Oral Answers to Questions

Thérèse Coffey Excerpts

Wednesday 12th June 2013 Commons Chamber

[Katy Clark (North Ayrshire and Arran) (Lab)]

1. What proposals her Department has to tackle tax avoidance by multinational companies operating in developing countries.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

2. What steps she is taking to help developing countries improve their tax systems.

[The Secretary of State for International Development (Justine Greening)]

The UK Government are committed to ensuring that developing countries have the ability to collect the tax that they are owed. The UK is using our G8 presidency to promote tax transparency, tackle tax avoidance and ensure tax compliance.

[Justine Greening]

Addressing tax avoidance and encouraging tax compliance will be one of the key elements of the G8 agenda, and transparency sits alongside that. We will look at how we can obtain more transparency, including sectoral transparency through measures such as the extractive industries transparency initiative. All those measures together have the potential to ensure that we can help developing countries to collect the tax they are owed.

[Dr Thérèse Coffey]

Does my right hon. Friend agree that developing countries will be able to end their dependence on aid only if they can raise enough revenues through the tax system?

[Justine Greening]

My hon. Friend is absolutely right. If we are to have sustainable development and developing countries are to have the tax revenues to fund and invest in their own public services, we need a thriving economy that creates those revenues. That is why economic development is such a key part of what my Department is now focusing on. Along with Her Majesty’s Revenue and Customs, we are investing to ensure that developing countries have the tax expertise they need to collect the taxes that are due.

--- Later in debate ---

[Justine Greening]

The hon. Lady will have been as pleased as I was to see that sanitation and water feature strongly in the high-level panel’s report passed to the UN Secretary-General a couple of weeks ago. It is really important that we keep that proposed target, which is precisely what the Government will be pressing for.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

T3. May I commend the Secretary of State and the Prime Minister for last Saturday’s Nutrition for Growth summit, which showed that improving nutrition is not only about state aid, but about bringing the private sector and philanthropists together to solve the problem of over 1 billion people going hungry?

[Justine Greening]

I am grateful to my hon. Friend for that question, because it shows that if we are to make a real difference, we need ultimately to see Governments working in partnership with business and encouraging responsible investment. If we can work together and bring in the best science, we will have a real chance of tackling under-nutrition.