices and criminality abroad.

This has now come to a head because those criminals, those thieves, who raped and murdered the Russian people for 20 years, who did not replace the oligarchs that rose up in Yeltsin’s day but merely nationalised them, have been using those same vehicles and avenues to hide the profits of their crimes—most tragically the theft of an entire country.

That act of naked brutality, that act of violence against an entire nation, an entire culture and an entire people, has sadly been allowed to profit a small number of individuals. That is an absolute tragedy. It is a tragedy for the people of Russia, who have lost so much, but it is also a tragedy for her neighbours, who are now under such pressure and such threat. It is not just Ukraine but the people of Belarus, the people of Estonia, Latvia and Lithuania and the people of Poland. It is a tragedy for those who are being weaponised in the human trafficking that we are seeing from the middle east, through Belarus and into the forests of eastern Europe. It is also, sadly, a tragedy for the people of these wonderful islands, the people of Great Britain and Northern Ireland—the people of the United Kingdom.

It is a tragedy for us because this marks what my right hon. Friend the Member for Maidenhead (Mrs May) mentioned only a few hours ago in this Chamber. We are seeing not just the aggression against Donetsk and Luhansk—not just a raid, an invasion, an opening salvo of a war that President Putin is trying to bring to Europe, in many ways for the first time in 80 years, although of course there was an exception in 2014 when he invaded Crimea and another in 2008 when he invaded Georgia; what he is doing to us, to the people of these islands, is unpicking the values and principles that our grandparents fought for 80 years ago.

President Putin is unpicking the principle that we embedded into the constitutions of the United Nations and the Council of Europe. He is unpicking the principle that the rule of law, that the debate among sovereign peoples, should be the way disputes are settled in this world. He is replacing the rule of law with the rule of force. Sadly, he is demonstrating that it works not only on the ground, but in the wallet; he is demonstrating that a leader can profit politically and personally from the abuses he conducts against his own people and his neighbours. That is why when I asked my right hon. and gallant Friend the Minister, who served with distinction in the Royal Artillery, about the classic gunner phrase “clout, don’t dribble”, what I was actually asking about—and he recognises it—is why do we not say immediately and clearly that what we are seeing today is wrong.

It is wrong for the people of the UK to have corrupt money flowing through our systems. It is wrong to have the profit of crime being laundered through our City and through jurisdictions overseas that depend on us. It is wrong to see the wages of war—quite literally—profiting a small cabal of thieves in Moscow. It is wrong because it undermines our security, it makes us more vulnerable and, sadly, it exposes the people we are privileged to represent to the dangers that we have, thank God, kept at bay for 80 years. It is wrong because it threatens the people of the United Kingdom.

We have set out ways to address that. We have spoken at various points about a foreign agents registration Act and about the exposure of beneficial ownership, not just in our own estates, but in the jurisdictions around the world. We have spoken about cleaning up the Companies House register and giving powers to the enforcement agencies, which could actually start to take action on this. We have spoken about all those things for many, many years, yet still we see names such as Mickey Mouse and Adolf Hitler in the list of directors in Companies House. Still we see the toleration, sadly, of fraud in too many of our institutions. Sadly, we still do not see the resources going into the policing of these different institutions.

[Kevin Hollinrake]

My hon. Friend is making a superb speech. One thing that often gets missed in this debate about how we crack economic crime is the role of whistleblowers. They are the most likely people to identify wrongdoing in the banks he mentions and bring it to light and to the enforcement agencies. Does he agree that whistleblower protection, and potentially remuneration, should be included in this context?

[Tom Tugendhat]

I absolutely agree with my hon. Friend on that. He is completely right, as usual, in highlighting that the protection of whistleblowers is an essential part of the exposure to justice of those who have committed crimes. We need to think again about crime. We need to look again at the institutions, law enforcement bodies and agencies that are charged with protecting us and think really hard about their budgets. They are not simply ways of stopping the taxman from getting his hands on a little bit more loot; they are fundamental to our national security and to the protection of our people. We need to think of them as agents of the state in the same way as we think of the armed forces or the intelligence services. We need to think of them on the frontline of the protection of the people we are lucky to represent. Frankly, we need to put the money where so often our mouths have been when we have passed Acts in this House that have not had the resources to make them not just law but actionable law.

