(8 years, 5 months ago)
Commons ChamberI see a major benefit in increased accountability and transparency for the people of Northamptonshire. There may also be significant financial benefits just from the efficiencies that such services can find together. I find from going around the country and talking to forces, in areas such as Northamptonshire that are doing great work on collaboration, that there is so much potential. I think we are at the start of this journey, rather than at the end of it.
Last week, all parties backed a near unanimous motion on Ealing Council to introduce a public spaces protection order outside the Marie Stopes family planning clinic there, because three decades of protests by pro-lifers and one year of protests by pro-choicers have made it impossible for residents to pass along the pavement and have obstructed women having legal NHS healthcare. Will the Government issue guidance on whether other local authorities with such facilities within their boundaries should follow suit, or will there be a more national permanent solution?
Mr Speaker
I am indulgence itself, but give colleagues an inch and they take a mile.
(8 years, 6 months ago)
Commons ChamberThe hon. Lady makes an important and correct point. This abuse is indeed faced by activists and volunteers from all political parties, and candidates and activists from black and minority ethnic backgrounds are indeed disproportionately more likely to face it, both online and offline. I will come to some of the offline comments in a moment.
I heard the point that was made about Ealing. I am not sure whether it concerned the election in Ealing Central and Acton, where I was the winner, but I want to dissociate myself from those stories because they were nothing to do with the Labour party.
I was a candidate in Ealing Central and Acton in the 2015 general election, and there are pictures and footage of the fracas that ensued when I crossed paths with the Conservative canvass team, which included the former Mayor of London, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson). It was reported on “Newsnight”, and the newspapers called what happened to me “manhandling”; I think a lawyer would call it assault. There are documented examples of such things, and I reject the accusation that this is anything to do with the Labour party.
My hon. Friend raises an alarming example to add to the debate, and I thank her for her contribution.
We cannot allow abuse to act as a barrier to participation in public life. A recent survey revealed that the majority of women MPs have received online and verbal abuse from the public and a third have considered quitting as a result. The 2017 general election delivered the most diverse House of Commons in history, but a failure to tackle abuse and intimidation risks reversing that and rolling back the progress we have made in making our politics more representative.
That was an interesting contribution by the hon. Member for Lancaster and Fleetwood (Cat Smith); I will refer to it during my remarks. I recently came back from Rwanda, where there was a presidential election. There was less intimidation, abuse and violence there than we had in this country, which is pretty shocking, because many African countries—not Rwanda, I have to say—suffer from a lot of abuse.
I want raise the issue of intimidation and abuse during the election on behalf of someone who no longer has a voice in this place because she was defeated in that election. I have followed parliamentary protocol and notified the hon. Member for Derby North (Chris Williamson) yesterday that I would mention him today in the Chamber. The Opposition spokesman should listen very carefully to what I have to say about him. It is pretty ironic that only last month the new Member for Derby North spoke out against such smears in an article in The Guardian:
“But I feel people have stopped listening to the smears and lies and dirty tricks…Jeremy’s overwhelming landslide victories in the leadership elections and the general election”—
I am not sure where the landslide victory comes in as regards the general election—
“mean people have stopped listening to the smears”.
Well, no, they have not.
Some weeks before the election, a Facebook page calling itself “Unauthorised Amanda Solloway” appeared, giving all sorts of misinformation about her. The previous year, her husband’s business went bankrupt. He was one of, I think, three directors. As the wife of one of the directors, our former colleague was singled out for abuse on Facebook. The wives of the other directors were never mentioned, and neither were the other directors. She had no connection to her husband’s business, and bringing up her name in association was just a way to tarnish her reputation for no reason. Nobody in this House would expect to be deemed responsible for a relative’s business, but Amanda Solloway was—just because she ruffled feathers by winning a parliamentary seat two years earlier. We are all entitled to a family life outside this place and politics in general. Bringing family into any political debate is unreasonable, and the hon. Member for Derby North would not like it if I were to refer to his private life in this Chamber or anywhere else.
Of course, the Facebook page has now been removed, but we have screenshots of it. It included video statements made by Amanda Solloway’s opponent, the new Member for Derby North, about the unfair link to her husband’s business. That would suggest that the hon. Gentleman had direct involvement in the page’s overall strategy. If he did not, how were the videos made available?
This Facebook page not only said that Amanda Solloway must have been involved in her husband’s business and so was culpable for the number of people who lost money as a result of the bankruptcy, but showed pictures of her with her husband on a social occasion a long time ago, wearing evening dress to go to a dinner, implying they were wealthy. They are not. It also showed a photo of one of her daughters’ wedding day. That year, both their daughters were married; the page suggested that this was done on the proceeds gained from the unfortunate people who lost their money when the company went bankrupt. That was totally false. This was a targeted, personal and unfair campaign against our former colleague. In fact, I would say it was bullying.
I remember the hon. Lady’s former colleague. We did an interview together when the election was announced, and I am sorry to hear of these tragic things. Before I was elected in 2015, a fake Twitter account called “Dr Huq” was set up, which said I lied about the NHS and put out all sorts of vile messages. It was shut down only after I was elected. I wonder if the hon. Lady has had the same experience as me, in that social media platforms take these matters seriously from MPs, but the general public, former MPs or unsuccessful candidates are unable to do anything. There are double standards.
It is a very difficult situation. The Facebook page received many hits, because many people were searching for Amanda Solloway. Many people could have been influenced by this vile abuse on social media.
The final straw was when the current Member of Parliament asked people who had been affected by the bankruptcy to join him at a meeting to discuss how he would return their money. He said he would pay their expenses to attend the meeting, and the money was raised from donations through a YouCaring compassionate crowdfunding page. All this was done on the page by video. The new Member for Derby North asked for donations, so that he could meet at a venue in Derby those who had lost money—most of them were not from Derby—and presumably promise that he, and he alone, would stand up for them, and probably ask them to help his campaign. In fact, at the first business questions following the election, he tried to trick the Leader of the House into condemning Amanda and her husband’s company. He knows the ropes, because of course he had been an MP before Amanda Solloway won in 2015—something he has never come to terms with.
Amanda faced other problems. She was campaigning outside a very large mosque in Derby on a Friday following prayers; in the area, leaflets with the title “Operation Muslim Vote” had been delivered by the Muslim Public Affairs Committee UK. Amanda’s photo was on the leaflet. Next to a headline saying, “Their voting record” it stated:
“Voted against ending rough sleeping and causes of rising homelessness. Voted against accepting 3,000 unaccompanied refugee children. Visited Israel with Conservative Friends of Israel as a Tory candidate”.
Finally, in large capitals, it read:
“Voted for UK to support Saudis’ bombing of Yemen. Do you want this Tory MP to represent you…? You decide on June 8th”.
Obviously, this group is entitled to try to influence the election, but the leaflet in my view was bullying and intimidatory, and it was not even truthful. Amanda Solloway is a respected figure among Derby’s immigrant communities. Since leaving Parliament, she has been setting up a charity for those with mental health issues, and is involved in projects for the homeless. The swastika and abuse drawn on my posters, and the theft of dozens of them, are not in the same league as the campaign against Amanda. In my case, the police caught on camera a person who looked at the poster during the evening and returned at 3 am to deface it. He now has a caution, which will affect his ability to change jobs. I hope he has learned a lesson.
I fully expect, after I have exposed what happened to Amanda, to receive threats for speaking out on these issues, but they must be aired so that the public understand what we have to put up with. The behaviour of the Member for Derby North was the worst I have ever seen. I hope the sensible wing of the Labour party, not the extreme left-wingers who are clearly just like Militant used to be, will win the day and stop this kind of personalised campaigning. As the hon. Member for Lancaster and Fleetwood said, politics should be about the policies, not the people.
A political campaign should never be personal—as I have said, it should be about policies—but the Member for Derby North clearly overstepped the boundaries. Neil Kinnock, a former Member and leader of the Labour party, tried to remove this sort of extremism when he was party leader, and was successful for a time, but unfortunately we seem to have gone backwards. I appeal to the sensible Labour Members to show their colleague that his behaviour is totally unacceptable and will not be tolerated by them or anyone in the future.
(8 years, 10 months ago)
Commons ChamberI just heard what you had to read through, Madam Deputy Speaker. I have 147 amendments, so I hope the Chair has changed by the time we have got through them. However, I do not think we will be taking them individually.
When we sent the Bill to the Lords some months ago, there was considerable cross-party consensus on its aims and measures. After exercising robust scrutiny, we made a number of amendments in this House, including the significant addition of the Magnitsky clause on gross human rights abuses and violations, which I believe significantly improves the legislation. I am pleased to say that the same consensus continued in the House of Lords and that the group before us consists only of Government amendments.
With Prorogation imminent, it is crucial that we get the many valuable powers in the Bill on to the statute book, including unexplained wealth orders, the seizure and forfeiture powers, and the offences of corporate failure to prevent tax evasion. I welcome the support of colleagues across the House to ensure that we can achieve that goal. Although there are 147 amendments in the group, I reassure hon. Members that they are to a great extent minor or technical changes that aim to enhance the operation of the Bill’s existing measures. I will briefly highlight some of the most significant measures.
