Asked by: Lord Pearson of Rannoch (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government which Government buildings have been transferred to finance Islamic bond schemes; what restrictions there are on the use of such assets as a result of Sharia financing; and why that method of raising money was chosen.
Answered by Lord O'Neill of Gatley
Three government properties underpin the Sukuk. These are Richmond House, Wellington House and 22-26 Whitehall.
The Sukuk is issued under, and governed by, English law. The properties underpinning the Sukuk continue to be occupied by the departments that were there before issuance, with no change to their use. While investors have a beneficial interest in the assets, they do not have any say over how the properties are used.
Asked by: Lord Greaves (Liberal Democrat - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty’s Government on which dates the Community Engagement Forum met following the first meeting in October 2015; what were the main topics discussed at each meeting; and who attended each meeting.
Answered by Baroness Williams of Trafford - Captain of the Honourable Corps of Gentlemen-at-Arms (HM Household) (Chief Whip, House of Lords)
The Community Engagement Forum met on 19 November 2015 and focused on education and the role it can play in promoting integration. The following individuals attended:
Rt. Hon. Nicky Morgan MP, Education Secretary and Minister for Women and Equalities
Lord Ahmad, Minister for Countering Extremism
Louise Casey, Independent review on isolated communities
Alun Francis, Principal and Chief Executive of Oldham College
Aina Khan, Head of Islamic Department, Duncan Lewis Solicitors
Sajda Mughal OBE, Managing Director at Jan Trust
Mary Ney, Supporting Commissioner, Rotherham Metropolitan Borough Council
Syima Aslam, Organiser of Bradford Literary Festival
Farook Yunus, Leader of Kumon Y’all
Sara Khan, Director and Co-founder of Inspire
Shaukat Warraich, Chief Executive, Faith Associates
Anil Bhanot OBE, Managing Trustee and Director of Hindu Council UK
Gillian Merron, Chief Executive of the Board of Deputies of British Jews
William Nye, Secretary General of the General Synod of the Church of England
Lord Singh of Wimbledon CBE, Director of the Network of Sikh Organisations
Christine Fischer, Catholic Education Service
Pascale Vassie, Executive Director, National Resource Centre for Supplementary Education
Martin Pratt, Director of Children, Schools and Families, Camden Council
Matthew Coffey, Chief Operating Officer, Ofsted
Phil Champain, Director 3 Faiths Forum
Her Honour Judge Khatun Sapnara, Circuit Judge East London Family Court and Kingston Crown Court
Sue Robb, Head of Early Years, 4Children
The Community Engagement Forum also met on 14 January 2016 and focussed on the contribution of Muslim women in Britain. The following individuals attended:
Rt. Hon. David Cameron, Prime Minister
Rt. Hon. Nicky Morgan MP, Education Secretary and Minister for Women and Equalities
Lord Ahmad, Minister for Countering Extremism
Baroness Williams, Parliamentary Under Secretary of State, Department for Communities and Local Government
Louise Casey, Independent review on isolated communities
Camilla Cavendish, Head of the No. 10 Policy Unit
Max Chambers, Special Adviser, Home Affairs and Justice, No.10
Sajda Mughal OBE, Managing Director at JAN Trust
Syima Aslam, Organiser of Bradford Literary Festival
Sara Khan, Director and co-founder of Inspire
Diana Nammi, Executive Director of Iranian and Kurdish Women's Rights Organisation
Aysha and Kiran Iqbal Patel, Directors of Odara
Fahma Mohamed, FGM activist and Trustee of Integrate Bristol
Faeeza Vaid, Chair of ‘Sister 2 Sister’ in Birmingham and Executive Director of the Muslim Women’s Network
Henna Rai, Director for the Association of British Muslims
Yasmin Khan, Director of Staying Put and Aspire-I
Hasina Khan, Chair and founder of Saheliyaan Asian Women’s Forum and Councillor on Chorley Council
Nahid Rasool, Director of Shantona Women’s Centre
Farmida Bi, Head of Islamic Finance and a partner at Norton Rose.
Zahra Al-Alawi, Presenter of Woman’s View on Ahlulbayt TV
Farah Mirza, TV Presenter and previous UN representative for Islamic Human Rights Commission
Sarah Joseph OBE, Chief Executive and Editor of emel magazine
Asked by: Lord Greaves (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether they will provide an update on their policy on Islamic finance in the UK.
