11/04/2016

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:00:00. > :00:00.that those who are there should claim asylum, that is the best and

:00:00. > :00:12.most effective way to get the help they need. Statement, the Prime

:00:13. > :00:18.Minister. Thank you Mr Speaker. Hear, hear! I like to make a

:00:19. > :00:22.statement on the Panama Papers. Dealing with my own circumstances

:00:23. > :00:25.first, yesterday I published all the information in my tax returns, not

:00:26. > :00:29.just for the last year before the last six years. I have also given

:00:30. > :00:34.additional about money inherited and given to me by my family. So people

:00:35. > :00:40.can see the sources that I have of income. The salary, the benefit I

:00:41. > :00:45.have of living in ten Downing St, the support I have received, the

:00:46. > :00:52.ready out of our London home, the interest on the settings that I

:00:53. > :00:56.have. Since 2010, I have not had any shares or investment. The

:00:57. > :00:59.investigation of a Prime Minister's tax information in this way is

:01:00. > :01:02.unprecedented but I think it is the right thing to do. I am not

:01:03. > :01:08.suggesting that they should apply to all MPs. The Chancellor has

:01:09. > :01:16.published today information on his task return -- tax. This begs the

:01:17. > :01:20.question how far the publication of tax information should go. I think

:01:21. > :01:24.there is a strong case for the Prime Minister and the Leader of the

:01:25. > :01:29.Opposition and for the Shadow Chancellor and Chancellor, because

:01:30. > :01:34.the are people who are and wish to be responsible for the nations

:01:35. > :01:37.finances. As for the MPs and already have robust rules of members

:01:38. > :01:41.interests and decoration. That is the model which you continue to

:01:42. > :01:44.follow. We should think carefully before abandoning completely all

:01:45. > :01:49.taxpayer confidentiality in this house as some have suggested. If

:01:50. > :01:53.this were to come in for MPs people would also ask for a similar

:01:54. > :01:57.approach for those who ask this question, those who run large public

:01:58. > :02:00.services, or lead local government. Or indeed those who added the news

:02:01. > :02:07.programmes or newspapers. Hear, hear! I think be a very big step for

:02:08. > :02:11.our country, and should not take place without a long and thoughtful

:02:12. > :02:15.debate, and is not the approach I would recommend. Let me deal

:02:16. > :02:19.specifically with the shares my wife and I held it in an investment fund

:02:20. > :02:25.or do the trust called Blairmore Holdings. The fund was registered

:02:26. > :02:32.from the beginning, it was properly awarded -- audit is every year. Its

:02:33. > :02:35.share price was listed in these Financial Times. It was not a family

:02:36. > :02:40.trust, it was a commercial investment fund for any investor to

:02:41. > :02:44.buy units in. UK investors paid all the same taxes as with any other

:02:45. > :02:50.share including and contacts on the dividends every year. There have

:02:51. > :02:56.been some deeply hurtful and untrue allegations made against my father,

:02:57. > :02:59.and I want to, at the house let me put the record straight, it was set

:03:00. > :03:02.up overseas in the first place because it was going to be trading

:03:03. > :03:08.in dollars securities. Like many other commercial investment funds it

:03:09. > :03:11.made sense to be set up inside one of the main centres of dollar

:03:12. > :03:14.trading. There are thousands of these investment funds and millions

:03:15. > :03:19.of people in Britain who own shares, many of whom hold them through

:03:20. > :03:23.investment funds or unit trusts. Such funds including those listed

:03:24. > :03:28.outside the UK are included in the pension funds of local government,

:03:29. > :03:34.most of it ten's countries -- companies and even trade unions.

:03:35. > :03:39.Even a quick look shows that the BBC and Guardian newspapers and one

:03:40. > :03:49.counsel entirely at random, Islington have these overseas

:03:50. > :03:56.investors. They have a portfolio of over 50 million in investment in the

:03:57. > :04:02.trade union unitized. This is not to criticise what they do. It is to

:04:03. > :04:06.make the point that this is an entirely standard practice and it is

:04:07. > :04:12.not to avoid tax. One of the countries leading tax lawyers has

:04:13. > :04:18.stated unequivocally that this was and I quote, a perfectly normal type

:04:19. > :04:23.of collective investment fund. This is the man who led the experts study

:04:24. > :04:29.group who developed the general anti-abuse rule, so much debated in