Undoubtedly, the issue that received the most substantial scrutiny in the House of Lords was that of company ownership transparency in the British overseas territories with financial centres and the Crown dependencies. This topic is of great interest to right hon. and hon. Members in this House. As part of our international efforts to increase corporate transparency, the Government continue to work closely with our overseas territories and Crown dependencies to combat corruption and ensure that they implement the commitments they have made on law enforcement access to beneficial ownership data by the deadline of June this year.
I met the Chief Ministers of Jersey, Guernsey and the Isle of Man earlier this week to discuss their progress, and pressed again our ambition for transparent registers. Yesterday, I co-chaired a meeting of peers and the London representatives of the overseas territories, so that they could update us on their efforts so far.
Once the commitments have been implemented, they will put the UK and our overseas territories and Crown dependencies well ahead of most jurisdictions in terms of transparency, including many of our G20 partners and other major corporate and financial centres, including some states in the United States. As I have said previously, we should be proud of that fact and of the progress we have made since the anti-corruption summit last year. These arrangements will prevent criminals from hiding behind anonymous shell companies and bring significant benefits in terms of the capacity and information that UK law enforcement authorities will have at their disposal to tackle criminal activity and investigate bribery and corruption, money laundering and tax evasion.
It is right, however, that we review the effectiveness of the implementation to assess whether the arrangements are delivering the outcomes that we and our law enforcement agencies are after. That is why we amended the Bill in the House of Lords to require a statutory review of the progress made by the territories against their existing commitments. That report will be laid in Parliament, so that the House can revisit this issue as appropriate in due course.
Some peers and right hon. and hon. Members would have liked us to go further. However, as I have made clear, we are making considerable progress by working consensually with the territories and respect our constitutional settlements with them. The Government maintain that it would not be appropriate to force legislation on jurisdictions that are, to a great extent, self-governing. With Prorogation growing ever nearer, I welcome the fact that that amendment was strongly supported by peers of all parties. I trust that hon. Members will agree that it is a sensible way forward at this stage.
Turning to the provisions that were already in the Bill, we have made a number of amendments to the proposed operation of unexplained wealth orders. The hon. Members for Dumfries and Galloway (Richard Arkless) and for Kirkcaldy and Cowdenbeath (Roger Mullin) raised concerns that the £100,000 threshold for the imposition of unexplained wealth orders could disadvantage law enforcement agencies in certain parts of the country, particularly where property values may be lower or the proceeds of crime more evenly shared out. The Northern Ireland Executive raised similar concerns. In the light of that, Lords amendments 2 and 15 will lower the threshold from £100,000 to £50,000, as was requested by the SNP. The threshold remains an important safeguard that will be considered by the court, along with other factors, before unexplained wealth orders can be made.
Following concerns raised in the Lords and by the right hon. Member for Barking (Dame Margaret Hodge) in evidence to the Public Bill Committee, further amendments were made in the Lords to ensure that unexplained wealth orders could be applied in relation to property held in trusts or other complex ownership arrangements, including through a foreign company. Those amendments will help to ensure that the orders have the greatest possible impact once law enforcement agencies can use them.
Lastly in relation to unexplained wealth orders, Lords amendments 11 and 33 provide for a compensation scheme in relation to the interim freezing orders that can accompany an order. Such a freezing order would be used to ensure that someone does not scarper while we go to court to put in place an order. We therefore need a compensation scheme, should the court decide an order is not appropriate. That is an important safeguard to circumscribe the use of such powers.
Hon. Members will recall that we extended the seizure and forfeiture powers in chapter 3 of part 1 on Report in the Commons to cover gaming vouchers and casino chips, following another concern raised by Opposition Members. Following a representation from the hon. Member for Dumfries and Galloway, Lords amendments 47 to 49 and 91 to 93 will also allow law enforcement agencies to seize a betting slip where they suspect that the funds used to place the bet are the proceeds of crime. Those provisions will be subject to the same safeguards as those on cash seizure, and we will work with bookmakers and their trade associations to ensure that the measures are used effectively. I trust that hon. Members will welcome that further expansion of the powers.
On a related issue, Lords amendments 69 to 71 will allow for legal expenses to be deducted from any property recovered under the seizure and forfeiture powers, helping to ensure that they function effectively in practice.
Following discussions with banks and other regulated bodies, Lords amendment 36 will extend the period in which companies can share information with each other to tackle money laundering. At present, information sharing can take place for 28 days from the initial notification; we are extending that to 84 days. That takes account of more complex cases where, for example, numerous banks may have relevant information. It is a further sign of this Government’s commitment to working in partnership with the private sector to tackle money laundering. It will help to ensure that the information sharing provisions underpin the incredibly important work of the joint money laundering intelligence taskforce.
As I said at the outset, there are a number of other Lords amendments in the group that provide for minor or technical changes to the existing provisions. I do not expect that any of them will provoke significant concern among hon. Members, but I would, as ever, be happy to address specific queries during my closing remarks.
I hope that the House agrees that the amendments that have been made in the Lords improve the Bill, which, as I have said, has been the subject of significant cross-party support throughout its passage. The Bill, as amended, will ensure that law enforcement agencies have the tools they need to tackle money laundering and terrorist financing and to work as effectively as possible with the private sector on those crucial national security priorities.
We must, of course, remember that the Bill is only one element of the Government’s wider approach to tackling corruption and other serious and organised crime. I referred in earlier debates to Labour’s Bribery Act 2010, which is another plank in the assault on corruption. That goes to the heart of how the Bill is part of a wider package and continual process of tackling corruption.
I was pleased that there was a call for evidence on the review of limited partnerships, which closed on 17 March 2017, as this allowed people to make their concerns known about the abuse of Scottish limited partnerships that we have all seen and that has been evidenced by The Herald newspaper throughout this process. I thank the hon. Member for Kirkcaldy and Cowdenbeath, who has been an effective champion on this issue. I hope that, once the review is completed and we see the results, he and I will be in agreement about the next steps. Department for Business, Energy and Industrial Strategy officials are analysing the responses and expect to submit advice on options to Ministers shortly after the election.
The Ministry of Justice has conducted an initial call for evidence to examine the case for changes to the law on corporate criminality liability for wider forms of economic crime. It is considering the responses at present. We are also strengthening the supervisory regimes for the regulated sector, including proposals for a new office of professional body anti-money laundering supervision—OPBAS, I am told it is called—in the Financial Conduct Authority, to help ensure that the non-statutory supervisors comply with their obligations in the money laundering regulations.
The UK’s public register of beneficial ownership information—the first of its type in the G20—has been up and running since June 2016. Recently, we published proposals for a further public beneficial ownership register for foreign legal entities to increase the transparency of overseas investment in UK property and central Government procurement contracts. We are continuing to reform the suspicious activity report regime, including through investment in systems and processes to complement the legislative reforms. Following a commitment at last year’s anti-corruption summit, we have worked closely with civil society, businesses and practitioners to develop the first UK anti-corruption strategy.
I am pleased that we have reached this stage of the Bill’s consideration in such a constructive fashion. I invite the House to agree to the Lords amendments before us, so that this crucial legislation can be enacted without further delay.
I rise to speak on behalf of Her Majesty’s loyal Opposition for the final occasion in the current Parliament.
The Minister talked about cross-party co-operation and Labour’s Bribery Act 2010, which the Bill builds on, as well as the Proceeds of Crime Act 2002. We welcome all the Government’s technical amendments, because we want a Bill that works and prevents financial crime.
We all remember the heady days of 2016, when the Bill was first announced. We remember the headlines about the possibility that the assets of human rights abusers who bought London homes would be seized and all the rhetoric about cleaning up dirty money. We welcome the Bill and we are happy to support the amendments, most of which are technical and will ensure that some measures in the Bill will work more effectively. They perform a tidying-up function. We particularly support the measures that are intended to ensure that unexplained wealth orders cannot be circumvented through trusts or other complex financial arrangements, and we welcome the thought that has gone into the specific arrangements for the devolved Governments in Scotland and Northern Ireland. We in the Labour party hope that the return of an inclusive devolved Government in Northern Ireland will be achieved as soon as possible.
Let me now say something about Lords amendment 34. Throughout the Bill’s passage through the House of Commons, we have consistently returned to the elephant in the room: beneficial ownership and transparency in the United Kingdom’s overseas territories and Crown dependencies. I do not want to restate all the arguments—there is no time for me to do so, because we all have to go back to our constituencies and prepare for power, do we not?—but I believe that my position, and that of the Labour party, is clear. Labour believes that the Government have a moral duty to ensure that our overseas territories and Crown dependencies adopt publicly accessible registers of beneficial ownership to prevent them from being at the global epicentre of illicit financial practices, which damage developing countries and the world economy. They contribute to geopolitical instability, and they do our reputation harm as well. We have seen headlines that, while not suggesting that dead bodies can be seen piling up on the streets of London, make it clear that malpractices have been taking place.
