Queen’s Speech

Lord Collins of Highbury Excerpts

Wednesday 11th June 2014 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I start by echoing the remarks of the Minister and my noble friend Lady Morgan in congratulating the Government on hosting the Global Summit to End Sexual Violence in Conflict and in helping change global opinion on this issue. I also thank the Foreign Secretary for standing up so strongly for the rights of lesbian and gay people who are facing not only discrimination and anti-gay laws but also increased violence, as we have witnessed in Russia, Uganda and, sadly, on the streets of London, too.

While I remain disappointed that the Government have failed to meet their pledge to legislate, I welcome their achievement in reaching the UN’s target for spending 0.7% of gross national income on aid. I hope this commitment will become an enduring political consensus, but we need to do far more to persuade many of the public. We need to make the case strongly and at every opportunity that development changes and saves lives. We also have to make the argument that development is also in Britain’s best interests. The UK would be much better off growing and trading within a strong global economy with a sustainable climate, supported Governments and secure borders, as the noble Lord, Lord King, argued so strongly in his own contribution.

The worldwide improvement over the past 50 years has been widespread, but too many people have been left behind. Inequality is growing. Seven out of 10 people live in countries where economic inequality has increased in the past 30 years. Too often, people say that there is a choice between the interests of richer countries and those of the developing world, but we know that improving tax fairness benefits both the developed and the developing world. Climate change, too, affects all of us, rich and poor. The World Bank and the UN have both outlined the serious impact that climate change is already having and will continue to have on achieving our international development goals.

The coalition describes itself as the greenest Government ever, yet says little on climate change these days. It would be helpful to know more about how DfID is ensuring that all of our investments are climate resilient. In advance of the two major UN conferences on climate change and international development next year, it would be good to hear from the Minister how the Government are co-ordinating their engagement on these two opportunities, the outcomes of which are clearly so dependent on one another.

Today, the issue is less about how much we spend and more about how we spend it. Legislation to introduce a public register of beneficial ownership is a positive step in the gracious Speech. It is really important that we increase transparency in company ownership. The best recent estimates suggest that between $21 trillion and $32 trillion in private assets alone are held in tax havens—an estimated 23% to 30% from developing countries. In fact, developing countries lose between $120 billion and $160 billion annually in lost tax revenues due to illicit financial flows. This loss is greater than the entire global aid budget.

Greater transparency in company ownership will make a huge difference in stopping money from being illicitly taken away from developing countries. Labour is committed to restructuring our existing support by, first, doubling the £20 million DfID currently gives to help Governments build up their own tax-collecting capabilities. If successful, we will look at going even further. This is development for the long term, which can pay for itself.

However, if we are to challenge the root causes of inequality in our world, it will mean changes for working people, too. Decent jobs under decent conditions for decent pay are a vital part of development as well. I think we were all shocked to see the revelations of slavery in today’s Guardian. They are truly shocking. This brutal abuse of migrant labour in the name or profit and cheaper food has to stop. That is why Labour will reverse the Government’s decision to withdraw funding from the ILO, and we will work with our international partners like the ITUC to ensure that those who have the will to work hard can have the power to get on. Empowering the powerless is what we will do, and, under Labour, that will be what DfID will stand for.