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[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is clear that Putin is not afraid to weaponise his foreign policy through his armed forces, and through oil and gas supplies. It is therefore only right that we look to weaponise our foreign policy in this regard using the City of London. It may well be that, as the Minister said, we will go further quickly, but so far we have not gone far enough. Of course it might not be in our financial interests to do this. Some financial interests—some of our domestic financial organisations—might suffer, but their financial interests cannot supersede the national interest.

When we have looked at sanctions on Russia before, not least in 2015, following the invasion of Crimea, we did not go anywhere near far enough. We did not sanction Russia’s oil and gas supplies, which make up 70% of its exports. We sanctioned things such as exports of milk—clearly, that is never going to go far enough. While Russia has been reducing its dependency on our capital markets, because it saw something like this happening in the future, countries in the EU, in particular, have not being doing the same with their dependency on Russian oil and gas exports.

Lots of people have talked today about Nord Stream 2. Obviously, I welcome the fact that there will be a sanction on that, in terms of preventing it from ever—at this point in time—pumping gas. However, we should not forget that no gas is travelling down Nord Stream 2 now and that all the gas comes into Germany on Nord Stream 1. Again, those oil and gas exports will continue into Germany and other nations. Clearly, there is a huge economic need for that gas going into Germany, but it is incumbent on us and on every nation across Europe—every peace-loving nation—to reduce our dependency on Russia in every economic area.

Russia is not a large economy—its economy is smaller than that of Italy—so there are many things we can do to put further pressure on Russia through sanctions. These are things we have not done today—we have not discussed the potential for them today at all. People have talked about the SWIFT payment system. Clearly, Russia has other opportunities and can use other communications systems, but none the less addressing this would help. Preventing Russia from trading in sovereign debt has been mentioned, but what has not been mentioned is access to clearing banks. It would be catastrophic for Russia if we prevented its access to our clearing banks. Instead, we have sanctioned five very small banks. There may be good reason for that; there may be more provisions we need to put in place before we can apply further sanctions to the larger banks, and clearly there is interdependency between Russian banks and banks around the rest of the world.

The banks that we should be looking at are: VEB, which is the Russian development bank; the Russian Direct Investment Fund, which is the sovereign wealth fund; and, as a few Members have mentioned, Russia’s retail banks. SberBank has roughly 36% of SME—small and medium-sized enterprise—lending in Russia, with VTB having 20% of consumer loans. Clearly, we have to do this carefully and it may well be that we act in concert with other parties, not least the US, the EU and others. If we simply put sanctions on today, that could mean that Russian banks avoid having to settle debts to UK banks and banks in different parts of the world. Although we do not want to do anything that would cause systemic risk to UK financial markets, we are talking in the billions of dollars here rather than in the trillions, and there are other ways of shoring up our system to prevent that happening. However, what is important now is that there is no doubt that we need to go much, much further than we have done already.

[Bob Stewart]

Mr Putin may well have won, because we have not reacted hard enough. Small banks have been sanctioned, but we have not put in place real sanctions. So he will be sitting in Moscow tonight thinking, “I’ve just got to sit this one out and I will be able to play up the gains we have got extremely well to the Russian people.” We are really on dangerous ground by our weakness.

[Kevin Hollinrake]

That is certainly how it looks to me at this point in time, so it is important that we now move very quickly to take the further measures we have discussed today on the Floor of the House.

There is, of course, a wider context around this debate. Many Members on the Government and Opposition Benches have been calling for an economic crime Bill and talking about the failure to prevent economic crime. It is vital to make sure that measures such as sanctions are not subverted—that our banks follow the rules, basically. That would apply a lot of pressure on banks to make sure that sanctions are properly imposed. I have previously mentioned whistleblowers, the proper resourcing of our crime agencies, and the need to change the rules on unexplained wealth orders so that we can take wealth very quickly from people we identify.

