G8 Meeting

Lord McConnell of Glenscorrodale Excerpts

Tuesday 21st May 2013 Lords Chamber

[Baroness Warsi]

I cannot assure my noble friend whether that will be on the agenda, but I will certainly take her views back. She will be aware that a huge amount of work is done by the Foreign Office and the Department for International Development both in projects on the ground and in creating the right climate for these matters to be discussed. Sometimes G8 summits are seen as places where western nations can point the finger at developing countries, but this meeting is also about the G8 countries getting their house in order.

[Lord McConnell of Glenscorrodale]

My Lords, is it not an absolute disgrace that multinational companies, such as Associated British Foods, can actually pay less tax in countries such as Zambia than small single market traders based in the same communities, as shown by ActionAid and others? In putting their proposals to the G8, will the Government ensure that the actions of corporate multinationals and the capacity of individual governments to ensure efficient tax systems are tackled?

[Baroness Warsi]

The noble Lord raises a very important point. It is why transparency in tax will be a key priority at the G8 discussions. It is important that we get political support for ensuring that global tax rules are fit for the 21st century. It cannot be acceptable that companies can create these shadow shell companies offshore, which effectively means that both developed and developing countries do not get the benefits from revenue that should come from their profits.