Answered by Lord O'Neill of Gatley
The Government remains committed to developing the UK as a global centre for Islamic Finance. This work includes issuing sovereign Sukuk of £200 million in 2014; adapting the tax regime to remove the major tax barriers to Islamic finance transactions; and UK Export Finance issuing its first ever Sharia-compliant export credit guarantee for a 10-year US$913 million Sukuk that was issued by Emirates Airlines in March 2015. This was used to finance the acquisition of 4 Airbus A380 aircraft.
Asked by: Lord Greaves (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether Parliament will be involved in the scrutiny of any proposals for changes to systems of Islamic finance in the UK following the outcome of the Bank of England's consultation.
Answered by Lord O'Neill of Gatley
The Bank of England will decide whether or not to establish a Shari’ah compliant liquidity facility in light of feedback to its consultation from the market and other relevant stakeholders. None of the proposals in the consultation are expected to require a change to primary legislation. Once the Bank of England has concluded, the Government will consider whether there is a need for Parliament to review legislation in relation to Islamic Finance in the UK more widely.
Asked by: Baroness Uddin (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty’s Government, further to the Written Answer by Baroness Williams of Trafford on 28 January (HL5141), who the "sixteen influential Muslim Women" were who met the Prime Minister on 14 January at a Community Engagement Forum.
Answered by Baroness Williams of Trafford - Captain of the Honourable Corps of Gentlemen-at-Arms (HM Household) (Chief Whip, House of Lords)
Those who attended were:
Sajda Mughal OBE, Managing Director at JAN Trust
Syima Aslam, Organiser of Bradford Literary Festival
Sara Khan, Director and co-founder of Inspire
Diana Nammi, Executive Director of Iranian and Kurdish Women's Rights Organisation
Aysha and Kiran Iqbal Patel, Directors of Odara
Fahma Mohamed, FGM activist and Trustee of Integrate Bristol
Faeeza Vaid, Chair of ‘Sister 2 Sister’ in Birmingham and Executive Director of the Muslim Women’s Network
Henna Rai, Director for the Association of British Muslims
Yasmin Khan, Director of Staying Put and Aspire-I
Hasina Khan, Chair and founder of Saheliyaan Asian Women’s Forum and Councillor on Chorley Council
Nahid Rasool, Director of Shantona Women’s Centre
Farmida Bi, Head of Islamic Finance and a partner at Norton Rose.
Zahra Al-Alawi, Presenter of Woman’s View on Ahlulbayt TV
Farah Mirza, TV Presenter and previous UN representative for Islamic Human Rights Commission
Sarah Joseph OBE, Chief Executive and Editor of emel magazine
Asked by: Douglas Carswell (Independent - Clacton)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many buildings in London are part of his Department's sukuk bond scheme.
Answered by Harriett Baldwin
In the Sukuk structure, rental payments provide the income for investors. When the Sovereign Sukuk were issued in July 2014 the profit rate was set at 2.036% in line with the yield on gilts of similar maturity, making the investor return on the Sukuk broadly equivalent to that on conventional gilts of similar maturity.
Three central government properties form the underlying assets which underpin the Sukuk.
The Government was clear at the time of issuance that the Sukuk issuance was not for debt financing purposes. Instead, it was issued to deliver on the government’s commitment to become the western hub for Islamic finance. The issuance showed that the UK is open for business with all parts of the world and provided high quality capital to UK-based Islamic banks.
UK based institutions that offer Islamic finance services are contributing to jobs and growth with assets totalling $4.5bn at the end of 2014.
Asked by: Douglas Carswell (Independent - Clacton)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether the rental income generated for investors in his Department's sukuk bond scheme is equivalent to that of the coupon paid from a June 2014 Government five-year gilt.
Answered by Harriett Baldwin
In the Sukuk structure, rental payments provide the income for investors. When the Sovereign Sukuk were issued in July 2014 the profit rate was set at 2.036% in line with the yield on gilts of similar maturity, making the investor return on the Sukuk broadly equivalent to that on conventional gilts of similar maturity.
Three central government properties form the underlying assets which underpin the Sukuk.
The Government was clear at the time of issuance that the Sukuk issuance was not for debt financing purposes. Instead, it was issued to deliver on the government’s commitment to become the western hub for Islamic finance. The issuance showed that the UK is open for business with all parts of the world and provided high quality capital to UK-based Islamic banks.