:04:30. > :04:35.this house that we find the enacted in 2013. It also shared the 1997 tax

:04:36. > :04:39.avoidance by the committee. He has said it would be quite wrong to list

:04:40. > :04:47.described the establishment of such funds as tax avoidance and would be

:04:48. > :04:49.utterly ridiculous to establish that investing in such funds would

:04:50. > :04:54.involve abusive tax avoidance. That is why getting rid of unit trusts

:04:55. > :04:57.and other such investment funds that are listed overseas has not been

:04:58. > :05:03.part of any Labour policy review, any conservative Polly -- party

:05:04. > :05:10.policy review, or aggressive tax avoidance. Invest these funds

:05:11. > :05:15.benefit from them being set up in jurisdictions with low or no taxes.

:05:16. > :05:19.This is a misunderstanding. Unit trusts do not exist to make profit

:05:20. > :05:24.for themselves before the holders of the units and those holders pay tax.

:05:25. > :05:30.If they are UK citizens they pay full UK taxes. Mr Speaker, it is

:05:31. > :05:34.right to tighten the law and to change the culture around investment

:05:35. > :05:41.to further outlaw tax evasion and discourage aggressive tax avoidance.

:05:42. > :05:44.We should differ aged -- differentiate schemes to reduce tax

:05:45. > :05:49.and those that are are encouraging investment. This is a government any

:05:50. > :05:55.country that believes in aspiration wealth creation. We should defend

:05:56. > :05:59.the right of every British citizen to make money lawfully. Aspiration

:06:00. > :06:04.and wealth creation are not somehow dirty words, they are the key

:06:05. > :06:08.engines of growth and prosperity in our country and we must always

:06:09. > :06:12.support those who want to own shares and make investments to support

:06:13. > :06:17.their families. Some people have asked, if this trust was legitimate

:06:18. > :06:20.why did you sell your shares in January 2010? I showed all the

:06:21. > :06:24.shares in my portfolio that year because they did not want any issues

:06:25. > :06:29.about conflicts of interest. Then I want anyone to be able to suggest

:06:30. > :06:33.that as Prime Minister I had any agendas or a vested interest.

:06:34. > :06:37.Selling my shares with the simplest and clearest way I can do that.

:06:38. > :06:39.There are strict rules in this house for the registration of

:06:40. > :06:44.shareholding, I followed them in full. The Labour Party has said it

:06:45. > :06:47.will refer me to the Commissioner to parliamentary standards, I have

:06:48. > :06:50.already given her the relevant information and if there is more she

:06:51. > :06:57.believes I should say I am very happy to say. I accept all of the

:06:58. > :07:01.criticisms for not responding more quickly to these issues last week.

:07:02. > :07:07.As I have said I was angry about the way my father's memory was being

:07:08. > :07:09.reproduced. I know he was a hard-working man and a wonderful dad

:07:10. > :07:16.and I am proud of everything he did to build a business that provide for

:07:17. > :07:24.his family. Hear, hear! On the issue of inheritance task -- tax people

:07:25. > :07:28.are embarrassed to pass these onto their children by keeping a family

:07:29. > :07:31.home in the family I believe is a natural human instinct and something

:07:32. > :07:35.that should be encouraged. As her parents passing to their children

:07:36. > :07:38.while they are still alive, it is a big the tax rules fully recognise.

:07:39. > :07:42.Many parents would have their children when they buy their first

:07:43. > :07:46.car, get a deposit for their first home, or face the cost of starting a

:07:47. > :07:50.family. It is entirely natural that parents should want to do these

:07:51. > :07:58.things and it is something that we should not just defend, but should

:07:59. > :08:01.probably support. Hear, hear! Let me turn to the Panama Papers and the

:08:02. > :08:06.action this government is taking to deal with tax evasion, aggressive

:08:07. > :08:09.tax avoidance, and international corruption abroad. When this

:08:10. > :08:13.government came into office there were foreigners not paying capital

:08:14. > :08:17.gains tax with settling that UK homes. There were private equity

:08:18. > :08:21.managers paying a low rate of tax for the people who clean their

:08:22. > :08:24.offers. There were rich buyers in any way without paying stamp duty

:08:25. > :08:30.because houses were in love companies. We have put an end to all

