Oral Answers to Questions

Lord Watson of Wyre Forest Excerpts

Thursday 3rd October 2019 Commons Chamber

[Matt Warman]

My hon. Friend is completely right that, as things stand, we are not able to take the action that we should be able to. It is also important to say that social media companies themselves have also not taken the action required of them in a civilised society. The online harms White Paper and its journey into legislation will be a crucial method of tackling this, but it is not the only one, and I would like to continue to work with the social media companies to bring forward much more rapid progress.

[Tom Watson (West Bromwich East) (Lab)]

Good morning, Mr Speaker. May I welcome the Secretary of State to her new role and, on behalf of my team, welcome her team to their new roles too?

The cyber-security fund forms part of this Government’s approach to combating harmful online activity, but serious doubts have been raised about the fund’s management. Given the concern, can the Minister or the Secretary of State confirm today whether Hacker House is a UK-based company?

[Matt Warman]

As the hon. Gentleman knows, we discussed this subject in an urgent question earlier this week. As far as Companies House is concerned, and as far as all the due diligence that was done at the time was concerned, Hacker House met all the criteria. He also knows, however, that we are looking into this matter, and that a review will report to the House by the end of this month.

[Tom Watson]

Last week, the Minister made a statement to the House in which he gave the impression that Hacker House was UK-based when he referred to a UK phone number owned by the company. My team phoned it and it was answered by a woman in California.

The Minister mentions Companies House. I looked at the Companies House website this morning and saw that there has been a registration detail change—one of the principal directors now registers their state of residence as the United States. So I remain concerned, not least because Hacker House’s accounts show receipt of a loan of £700,000 from one of the company’s directors. Can the Minister assure us that this unusual transaction was not used to unlock a taxpayer-funded Government scheme?

[Matt Warman]

I assure the hon. Gentleman that we are having a review that will look into all these matters. As he knows, the residence of an individual director is not one of the defining characteristics of whether a company is based in the UK.