Economic Crime (Transparency and Enforcement) Bill

Debate between Kim Johnson and Paul Scully

Committee stage
Monday 7th March 2022 Commons Chamber

[Kim Johnson (Liverpool, Riverside) (Lab)]

I rise to speak in support of new clauses 7 and 8, but I want to start by expressing my solidarity with the people of Ukraine, who face unimaginable heartbreak and horror, and particularly to black residents who have been subject to unacceptable levels of racism and brutality. I call on this Government to open our doors and welcome without discrimination all refugees who are fleeing oppression, violence, occupation and war. I applaud the courageous protesters in Russia, at home and across the world who are demonstrating for peace.

The National Crime Agency estimates that £100 billion of dirty money flows through the UK every single year. This is not a new phenomenon. Since as early as 2016, the Government have been making empty promises for tighter regulations to prevent these illicit activities, but since then, £1.5 billion-worth of property here has been bought by Russian oligarchs accused of corruption with links to the Kremlin. As long ago as 2018, draft legislation was published by this Government for a register of beneficial ownership to consolidate and clarify our legal structures in order to prevent profiteering by way of laundering money through the UK property market, but despite a wealth of evidence pointing to the illicit activities of oligarchs in London and elsewhere in the UK, the Government have done nothing but kick the can into the long grass. Given the almost £2 million received in Russia-linked donations by the Tory party since the current Prime Minister entered No. 10, it seems pretty clear why.

Labour has consistently been on the front foot when it comes to clamping down on oligarchs. Our plan included an oligarch levy to tax secret offshore purchases of UK residential property, the application of the Magnitsky clause to apply sanctions against human rights abuses, and to extend the beneficial ownership register for Crown dependencies and overseas territories. Labour has not just jumped on the bandwagon now that this has become the issue of the day; we have been putting forward detailed plans to tackle this injustice for many years, as my hon. Friend the Member for Rhondda (Chris Bryant) has pointed out. Our amendments today will give this toothless Bill some bite, speeding up action against some of the worst offenders and bringing forward reforms to Companies House that will root out the activities of criminal elites who are legitimising their loot in the UK without scrutiny or repercussions. I hope the Minister will commit today to backing our amendments.

[Paul Scully]

I thank all hon. Members who have spoken in this important debate for their constructive approach to this important legislation, and for their engagement prior to today as well. Let me quickly whip through as many of the points that have been raised as possible. The right hon. Member for Birmingham, Hodge Hill (Liam Byrne) talked about SLAPPs. The Deputy Prime Minister made a call for evidence on Friday, and it is definitely not just a listening exercise. It is important that we act when we need to act.

Nominees were raised both on Second Reading and in Committee. If nominees are directed by someone else—say, the beneficial owner—the person doing the directing is caught by condition 4 in paragraph 6 of schedule 2 and is therefore a registerable beneficial owner. My hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) and the right hon. Member for Barking (Dame Margaret Hodge) both made important points, and I am keen to work with them in the coming days to make sure we do not leave any gaps. We have a common interest in doing so.

The Government tabled the amendments to reduce the transition time from 18 months to six months but, as I said in my closing speech on Second Reading, I see merit in requiring all those selling property to submit a declaration of their details at the point of transfer of land title during the transition period. In effect that means we will be giving sellers a zero-day transition period. They will have to register ownership, so we will get their ownership details either when they sell or at the end of the transition period.

I am keen to work with my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) to see how far we can go in the other place, because this is difficult to draft. I hope he is satisfied will an invitation to sit down with me in the coming days so that we can give further consideration ahead of finalising the Bill in the Lords. I therefore ask that the other amendments in this area are not pressed.

On new clause 7, tabled by the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), it would serve little purpose to introduce new legislation at the end of this parliamentary Session as it would actively harm the quality of the measures we are introducing in the broader economic crime Bill early in the third Session—I accentuate the word “early.”

We spelled out the Government’s position on the further reforms to increase the reliability of the information on the register and the ability of Companies House to share data in the “Corporate Transparency and Register Reform” White Paper, and the forthcoming economic crime Bill will introduce those measures early in the next Session, but we want to make sure that we get it right because this is the biggest change to Companies House law for nearly 200 years.

On amendments 10 and 11, also tabled by the right hon. and learned Member for Holborn and St Pancras, I point out that the Government tabled amendment 49, which commits to introducing regulations under clause 16 on information verification so that they come into force before any applications for registration may be made under clause 4(1). Amendment 49 achieves in practice what amendments 10 and 11 seek, so I hope those amendments will not be pressed.

The hon. Member for Glasgow Central (Alison Thewliss) talked about Companies House reform and verification, which is something we are introducing. People with anti-money laundering expertise will look at this within Companies House.

I think I have highlighted my intentions regarding amendments 24 and 25, which obviously seek to add to the list of statements an overseas entity must provide to the registrar when applying for registration or when complying with the updated duty. I see the merit of the proposals made by the hon. Member for Rhondda (Chris Bryant), and we take these matters seriously. As I said, we will look further at these proposals and we will work together to make sure we can do this in the other place.

