Economic Crime and Corporate Transparency Bill

Robert Neill Excerpts

Consideration of Lords message
Wednesday 25th October 2023 Commons Chamber

[Madam Deputy Speaker]

It is. Let me say for the purpose of clarity that the right hon. Lady is absolutely correct.

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

There has been a great deal of improvement in the Bill, and much of its content is welcome. I recognise that, and I also recognise what the Minister has said, but I am sorry to say that the dead hand of the Treasury has yet again got in the way of our getting the Bill into the best possible state. Let us be blunt about it. The Government, regrettably, have not moved, which is why I support the amendment tabled by the right hon. Member for Barking (Dame Margaret Hodge) and my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland), which I have signed and which, I think, offers a sensible compromise. If it takes longer for the Treasury and other parts of the Government to be persuaded, well and good: let us have a proper review after 12 months. However, a serious issue has arisen, and I want to make two brief points about it.

Let me deal first with the point made in the other place by Lord Garnier about the inherent contradictions in a test of criminality based on the size of an organisation. I can see that there is a proportionality point to be made about very small enterprises, but there is good evidence—and anyone who practises in the field will know—that fraud and other illicit activity are often channelled through smaller companies, and the people in those companies are precisely the people over whom we do need to have a degree of control. Law enforcement is not, with respect, needless bureaucracy; it is fundamental to good business, and I think that that point is regrettably being missed.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

It was a point underlined when we heard public evidence on the Bill. People explained to us how a number of different smaller companies might well be set up to become conduits for fraud.

[Sir Robert Neill]

That is a compelling point, and it accords with the evidence that the Justice Committee was given in relation to our inquiry into fraud in the justice system. The irony is that the Government’s current stance may well create a perverse incentive. That is certainly not what the Minister wants, and it is not what anyone in the House ought to want.

The point about cost caps is important as well, but I am particularly exercised about the “failure to prevent” offence. Everyone has argued for that, and we are nearly there. I hoped that the Government, being reasonable, would say, “Let us have a look at it; let us have a commitment in the Bill.” I accept that the Minister is an entirely honourable man, and I accept what he says, but I know from personal experience that Ministers do not stay forever. At the end of the day, we want an assurance that this provision will be written into the statute and there will be a review, because it is so important. I beg the Minister to reflect on that. Otherwise, those of us who want to be able to support the Government today will find ourselves in a position where we cannot do so, although there is so little between us. The ability to move just that little bit further would send a much better signal. As it is, the Lords passed these amendments last time with larger majorities than before, and they will be entitled to take note of that in the event that the Bill goes back to them again. I therefore hope that, even at the last minute, the Government will reflect.

[Madam Deputy Speaker]

I call Dame Margaret Hodge. I beg your pardon; I call Alison Thewliss.