:08:31. > :08:39.of these things. The last parliament although we have made a

:08:40. > :08:47.unprecedented 40 tax changes. We will legislate for 25 further

:08:48. > :08:53.measures for 2021. No Labour government has taken so much robust

:08:54. > :09:01.action is this area. From my summit in 2013 I put tax cuts Red Sea on

:09:02. > :09:08.the global agenda. Over who pays taxes and where. Mr Speaker many

:09:09. > :09:18.said it would never happen, but today 129 jurisdictions have... Over

:09:19. > :09:21.not -- 95 jurisdictions have committed to implementing the report

:09:22. > :09:27.is dated on cash-strapped transit. Under this standard will receive

:09:28. > :09:29.information on accounts of UK taxpayers in all of these

:09:30. > :09:36.jurisdictions. In June this year, but it will become the first country

:09:37. > :09:39.in the G 2200 Public register of beneficial ownership. Everyone can

:09:40. > :09:43.see who really owns and controls its company. The government is also

:09:44. > :09:47.consulting on requiring foreign companies to own property or bid on

:09:48. > :09:52.public contracts to provide their beneficial ownership information. We

:09:53. > :09:55.are happy to offer typical support and assistance to any of the Enders

:09:56. > :10:04.-- and ministrations considering this. As the Panama Papers to make

:10:05. > :10:08.there we need to go even further. When making it harder for people to

:10:09. > :10:12.hide the proceeds of corruption offshore, they should does to smooth

:10:13. > :10:18.the way cannot go into that and to get rid of wrongdoing. The McGill

:10:19. > :10:23.with Crown dependencies and over and seize territories. They have already

:10:24. > :10:24.agreed to exchange taxpayer financial account information

:10:25. > :10:30.automatically and will begin doing so this September. That never

:10:31. > :10:32.happened before I became Prime Minister, I got around the cabin

:10:33. > :10:37.table and said that this must happen. We do need to go further. I

:10:38. > :10:41.can tell the House today that we have now agreed that they will

:10:42. > :10:45.provide UK law enforcement of tax agencies with full access to

:10:46. > :10:51.information on the beneficial information of companies. We're

:10:52. > :10:59.finalise arrangements for all of them except Anguilla and another.

:11:00. > :11:08.You police and law enforcement will be able to see who owns and controls

:11:09. > :11:14.every country -- company. Cayman Islands, British roads in Ireland,

:11:15. > :11:18.Isle of Man and the lot. This is building on the progress they made

:11:19. > :11:22.and I welcome the government in these territories to work with us.

:11:23. > :11:25.The house should know that this will place our overseas territories and

:11:26. > :11:32.crime dependencies well ahead of many other jurisdictions. Also

:11:33. > :11:35.crucially ahead of many of our international partners including

:11:36. > :11:40.some states in the United States of America. Next month we will seek to

:11:41. > :11:44.go further still to seek our anti-corruption Summit to have

:11:45. > :11:47.considered is not unjust exchanging information but publishing

:11:48. > :11:55.information. As we're doing here in the UK. We want everyone and with a

:11:56. > :12:01.stake in fighting corruption to use this data and help us rid out and

:12:02. > :12:05.deter wrongdoing. Next we will take a major step in dealing with those

:12:06. > :12:11.who fight corruption. It is difficult to prosecute a company

:12:12. > :12:16.that assists in activation. We will legislate for a new criminal offence

:12:17. > :12:23.to apply to corporations who failed to prevent the representatives from

:12:24. > :12:28.taxation. Providing new funding of up to ?10 million for a new cross

:12:29. > :12:31.agency task force to swiftly analyse all of the information that has been

:12:32. > :12:35.made available from Panama and to take rapid action. The task force

:12:36. > :12:40.would include analysts, compliance specialist, and investigators from

:12:41. > :12:47.across HMRC, the national crime agency, and the contact authority.