The argument can run and run, and we can have another day for it, but I take heart from the Government’s realisation that a step in the right direction on the long and winding road is ensuring that the new arrangements for information sharing between the relevant territories and the UK’s enforcement agencies are subject to an open and transparent review. Territories such as the British Virgin Islands and the Cayman Islands have been astute. They are very clever at using what are essentially tokenistic, box-ticking consultations—soi-disant, in inverted commas—to argue that compliance, competitiveness and security concerns hamper their adoption of centralised and closed registers of beneficial ownership. They do that because they know they can get away with it. They know that having a centralised, as opposed to a decentralised, platform brings them one step closer to laying the foundations for a public register in the future. That is the holy grail. That is what is at the end of the rainbow—what we are all looking for.
The Government’s concession on the issue is much appreciated, but I believe that the original Labour amendment would have been a far more effective vehicle for assessing the substance of the overseas territories’ claims that they are unable to have public registers of beneficial ownership owing to those compliance, security and competitiveness concerns—all the pretexts and excuses that are being wheeled out. We firmly believe that this is a missed opportunity for Britain. The systems of British overseas territories and Crown dependencies allow tax avoidance on what some people describe as an industrial scale. It does go on, and we cannot pretend that it does not. The Government’s unwillingness to support our position on registers of beneficial ownership is unforgivable. Sadly, it shows that the Conservative party is not serious enough about money laundering. It could do better. We used to be tough on crime and tough on the causes of crime—indeed, we still are—but the Conservatives could be tougher on financial crime. They are not as tough as they would have us believe.
(8 years, 11 months ago)
General Committees
The Chair
Hon. Members have until 10 am to ask the Minister questions. I remind them that questions should be brief. I will allow supplementary questions; just catch my eye, please, if you wish to ask a question.
I apologise for being slightly late to the Committee, Mr Paisley. My questions for the Minister revolve around two main questions: is the agreement a good idea, given the human rights abuses by Turkey, and will it stick? I will outline those a little further.
Can the Minister offer anything further in the way of concrete reassurance that Turkey’s treatment of refugees within its territory will be brought up to good standards? If not, will he agree with me that unless those standards can be put in place in Turkey, it is very far from a satisfactory solution for EU Governments or agencies to deport individuals back there? There are many relevant human rights reports on the issue, including from Human Rights Watch and Amnesty International.
UK taxpayers’ money is going to support refugees in Turkey, as well as to shore up current EU policy in Greece, so it would be good to know that that is being spent in a way that works to bring the Turkish system closer to internationally agreed standards. Will the Minister explain how UK funding has supported that? Will he put pressure on, or encourage EU foreign affairs institutions to put pressure on, the Turkish authorities to establish a more secure status for the millions of Syrian refugees in limbo in Turkey at the moment?
The hon. Lady asks a very reasonable question: is it safe to return people to Turkey? As we have heard, Turkey ably hosts more than 3 million refugees, and we believe that it offers sufficient protection, in both its law and its practice, to return migrants from Greece under the EU-Turkey agreement. Turkey has modernised its legal framework for the protection of refugees, and we have been monitoring the situation closely since the attempted coup. To date, there has not been any evidence of deterioration in the conditions of, or protections available to, refugees. The UN Refugee Agency, the UNHCR, is monitoring the situation.
As I said, the United Kingdom has committed €328 million to the €3 billion facility for refugees in Turkey, in addition to the contribution via the EU budget to assist Turkey in hosting those refugees. We continue to work with Turkey and other international partners to address the needs of refugees there.
There are concerns that this agreement represents a shift in refugee policy; there have been reports on the subject by Human Rights Watch, the United Nations High Commissioner for Refugees, the European Council on Refugees and Exiles and the European ombudsman. I am encouraged to hear that there will be regular monitoring, because the ombudsman has said that there need to be impact assessments as part of an ongoing process. Does the Minister recognise that some of the fundamental rights that protect people within the international system are at risk of being watered down by this unusual policy shift? What representations have we made at European level to seek assurances on those protections?
I hope the hon. Lady will recognise that one of the fundamental principles of a refugee system is that one must claim asylum in the first safe country. For the majority of those fleeing Syria, Turkey is that first safe country, and Turkey understands its responsibilities in that regard. A number of the people in Turkey who are seeking to come to Europe are not refugees from Syria; some of them are economic migrants from countries further afield, as far away as Afghanistan and Pakistan. When those people make a claim, it needs to be considered under the rules that are in place.
The Turkey deal is saving lives every day. Not having that deal in place would be playing into the hands of the people smugglers. We would once again see the carnage of people making that hazardous sea journey across the Aegean, and those heart-rending pictures of small children being cradled in the arms of rescuers on beaches. That is something we do not wish to return to. The Turkey deal delivers on that, and means people can be accommodated in Turkey in the refugee camps there. Indeed, the vast majority of the Syrian refugees that I met in Jordan when I was visiting the refugee camps did not want to come to Europe; they wanted to go back and carry on their lives in the country that they loved. I believe that this deal is a great way of delivering on all those objectives.
International law refers to adequate protection, and that is neither defined by, nor required to be equivalent to the standards met by, individual EU member states. We have been monitoring the situation closely since the attempted coup, and there has not been any evidence of deterioration in the protections available to, or conditions of, refugees. In the UNHCR’s opinion, which I believe we should give a great amount of credibility to, that would be a matter for the agency to respond to, although we note that there is no published opinion from the UNHCR that Turkey is not a safe third country, and the high commissioner has frequently praised Turkey for its role in hosting Syrians.
This is my final question for the moment. It is a cause for concern, given the many problems that the deal presents, that it appears to be forming a model for other agreements between refugee-origin or refugee-transit countries, and states within Europe. The “Joint Way Forward on migration issues between Afghanistan and the EU” of last October clearly draws on the precedent set by the documents before us. Does the Minister intend to support the incorporation of a similar approach into future agreements on refugee policy, whether at the EU or national level?
I could not really comment on any future deals until the details of those deals were known. However, if a similar deal with a north African state was possible, it could prevent large numbers of people who are currently doing so from putting their lives at risk. In some cases, they are being forced at gunpoint on to vessels that are clearly not seaworthy. A similar deal throughout the Mediterranean would, I am sure, be welcomed by the international community.
The deal is saving lives and ensuring that people are being cared for. Let us not forget that those who can afford to pay the people smugglers are by definition not the most vulnerable; they have that resource. Our schemes, particularly the Syrian vulnerable person resettlement programme, delivers for those whom the UNHCR selects as being the most vulnerable, rather than those who can afford to pay the people smugglers.
The EU-Turkey deal continues to represent a critical opportunity to manage migratory flows effectively, to tackle people smugglers and to prevent people from making perilous crossings. The deal has, along with other measures, resulted in a substantial reduction in the number of migrants arriving in Greece since it was agreed. Flows across the Aegean during the last four months of 2016 were only 2% of what they were during the same period the year before. That is a testament to the effect of the joint working under way.
I want to expand on some of the human rights reports that I referred to in my questions, and then I have a small conclusion. I am encouraged by some of the things that the Minister said, but there still seem to be concerns about this quite controversial deal. We are talking about the treatment of refugees in Turkey, in particular. If the EU, with explicit UK support, is going to send large numbers of needy people back to Turkey, we need to know that their rights and welfare will be protected there.
In its report, “A Blueprint for Despair”, which was published last month, Amnesty International stated:
“Asylum-seekers should not be sent back to a country that is, currently at least, unable to guarantee access to an adequate protection status and adequate living conditions. The EU can legitimately seek to assist Turkey to meet these conditions, but it is callous in the extreme, and a straight-forward violation of international law, to construct an entire migration policy around the pretence that this is currently the case.”
We are comforting ourselves about what will happen, but we should seek proper assurances.
Sending vulnerable people back to Turkey is a concern, and not simply because of its terrible record on human rights in general; there have been mass arrests, widespread political imprisonment and an insecure environment for religious and cultural minorities in the past year. As a former academic, the one day two weeks ago when, I think, 80 university professors were put in prison overnight shocked me. In addition to the human rights abuses, Turkey remains a very poor country. Many Syrian refugees have had to wait up to six months to register for temporary protection under Turkey’s laws. Human Rights Watch has also highlighted the severe lack of education, employment and health care provision for refugees, noting that it leaves them disempowered, impoverished and vulnerable to exploitation by those who would take advantage of them. All those rights should be protected for refugees under the 1951 UN convention, which the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East referred to. It says that under those rights, refugees should have
“the same treatment as is accorded to nationals”.
Unfortunately, Syrians in Turkey have been systematically denied full asylum status, which is offered to Europeans under Turkish law. Instead, Syrian refugees have had patchy protections that offer little stability, limited support and few opportunities for anything like a normal life.
Even the European Commission’s communiqué of 16 March, “Next operational steps in EU-Turkey cooperation in the field of migration”, has found the EU-Turkey agreement wanting, in regard to Greece in particular. There is a sense from NGOs that rather than us providing safe routes to where there are sufficient resources in Europe, it seems slightly expedient for us to classify Turkey as a safe third country. We need to guard against washing our hands of responsibility for accurate assessments of asylum claims.
