Criminal Finances Bill

Debate between Stephen Doughty and Caroline Flint

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 21st February 2017 Commons Chamber

[Caroline Flint (Don Valley) (Lab)]

It is a pleasure to follow the hon. Member for Amber Valley (Nigel Mills). I almost feel like not making a speech and sitting down now—but I will not—because he made such excellent points about why public registers of beneficial ownership in our overseas territories are so important. I look forward to working with him on this issue and on public country-by-country reporting, as well as with the many other colleagues from both sides of the House and from eight political parties who support new clause 6. Despite some Government pressure, several Conservative MPs support the new clause, including the former International Development Secretary, the right hon. Member for Sutton Coldfield (Mr Mitchell), who I understand hopes to catch your eye, Madam Deputy Speaker. I also pay tribute to my right hon. Friend the Member for Barking (Dame Margaret Hodge) for her hard work on this important amendment. I am really sorry—and she is too—that she cannot be here today to speak in this debate. I hope that, on this occasion, Members will not mind me dubbing new clause 6 “the Hodge amendment”.

I welcome the Government’s Criminal Finances Bill. Its aims of tackling corruption, tax evasion and terrorist financing are really important and should be commended. However, the absence of any mention of the overseas territories is remarkable. As Christian Aid has said, the No. 1 thing that the Government can do to tackle corruption, money laundering, and tax evasion is to ensure transparency in their overseas territories. Unfortunately, the secrecy that those territories trade in facilitates the corruption and the aggressive tax avoidance and tax evasion that we are all trying to stamp out.

The amendment is supported by the all-party groups on responsible tax and on anti-corruption, Christian Aid, Global Witness, Transparency International, Action Aid, Publish What You Pay, Save the Children, Oxfam and many others. We all know from numerous polls that this matter is something that the British public really care about. Two thirds of them want the Government to insist on public registers of beneficial ownership in the overseas territories.

As the hon. Member for Amber Valley mentioned, we have, with this amendment, responded to concerns raised earlier at different points of debate on this Bill. We are focusing purely on the overseas territories where the constitutional issues are more clear cut. We recognise that the overseas territories are taking steps towards private registers of beneficial ownership, so we have allowed a generous timeline for them to move from that to make these registers publicly accessible.

The overseas territories need to have these private registers in place by June of this year. This amendment would give them another two and a half years after that, which is within the lifetime of this Parliament, simply to make those private registers public. Such a move would be a major step forward.

New clause 6 is important not only for us in the UK, but for developing countries, which is why so many NGOs are supporting it. According to the UN Conference on Trade and Development, developing countries lose at least $100 billion every year as a result of tax havens. Around 8% to 15% of the world’s wealth is being held offshore in low tax jurisdictions, many of which come under our jurisdiction. A World Bank review of 213 big corruption cases found that more than 70% of them relied on secret company ownership. Company service providers registered in UK territories were second on the list in providing these companies. Oxfam has said recently that around one third of rich Africans’ wealth is currently sitting in offshore tax havens. If all that wealth was held in Africa and taxed properly, we would be able to pay for enough teachers to educate every child in Africa.

It damages our reputation, as the hon. Member for Amber Valley said, that the British Virgin Islands was the most mentioned tax haven in the Panama papers. We know that future leaks are coming, so why cannot we get ahead of the game and ensure transparency now?

In a recent debate on the Commonwealth Development Corporation Bill, the Minister of State, Department for International Development, the hon. Member for Penrith and The Border (Rory Stewart), said that the CDC would never invest through Anguilla or the British Virgin Islands. If a DFID Minister and the CDC can say that, what does it say about our responsibility today to change that reputation—British Ministers are clearly considering this—and do something to help those territories become more transparent?

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

My right hon. Friend is making an incredibly strong point. I, too, was pleased to add my name to new clause 6—I am sorry that I have not been able to join her for much of this debate. Does she agree that this is all about the consistency of approach? We talk about trying to reduce the need for aid in certain countries, and a key way in which to do that is to ensure that countries can generate their own revenues by having tax paid properly in their own jurisdictions?

[Caroline Flint]

I absolutely agree with my hon. Friend and I thank him for his support and for putting his name to new clause 6. Aid is important, but more important is the question of how to create self-sufficiency so that more countries that are recipients of aid can stand on their own two feet. Transparency regarding overseas territories and our own system is an important part of that, as is good governance in the countries in question. Unfortunately, some countries to which we supply aid could do a hell of a lot more to help their own citizens. This is an area where we can have a direct impact and start making significant changes right now.

