Oral Answers to Questions

Debate between Naomi Long and Andrew Murrison

Wednesday 11th March 2015 Commons Chamber

[Naomi Long (Belfast East) (Alliance)]

1. What progress she has made on her consultation with the Electoral Commission on the transparency of donations and loans to political parties in Northern Ireland.

[The Parliamentary Under-Secretary of State for Northern Ireland (Dr Andrew Murrison)]

The whole House will have been deeply saddened by the passing of Lord Molyneaux of Killead. James Molyneaux was a distinguished second world war veteran and a fine parliamentarian who served Northern Ireland with great distinction for more than four decades, both in this House and the other place.

We are committed to ensuring the maximum transparency in party funding in Northern Ireland that the prevailing security situation allows, and progress has been made in detailed discussions with the Electoral Commission on finalising the new arrangements. I have spoken with the electoral commissioner, and I am confident that the necessary draft legislation will be ready to lay early in the next Parliament.

[Naomi Long]

I add my condolences and those of my party to those expressed by the Minister to the family, friends and former colleagues of Lord Molyneaux.

During the passage of the Northern Ireland (Miscellaneous Provisions) Act 2014, an undertaking was given here that last October the security situation would be reviewed again with a view to lifting the secrecy pertaining to party political donations. What progress has been made in that regard?

[Dr Murrison]

The hon. Lady is right that during the passage of the Act we discussed a review of the security situation and amending the measure accordingly. It is our aspiration to have full transparency in Northern Ireland, as we do in Great Britain. At the moment, our judgment is that the security situation does not warrant it and that we cannot take that risk, but we will keep the matter under constant review.

Cross-border Crime

Debate between Naomi Long and Andrew Murrison

Wednesday 11th March 2015 Commons Chamber

[Naomi Long]

There is no doubt that that is a concern, and it has been a concern for some time. There is evidence that when HMRC or the PSNI has turned up on site, people have scattered and taken with them some of the critical evidence, which suggests that they were aware that those organisations were coming. Obviously, we can look at that in two ways. The first is that someone could be tipping off those launderers. The alternative is that these are complex organisations that have their own intelligence. They are observing the movements of the police, HMRC and others in the area and may well become aware that operations are moving against them. In some ways, we need the intelligence on the legal side of the fence to be much more robust than the intelligence on the other side. We should not rule out the possibility that the criminals themselves are gathering intelligence about what is happening in their neighbourhoods that helps them to evade capture.

I want to move on to the wider issue of the impact of this crime. I have referred to the fact that this is not a victimless crime, and it is worth talking now about some of the victims.

[Dr Murrison]

The point about intelligence is well made. It is important not to provide organised criminals with information if we can possibly avoid it, which recalls the letter from my right hon. Friend the Member for Loughborough (Nicky Morgan) to the Chair of the Northern Ireland Affairs Committee. I have not seen the letter so cannot comment on it in any detail, but I think it is probably wise not to put such a letter in the public domain if it would give succour to organised criminals. We must be careful not to display our tactics and what we do to those who might wish to make use of them in a way that is contrary to national security or good order.

[Naomi Long]

I understand the Minister’s point, but there is a wider point about how Members can raise their concerns about these issues. They have done so via correspondence and in private evidence sessions, as the Northern Ireland Affairs Committee has done here with Her Majesty’s Revenue and Customs and in other places. It appears not to have been taken seriously. That is the concern expressed by Members on this side of the Chamber. I certainly would not wish to put anything into the public domain that would give any succour or encouragement to any criminal; neither would I want to rely on a marker if there was evidence that it could be easily removed.

We also need to acknowledge that this is a multi-billion pound business for the people involved. Whatever marker is used, they will invest in the technology that will allow them to evade it. All that we are trying to do—all that we can ever do in these circumstances—is stay ahead in the game. We need to be realistic about the fact that when it comes to protecting the public, what we are trying to do is stay ahead of the criminals in the technology we use: they will no doubt be chasing that technology as soon as it is included as a marker.

As I said, I want to move on to the wider issue of the impact on the victims. I have already mentioned that this is not a victimless crime. I want to talk about the wider impact of fuel smuggling and fuel laundering and the wider counterfeiting of consumer goods. The motion ranges slightly wider than fuel, although fuel obviously exercises us all because of its significance. There are two separate but linked issues. The illicit and counterfeit goods themselves have an element of risk attached to them. They defraud the public. People often purchase inferior goods in the belief that they are getting the real thing, and that in itself can be extremely dangerous.