UK based institutions that offer Islamic finance services are contributing to jobs and growth with assets totalling $4.5bn at the end of 2014.
Asked by: Douglas Carswell (Independent - Clacton)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment his Department made of the merits of other potential methods of debt insurance before authorising use of government buildings in London as security for the sukuk bonds.
Answered by Harriett Baldwin
In the Sukuk structure, rental payments provide the income for investors. When the Sovereign Sukuk were issued in July 2014 the profit rate was set at 2.036% in line with the yield on gilts of similar maturity, making the investor return on the Sukuk broadly equivalent to that on conventional gilts of similar maturity.
Three central government properties form the underlying assets which underpin the Sukuk.
The Government was clear at the time of issuance that the Sukuk issuance was not for debt financing purposes. Instead, it was issued to deliver on the government’s commitment to become the western hub for Islamic finance. The issuance showed that the UK is open for business with all parts of the world and provided high quality capital to UK-based Islamic banks.
UK based institutions that offer Islamic finance services are contributing to jobs and growth with assets totalling $4.5bn at the end of 2014.
Asked by: Hilary Benn (Labour - Leeds Central)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign and Commonwealth Affairs, what recent assessment he has made of what the primary sources of finance for Daesh are; and what steps the Government is taking to disrupt those sources.
Answered by Lord Hammond of Runnymede
Daesh has two main sources of funding. About 40% comes from extorting communities living in territory it controls; and around 40% from selling oil. It also gets a small amount of funding from selling looted antiquities and donations from individuals in the region and around the world.
Tackling Daesh financing is a key element of our comprehensive strategy. This involves military action, enforcement of sanctions and engagement with international partners.
The RAF carried out 15% of the airstrikes in the Global Coalition’s recent offensive targeting Daesh oil facilities. Since this offensive began, the Coalition has destroyed 25% of the Daesh daily oil production capability, which equates to approximately 10% of their total income.
The UK has led efforts to create and enforce an international legal regime to cut off support for Daesh, including UN and EU sanctions against Daesh. This regime is underpinned by UN Security Council Resolutions 2178, 2199, 1267 and 2253. We are expanding existing work with regional partners to ensure implementation of these sanctions and hamper Daesh’s ability to trade outside the formal financial system, and to stop smuggling.
Asked by: Andrew Rosindell (Conservative - Romford)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 18 December 2015 to Question 20068, how many British-based individuals have breached the sanctions regime against Daesh; and how many bank accounts have been frozen in the UK as part of the efforts by the UN and the Government to prevent funds from being transferred to Daesh.
Answered by Harriett Baldwin
The UN sanctions regime against Daesh includes not just financial sanctions, but also a travel ban against listed individuals and entities, as well as an arms embargo, prohibitions on travel to act as a foreign terrorist fighter, an oil embargo, and other form of restriction. HM Treasury is responsible for the administration of financial sanctions in the UK, in relation to those individuals or entities designated under one of the counter terrorism financial sanctions regimes, which include the UK’s domestic terrorist asset freezing regime, the EU’s external terrorism regime and the UN’s ISIL (Daesh) & Al Qaida regime.
The UN ISIL (Daesh) & Al Qaida Regime is implemented in the UK by way of EU Regulation 881/2002. Information held by HM Treasury in relation to breaches of this regime is received for the purposes of compliance and enforcement of this Regulation. The Regulation prohibits the use of that information for any purpose other than compliance and enforcement, and as a result HM Treasury is unable to release information held on the number of British-based individuals that have breached the financial sanctions regime against Daesh. The Treasury works closely with operational partners on the compliance and enforcement of financial sanctions regimes.
HM Treasury publishes a Quarterly Report to Parliament on the operation of the counter terrorism financial sanctions regimes in the UK. The next report is due to be published soon, for the fourth quarter of 2015. The report includes the number of bank accounts that are frozen for each regime. It is located at https://www.gov.uk/government/collections/operation-of-the-uks-counter-terrorist-asset-freezing-regime-quarterly-report-to-parliament.
I can confirm that the last Quarterly Report stated there are 55 accounts frozen under the UK’s domestic terrorist asset freezing regime, and 21 accounts are frozen in the UK under the UN’s ISIL (Daesh) and Al Qaida regime.