Taxation: Avoidance

Lord Howell of Guildford Excerpts

Monday 9th February 2015 Lords Chamber

[Lord Newby]

My Lords, if noble Lords have read the statement by HSBC in today’s Guardian—it may be in other newspapers, but that is where I read it—they will have seen that it is clear that, in 2005, HSBC was run as a very loose confederation and that the centre sought not to exercise very great control. That has changed very dramatically, and the new regulatory authorities are much more intrusive in ensuring that management at the centre has effective control throughout the organisation. It is clear that there was a wholly unacceptable culture in many of the banks. Both regulatory and legal change and activities by the banks in setting up their own body to monitor standards—as well as statements by senior management at the top of banks—are trying to reverse that culture towards the kind of culture that I suspect most people would expect their bankers to follow.

[Lord Howell of Guildford (Con)]

My Lords, I have listened to several attempts by the Opposition to tie the name of my noble friend Lord Green to whatever was going on in HSBC Switzerland, which I know in intention he would not dream of defending. Does the Minister nevertheless accept that my noble friend Lord Green is a man of the utmost probity who has done an enormously valuable job as a Trade Minister for this Government? I have the privilege of working with him. His activities bring great benefit to this nation. Would it not be a little wiser, if we want to maintain the quality and integrity of our political discussion in this House, to avoid premature innuendo of the kind that we have heard frequently from the opposition Benches?

[Lord Newby]

I completely agree, my Lords.