I have outlined some more long-term measures that it will take some time to implement, but we could move very quickly with a register of overseas entities. We have previously had draft legislation—Members have mentioned being on the scrutiny Committees—so we could move really quickly. As has been mentioned, £1.5 billion-worth of property in the UK is owned by Russians who are connected to crime and corruption. Some 50% of that is registered in overseas territories and Crown dependencies, the public registers of which are not supposed to go live until 2023. The reform of Companies House would serve as a check and balance, and the move from register to regulator would mean we could properly establish the identities of directors and shareholders.

All those things I have mentioned could and should be done very quickly. That would have a meaningful effect on people connected to the Russian state. We need to act very quickly—we need action this day.

Oral Answers to Questions

Kevin Hollinrake Excerpts

Tuesday 19th January 2021 Commons Chamber

[Nigel Adams]

I thank my right hon. Friend for his question. I agree that we should be incredibly proud of the work that we have done with regard to the vaccine.

I have had meetings with my Philippine counterparts on vaccines, alongside AstraZeneca. We are supporting equitable access through our funding for the COVAX facility. We are one of the largest donors to the COVAX advance market commitment to support access for 92 developing countries; we have committed £548 million. COVAX’s partners, which include Gavi, the World Health Organisation and UNICEF, have huge experience in supporting developing country immunisation systems and the programming of immunisation. We expect the initial roll-out to COVAX AMC countries to start in the first quarter of this year.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

What progress the Government have made through international co-operation on tackling antimicrobial resistance.

[The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Wendy Morton)]

The UK is a global leader in promoting action on antimicrobial resistance. It is an international priority. We helped achieve the 2016 UN political declaration on AMR, and UK aid contributes significantly to AMR efforts around the world. This includes our flagship Fleming fund, which builds capacity on AMR in lower and middle-income countries, focusing on investments in water, sanitation and hygiene; healthcare facilities; and broader health systems strengthening.

[Kevin Hollinrake [V]]

A leading Oxford-based professor of microbiology today described covid as “the short, sharp earthquake” and antimicrobial resistance as

“the massive tsunami in the background.”

On the basis that AMR in pigs and chickens has trebled in developing nations since 2000, will my hon. Friend press for more action to limit the unnecessary use of antibiotics in humans, pigs and chickens?

[Wendy Morton]

This is a really important point. My hon. Friend has taken a keen interest in this topic for some time in this place. We absolutely recognise the risks to human health of the inappropriate use of antimicrobials in agriculture and food production, as seen through our national action plan. The vast majority of global antimicrobial use, as he will probably be aware, is in agriculture. We are a major funder of the Consultative Group for International Agricultural Research, which supports low and middle-income countries in controlling agriculture-associated AMR risks and is working to understand how antimicrobials are used, by whom and how that contributes to the misuse of antimicrobials.

Jonathan Taylor: SBM Offshore

Kevin Hollinrake Excerpts

Monday 9th November 2020 Commons Chamber

[Wendy Morton]

As I have set out, we continue to support Mr Taylor. If any evidence comes forward that he has been charged because of his whistleblowing, we will urgently consider it, and if there is evidence that the process has not been followed, we will consider that.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I am interested in this case as the vice-chair of the all-party parliamentary group on whistleblowing. The Minister says that we do not intervene in other jurisdictions’ legal cases, but we have done so in Iran, with Nazanin Zaghari-Ratcliffe. If the evidence is pointing towards this being a retaliatory act, and if we fail to act to protect this individual, who is a British citizen, what message does that send to other whistleblowers who may be in similar circumstances? Does this not strengthen the case for an office for the whistleblower to advise and support whistleblowers?

[Wendy Morton]

My hon. Friend raises some other cases of whistleblowing, but it is really important that we recognise the need to examine each individual case carefully. As I have said, if there is any evidence that Mr Taylor has been charged because of his whistleblowing, we will urgently consider what action to take.