I heard the hon. Gentleman’s protestations that amendment 26 takes out three words. However, it is our opinion that removing those three words may have unintended consequences. It is not quite as easy as simply taking out those three words. I would like to work with him to make sure that, if there are any unintended consequences, we can have something that gets the drafting absolutely correct. I therefore ask him not to press the amendment, in the spirit of unity in this House on standing together to make sure we have the strong measures we all want in the Bill.

Oral Answers to Questions

Debate between Kim Johnson and Paul Scully

Tuesday 10th November 2020 Commons Chamber

[Paul Scully]

I understand the enormous impact of losing a job, or even of a job being threatened. We expect all employers to treat employees fairly and respectfully, but businesses in real financial difficulty do need the flexibility to offer new terms and conditions to save as many jobs as they can.

[Kim Johnson]

Increasingly, rogue bosses such as British Airways, Centrica and ESS are using the covid crisis to cut pay and terms and conditions and are exploiting the legal loophole to fire and rehire loyal staff. With many workers now facing an impossible choice between losing pay or losing their job, will the Minister explain how these scandalous tactics can possibly be legal in the first place, and will he legislate to outlaw them—yes or no?

Oral Answers to Questions

Debate between Kim Johnson and Paul Scully

Tuesday 16th June 2020 Commons Chamber

[Kim Johnson (Liverpool, Riverside) (Lab)]

What recent discussions he has had with representatives from the hospitality sector on the effect of the covid-19 outbreak on that sector.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

I have met regularly with a large number of representatives of hospitality organisations to discuss the issues that they are experiencing, including through the BEIS ministerial taskforce on pubs and restaurants and my own weekly call with sector representatives, the next of which is this afternoon.

--- Later in debate ---

[Paul Scully]

It is not only that we need a pint. For pubs, it is about not just coming back for the opening, but making sure that it is an enjoyable experience for people, so they keep on coming back. That is what will allow them to survive and thrive, so it is important that we get the guidance out. I am trying to work with the hospitality sector and pubs to make sure that there are as few surprises as possible, but we need to make sure that we are weighing that up with the scientific guidance so that pub people, clients and people who want a pint know that they can go into a pub safely.

[Kim Johnson]

I send my condolences to the family of Jo Cox.

Workers in the hospitality industry are heading for a crisis. It has been one of the worst-hit sectors by the virus, with a disproportionate number of young, low-paid and insecure workers. My constituency of Liverpool, Riverside has an estimated 11,700 employees furloughed who are employed by small family-run businesses, many of which do not qualify for grant support because they are outside the £51,000 rateable value. Will the Secretary of State fix the loans, extend the grants and plan for recovery to ensure that support for the hospitality sector?

[Paul Scully]

It is time for me to add my voice to that of Members across the House expressing their condolences to the loved ones of Jo Cox and, indeed, wishing a swift recovery to the hon. Member for East Dunbartonshire (Amy Callaghan). That was horrific news, and I hope that she is back on her feet as soon as possible.

Liverpool City Council, which I have spoken to, has handed out £87,885,000 to businesses, including small businesses and those in the retail and hospitality sector. That is why I was pleased to be able to extend the discretionary scheme to capture more of the businesses that fell short. I know that Liverpool City Council has an economic recovery plan, in addition to “Liverpool Without Walls”, to encourage pubs and restaurants to open safely. That will help young people especially to get back into employment and get our economy up and running.

Horizon: Sub-Postmaster Convictions

Debate between Kim Johnson and Paul Scully

Wednesday 10th June 2020 Commons Chamber

[Paul Scully]

I absolutely agree with my hon. Friend. That is why some of my first conversations with Nick Read, the current chief executive of the Post Office, have been to ensure that he can do exactly that. We need to draw a line and right the wrongs of the past to give respect and trust, as well as support, for future postmasters to make sure they are valued stakeholders.

[Kim Johnson (Liverpool, Riverside) (Lab)]

Many innocent sub-postmasters and sub-postmistresses have been bankrupted, imprisoned and wrongly accused of theft due to the Post Office’s heavy-handed approach, when accountancy issues with Horizon reported financial irregularities. Sadly, one of my constituents tragically took his own life after being falsely accused of financial impropriety, leaving his family destitute and without their business. It is too late for an apology or compensation for that family. What new procedures have the Post Office introduced to protect sub-postmasters and sub-postmistresses as a consequence of this scandal? What protections has the Post Office put in place to ensure accountancy software is fit for purpose? What action will be taken against those in positions of leadership in the Post Office during the scandal? And does the Minister agree that actions speak much louder than words?

[Paul Scully]

I sympathise with the hon. Lady’s constituent who sadly took his life. That is one of many tragic stories. The fact is that we have now got the Post Office to accept its wrong position and the fact that the Horizon software could make mistakes—things were being changed there. That is why it is important to get that acknowledgment. It is also important that we continue to build trust with sub-postmasters and sub-postmistresses in their relationship with the Post Office. That is why every time I speak to the chief executive, I make sure that that is at the top of our agenda.