:12:48. > :12:52.We will be the international agenda to crackdown on evasion and tax

:12:53. > :12:57.avoidance. It is important and needs to be combined with the approach we

:12:58. > :13:03.take in this country. Low tax rates but taxes that people and businesses

:13:04. > :13:07.have to pay. That is how we will tackle these issues and build a

:13:08. > :13:12.strong economy that we need. It is that strong economy, creating jobs,

:13:13. > :13:15.rewarding aspiration, that is the true voters of this government and I

:13:16. > :13:26.think that will be made under the party opposite. I commend the

:13:27. > :13:32.statement to the house. Hear, hear! May I think the Prime Minister for

:13:33. > :13:42.the advanced side of his statement. It is absolutely a master class in

:13:43. > :13:48.the art of distraction. I am sure the Prime Minister would join me in

:13:49. > :13:53.joining -- welcoming the outstanding journalism that has gone into

:13:54. > :13:58.exposing the scandal of destructive global tax avoidance by the Panama

:13:59. > :14:03.Papers. What they have driven home is what many people have

:14:04. > :14:09.increasingly felt. There is now one rule for the super-rich and another

:14:10. > :14:14.for rest. I am honestly not sure that the Prime Minister fully

:14:15. > :14:19.appreciates the anger of those out there over this injustice. How can

:14:20. > :14:24.it be right that street cleaners, teaching assistants and nurses work

:14:25. > :14:31.and pay their taxes get some of the top think the rules simply don't

:14:32. > :14:35.apply to them? What has been revealed in the past week goes far

:14:36. > :14:38.beyond the Prime Minister has called his private matters. There are six

:14:39. > :14:45.questions he needs to answer today to the house and perhaps equally

:14:46. > :14:52.importantly to the public as a whole. Firstly, why he chose not to

:14:53. > :14:56.declare his offshore tax investment in the House of Commons register of

:14:57. > :15:02.interest. There is a requirement to provide information of any peculiar

:15:03. > :15:07.interest which might reasonably be thought to affect their actions. The

:15:08. > :15:12.Prime Minister said he thinks he mishandled the events of the past

:15:13. > :15:17.week, does he now realised how he mishandled his own nine declaration

:15:18. > :15:20.six years ago we decided not to register and offshore tax haven

:15:21. > :15:27.investment from which he has personally benefited? Can you

:15:28. > :15:31.clarify to the house and the public when he sold his stake in Blairmore

:15:32. > :15:36.Holdings in 2010, he also disposed of another offshore investment at

:15:37. > :15:42.that time in particular whether any of the ?72,000 shares he sold were

:15:43. > :15:48.held in offshore tax havens? The ministerial code states that

:15:49. > :15:56.ministers must ensure that no conflict arises or could reasonably

:15:57. > :16:00.be perceived to arise between their public duty and private interest

:16:01. > :16:03.financial or otherwise. All ministers must provide a full list

:16:04. > :16:11.of all interest which might be thought to give rise to a conflict

:16:12. > :16:13.including close family interest. Did the Prime Minister provide the

:16:14. > :16:18.permit secretary with an account of his offshore interest, and if not

:16:19. > :16:23.did he realise that he had a clear operation to do so? Part of his

:16:24. > :16:29.wealth was tied up in offshore tax havens. He is now making policy

:16:30. > :16:36.decisions that have a direct bearing on the operation. For example in

:16:37. > :16:41.2013, the Prime Minister might roads to the president of the Council

:16:42. > :16:44.opposing centre registers of beneficial ownership of offshore

:16:45. > :16:49.trusts. Thirdly, does the Prime Minister now accept that

:16:50. > :16:53.transparency of their best beneficial ownership must be

:16:54. > :17:01.extended to offshore trusts? The Panama based law firm register more

:17:02. > :17:09.than 100,000 secret firms in the British Virgin Islands. Mr Speaker,

:17:10. > :17:13.it is a scandal that UK overseas Territories registered have to shell

:17:14. > :17:19.companies set up by them. The truth is that the UK is that the heart of

:17:20. > :17:27.the global tax avoidance industry, it is a national scandal and it has

:17:28. > :17:35.got to end. Last year, Mr Speaker, this government opposed the EU tax

:17:36. > :17:40.Commissioner's blacklist of 30 uncooperative tax havens, that

:17:41. > :17:46.included the Cayman Islands and British Virgin Islands. With the

:17:47. > :17:51.Prime Minister now stop blogging European Commission plans for a

:17:52. > :17:59.blacklist of tax havens? As it turns out, the former conservative Home

:18:00. > :18:04.Office minister was absolutely right, when he rode to the Cayman

:18:05. > :18:07.Islands government in 2014 to reassure them that our Prime

:18:08. > :18:15.Minister was making a pearly political gesture about cracking

:18:16. > :18:19.down on tax havens at the G8. It was designed and I quote, to be a false