Hong Kong National Security Legislation

Kevin Hollinrake Excerpts

Wednesday 1st July 2020 Commons Chamber

[Dominic Raab]

I agree with the hon. Gentleman about the concerns he has expressed. I do not think he should personally feel bad about the commitments he made; we all shared the hope that China would live up to those responsibilities. We are making it clear that, even if China fails to live up to its responsibilities, we as one United Kingdom, including the hon. Gentleman, will live up to our responsibilities to those BNO passport holders. I take his point about the wider threat from China. Of course, given its size and the economic asymmetry, we need to think very carefully with all our international partners about how we proceed. We do not want to have a poor relationship with China; we want a positive relationship with China. However, one thing is clear: we will not duck issues such as human rights, our values or issues that touch on a vital national interests.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

As the Chair of the Foreign Affairs Committee, my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) said earlier, a recent poll by the China Research Group expressed strong support for extending the rights of BNO passport holders to come to the UK, and I welcome this statement in that regard. It also expressed very strong support for sanctions: 80% of the people who expressed a preference felt there should be travel bans and asset freezes for the Chinese officials responsible for this legislation. Is that under consideration?

Covid-19

Kevin Hollinrake Excerpts

Tuesday 17th March 2020 Commons Chamber

[Dominic Raab]

I thank the hon. Lady for the way in which she asked her question and for complimenting the FCO consular advice. She is right—I talked about this with the Transport Secretary and the Prime Minister this morning—about the importance of not only keeping freight flowing, but ensuring that we safeguard the workers who are doing that. I want to give some reassurance in relation to the recommendations announced by the President of the European Commission yesterday, which will be considered by the European Council today, in relation to the 30-day travel ban for all but essential travel: medical staff and transporters of goods would be exempt, as well as UK nationals.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

My constituent, Kate Jackson, is currently aboard the Silversea cruise liner that has been refused entry to a number of ports. It is now headed to Darwin, Australia, where it is expected to be able to dock, but there are no available flights back to the UK. Will my right hon. Friend do all that he can to repatriate Kate Jackson and her fellow British citizens?

[Dominic Raab]

I am aware of that case and we are working actively on it. As with all the cruise ships, the challenge has been to find a place for them to dock and then, not least given the international component of these cruise ships, to get international commercial flights home. We are very much focused on it, and I hope to be able to say more about that particular cruise ship shortly.

Britain in the World

Kevin Hollinrake Excerpts

Monday 13th January 2020 Commons Chamber

[Stewart Hosie]

Indeed, but I think the hon. Gentleman understands the point I was making, which was that we do not want to find ourselves tied to ridiculous red lines and timetables when the objectives are the key thing.

It is a pleasure to take part in this debate on the Gracious Speech. As with every Queen’s Speech or programme for government, there are certain measures that one would welcome—not least, in the case of this Queen’s Speech, the announcement of increased tax credits for research and development. I say that because innovative economies are more productive economies, and when we come to combat the inevitable decline caused by Brexit, the more innovative and productive we can be, the better. A word of caution, however: research and development tax credits are a function of corporation tax, and not every innovative or innovating company, particularly the small ones, pays corporation tax. So if we can have a little imagination from the Treasury Bench about how we support innovation in smaller companies, that would be very welcome. I also welcome the announcement that measures will be developed to tackle hostile activity by foreign states, and I hope that that builds upon some of the excellent work already done in the private and public sectors, and essentially by the National Cyber Security Centre.

Although some of the measures to tackle climate change are very welcome, particularly coming from this Government, they are described as being “world leading” when they are nothing of the kind. The sad truth is that is a thin and poor programme for government. As my right hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) said when opposing the programme on the opening day of this debate, our party stands against this Government’s

“cruel, punishing policies and narrow, backward-gazing politics.”—[Official Report, 19 December 2019; Vol. 669, c. 51.]

I would go further than that. Some of the measures in the programme—such as an immigration Bill that will end in law the free movement of people—will further diminish the UK’s ability to attract the best and brightest, as well as much-needed labour in other sectors, and very much risks turning the UK into an insular, reduced and backward-looking place.