Finally, the approach of the EU-Turkey agreement is part of the bigger picture of the Government’s response to refugee issues. Concerned Members of the House, such as my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper), have raised questions about the plight of refugees, the Dubs scheme being closed down and family reunification. We inevitably hear in response—and the Minister has said this today—that refugees are funded from the region. However, it feels as though there is rather miserly support for refugees who have already travelled to Europe. We do not want to provide any sort of incentive to people traffickers.
I said at the beginning that I would ask whether the scheme will stick. That issue is worth raising. Given that diplomatic relations between the EU and Turkey are not at their highest peak, how long does the Minister give the agreement? It has been cobbled together, but how long will it last?
(9 years ago)
Commons ChamberI pay tribute to local authorities such as Cambridgeshire that not only take in children under the national transfer scheme but make families welcome under our scheme for the 20,000 children and their families coming from the camps around Syria and the 3,000 children and their families from the wider middle east and north Africa area.
On Holocaust Memorial Day, Michael Brown movingly described his experiences as a child refugee fleeing Nazi Germany in 1939 and advocated the need for Britain to be open to children from Europe fleeing atrocities today. Numerous local authorities, such as Ealing, Hammersmith, and even Hastings—the Home Secretary’s backyard—are willing to take more, so why are the Government pulling the plug on the world’s most vulnerable by closing the Dubs scheme?
If any parallels are to be drawn between Nazi Germany and the situation nowadays, they would be in the situation in Syria, not in our European neighbours and partners. I point out for the record that of the 750 children we took from Calais under both Dubs and Dublin fewer than 10 were actually from Syria. We should concentrate on the children and their families most in need, and they are the ones in the refugee camps in the region.
(9 years ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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It is a pleasure to serve under your chairmanship, Mr Bailey. I congratulate the hon. Member for Twickenham (Dr Mathias) on the persuasive case she made at the start and on bringing the subject to the House today. I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael), the hon. Members for Rutherglen and Hamilton West (Margaret Ferrier) and for Tonbridge and Malling (Tom Tugendhat) and my hon. Friend the Member for Harrow West (Mr Thomas) on their speeches, too.
As we have seen in the debate, all political parties are united in their complete rejection of torture and mistreatment. Torture is illegal and it is internationally banned. When allegations are made, it is vital that they are fully investigated and that the public have confidence in the process and its outcome. In this Parliament we have seen the pressure mounted by the British Parliament contribute to Shaker Aamer’s release. It is therefore vital that, while we preach that there is no place for torture or mistreatment of detainees abroad, that applies at home to people on British soil. We have moral and legal obligations to asylum seekers. In order to stop torture from happening around the world, it is crucial that Britain sets an example as a country that respects and upholds its human rights commitments.
While the Opposition have a proud record of standing up for the rights of everyone, there are certain slightly worrying developments in the current Government that make their commitment to human rights look a bit more questionable. When the permanent secretary to the Foreign Office appeared before the Foreign Affairs Committee, he said that human rights were
“not one of our top priorities.”
That is quite a frightening statement; ethics should be on the Foreign Office’s map. I think that he was attacked by the hon. Member for Reigate (Crispin Blunt) for making that statement. Britain’s voice in the world is a reflection not only of our economic prowess but of the moral leadership that we demonstrate on human rights. If they are no longer a top priority, we cannot lecture the rest of the world about the rule of law and freedoms and rights that every human being is entitled to.
I am relieved and pleased that the contract between the Ministry of Justice and Saudi Arabia to build a prison was cancelled in the end. I understand that the then Foreign Secretary, who is now the Chancellor, accused the right hon. Member for Surrey Heath (Michael Gove) of being naive on that matter, which gives the impression that perhaps some Government Members do not want to prioritise human rights, which, by extension, include subjects such as torture.
Dr Mathias
I was very happy with the cross-party support at the November presentation of the “Proving Torture” report. I give credit to the Queen’s Counsels from the hon. Lady’s party, who were arm in arm with similar Members from my party. I believe that this has cross-party support from both Back-Bench and Front-Bench Members.
I do not doubt the hon. Lady’s commitment to human rights, given everything she has said on them in the Chamber. The Home Secretary is due to visit Saudi Arabia later this month; it will be interesting to see if she will use that opportunity to challenge one of our “closest allies” on some of the less palatable aspects of its record on human rights and torture. At a recent Prime Minister’s Question Time, my right hon. Friend the Leader of the Opposition asked the Prime Minister to condemn President Trump’s comments on torture. He has supported things like hooding, which is sensory deprivation, stress positioning and waterboarding, which the hon. Lady mentioned. President Trump seems to have a gung-ho attitude to those and does not equate them with torture. I would like to hear stronger statements from our Prime Minister condemning those comments.
I have limited time and the hon. Gentleman spoke at length earlier; I will be happy to speak to him afterwards. I think any special relationship should also be friendly. We can be a critical friend to countries and point these things out; maybe not holding their hand but holding them to account in some way. We are debating the UK asylum system and not any of these other people, so I will get back to that.
We all seem to have seen the same figures from Freedom from Torture’s “Proving Torture” report. Other Members have made those points very graphically. We have to consider the moral dimension to this, as well as our legal obligations; we are talking about protection for the most vulnerable in our society. The statistic just quoted was that 27% of adult forced migrants living in high-income countries have survived torture in their country of origin, yet we continually hear stories of their humiliating treatment when they seek to prove it. The standard of proof seems to be very high, and it is often confusing when they have to prove what happened to them. It is a chicken and egg situation. There is little other than medical evidence to prove their torture, but it is nigh on impossible after the fact to prove that it was torture, even when extensive medical evidence is presented; we hear that medical evidence is often disregarded, mistreated, misinterpreted or ignored by the Home Office. It would be good to hear the Minister clarify how that can be tightened up.
Hon. Members also quoted the fact that 76% of such cases that are unsuccessful are overturned on appeal, which is alarmingly high when compared to just 30% of standard asylum cases and indicates a serious problem in the Home Office’s handling of asylum claims. As the hon. Member for Twickenham pointed out, that requires correction by a judge in a specialist immigration tribunal, which comes at considerable cost to the public purse—UK taxpayers.
Not only is it International Women’s Day next week but apparently March is also International Women’s Month, so it is worth pointing out that rape is shockingly not recognised as torture for women asylum seekers. I think that will come as a surprise to many hon. Members. Women remain particularly vulnerable to deportation. My hon. Friend the Member for Harrow West referred to legal aid for asylum cases; I know that that is probably another debate for another day, but I flag it up as it is connected to this debate. I have also had constituents from Sri Lanka pressing me. There was a debate in this place last week that I was unable to attend, but I am glad that my hon. Friend expressed his concern about the Sri Lankan Government’s torture record and that we should treat asylum seekers from that country with the respect that they deserve.
I wanted to be brief, but while I am here I will flag up my concern that we may be led out of the European Court of Human Rights; I believe that the plan has been shelved for this Parliament, but it could still happen. It is a live policy.
I have said that I will press on without interventions on this occasion. The ECHR is one of the most effective torture prevention tools in history, and it was drafted by British lawyers, including Sir David Maxwell Fyfe, then a Conservative Member of Parliament. Having our own, unilateral British bill of rights seems to send the signal to countries with questionable human rights records, such as Russia and Turkey, that international human rights obligations can be shirked or are an optional extra. It also undermines the Government’s foreign policy objective of championing a rules-based international system.
I know that the Minister has received a lot of questions from other hon. Members, but I have one for him. I think the systematic decision-making errors that we keep hearing about in these cases are a matter of quality control and auditing. Will the Minister reaffirm the UK’s position as a champion for the absolute ban on torture? I am optimistic that he will. Will he also implement immediate measures to improve decision making in asylum claims made by survivors of torture to address those weaknesses?
We live in tumultuous times of turmoil and turbulence, when the only predictable thing is unpredictability. The UK has a proud history of standing up for human rights and taking care of people in need, and it has never been more important to reaffirm that commitment and make sure that it works in practice.
That question is probably better directed to the Foreign Office. I know that the situation is much improved in Sri Lanka, which we welcome, but the hon. Gentleman might have evidence that he wishes to make available to Foreign Office Ministers, so that they are aware of it. I am not fully briefed on the situation in Sri Lanka. I know things are improving, which is good news, but from the points he has made, we know there is still some way to go.
We must support those in need of protection to claim asylum in the first safe country they reach. That is the fastest route to safety. International obligations under the refugee convention do not require us to consider claims made outside the UK, but we continue to support refugees in-region through our substantial aid contributions and resettlement schemes.
I will say a few words about the background of our “adults at risk” policy. The adults at risk in immigration detention policy came into force on 12 September and was accompanied by detailed caseworker guidance, following the laying of statutory guidance in Parliament. The policy is based on balancing the risk of considerations against immigration factors and on detaining vulnerable individuals only when the immigration factors outweigh the immigration considerations in any given case. It is part of the Government’s response to Stephen Shaw’s review of the welfare of vulnerable people in detention.