For example, when fuel is stretched rather than laundered or smuggled, it can seriously damage vehicles. Often the people who purchase it are unaware that it has been stretched. There are two classes of people in that regard: those who know that they are buying fuel at a ridiculously low price and that they are risking their vehicles; and those who stop at what looks like a reasonable petrol station and purchase fuel, only to find out subsequently that it has damaged their vehicles because it was illicit. That is a different issue, but it causes real damage to vehicles, and is the public need to be made aware of that. Frankly, it may well provide a bigger deterrent against buying laundered fuel than almost anything else we could say to motorists.

Counterfeiting also places the public at risk in other ways. Reference has already been made to the discovery that some counterfeit cigarettes contain asbestos. Counterfeit cigarettes sold in Northern Ireland in the past have been found to contain arsenic. The people who make these products do not really care what goes into them or what impact they might have on health. When people purchase counterfeit and illicit goods, they are placing themselves at considerable risk. Another example is that of products made of flammable materials being brought into the household. People might think that those products meet the regular standards, unaware that they are actually bringing materials into their home that could put their family at serious risk.

I also want to highlight the conditions of those involved in counterfeiting these goods, because often they are being held against their will in other countries, having been trafficked as slaves in order to produce them. The abuse often reaches much further than consumers and the public here in Britain; it also affects those producing the goods further afield.

As the hon. Member for East Antrim (Sammy Wilson) rightly, if rather surprisingly, said, significant environmental damage is caused when people get involved in fuel laundering. The mess that is left around the countryside in Northern Ireland not only costs millions of pounds to clean up but will take many years to be ameliorated. It will leave an almost indelible mark on parts of our countryside, on our water supply, and on many other things, so these illicit and counterfeit goods have a significant impact on the public.

The other aspect is smuggled goods—the stuff that is brought in through smuggling routes. Those who open up those routes do so not for one particular set of goods; once they are available they will use them for anything. When they have good routes for smuggling fuel, consumer goods or cigarettes, we can be sure that they will use the same routes for smuggling people and drugs—and all human misery is there. It is about opening up routes around the world so they can smuggle goods, and they do not care whether it is people or goods being trafficked.

In all cases, whether counterfeiting and laundering or smuggled goods, people are evading their tax and Revenue payments. That brings us back to the issue of robbing public services. Those who purchase cheap cigarettes or cheap petrol and diesel, and thereby counterfeit goods, may think that it makes no difference. However, when they turn up at the hospital and face long waiting times for accident and emergency services, or cannot get a bed and are lying on a trolley for 48 hours, they should realise that those problems are due to money not going to the Revenue. We have to be honest with the public and say: “You are only stealing from yourself when you purchase goods in this way; you are not doing anything to help your own situation.” We need to try to disabuse people of the notion that this is a victimless crime.

In Northern Ireland, as several hon. Members have said, this has a more sinister element in that much of the money raised in this way is being funnelled into further illegal activity and, in particular, paramilitary activity. That should be a matter of concern to us all. We want a stable and peaceful future, but most of all we want a safe and secure future for the people we represent. We need to say to people: “When you purchase smuggled goods at the petrol pump or elsewhere, bear in mind the fact that you are putting money in the pockets of people who are quite happy to set out with murder in mind and take lives for political gain. Those are the people who benefit from this.” It is not only republicans but loyalists who are willing, through organised crime, to work in drug smuggling, drug dealing, counterfeiting, and all the other things. Criminals will work together where there is money to be made. That will be more important to them than any political objectives they may claim to have, and much more important than the lives and the security of the people in their communities.

It is important in this debate that we spend a little time considering the fact that this is not a victimless crime but a complex and difficult one that requires a multi-agency approach. I have no doubt that the agencies are pushing very hard to bring it to an end, but we need to secure public support. With that support, it will be much easier to find those who are behind these smuggling rings, hold them to account in the courts, and see them serve jail time for what they are doing. I commend the hon. Member for South Antrim for bringing this motion to the House.