:18:20. > :18:27.initiative which will divert other member states from pursuing their

:18:28. > :18:34.agenda. Last June treasury officials lobbied Brussels not to take action

:18:35. > :18:39.against Bermuda's tax secrecy. According to the European Union's

:18:40. > :18:44.transgressor register the tech giant Google has no fewer than ten

:18:45. > :18:53.employees lobbying Brussels. Bermuda is the tax haven favoured by Google

:18:54. > :18:55.to channel billions in profits. Conservative MPs have been

:18:56. > :18:59.instructed on six occasions since the beginning of last year to vote

:19:00. > :19:06.against action to clamp down on aggressive tax avoidance. This is a

:19:07. > :19:13.party incapable of taking serious internationally coordinated action

:19:14. > :19:20.to tackle tax dodging. Across the country and on this side of the

:19:21. > :19:27.house there is a thirst for decisive action against global tax avoidance

:19:28. > :19:31.scams. That sucked revenues out of our public services while ordinary

:19:32. > :19:36.taxpayers have to foot the bill. It undermines public trust in business

:19:37. > :19:43.politics, it can and must be brought to the and. The Prime Minister

:19:44. > :19:47.announcement today to make new copies liable for employees that

:19:48. > :19:53.facilitate tax cheating is welcome but it is also too little too late.

:19:54. > :19:57.It was announced by the former chief Secretary of the treasury a year

:19:58. > :20:01.ago. People won a government that acts on behalf of those that pay

:20:02. > :20:07.their taxes. Not those that dodge their taxes in offshore tax havens.

:20:08. > :20:11.Yesterday my friend the Shadow Chancellor set out a clear plan for

:20:12. > :20:17.transparency and he is a member of this house who has spent all of his

:20:18. > :20:22.time in Parliament exposing tax havens and tax avoidance. On his

:20:23. > :20:27.neighbour included calling for an immediate public inquiry into the

:20:28. > :20:31.Panama Papers revelations to establish the harm done to our tax

:20:32. > :20:38.revenues and to bring forward serious proposals for reform. I say

:20:39. > :20:42.gently to the Prime Minister, a task force according to the Chancellor

:20:43. > :20:50.and the Home Secretary is, but members of a party funding by donors

:20:51. > :20:55.in the implicated in the leaks will not be credible. What he Prime

:20:56. > :21:00.Minister backed a credible and independent public inquiry into the

:21:01. > :21:07.abuses of the leaks? Our tax transfer the plan also called for a

:21:08. > :21:13.specialised tax enforcement unit, properly resourced Mr Speaker and

:21:14. > :21:19.that has to be the key. The 2010 there have only been 11 prosecutions

:21:20. > :21:24.of offshore tax evasion. A situation the Public Accounts Committee

:21:25. > :21:31.described as woefully inadequate. Having slashed resources and cut

:21:32. > :21:37.14,000 staff since 2010, will the Prime Minister today guarantee that

:21:38. > :21:44.resourcing will increase in this Parliament? Re-support real action

:21:45. > :21:48.to end the abuses that allow the wealthy to dodge the rules that the

:21:49. > :21:53.rest of us have to follow. We need to ensure that trust and fairness

:21:54. > :21:58.are restored to our tax system and our politics. In the sense and the

:21:59. > :22:02.reality that there is wonderful for the richest and another for

:22:03. > :22:12.everybody else. The Prime Minister has a tax -- attacked tax dodging as

:22:13. > :22:24.immoral. But has clearly failed to give account of his own tax dodging.

:22:25. > :22:29.Also take essential action... Also take essential action to clean up

:22:30. > :22:36.these system while blocking what efforts to do so. There are clear

:22:37. > :22:43.steps to bring tax havens and dodging under control. The minister

:22:44. > :22:52.is standing at the bar shrieking into an absurd manner, he must calm

:22:53. > :22:55.himself, or leave the chamber. I suggest Mr Speaker the Prime

:22:56. > :23:01.Minister record particularly over the past week shows the public no

:23:02. > :23:08.longer have to trust in him to deal with these matters. Does he realise

:23:09. > :23:11.what people are so angry? Does he realise, the members opposite

:23:12. > :23:17.realise why people are so angry? We have gone through six years of