Measures put in place under the Immigration Act 2016, along with a new policy on adults at risk in detention and other improvements to casework processes, represent a comprehensive package of safeguards for all vulnerable detainees in the immigration system, including pregnant women. Those measures have been developed in response to Stephen Shaw’s independent review of detainee welfare. Indeed, I have made a point of visiting some of our immigration removal centres to see the conditions there. I am well aware that many people associate detention with the torture they have had inflicted upon them, and therefore there is a concern that people will see detention as bringing back the terrible experiences they have had.
Certainly. We get a number of requests. I know there has also been some discussion with the Home Affairs Committee, and we are particularly keen to prioritise that visit if we can, because it is important that the Committee sees that as part of its work. However, I will look at that request and see what we can do to accelerate it.
I want to make it absolutely clear that where people are detained, it is for the minimum time possible. The dignity and welfare of those in our care is of the utmost importance. I would like to leave a few minutes for my hon. Friend the Member for Twickenham to sum up, so I will make a final comment. We are clear that the claims of those who seek asylum in the UK will be carefully considered by well-trained and conscientious decision makers, who are expected to take into account all available evidence to reach an informed decision.
(9 years ago)
Commons ChamberMy hon. Friend is absolutely right. We will need a separate legislative vehicle to address the wider question of visa bans, but he makes his point and has been tenacious in powerfully campaigning for this. We will want to move on to that issue at the appropriate time. Today is really about the asset-freezing side of things. We have in this last analysis the opportunity to send a message of solidarity to those who are fighting for the liberty that we in this country hold so dear. We have the opportunity to nurture the flame of freedom on behalf of those brave souls, such as Sergei Magnitsky, who suffered the very worst crimes when standing up for the very highest principles.
As I rise to speak to this group of amendments, it looks as though new clause 1 might not be moved in favour of Government new clause 7. The Minister started by saying that the Bill has so far enjoyed a degree of cross-party consensus in its parliamentary passage, so I would like to say that Her Majesty’s loyal Opposition will not stand in the way of new clause 7 and will not stand in the way of new clause 1 if it is moved.
I welcome new clauses targeting asset seizure for those guilty of human rights abuses outside Britain who seek to use the UK to conceal their wealth. New clause 1 has become known colloquially as the Magnitsky amendment, and we have heard some of the tragic details of that case. It would bolster the Bill’s aim to tackle the growing concern about money laundering, terrorist financing and corruption. The International Monetary Fund and the World Bank estimate that the annual loss through money laundered globally is between 2% to 5% of global GDP—a staggering $800 billion to $2 trillion. We do not know the true figures because this is all hidden, white-collar crime.
It is estimated that serious and organised crime on our own doorstep costs the UK economy at least £24 billion annually. The amount of money laundered here every year is between £36 billion and £90 billion. That is a loss to our Exchequer, so it is only right that we tighten up the legislation with this Bill, and such an amendment would tighten them up further. Quite simply, those who have blood on their hands from the worst human rights abuses should not be able to funnel their dirty money through our country. In a recent article in The New York Times, the journalist Ben Judah uses quite colourful language to attest:
“Just because there aren’t bodies on the streets of London doesn’t mean London isn’t abetting those who pile them up elsewhere. The British establishment has long feigned ignorance of the business, but the London Laundromat is destroying the country’s reputation.”
Under new clause 1, the names of individuals who have been involved in or profited from human rights abuses would be published, and Ministers would be obliged to apply for a freezing order of up to two years if they are presented with compelling evidence of abuse and it is in the public interest to do so. That would make dictators and despots think twice about using the UK as a safe place to stash their dirty cash. By creating personal costs for the perpetrators of human rights abuses, we can protect whistleblowers around the world, which would be a fitting tribute to the legacy of Sergei Magnitsky.
I am pleased to be given the opportunity to speak to this significant legislation, which will certainly help the overall objective of stopping the UK being used as a safe harbour for illegal proceeds, as it currently is all too frequently.
I can reassure the hon. Gentleman and the hon. Member for Swansea East (Carolyn Harris) that one part of government that has not seen a significant reduction in its budgets is the area of the regional organised crime units, the national crime agencies and the security and intelligence agencies, which assist us in tackling organised crime and money laundering. The National Crime Agency has a capital budget of £50 million this year, with £427 million of funding. It is supported in England and Wales by the regional organised crime units, which have got £519 million of funding. The figures for the Serious Fraud Office are £45 million, with £5 million of capital this year, and the figures for HMRC are £3.8 billion in resource and £242 million in capital. Of course, in terms of crime-fighting, the question is, “How long is a piece of string?”
I am listening intently to what the Minister is saying, and I am reminded of an Evening Standard report—from earlier this year, I think—headed: “Home Office reveals new Criminal Finances Bill will target just 20 tycoons a year.” The report says that is based on the Home Office’s own impact assessment which
“predicts that the power will remain unused in its first year ‘as part of the learning curve’, and thereafter will be used in only 20 cases each year.”
That is because of resource implications, which is precisely the point raised by the hon. Member for Dumfries and Galloway (Richard Arkless). Does the Minister have any comment to make on that?
The impact assessment is not linked to access to funds. The impact assessment is a judgment as to how it would see these powers being used. Probably like the hon. Lady, I would like to see them used an awful lot more, but that is an impact assessment, and the NCA does not follow the impact assessment. If the evidence is presented or the cases are put before it that allow it to do 100, it will do 100. It is not restricted by the impact assessment. I would therefore not be too distracted by the London Evening Standard and the impact assessment.
Instead, I would focus on the fact that we have well resourced our law enforcement agencies to tackle this, and this Bill will give them the power. They have the political support of both sides of the House to exercise that power, so let us see how far we go. However, I would be delighted to join the hon. Lady in asking, in 12 months’ time or whenever the Bill goes through, why we have not used them more; I will be asking the NCA and all the other organisations to try to make sure they have done so.
The hon. Member for Swansea East made a point about the asset recovery incentivisation scheme, or ARIS, funding for the recovery of assets not really being worth the paper it was printed on—I think that was what she was trying to say, if she will forgive me for putting words in her mouth. However, since 2006, under an arrangement under her last Government, £764 million has gone into funding those law enforcement agencies, and in the last three years £257 million has gone in. Hopefully, with the new arrangement, above the baseline of, I think, £146 million—I will correct that in writing if it is not £146 million—100% will be kept.
We are also following on from the excellent reports from the Home Affairs Committee and the Public Accounts Committee looking into why we have not achieved enough in terms of confiscation orders and recovery of assets. I have told officials I am particularly concerned that it was suggested in one of those reports that the focus seemed to be on small assets—the collection rate was higher for smaller amounts of money, but lower among millionaires—and I have specifically directed officials that we must look at turning the tables. I want all assets collected that are subject to confiscation, but those reports are a good guideline and we did not ignore that specific point. We will certainly make sure that we build on it and improve on it, because there is money in it for us all, should we do it, and I am very keen that we should.
New clause 5, tabled by my hon. Friend the Member for Amber Valley (Nigel Mills), seeks to prevent the courts from awarding uncapped costs against enforcement agencies when they have brought unsuccessful applications for unexplained wealth orders or related interim freezing orders. I appreciate that this is to ensure that law enforcement agencies do not feel constrained in their ability to apply for an unexplained wealth order, for fear of incurring financial liability. But, as law enforcement representatives told the Public Bill Committee in November, this is a natural part of the state wielding its investigative powers, and they are certainly not pressing for a provision of this type. It is a well-established principle that the losing party pays the winning party’s legal costs. This is an important check and balance on parties bringing spurious claims, or the state using its powers erroneously.
At the same time, the civil procedure rules do already allow for capping in exceptional circumstances, so law enforcement agencies would be able, as things stand, to apply for a cost-capping order in appropriate cases. I undertake to ensure that this point is included in the code of practice that will support the use of these orders. I trust that Members will agree that this is a far more sensible way forward than a blanket rule for all unexplained wealth order cases.
It is crucial that the initial cases are thoroughly developed to ensure that the orders have the greatest possible impact. We are already actively engaging with law enforcement officers and prosecutors to encourage the use of the new powers being introduced by the Bill. Ultimately, it will be for the enforcement authorities to decide when to use them, but we will—as, no doubt, will Her Majesty’s loyal Opposition—monitor and review the use of the orders once they have been introduced. This will inform future support or changes that may be needed to ensure that they are being used to maximum effect.
The hon. Member for Swansea East explained from the Opposition Front Bench the objective behind her amendment 1. However, as I explained when this issue arose in Committee, politically exposed persons in the UK and European economic area can, in fact, already be made subject to an unexplained wealth order. These orders can be made in two situations: first, where an individual is suspected of involvement in serious crime; and secondly, in relation to non-EEA politically exposed persons. An unexplained wealth order can thus be made in relation to politicians and senior officials in Europe, when they are suspected of being involved in serious criminality. In such an investigation, if evidence exists of links to serious organised crime, it should be available, obtainable and readily provided, and it would be unreasonable and disproportionate, for example, for Members of this House to be made subject to an order without any evidence of criminality.