Oral Answers to Questions

Debate between Naomi Long and Andrew Murrison

Wednesday 16th July 2014 Commons Chamber

[Dr Murrison]

Yes, I can only say that the Saville inquiry was set up under the previous Administration, under rules that existed at that time, and that Lord Saville was given free rein—rightly—in his independent inquiry. The hon. Gentleman is right to say that, so many years after this began, the costs are still coming in. Nevertheless, the value of the Saville inquiry is clear, and we need to understand that.

[Naomi Long (Belfast East) (Alliance)]

May I welcome the Minister to his new role? In order to deal with the issues of the past in a more comprehensive way, we obviously require some momentum to take the discussions between the parties in Northern Ireland forward. What role will the Northern Ireland Office play in trying to bring parties back together, when some have walked away from the challenge of dealing with the past in a comprehensive manner?

[Dr Murrison]

The hon. Lady is absolutely right that a long-term peaceful settlement relies entirely on co-operation between the parties. The Northern Ireland Office has done, and will continue to do, everything in its power to bring the parties together so that we can ensure a peaceful and prosperous future for the people of Northern Ireland.

Turquoise Resort (UK Property Owners)

Debate between Naomi Long and Andrew Murrison

Wednesday 22nd February 2012 Commons Chamber

[Naomi Long (Belfast East) (Alliance)]

Most people, when they purchase a holiday property, do so with the expectation of escaping the stresses and strains of home. Perhaps they even hope that it will be a good investment for the future, but for my constituent who purchased a property in the Turquoise development in Bodrum, the reality has been far removed from that dream.

A number of other right hon. and hon. Members have constituents who have been similarly affected, so they will be familiar with the case. However, I would like to outline what home owners have related to me about what they have endured over the past number of years. It is a tale of woe in which they have experienced significant problems with the build quality; the advertised facilities promised either never materialised at all or, if provided, fell well short of the standards advertised; and their properties, far from being prudently managed on their behalf, have allegedly been rented out without their receiving income. As a result, they have been forced to pursue costly and time-consuming legal action to try to repair the situation. The Turquoise development is one of three by Artev Global on this site, the other two being Royal Heights and the Flamingo country club. Villa Turizm was appointed by Artev Global as the sub-contracting company to manage the site, and it controlled a total of 1,350 homes across the three developments.

The problems began with the build quality of the developments themselves, where to varying degrees home owners found that what they were promised did not match what was delivered, For example, an owner in the Royal Heights development whom I met recently has stated that those properties are significantly smaller than advertised. The layout of the development was also changed unilaterally by the developer, with the result that many of those purchasing a property which purported to have a sea view instead have the rather less appealing view of the rear wall of the adjacent apartment. I have been advised that many properties suffer from damp; others have leaking roofs; some of the structural elements on the site, such as retaining walls, have not been properly constructed; and people have experienced ongoing problems with the sewerage and drainage systems. Their view is that the builder has undertaken only minimal repairs in response to complaints about building defects, simply to get through the five-year period, beyond which responsibility for such problems passes to individual home owners.

Furthermore, the developments were marketed with the promise of certain facilities, such as a golf course, a sandy beach and exclusivity of use. Some have materialised, others have not, with the quality of those provided often at variance with the brochure description. It is worth bearing in mind that these properties were advertised in the UK at various reputable exhibitions and that those promoting them are, in many cases, UK citizens, yet there appears to be limited opportunity for legal redress.

Beyond issues of build quality and facilities, however, the growing catalogue of alleged fraud, corruption and intimidation in respect of the sites is substantial. A dossier prepared by the homeowners group that sets out the detail of the allegations has been sent to the Foreign and Commonwealth Office. The dossier documents the multifarious ways in which those in the group believe the property management company has defrauded them, and they are too numerous to cover in any depth this evening.

Let me give just a flavour of the alleged illegal practice. Home owners believe that they have evidence to prove that the company has been surcharging them for utilities, such as water and electricity—they have been advised that that is illegal under Turkish law. In addition, they believe they have also been paying twice or overpaying for some provisions of the management agreement, including maintenance.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

I congratulate the hon. Lady on securing this debate. My constituents have also been adversely affected by the situation at Turquoise in Bodrum. Does she agree that although the Turkish authorities are correct in saying that this is a legal matter, it is doing huge reputational damage to Turkey, and that it is in Ankara’s interests to make sure that this is gripped, as it seems to be somewhat systematic?

