Economic Crime — House of Commons, 2021-12-02
Topic: Mixed Topics
Margaret Eve Hodge (Labour, Centre-left): Very briefly, I want to start by thanking saying a big "Thank you" to all who participated in today’s debate for the issues they raised I am particularly grateful to the hon. Member for Thirsk and Malton (Kevin Hollinrake). It is a joy to work with him. He raised important points on developing countries, which we did not come back to. It is true, however, that developing countries lose three times as much through tax avoidance and corruption as they gain from international aid, so if the Government want to cut the international aid budget, they could take action there that would be hugely beneficial All Members talked about the importance of transparency. We are all at one with my right hon. Friend the Member for East Ham (Stephen Timms) in wanting to include paid-for advertising in the online harms Bill. We are working across the House and I think there is huge agreement, certainly on the Back Benches, on that matter The contribution from the hon. Member for Barrow and Furness (Simon Fell) was excellent. He has some great ideas and I do hope he will join our all-party parliamentary group. We are always looking for new ideas that will help to strengthen the fight against tax avoidance, tax evasion and economic crime, so that would be terrific I am hugely grateful to the hon. Member for Glasgow Central (Alison Thewliss) for her constant support. She is dogged in pursuing the issues that are of importance to her. I am also very grateful to my right hon. Friend the Member for Wolverhampton South East (Mr McFadden), who gave such an eloquent speech I just want to say three things in response to the Minister. First, of course most businesses and individuals behave well, but if we do not work to rid ourselves of criminals, kleptocrats and money launderers who infect our economy, we do a disservice to those who want to work legitimately. That was a point made by the hon. Member for Weston-super-Mare (John Penrose), our anti-corruption tsar. The point is not, therefore, that this is the exception. If we do not deal with the exception, we break the rule. I hope the Minister will take that away. Secondly, while we welcome the Government’s general support, we will keep pushing. The proposed legislation is there and we want it on the statute book. Those are choices that the Government can make, and I hope they will make them. Thirdly, such things as paid-for fraudulent ads affect millions of people across the country in every constituency, and we have all had such cases. That is about individuals, but there is also the behaviour, for example, of the Aliyev family from Azerbaijan and the way they launder their money here and buy their privileges in our communities. That has to be stopped. That is not the sort of Britain that any of us wants to live in. Weak regulation, poor enforcement and lack of transparency have an impact not just here in Britain, but elsewhere in the world. I will finish with this story. We all remember too well the terrible explosion in Lebanon, when ammonium nitrate killed a lot of people and destroyed that country. I was amazed to get a call a few weeks after it occurred from someone who told me that the company that owned the ammonium nitrate in the warehouse at the port in Lebanon was UK-registered. I gave a usual quote to demonstrate the lack of proper regulatory controls here. I was then inundated with phone calls in which I was told that not only was the company owned here, but it had a nominee beneficial owner based in Portugal or Spain—somewhere like that. The company said that it was dormant and had therefore not filled in HMRC returns. Further investigation by the Lebanese Bar Council and journalists in Lebanon demonstrated that, actually, the ammonium nitrate was not destined to be used as fertiliser in Mozambique; it had been brought by Russian Syrians to be given to Assad in Syria for barrel bombs to be used on the population in Syria. That is outrageous. We are facilitating that, and the tragedy it created is what makes it so important—so imperative—that the Government take action Question put and agreed to. Resolved, That this House recognises the devastating impact economic crime has on individuals, businesses, families and society; considers it unacceptable that the cost of money laundering alone exceeds £100 billion a year according to the National Crime Agency; is concerned that in the wake of the Pandora Papers leak there is inadequate transparency, regulation and resources in place to effectively tackle this severe problem; and calls on the Government to bring forward legislative proposals to tackle economic crime as a matter of priority, integral to which are provisions to introduce a criminal offence for failure to prevent economic crime, reform Companies House and introduce a beneficial ownership register for the overseas owners of UK property.