However, for investigations into grand corruption involving countries outside Europe, including the developing world, that evidence is far less likely to be available. It will be much harder in some countries where corruption is endemic to get the evidence to bring to the court at first about wealth hidden in London. That is why we have chosen to have a lower threshold for evidence when applied to countries outside the EEA.
We should not forget that unexplained wealth orders are not an end in themselves; they are part of a process leading eventually, should those concerned not be able to give satisfactory answers, to another action in court to confiscate the assets. As I said when I met the right hon. Member for Hackney North and Stoke Newington (Ms Abbott) to discuss this, I do not want unexplained wealth orders also to produce a lot of derelict empty buildings that are caught up in legal dispute and sitting around London being no good for anyone. I want them to be used and be placed on people whom we have linked to serious crime, and then, should they not be able to satisfy the court, for us then to go to the next step and recover that asset, so that the houses and the housing market are freed up, and any money is returned to whoever it has been stolen from—a country, or other people. An order is therefore a step in the process, not an end in itself.
I hope that I have sufficiently reassured the House on these points, and that the Opposition will feel inclined to not press their amendment.
Question put and agreed to.
New clause 8 accordingly read a Second time, and added to the Bill.
New Clause 2
Failure to Prevent an Economic Criminal Offence
“(1) A relevant body (B) is guilty of an offence if a person commits an economic criminal offence when acting in the capacity of a person associated with (B).
(2) For the criminal purposes of this clause—
“economic criminal offence” means any of the offences listed in Part 2 of Schedule 17 to the Crime and Courts Act 2013.
“relevant body” and “acting in the capacity of a person associated with B” has the same meaning as in section 39.
(3) It is a defence for B to prove that, when the economic criminal offence was committed—
(a) B had in place such prevention procedures as it was reasonable in all the circumstances to expect B to have in place, or
(b) it was not reasonable in all the circumstances to expect B to have any prevention procedures in place.
(4) In subsection (2) “prevention procedures” means procedures designed to prevent persons acting in the capacity of a person associated with B from committing an economic criminal offence.
(5) A relevant body guilty of an offence under this section is liable—
(a) on conviction on indictment, to a fine,
(b) on summary conviction in England and Wales, to a fine,
(c) on summary conviction in Scotland or Northern Ireland, to a fine not exceeding the statutory maximum.
(6) It is immaterial for the purposes of this section whether—
(a) any relevant conduct of a relevant body, or
(b) any conduct which constitutes part of a relevant criminal financial offence takes place in the United Kingdom or elsewhere.
(7) The Chancellor of the Exchequer and the Secretary of State must prepare and publish guidance about procedures that relevant bodies can put in place to prevent persons acting in the capacity of an associated person from committing an economic criminal offence.”—(Sir Edward Garnier.)
This new clause would create a corporate offence of failing to prevent economic crime, defined by reference to the offences listed in Part 2 of Schedule 17 to the Crime and Courts Act 2013.
Brought up, and read the First time.
This group of new clauses contains a fair few of ours, so I shall take a bit longer than I did last time. I want to speak to new clauses 6, 16 and 17 and I want to press new clause 17 to a vote.
Tax evasion was big news in 2016 following the publication of the Panama papers, which threw light on certain opaque offshore companies. Following the leaking of those papers, the overwhelming sentiment was that something needed to be done, and this Bill is that something—or rather, it introduces a set of somethings to deal with the problem. It introduces new corporate offences that will no longer be reliant on the defunct guiding mind principle, it creates unexplained wealth orders and it contains some other eye-catching stuff including the failure to prevent offences under the category of a politically exposed person. It also makes necessary amendments to our pre-existing anti-terrorism legislation. The Minister has pointed out that the Bill builds on a raft of Labour-initiated legislation, including the Proceeds of Crime Act 2002, the Bribery Act 2010 and the Terrorism Acts of 2000 and 2006. On the whole, we support the Bill, and all this stuff is not to be sniffed at.
I also want to mention the new additional monitoring, which the Minister announced on the spot a little earlier, relating to the human rights abuses mentioned in our debate on the first group of new clauses.
As the Bill has progressed, however, it has become apparent that there are chinks in the armoury for fighting money laundering. We welcome what is in it, but concerns are being expressed not only in my party but by a range of charities and non-governmental organisations such as Amnesty International, Christian Aid, Traidcraft, Transparency International, CAFOD and the ONE Campaign. They are concerned about what the Bill does not contain, and the elephant in the room is the issue of beneficial ownership and the UK’s inaction in tackling the financially secretive companies and practices that lie at the heart of the economies of many of our overseas territories and Crown dependencies. Beneficial ownership is entirely not present in the Bill. It is conspicuous by its absence. In other words, I am referring to our “tax havens.” The silence seems bizarre given that we are talking about money laundering, tax evasion and terrorist financing. Whether the Government like it or not, the matter must be addressed. The issue falls within the Bill’s remit because overseas territories are facilitating, aiding and abetting financial crime. The last time I was at the Dispatch Box I said that the UK, along with its overseas territories and Crown dependencies, is the biggest secretive financial jurisdiction in the world, so we have a special responsibility to act and to lead on this agenda, not to be slightly less bad than everyone else. The UK is facilitating some of the largest and most well-known tax havens, so we should be leading not following.
When the Government have been told that they need to “get real” not just by me in Committee but by the court of public opinion after the scandalous events of last year, they need to toughen up and get a grip on overseas territories and Crown dependencies because they facilitate illicit financial activity on a global scale, but the same excuses follow and have been trotted out today: the UK does not have the constitutional legitimacy for the overseas territories and Crown dependencies; and the territories are supposedly adhering to international standards anyway, so making them adopt public registers of beneficial ownership is not necessary. We are also told that the Government do want the territories and dependencies to adopt such registers, that they are working towards that, and that in the light of the progress made the threat of an Order in Council is unnecessary.
The Government say that the time will be right when the rest of world follows the UK’s lead and that they will set a global benchmark for financial territories. At the sixth sitting of the Bill Committee, the Minister told us that only when the time is right and only when there is an international standard for public registers of beneficial ownership will it be imperative for our overseas territories and Crown dependencies to follow suit. He actually claimed that the Crown dependencies and overseas territories with financial centres are already way ahead of “most jurisdictions”, including most G20 nations, on tax transparency. We were told that they are doing enough and that now was not the time to upset the applecart with public registers, particularly when they have agreed to adopt centralised registers. The Minister may recognise his own words from Committee in response to an amendment of mine that was pretty much identical to new clause 6:
“I certainly think that these places”—
the overseas territories and Crown dependencies—
“have come 90% of the way, and we should see whether that works for us. We all have the intention”—
to adopt public registers—
“and the United Kingdom is leading by example.”
In response to our threat of an Order in Council, he said:
“The new clause is a very strong measure. We should not impose our will on the overseas territories and Crown dependencies when they have come so far.”
This is the interesting bit:
“It is important to recognise that we have got where we have through cajoling, working together and peer group pressure, which…makes a real difference.”––[Official Report, Criminal Finance Public Bill Committee, 22 November 2016; c. 199-200.]
That already seems slightly contradictory.
On the one hand, we hear that we cannot legislate for the dependencies. In fact, I remember the Minister calling me—someone whose parents suffered the worst excesses of the British empire—a neo-imperialist. It was certainly the first time that anyone has called me a neo-colonialist or whatever it was. At the same time, however, we clearly are able to do something and have the option to stop turning a blind eye and to turn inactivity into activity. The Minister himself insisted that the proposal was a “strong measure” that is less preferable to his own formula of cajoling and behind-the-scenes pressure.
Will the hon. Lady recognise for once that through cajoling and peer group pressure all Crown dependencies and overseas territories will by this year have central registers of beneficial ownership or similar? That is ahead of many G20 countries that do not even have central registers. We have actually come a long way and a lot further than when Labour was in government.
I listened carefully to what the Minister said, and he said something similar in response to my right hon. Friend the Member for Don Valley (Caroline Flint). I will literally eat my hat—not that I am wearing one—if that happens. The registers must be in a format that is easily convertible to public registers.
We are not there yet. As someone who conducted empirical social science research, I wonder where the 90% figure came from. I know such things are often said across the Dispatch Box—in this case, it was in a Public Bill Committee—on the hoof, in the heat of the moment, and I would not want to label the Minister as a purveyor of fake news, but does he really think that we are 90% of the way there? Even if Government Members say that we do not normally do this, there is always a time when, if needed, we can step in, and the Labour party would argue that that time is now.
Mark Field
The specific problem is about legislating for the overseas territories rather than the Crown dependencies. I think it is understood across the board that this does not apply to the Crown dependencies. We all recognise that significant progress has been made in recent years, so will the hon. Lady pledge at this juncture not to press new clause 6 to a Division? Let us see further progress in the months and years to come that will hopefully ensure that we move towards a global protocol that keeps everyone happy.
First, I would like to finish what I was trying to say. I was coming to the Crown dependencies and overseas territories, which I realise are two different things. I would also like to hear what the Minister has to say, because at earlier stages of the Bill he was conciliatory and we backed down on some things.