[Naomi Long]

I absolutely concur with what the hon. Gentleman has said, and I will elucidate that point later.

The dossier also contains statements from a significant number of home owners alleging that their properties were rented out either against their wishes, or without their having been informed of the rental or receiving the income due for the periods in question. Some owners became aware of that when they received utility bills for the properties indicating that they had been in use when no rental was notified, for others it emerged when personal property was missing when they returned to the property after an absence. Others still turned up on site to find someone else staying in their property, and one resident has described arriving at their property to find that their keys no longer fitted the locks. On investigation, they have concluded that a window had been forcibly removed from the property while they were off site to gain access, the locks had been changed and the property had been rented out without their consent. Despite their complete lack of trust in the management company, they then discovered that under the management plan for the site they had no ability to replace the locks. I will revisit the matter of management plans later.

Allegations of intimidation of those who were vocal in their complaints about how the complex was managed are numerous. At one point, those involved in organising an extraordinary general meeting to co-ordinate legal action against the management company were arrested and questioned by the police after a complaint was made against them for doing so. One home owner has told me that the atmosphere became so intimidating that he varied his travel arrangements to and from, and within, Turkey, staying in hotels rather than at the site, and often changed hotels during a stay.

In 2011, residents were informed that Villa Turizm had left the site and, it would appear, large debts, including money owed to the home owner funds. The home owners have estimated that that could run into hundreds of thousands of pounds, but with Villa Turizm now gone their only option is to pursue resolution and compensation through arduous and costly legal action in the Turkish courts.

The developments are now being managed directly by the developer. The home owners have negotiated, through their solicitor, a voluntary arrangement, whereby they pay their management fee into a UK bank account, under their control, and release the money to the site management only once they are satisfied that the previous month’s financial transactions are legitimate. In the short time that that has operated it appears to be working well, and other similar developments are looking at it as a potential model to follow. However, it has no legal standing, and until the management plan is legally annulled the home owners will remain vulnerable, as the developer could revert to the previous management company scenario.

The arrangement also does nothing to address the wider issue of the alleged missing money, which the home owners estimate could be upwards of £1 million across the three sites; nor does it give them retrospective access to the accounts for that period, which will be the subject of another protracted and costly legal battle, with no certainty of success. In response to my letter to the Foreign and Commonwealth Office about the case last year, the Minister for Europe stated:

“The Government cannot intervene in private legal disputes within other states, nor can we become involved in steps to recover any capital outlay in respect of individual property deals that have gone wrong.”

That is echoed in a letter from the Turkish embassy to the right hon. Member for Putney (Justine Greening), who has been pursuing this matter on behalf of her constituents. It states that

“private ownership of immovable property is purely a private law matter which does not allow much to be done by this Embassy.”

Both I and my constituents accept that, up to a point. However, what is alleged here is not a simple property dispute between one purchaser and a developer, but potentially a much more complex and systematic fraud against many UK home owners. Given the seriousness of the allegations, I do not think it unreasonable to expect the Turkish authorities actively to investigate them with a view to pursuing criminal prosecutions, if appropriate, or to expect the UK Government to press them to pursue the matter with vigour, given the number of UK citizens affected.

The letter from the Minister for Europe went on to state:

“We would encourage anyone experiencing problems with property to seek legal advice by engaging an independent lawyer who will be best placed to advise on rights and methods of redress”.

He went on to direct the residents to the British embassy website, which lists English-speaking lawyers. The letter from the Turkish embassy also

“strongly urged them to get professional aid from a practising Turkish lawyer if they have not already done so”,

and referred them to the same website. It is worth noting that, despite using that list of lawyers, it took the home owner group over a year, and six different lawyers, to find one in whom they could have confidence to act purely in their best interests as the client. In one case, confidential documents relating to the home owners’ case against the developer ended up in the possession of the developer, adding to their wariness regarding the independence and trustworthiness of the legal support available to them. Allegations of bribery and corruption of legal teams are frequent.

