Lord Howarth of Newport
Main Page: Lord Howarth of Newport (Labour - Life peer)Department Debates - View all Lord Howarth of Newport's debates with the Home Office
(8 years, 3 months ago)
Lords ChamberWith respect to the noble Lord, the proposition that no proper checks were carried out prior to April 2015—or, indeed, November 2014 —is not well founded. I believe that Transparency International, in one of its important pieces of work, referred to what it termed a “blind faith” period, but there was no such thing because persons wanting to invest in the United Kingdom pursuant to a tier 1 visa application were required to do that through either a broker, a bank or a lawyer, who would be regulated under the FCA and therefore bound to carry out relevant financial due diligence and anti-money laundering checks.
My Lords, how effective does the Minister think that any checks will be as long as they are carried out by the very banks which the National Crime Agency informs us are laundering billions of dollars every year? If the anti-corruption summit, which we are told the British Virgin Islands, the Cayman Islands and Jersey have declined to attend, is to be anything more than gesture politics, will the Government follow it immediately by effective action: legislation to abolish the tier 1 visa racket and to require transparency of beneficial ownership of offshore companies and trusts?
The Government have no plans to abolish the tier 1 route.
There are a number of reasons for the reduction. It is noteworthy that the reduction in the number of applications from Chinese nationals began in 2013, before any of these changes were made, and has progressively lowered thereafter. It may be attributed in part to capital controls being increased and improved in some of those countries.
The Minister said that the Government had no plans to abolish the tier 1 visa system. How does he justify that to ordinary Londoners, who see themselves priced out of the London housing market in consequence of large quantities of ill-gotten capital being imported into this country through the tier 1 visa system and invested in London housing?
The premise underlying the question is fundamentally wrong. It is not necessary to have a tier 1 visa or visa application to invest in property in the United Kingdom. Conversely, an investment in property in the United Kingdom is not a qualifying investment for the purposes of a tier 1 visa application.