--- Later in debate ---

[Stephen Doughty]

Does my right hon. Friend agree that there is a conflict here? On the one hand, different Labour and Conservative Governments have been very sensible in supporting tax systems and tax authorities in many developing countries. However, if transparency of information—on companies, how they are incorporated and so on—is not available, even if we are giving them support, they cannot get to the bottom of where their taxes are actually going.

[Caroline Flint]

If we do not have the tools to make the difference, we are not going to see the change that I think everyone across the House wants to see. Without full access to transparent information, investigators will not know what information to request through these agreements, and that is fundamental. That is why public access to the data is important and why David Cameron was exactly right to demand it.

When the Minister responds, I expect him to say that the overseas territories are making real progress on this agenda and that including them in the legislation is not necessary. Let us be clear about the progress that has been made since the former Prime Minister first asked the overseas territories to consider public registers of beneficial ownership back in October 2013. More than three years on, just one overseas territory, Montserrat, has committed to a public register. Hooray for Montserrat! The rest have delayed at every step. Is the Minister satisfied with that outcome, and how does he account for why progress has been so slow?

In April 2014, the then Prime Minister wrote to overseas territory leaders, asking them to consult on public registers. Not all of them even did that. In July 2015, the current Chief Secretary to the Treasury, the right hon. Member for South West Hertfordshire (Mr Gauke), asked those overseas territories with financial centres to develop plans for central registers by November 2015. That deadline was not hit. Press reports last year said that the overseas territories were ignoring Foreign Office Ministers’ letters and meeting requests. At the most recent meeting with overseas territories’ leaders in November 2016, public registers of beneficial ownership were not even mentioned in the final communiqué. That raises the question whether we would have made as much progress as we have if the Panama papers had not been released.

Climate Change

Debate between Stephen Doughty and Caroline Flint

Wednesday 10th June 2015 Commons Chamber

[Caroline Flint]

Can the hon. Gentleman be a little patient?

The scientific consensus is shown by the fifth assessment of the Intergovernmental Panel on Climate Change, published last year, which said that warming of the climate is “unequivocal” and that human influence on the climate is clear. We have chosen the subject because this is a crucial year in keeping the global rise in temperatures below 2ºC and avoiding catastrophic damage to the planet. That 2ºC target was agreed at the UN conference in Cancun in 2010. As we know, above that the risks of climate change move beyond our control. We have chosen the topic because this year our country needs to show international leadership, especially in Europe. As the official Opposition we have a role to play in helping to encourage the Government to get the best possible deal in the fight against climate change at the Paris climate conference towards the end of this year.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

In the light of the incontrovertible evidence that my right hon. Friend has just cited and the importance of the conference later this year, does she not find it extraordinary that there are still Conservative Members who deny the existence of climate change? I noted the hon. Member for Monmouth (David T. C. Davies) trying to intervene.

[Caroline Flint]

It is extremely worrying that so many Government Members are still in denial and refuse to accept the views of the majority of scientists around the world. Not only are they a threat to the environment; they are a threat to the jobs and opportunities these changes bring.

--- Later in debate ---

[Caroline Flint]

The problem is that although the right hon. Gentleman is right that there is a cost to change, there is a bigger cost to doing nothing at all. The investment that we make will not only help us make energy cheaper and homes warmer but create job and investment opportunities. He might like to stay in the 19th century, but I would like to take us forward to a better—[Interruption.] I am sorry, but that is what it is—“Let’s stay with what has gone on in the past, even though we know that it is not fit for purpose for the future.” There is everything to gain from having a cleaner-energy future. However, I am glad in some respects that he continues to be a minority voice in the House on the issue.

[Stephen Doughty]

I absolutely agree with my right hon. Friend’s point. Does she agree that the Stern report made it clear that the medium and long-term costs to this country and many others, particularly developing countries, will be far greater than the costs of not dealing with the challenge of climate change now?

[Caroline Flint]

Absolutely. At the moment we are ranked sixth in the world for green goods and services. Just think how many more jobs we could create if we moved up to third or fourth place. The benefits would not just be at home, because we can export new technologies abroad. One example is carbon capture and storage. Not only can the technology be applied to fossil fuels, but it has industrial applications for our energy-intensive sectors.

We had an awful lot of shilly-shallying in the past five years about support for carbon capture and storage—nobody was quite sure where the money was and what it was being spent on. I ask the Secretary of State whether we will see any cuts in support for CCS in the forthcoming emergency Budget. She will obviously say, “I can’t say, that’s a matter for the Chancellor,” but I really hope that the new DECC team is putting its shoulder to the wheel to ensure that such cuts do not happen. There was too much interference from the Chancellor in the past five years—he did not work for investment and did not support this area of public policy.