We are dealing with not just new clause 6 but new clause 17. We are looking at both overseas territories and Crown dependencies because, internationally, the UK will be able to lecture and persuade others to adopt transparent finance practices only if its overseas territories and Crown dependencies stop engaging in—
I will carry on for the moment because I want to make some progress—I am not able to get a sentence out at the moment. The hon. Gentleman will be referenced later in my speech. We worked well together under his excellent stewardship of the Justice Committee.
The previous coalition Government’s White Paper on the overseas territories has already been quoted by my right hon. Friend the Member for Don Valley. It referred to how, as a matter of constitutional law, the UK Parliament has unlimited power to legislate for the overseas territories. The phrase “unlimited power” is pretty clear. On the Crown dependencies, which the right hon. Member for Cities of London and Westminster (Mark Field) mentioned, it appears that not only the Government but the SNP, given the remarks of the hon. Member for Dumfries and Galloway (Richard Arkless), who was a member of the Justice Committee with me, have accepted, or been cowed into believing, that the Crown dependencies are somehow untouchable.
I want to quote from a report by the hon. Member for Bromley and Chislehurst (Robert Neill). The Justice Committee’s 2010 report on the Crown dependencies stated:
“the restrictive formulation of the power of the UK Government to intervene in insular affairs on the ground of good government is accepted by both the UK and the Crown Dependency governments”.
A list of examples was given, but the hon. Gentleman probably knows it better than I did, because he wrote it.
It would not be unreasonable for the hon. Lady to note that I was not Chair of the Justice Committee at that time. Can she give me any example of a time when the United Kingdom has specifically legislated for a Crown dependency, as opposed to acting under the prerogative power through the lieutenant governors, which indeed itself has not been done in many years? The overseas territories are not the same as the Crown dependencies legally. I honestly urge her to reflect on that, because she is genuinely on shaky legal ground.
As I have said, there seems to be a lack of will. The hon. Gentleman talked at length about Gibraltar—[Interruption.] If he will listen to what I say back to him, that might be useful. There is a lack of will to act. People have been lobbying all of us, probably including him. The fact that we have the power to make a change is more significant than examples—if this is needed, it can be done. New clause 16 does not coerce anyone to do anything, but it sets out steps that would facilitate matters.
Richard Arkless
Given the principle of parliamentary sovereignty, it is of course open to this place to legislate on Scotland. Is the hon. Lady suggesting that she would legislate on matters that are devolved to the Scottish Parliament?
Several hon. Members rose—
I would like to make progress. I will not take any more interventions, because I am still at the very beginning of my speech and the Whips are telling me that they want me to conclude.
The question is not, “Can we do this?” but, “Is it right to do this?” It will come as no surprise that I think that the answer is yes. The Government’s White Paper made it clear that when the law is not working, or there has been a breakdown in order—corruption was mentioned —the UK has the power to act.
It would help if Members were listening to me. How many times have I given way? Numerous times—more than anyone else in our proceedings, which have been going on for many hours—so I would like to make some progress.
Even if, as has been mentioned, it is the British Virgin Islands and the Cayman Islands that are prolific offenders—I think that the British Virgin Islands come up the greatest number of times in the Panama papers—it does not completely absolve the Crown dependencies. Several Members have tried to untangle the difference between Crown dependencies and overseas territories. The Isle of Man managed to rack up 8,000 entries in the Panama papers and is being singled out by the Canadian revenue authorities for investigation. Let us not forget that in October 2015, HMRC defeated the Isle of Man on a tax avoidance scheme that took place from 2001 to 2008 and left a hole in our finances of £200 million. That is a not insignificant sum, and it is money going from our Exchequer. How many hospitals and schools could we have built for that? I do not know the precise answer; it is a rhetorical question. In 2007, the tax havens of Guernsey and Jersey were investigated by our Serious Fraud Office in one of the biggest corruption investigations in African history. These things often join up; the money moves around.
The point is clear: the very structure of the laws pertaining to finance in these places, coupled with their deliberate adoption of complex and opaque institutional structures, is crying out for reform. Globally, these dependencies are at the heart of undermining the rule of law—something that we hold dear—in other countries due to the corruption that they facilitate. Their laws therefore clearly need to be changed, and there is undeniable scope for us to change them. As my right hon. Friend the Member for Barking (Dame Margaret Hodge), who is sadly absent, has said, there is a moral case for us to act, even if there might not be an identical incident in which we have so acted. My right hon. Friend the Member for Don Valley referred to polling that shows enormous public support for such an approach—some 80% of people in a recent poll.
The Bill Committee was told that public registers are not an international norm and that our Crown dependencies and overseas territories are somehow exemplars because they have adopted closed registers of beneficial ownership. Lamentably, that might look like a bit of an alternative fact—dare I say that. I have here a piece of paper—in fact, it is three sheets stapled together—with a list of 46 jurisdictions. Those countries are all dependencies of G20 nation states, so they are in a similar constitutional position to our overseas territories and Crown dependencies, and they all have centralised registers of beneficial ownership. Shall I read out all 46, or does the House want just a smattering? They are: the Ashmore and Cartier Islands, Christmas Island, the Cocos Keeling Islands, the Coral Sea Islands—
Order. The hon. Lady is not going to read out all 46, is she? She has made her point most eloquently, so there is no need to list all 46. We do not read long lists in this Chamber, and the House has got the point she is making.
I am most grateful for that clarification, Madam Deputy Speaker. Some of those on the list are the DOM-TOMs—the départements d’outre-mer and the territoires d’outre-mer—so there is a long list, including Guadeloupe and Martinique, but I shall move on.
It is a bit of a nonsense for the Conservative party to claim that the overseas territories and Crown dependencies are leading the world in financial transparency because of the creation of central registers if 46 other dependencies are doing that already. Not only have some been incredibly slow to catch up with the aforementioned countries, but some of our Crown dependencies and overseas territories are among the worst offenders and have not adopted centralised registers, let alone made them public. More accurately, they have adopted platforms.
The Government ask us to believe that the British Virgin Islands or the Cayman Islands will be able to police their own financial businesses by relying on those businesses, which facilitate crime. It is asking them to mark their own homework and to be judge and jury. Call me a cynic, but I doubt that that is a workable solution. Do we really believe that anonymous companies in the British Virgin Islands—which, for example, allowed the former wife of a Taiwanese President to illicitly purchase $1.6 million of property in Manhattan—would be capable of policing themselves?
There are several other examples. Would Alcoa, the world’s third largest producer of aluminium, be capable of policing itself when it has used an anonymous company in the British Virgin Islands to transfer millions of dollars in bribes to Bahraini officials? Would the anonymous British Virgin Islands-based company used by Teodorin Obiang, the son of the President of Equatorial Guinea, really be capable of policing itself when it allowed him to squirrel away $38 million of state money to buy a private jet? It was thanks to the US Justice Department that he was caught. The Government’s protestation that we are working with the territories and dependencies, and that we are 90% of the way there, is at best highly questionable.
No, there is more.
The main point I want to make is that our Government should be at the forefront of the push to cast off the cloak of secrecy under which terrorists have previously been able to fund their attacks and gangsters have stored their ill-gotten gains. We should not be dragging our feet on this. Some of these jurisdictions, including the British Virgin Islands and the Cayman Islands, have hidden behind the fig leaf of the consultation.
I shall dispense with the rest of what I was going to say, but we wish to press new clause 17 to a Division—[Interruption.] If anyone had listened to me, they would know that I was largely talking about the Crown dependencies.
In conclusion, we could have gone all the way and become the gold standard for other Governments to follow. We could also have dealt with the public disquiet over perceived levels of tax evasion, which the former Prime Minister, to his credit, wanted to tackle. This massive oversight undermines not only the claims made by the former Member for Witney, but citizens in some of the poorest developing countries of the world, which are at the end of these complex supply chains of criminality. Those citizens are the main losers in all of this.
The Home Office’s press release that accompanied the publication of the Bill said that the new offences were aimed at
“sending out a clear message that anyone doing business in and with the UK must have the highest possible compliance standards.”
Although we agree with large parts of the Bill, it does, none the less, fall short. New clause 17, which Her Majesty’s loyal Opposition wish to press to a Division, would go some way towards addressing a number of these issues.
(9 years, 1 month ago)
Commons ChamberI remind the hon. and learned Lady that nothing has changed: we are still in the European Union, and those citizens still have the same rights. In terms of their ongoing rights, the Prime Minister was very clear last week when she made her speech: she said it was going to be an early priority to give them the security they seek. I would urge all colleagues here to reassure their constituents that that is our intention, and we need to make sure that it is reciprocal for UK citizens as well.
Across Scotland, in common with other Europhile parts of the UK, there has been a huge upsurge in applications for indefinite right to remain from people such as Mrs Fabiola Power, who is Spanish by birth, but who got married and has been resident in Acton for decades. These people are dismayed that they have been rejected because they cannot prove that they have five years’ continuous service with the same employer or that they have paid into private health insurance. Will the Home Secretary revisit these rigid requirements, which penalise EU nationals such as Mrs Power, who have been homemakers, students, on short-term contracts or self-employed, and end this bureaucratic nightmare?