Before addressing the impact that ending free movement will have on the agriculture, hospitality and care sectors, the brain drain that the UK Government’s hostile environment is already causing, and the brutish logic of the Tory party—whose plans will reduce the ability of young Scots and, indeed, youngsters from throughout these islands, to live, love, work and study freely throughout Europe—we might want to consider the practical implications of trade and how those matters are related.

When Commission President von der Leyen said last week:

“Without the freedom of movement of people, you cannot have the free movement of capital, goods and services”,

the Government should have listened. At a time when we need to boost trade, we should be paying attention to the damage that will be done to capital markets, the City of London and the ability to export services, all of which depend on people being able to travel freely. Given the damage that Brexit will cause to UK global trade, the UK Government should be doing everything possible to remove every conceivable obstacle to protecting and enhancing the opportunities to maintain and grow trade of all sorts—free, fair trade, with a level playing field. Instead, in spite of the clearest of warnings, yet more obstacles are being erected, this time by ending in law the free movement of people, which will further weaken and diminish the UK’s ability to strike good trade deals to compensate for the losses and minimise the additional costs that Brexit will cause.

We should put a couple of numbers on this. Everybody knows that there are dozens of economic assessments of Brexit. With one exception, they are universally negative. The National Institute of Economic and Social Research provides an average assessment. We could lose perhaps 20% of total global UK trade with a bad Brexit, and that is where we are heading. If we cut a deal with all the main English-speaking economies and with all the BRICS countries—Brazil, Russia, India, China and South Africa—we might claw back 5% or 6%. It does not take a genius to work out that we will soon run out of large countries with which to cut deals to compensate for the losses, so adding additional obstacles strikes me as making no sense.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Forecasts do not say that we will lose trade. They simply say that the rate of growth of our trade will be slower. They do not say that there will be a reduction in trade.

[Stewart Hosie]

Many assessments—I am not going to go through them—say that there will be a reduction in trade. Indeed, some assessments, as I have just said, suggest a 20% loss of total global trade. That is extraordinary.

At least this programme for government suggests that there will be a trade Bill—which, of course, we should already have had—with which comes the opportunity to table amendments. Those amendments will seek to ensure full parliamentary oversight over trade deals and that our devolved nations’ Parliaments are consulted, and their consent sought, on trade deals where there is a direct impact on those countries. The amendments will also seek to ensure that, as the UK rushes headlong into any deal offered, vital public services such as the NHS are off the table, important geographical indicators are protected, and vital regional industries—national industries, in some cases—such as fishing are also protected. Many of us are old enough to remember the last time the Tories treated Scottish fishing as expendable and sold it out. We have no confidence that they will not repeat that mistake.

Those things—parliamentary scrutiny, collective working to seek real agreement with the devolved nations, and protecting the NHS and regionally important sectors—should be at the forefront of UK Ministers’ minds. I fear, however, that, at best, they will be dragged kicking and screaming to make modest concessions or, worse, that the legitimate concerns of people and industries across these islands will be ignored in a headlong dash for what may be a hideous Tory-Trump deal. When I was last in the USA last year, I was repeatedly warned that the UK will be expected to put everything on the table, while the US will be expected to put nothing on the table. When the Foreign Secretary said that a US-UK deal would be win-win, I was struck by his breathtaking naivety in saying something that stands up to no scrutiny whatsoever.

Oral Answers to Questions

Kevin Hollinrake Excerpts

Tuesday 5th November 2019 Commons Chamber

[Dominic Raab]

I pay tribute to the hon. Gentleman and congratulate him on his new appointment as an adviser at the Home Office on counter-extremism and counter-terrorism—a role that I know he will perform very effectively.

We do not comment on operational matters, as the hon. Gentleman will know. We welcome the removal of Baghdadi, but there is a much broader counter-Daesh strategy that we need to pursue. We need to keep all our partners together—which is why, frankly, some of the latent anti-Americanism that is preached by Opposition Front Benchers is deeply unhelpful.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

T6. It is great to have a no-nonsense northerner in the Chair, Mr Speaker.

Google turns around over £10 billion in the UK, making a typical profit margin of 22%, so it should pay about £420 million in corporation tax, yet it pays only about £70 million due to profit shifting. Will my right hon. Friend do all he can to press for international action to end this kind of disgraceful tax avoidance?