:23:18. > :23:21.crushing his charity. Family is lining up at food banks to feed

:23:22. > :23:27.their children. Disabled people losing their benefits, elderly care

:23:28. > :23:33.cuts and slashed, living standards going down. Much of this could have

:23:34. > :23:39.been avoided if our country had not been ripped off by the super-rich

:23:40. > :23:46.refusing to pay their taxes. I say to this, I say to the Prime

:23:47. > :23:49.Minister, ordinary people in the country simply will not stand for

:23:50. > :23:53.this anymore, they want real justice, they want the wealthy to

:23:54. > :24:01.pay their share of taxes like they pay when they work hard all the

:24:02. > :24:04.time. First of all let me join the right honourable gentleman in

:24:05. > :24:10.congratulating the journalists who have broken the story about this

:24:11. > :24:13.huge cache of information. I think what matters now is that information

:24:14. > :24:18.is shared with tax authorities including here in the United Kingdom

:24:19. > :24:21.so that action can be taken. The right honourable gentleman accused

:24:22. > :24:26.me of a distraction to my think the biggest attraction today was waiting

:24:27. > :24:33.for the right honourable gentleman's tax return. We finally got published

:24:34. > :24:39.at 335 PM after the session had begun. How incredibly convenient

:24:40. > :24:47.that no one can scrutinize it. No one can scrutinize it. Each and

:24:48. > :24:53.every one of the questions that he said. First of all, he asked whether

:24:54. > :24:57.we would resourced with the right amount of money, we put ?1.8 billion

:24:58. > :25:01.into various initiatives is to does intend to make sure they have the

:25:02. > :25:06.resources to find this money, first one, second point he asked me about

:25:07. > :25:11.my register of members interests, I have comply with every aspect of it.

:25:12. > :25:14.Even before the Labour Party complaint has arrived at the

:25:15. > :25:19.commissioners door I provided her with all of the necessary

:25:20. > :25:24.information. He asked me when I made the sale of the shares, isolated the

:25:25. > :25:29.Glenmore shows in January, everything else in June. Yesterday

:25:30. > :25:34.whether I shared a list of these with the Cabinet secretary but I sat

:25:35. > :25:37.down with her and went to all of my interests and connections and

:25:38. > :25:41.friendships, and family, as all ministers are advised to do. See you

:25:42. > :25:47.have a proper conversation with the Cabinet secretary in that way.

:25:48. > :25:53.Fourth question was why were we not extending to beneficial ownership of

:25:54. > :25:57.companies the beneficial ownership of trust, and one international

:25:58. > :26:00.action to take place in the very clear advice I got was if we

:26:01. > :26:03.included trust in our interested we would not get any international

:26:04. > :26:08.action done. This government has done more than any

:26:09. > :26:16.He asked about the tax passport square HMRC, the serious crime

:26:17. > :26:21.office than others I want to be investigating all of the information

:26:22. > :26:24.coming out of Panama. They have operational independence, if they

:26:25. > :26:28.find people to prosecute, prosecute them. They find information of Ula

:26:29. > :26:33.Delta, act on them. They are independent and that that is exactly

:26:34. > :26:35.what they will do. They are reported to the Home Secretary under Chapter

:26:36. > :26:40.because we want to make sure that radical action is taken. But they

:26:41. > :26:43.have total operational independence and is the Shadow Chancellor is

:26:44. > :26:48.questioning the professionalism of the Inland Revenue of crime agency,

:26:49. > :26:52.he should not be doing that. Finally, let me answer the last

:26:53. > :26:56.question, which is the action we have taken about the overseas

:26:57. > :27:00.Territories and the Crown dependencies. No government has done

:27:01. > :27:04.more to encourage them to take part in a changing information, reported

:27:05. > :27:08.tax information, and making sure that they give us the information on

:27:09. > :27:11.beneficial ownership. The leader of the Labour Party has suggested that

:27:12. > :27:17.we should force them will stop out as he clung to for some? What is he

:27:18. > :27:22.going to do? How do we find a Prime Minister that once again Argentina

:27:23. > :27:29.-- give the Falkland Islands and advantage of altered? What we have

:27:30. > :27:32.seen from the Labour Party as their true colours when it comes to

:27:33. > :27:35.inheritance tax. If you want to bash her home to get children, they will