There is no penalising of people such as the lady the hon. Lady referred to. We continue to value the important contribution that EU nationals make to this country, and I urge the hon. Lady to follow the advice I previously set out, which is to reassure constituents such as the one she referred to that, in fact, we are doing our best to ensure that their future will be secure, and the Prime Minister says it will be an early priority to do so.
(9 years, 3 months ago)
Commons ChamberMy hon. Friend raises an important point, and I appreciate the concerns of the Waveney domestic violence forum. I can assure him that I am working closely with the Secretary of State for Justice to improve the family justice response to domestic abuse, and with the judiciary to consider what additional protections might be necessary. We are also supporting innovative pilots, working with perpetrators of domestic abuse, which include disruption as well as support.
The worrying rise in post-referendum hate crime, which we all condemn, has disproportionately affected women—we have seen hijabs ripped off girls, death threats to Gina Miller and family, and the tweet at the weekend about wanting to “Jo Cox” the right hon. Member for Broxtowe (Anna Soubry). Thankfully the instigator of the tweet has now been charged. Are the Government, after years of inactivity towards social media platforms, embarrassed by this burgeoning abuse of women on and offline? Is it not another aspect of Brexit for which they clearly had no plan?
The hon. Lady is right to raise these horrendous crimes, which have no place in our society, but she is wrong to say that we have been sitting on our hands. We have introduced not only the hate crime strategy but a whole series of offences, for which I am pleased to see the police successfully prosecuting people. We have also done groundbreaking work with the internet industry, which is taking seriously its responsibility to take down dreadful incidents of online hate crime.
(9 years, 3 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Gapes. I congratulate the hon. Member for Faversham and Mid Kent (Helen Whately) on her passionate defence of her position. We would not want the pricing model of the British strawberry to go the same way as Toblerone or Marmite—or, worse still, for it to be outsourced entirely. The discussion has highlighted the often overlooked yet crucial role of economic migrants in the rural economy and shown that we need carefully managed migration policies if we are to ensure that we will not be worse off as we voyage into these uncharted post-Brexit waters.
Whatever side of the argument we are on in that debate, we must all agree that a thriving agricultural sector is vital to the strength of our rural economy. The figures I have say that 302,000 people work in agriculture and that the total income from farming, although it is declining, was in excess of £3.75 billion in 2015. We have heard slightly different figures in the debate, but agriculture is the lifeblood of hundreds of communities up and down the country. Within that, the horticultural sector is an important plank of British agriculture. It contributes £3 billion to the UK economy. However, the nature of the life cycle of crops and fruits means that inevitably it relies on seasonal workers. Figures in the Financial Times yesterday put the seasonal workforce at 80,000, 98% of whom are from the EU.
I certainly do not want those jobs to disappear. It is of course right that British people should be encouraged to work in agriculture, but realistically the seasonal nature of much of the work means that it will be difficult to achieve that in the short term. As we have heard, there are gaps that need to be plugged. My hon. Friend the Member for Penistone and Stocksbridge (Angela Smith) eloquently dealt with the arguments of Migration Watch, and the hon. Member for Faversham and Mid Kent described the difficulties with mechanical fruit picking. How do we resolve all that?
Obviously, agricultural workers, whether from the EU or of any other origin, should be allowed on UK farms seasonally, or permanently, and the Government need to work out a system that would guarantee a stable and predictable flow of farm workers. Most developed countries have some sort of temporary migration programme; it is not unusual. I believe that they even have one in Poland, in which they take workers from Moldova and Ukraine. It is not a bizarre idea; we have had it for a long time in this country. Economists value such systems and say that there is a triple benefit—I will not say triple lock; that is a bit controversial at the moment. There is a benefit to the host state, because the labour gaps are plugged; the system is good for the state that the migrants come from, because it does not engender the brain drain that we hear of.
As the shadow Minister knows, there has been a terrible increase in hate crime since the referendum, 85% of which is race-related. Does she agree that that disgraceful behaviour not only threatens our identity and values but causes many overseas workers to reconsider whether to choose this country for work?
The hon. Lady anticipates a later part of my speech. I was going to refer to yesterday’s Financial Times, which reported that a chap called John Hardman, of HOPS Labour Solutions of Kenilworth, 20% of whose recruitment is for agriculture jobs—I think it is an employment agency—said:
“Post-Brexit, Romanians and Bulgarians have had the view that Britain is a xenophobic, anti-European place and that they can go to Germany, Holland and Belgium, with better conditions and earn better wages, since the devaluation of the pound has reduced their net income by 15-20 per cent.”
The hon. Member for Faversham and Mid Kent and other hon. Members alluded to such conditions. We do not want that to happen; it is a good point.
The hon. Member for Angus (Mike Weir) pointed out that for the migrants themselves there are many benefits, including those to do with language. Such schemes are seen as good, and we had one from 1948 to 2013. Originally, the point of it was the opportunity for cultural exchange, with young people in war-torn Europe gaining the opportunity to contribute to the reconstruction of its economies—including Britain’s—by offering seasonal labour. In 2009, 21,250 agricultural workers were given short-term permits under the scheme. All of those were from Bulgaria and Romania, as Britain had started to use the scheme to ensure that citizens from countries newly admitted to the European economic area could contribute to filling those identified labour shortages. Along the way there have been adaptations; under the Labour Government in 2005 the Gangmasters Licensing Authority, which we established to give trade unions an effective voice in the prevention of exploitation of tied labour, was incorporated.
There has been a large degree of consensus in the debate that the scheme was a sensible, managed and welcoming migration policy, but in 2013 the Government decided to scrap it—quite controversially. Conservative MPs for Kent and Essex constituencies voiced concerns at the time. Fast forwarding, yesterday’s Financial Times contains some alarming things. The NFU, which many hon. Members have mentioned, is publishing a new survey later in the week. The article reports its worries that
“the supply of pickers for late-season crops such as potatoes and brassicas—cabbages, cauliflowers and turnips—was only enough to meet 67 per cent of the industry’s needs.”
There is a shortfall there. The article also states:
“In a letter to Robert Goodwill, the immigration minister, dated November 10 and seen by the FT…the NFU’s deputy president, warned: ‘There is a clear emerging labour crisis in the industry’ and ‘a very real risk that British fruit and vegetables will be left to rot unpicked in British fields in 2017’.”
We do not want to get to that point, obviously.
To some extent there were warnings in 2013. The British Growers Association said that scrapping the scheme would have
“a significant and damaging impact on investment and production decisions affecting the UK with immediate effect”.
The NFU, again, also gave a warning at that time. Even the Government’s Migration Advisory Committee predicted:
“In the medium- and longer-term, farmers are likely to experience increasing difficulties in sourcing the required level of seasonal labour from the EU (including the UK) labour market.”
I was speaking in a debate in this same 9.30 slot a week ago; I am having an attack of déjà vu. It was a debate on the effect of Brexit on higher education. Some of the questions are enduring ones about, short term, allowing people in and out. These are not migratory flows that would have a long-term impact. There has been an unusual level of consensus in the debate; I do not think that anyone has argued against bringing the scheme back temporarily.
Researchers from the University of Sussex have found that the working conditions of agricultural workers have not changed in any substantial way since the closure of the scheme. As a result, attracting sufficient British workers to the task is becoming increasingly challenging. Those claims are worrying and, given the post-Brexit climate that we are heading into, they need to be properly addressed and considered. The Government need to work with employers and unions to see what impact the scrapping of the scheme has had on jobs, wages and working conditions.
The NFU is calling for the reintroduction of a migration scheme for agricultural workers to be piloted, with a particular focus on students, as the hon. Member for Angus mentioned. Perhaps the Minister could at least commit to offering a proper, comprehensive assessment of the impact of scrapping the policy. Has there been an increase in labour productivity in the sector that will feed through to higher wages? Are jobs disappearing in agricultural firms? As those firms will be unable to produce goods without access to labour, it would be good to have a level-headed assessment.
The Government cannot say that they were not warned. Anyone who hopes that leaving the single market will allow the Government to liberalise migration policy in the agricultural sector will be as disappointed as the curry chefs who were told by the International Development Secretary that, if we voted to leave—
I am in the last minute of my speech, and I should prefer to wind it up: my apologies.
The Government aim to reduce immigration to the tens of thousands whatever the economic costs, and insist on the mantra “Brexit means Brexit”, even though we do not know exactly what that means. They include student numbers in the calculations, despite the overwhelming evidence that the public do not want that. They seem to have boxed themselves into a corner, because they will not be able to liberalise immigration in a sector when the economic case and rationale are clear.
I know the Minister from his previous incarnation. He is a very reasonable chap. I had a win for my constituents because of his actions; so I hope he can do the same thing today. We have seen that dogmatic quotas and targets can result in counter-productive policies. I hope that he will listen to the hon. Member for Faversham and Mid Kent about having just a temporary trial scheme next year and about seasonal agriculture workers being at the forefront of the negotiations.