Overseas Territories Joint Ministerial Council

Mark Durkan Excerpts

Thursday 3rd December 2015 Commons Chamber

[Mark Durkan (Foyle) (SDLP)]

(Urgent Question): To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the meeting of the Overseas Territories Joint Ministerial Council.

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (James Duddridge)]

I thank the hon. Member for Foyle (Mark Durkan) for his urgent question, which gives me an opportunity to talk about the excellent work of the Overseas Territories Joint Ministerial Council. The meeting formally concluded late last night, but in reality it will carry on today with a number of bilateral meetings across Whitehall, including with me.

The Joint Ministerial Council is the highest political forum established under the 2012 overseas territories White Paper. It brings together Ministers, elected leaders and representatives from the overseas territories for the purpose of providing leadership and shared vision across the territories.

At this year’s meeting we discussed a large range of subjects, including child safeguarding, economic development, financial services transparency, climate change, sustainable energy, education and skills and the challenges of providing healthcare in small jurisdictions. We also discussed sports participation by the overseas territories, pension arrangements with the Department for Work and Pensions, governance and security. We had a very full communiqué establishing how we would work together over the coming year. It has been very successful and I look forward to further meetings later today, following up on some of the commitments made last night.

[Mark Durkan]

Thank you, Mr Speaker, for granting this urgent question, which I have asked from my perspective as an officer of the all-party group on anti-corruption. I welcome what the Minister has said about what he regards as the success of the council meeting, and I hope that we can see evidence of that in relation to key issues, such as child safeguarding and climate change.

However, in relation to financial services transparency, which is what most concerns us, how satisfied is the Minister that there really has been significant progress on, for example, the signal stance that the Prime Minister has taken against corruption and the strong indications that were made about the criteria set down by the Treasury on the requirements for real transparency and proper registers of beneficial ownership of companies in the overseas territories, because they provide the shelter for all the tax scams and shams? This is not just populist tax jealousy; these scams and shams scandalise legitimate businesses and rob developing countries of key moneys. It is not a victimless crime.

Are the overseas territories co-operating? As I understand it, only Montserrat has agreed to the standards that are sought. Where are the other overseas territories on that? In the ongoing bilateral meetings today, will we really see moves from others? Is it true that the Cayman Islands have flatly refused and are making no moves on these matters?

When will we hear from the Treasury, if not from the Foreign and Commonwealth Office, on how detailed the commitments are going to be on meeting the requirements that it has set down for real transparency, because other businesses and professionals need to see them? Organisations that are working on behalf of global tax justice, such as Oxfam, Christian Aid, ActionAid and Global Witness have concerns and want to support the Government’s efforts. When will we know more?

[James Duddridge]

An enormous amount of progress has been made over the past few years in relation to financial services transparency, particularly openness on tax. I think the hon. Gentleman wants to probe me more on beneficial ownership and the transparency around company ownership. I will quote from the joint communiqué that was issued overnight and is found on the Foreign Office website. When further bilateral meetings are held, the Government usually issue a written statement the following week, as we intend to do when we have had the benefit of the additional post-JMC bilateral meetings.

The communiqué was written by all members of the overseas territories, signed up to by all members, and agreed to by the UK Government. The members

“agreed to hold beneficial ownership information in our respective jurisdictions via central registers”.

There is a lot more text, but I will end with the final sentence:

“We agreed that addressing this issue would be given the highest priority and that progress on implementation would be kept under continuous and close review.”

I have had several meetings today, it will be high on my agenda over the coming months, and we will make progress. However, some of the detail is quite technical. I think that some of the hon. Gentleman’s views of this issue are a snapshot of the situation in the middle of the JMC. There is often quite extensive, and sometimes quite robust, discussion, but late last night we got to a shared understanding that moves us further forward.