[Andrew Stephenson]

The UK is a world leader on tax compliance, with one of the lowest tax gaps in the world. The UK was a major sponsor of the OECD’s base erosion and profit shifting project and has adopted many of the recommendations. The Government also introduced the diverted profits tax, which came into effect on 1 April 2015 and counters the contrived arrangements used by some multinationals to divert profits from the UK.

Britain's Place in the World

Kevin Hollinrake Excerpts

Tuesday 15th October 2019 Commons Chamber

[Keir Starmer]

To take this down a tone, so that we do not just get into trading insults on general elections, I listened very carefully to what the Secretary of State said. I am genuinely troubled about leaving without a deal, as I know many people on both sides of this House are, and I will genuinely do anything to prevent that, but the “do or die” pledge is just absurd. The talks are going on. They may not resolve this week. If the talks are still continuing on 30 October, and if the read-out is that they are possibly making progress, is it really the Government’s position that, do or die, we will leave on 31 October? It is absurd to have ever adopted that position.

[Kevin Hollinrake]

To follow the right hon. and learned Gentleman’s logic, there are only two outcomes beyond 31 October: either we leave the EU, with or without a deal, or there will be an extension. After that point, will he now commit to voting for a general election if a motion were tabled on 1 November?

[Keir Starmer]

I will not vote for a general election until the extension is secured, and we are not currently in that position. We can trade these discussions all afternoon, but the absurdity is threatening no deal, which would cause huge harm to this country and fundamentally undermine the Good Friday agreement, and throwing away any progress that has been made in the negotiations because the Government think the “do or die” pledge is more important.

My question to the Secretary of State, if he wants to answer it, is this: if it comes to 30 October and the negotiations are still continuing and making progress, is it the Government’s position that they will extend article 50 to allow that progress to continue, or will we leave on 31 October? Which is the priority? I would like an answer to that question, and it is up to him whether he wants to give one. Our country needs to know, because it is absurd to say, “We’re on the verge of an agreement, but we are still going to leave without a deal because we said we would.” That is a ridiculous situation.

The ongoing Brexit negotiations are the backdrop to today’s debate. We may or may not know in the next 48 hours whether the Prime Minister will be able to put a deal to the House under the section 13 procedure. Let us wait and see. I have learned to be extremely cautious about the sorts of reports that are coming out on the progress that is being made, and I have learned to wait to scrutinise the final text.

I remember standing at this Dispatch Box at 10 o’clock at night on 11 March, when news of the last deal came through. The then Chancellor of the Duchy of Lancaster received the news as I was trying to respond—that is no criticism of him. The deal dramatically came through at 10 o’clock at night, and 24 hours later it had fallen apart because the Attorney General had given his advice on what the deal meant. So I have learned to wait to see what happens, and then to look at the detail.

Oral Answers to Questions

Kevin Hollinrake Excerpts

Tuesday 3rd September 2019 Commons Chamber

[The Minister for the Middle East and North Africa (Dr Andrew Murrison)]

This country will always stand up for the rule of law in Yemen, in Saudi Arabia and throughout the middle east. I hope very much that the hon. Gentleman understands that this country is the champion of international humanitarian law, especially in relation to Yemen, where he knows full well we are the pen holder. In my recent visit to the middle east, including to discuss Yemen, that came across loud and clear; I made it clear to my interlocutors that we will continue to hold them to account for activities in Yemen.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

T5. Corruption that impoverishes nations is facilitated by financial devices hiding ownership that are created in the UK and other western nations. Will my right hon. Friend do all he can to build an international consensus to end the inappropriate use of these devices?

[Dr Murrison]

My hon. Friend is absolutely right and will know that the 2016 London anti-corruption summit agreed new commitments on ownership transparency. He will also be aware of the leadership we have shown on things like beneficial ownership, unexplained wealth orders, the seizure of criminals’ money from bank accounts and new powers to tackle onshore and offshore tax evasion. The UK is absolutely at the forefront of tackling these things and my hon. Friend is right to draw attention to that.