In addition, the requirement for foreign nationals to lodge a bond of 10% of the value of the claim—in many cases, the value of the property—with the court before being able to pursue action against a Turkish citizen makes seeking legal redress prohibitively expensive for many, who are forced to cut their losses. This is another specific issue that I hope the Government will raise with the Turkish authorities, as access to fair and transparent legal representation and due process under the law is fundamental.

I accept that the Government cannot become involved in individual property disputes in other jurisdictions. Even within those strictures, however, there are things that the UK Government have been doing—and, indeed, could be doing—to help those already caught up in such situations and, importantly, to prevent others from falling foul of the same trap. Indeed, the Minister of State acknowledged that to be the case in his letter to me, and stated that the Foreign and Commonwealth Office would continue to work with the Turkish authorities to find ways to improve the situation.

One significant improvement relates to management plans. Under Turkish condominium law, every resort must have a management plan, and that document must be lodged with the local authority. However, there is no onus on the local authority to check the legality of the content of the document submitted. In this case, the management plan effectively prevented the home owners from replacing the management company by a vote at an AGM. The home owner group has been advised that the management plan is illegal under Turkish law and contravenes their international human rights. However, it will be able legally to take control of the site only if that management plan is annulled. Pursuing a legal case to do so over the past nine months has already amassed legal costs of £20,000, and it is expected to take at least another year for the case to reach its conclusion. An immediate change that would help immeasurably would be a requirement for local authorities to check that any management plan was legally valid and compliant with Turkish condominium law. It would still remain the responsibility of each purchaser to seek legal advice on the document, as to whether they personally found it acceptable, but at least they would have reassurance that its contents were within the law. Any influence that the UK Government could bring to bear on the Turkish authorities to introduce such a change would be very welcome.

About £70 million has been invested across the three sites in the development, mainly by UK and Dutch citizens, with around 90% of the home owners being from the UK. The same developer has a further three or four sites in the same area of southern Turkey, so at least 2,000 other British people could be affected. This represents a significant investment stream for Turkey, in terms of the property investment and of the associated visitor spend generated by those staying in the resort. To have such a large number of people affected by allegedly fraudulent practice carries with it significant reputational risk for Turkey, as an investment and as a holiday destination. The perception that foreign nationals will also find it more difficult to access justice when things go wrong compounds the situation. In addition, some of the alleged fraudulent practice relates to the avoidance of tax and national insurance payments, at a direct cost to the Turkish Government. It is therefore not in the interests of the Turkish authorities or the many reputable developers and solicitors working in that country to allow this situation to continue.

In correspondence in September last year, the Turkish embassy confirmed that the

“issue of fraudulent builders along the seaside resorts of Turkey, including those of Artev and Turquoise, has already been brought to the attention of the relevant Turkish authorities.”

Further, in the Minister for Europe’s correspondence, he indicated that meetings were taking place between the two Governments, and that the British embassy had raised the issue with provincial governors and mayors. I would be grateful if the Minister could update the House on any progress that has been made. Also, given the information available regarding this and other sites, and the recent high-profile conviction in Northern Ireland in relation to a Turkish property scam, would the Government consider reviewing the advice for UK citizens seeking to purchase property or needing legal advice in Turkey, as the degree of risk attendant on the process would appear to be higher than is generally perceived?

Although the story of that particular resort has been the primary focus of my remarks, it would be remiss of me not to mention also the wider experiences of those purchasing property in Turkey, as they raise one other key issue affecting buyers and involving the Tapu or habitation certificate, which is similar to property deeds. Unscrupulous developers have be known either to remortgage a property which the buyer has already paid for in full on the strength of the Tapu before registering it in the buyer’s name and disappearing, leaving the original purchaser to clear the debt or forfeit the property, or to fail to register the Tapu in the name of the buyer, instead selling it on to someone else but pocketing both payments.

In the run-up to this evening’s debate, I was contacted by people from across the UK who were keen to share their appalling experiences, first at the hands of those scammers and then in the Turkish legal system. I want to share a couple of those experiences with the Minister this evening. One gentleman bought a two-bedroom villa, having given power of attorney to a prominent lawyer in Bodrum in respect of the sale, only to discover two years later that it belonged to someone else. Despite a four-year battle with a new lawyer, he ended up with nothing: no money, no villa, and even his furniture and electrical items, valued at £2,000, were taken and sold to pay the court costs of the holder of the deeds.