:27:36. > :27:40.tax it. If you want to help your children, they will tax it. We see

:27:41. > :27:44.the true colours, they are the enemy of aspiration, the enemy of them was

:27:45. > :27:47.won to support each other. That is the real lesson of today. --

:27:48. > :27:55.families that want to support each other. All going to call the chair

:27:56. > :28:03.of the committee, but he is tunneling out of the chamber. -- I

:28:04. > :28:10.was going to call. Get in there. LAUGHTER

:28:11. > :28:26.Order! Order! Am sure there will be worth waiting for. Very good of you

:28:27. > :28:29.to give me the good Lord Mr Speaker. -- the floor. I don't think the

:28:30. > :28:40.prominent or has done anything wrong. -- the Prime Minister. Except

:28:41. > :28:46.possibly be, and the Jimmy Carter illegal and should be very pursue it

:28:47. > :28:50.with criminal prosecution. And imprisonment. Tax avoidance is not

:28:51. > :28:55.illegal. If the Government on home and do not like it, there is no

:28:56. > :29:00.point in demoralising it. Does the prominence it agreed that to do with

:29:01. > :29:05.tax avoidance we need to perform to close loopholes and vigorous tax

:29:06. > :29:11.simplification to assure there are fewer of them? I'm very glad that he

:29:12. > :29:18.was detained before leaving the chamber. I think he is right, tax

:29:19. > :29:22.evasion is illegal and tax avoidance, if the government dispose

:29:23. > :29:26.of it, should be legislated against. That is the approach we have taken.

:29:27. > :29:31.But what I have said before if there are some practices of aggressive tax

:29:32. > :29:36.avoidance and I think the mirror proper questions and then action. To

:29:37. > :29:41.be fair to Jimmy Carr, as another was point out that he was in a

:29:42. > :29:45.scheme to reduce his income, he immediately changed his abrasive. He

:29:46. > :29:53.made it very clear and I pay tribute to him for doing that. That's

:29:54. > :29:57.changed his abrasive. Then I begin by welcoming the Prime Minister's

:29:58. > :30:02.statement, the new measures contained in it to tax evasion and

:30:03. > :30:06.aggressive tax avoidance. The publication of his tax information

:30:07. > :30:13.and his apology for the way that he has handled it was updated estimated

:30:14. > :30:17.that between 21 and $32 trillion a time and financial wealth is

:30:18. > :30:21.allocated to a -- a tax or likely tax and tax havens around the world.

:30:22. > :30:27.Elicit trust board estimated that more than $1 trillion for gear, ten

:30:28. > :30:34.times more than the global foreign aid budgets combined. The Panama

:30:35. > :30:37.Papers lake is so large that if one part of the file, the final deck --

:30:38. > :30:42.document will be held 650 million pages long. It is right that a

:30:43. > :30:46.special task force is being set up to go through this information as it

:30:47. > :30:51.has been linked. Have the Prime Minister said, public charges will

:30:52. > :30:57.be followed and criminality can't be proven. But the public are indignant

:30:58. > :31:03.here and they are indignant about the well. People are rightly angered

:31:04. > :31:05.by the different roles for normal taxpayers and small ultrarich elite.

:31:06. > :31:11.But we have to ask ourselves, whether this scale of the Bible has

:31:12. > :31:17.been taken seriously because it has not been thus far. Either

:31:18. > :31:21.domestically or internationally. UK bears a particular facility, given

:31:22. > :31:26.that the UK and its overseas territories and dependencies

:31:27. > :31:32.collectively said at the top of the financial secrecy index of the tax

:31:33. > :31:39.Justice network. In Scotland, we are confronted by the reality of a small

:31:40. > :31:48.number of landowners, owning huge parts of the country, Minikin tax

:31:49. > :31:54.haven. Across Scotland, land is owned through and transparent firms

:31:55. > :31:57.based in tax havens like, and the British Virgin Islands. May I ask if

:31:58. > :32:03.I minister the following specific questions? Will he be present --

:32:04. > :32:09.revisit his decision not to fully co-operate with European union

:32:10. > :32:14.partners on trust? On the welcome register a beneficial owners, across

:32:15. > :32:21.the British and overseas territories, specific question,

:32:22. > :32:29.whole would this be available to and when? Will be publicly available and

:32:30. > :32:32.if not, why not? Will the Prime Minister prioritise bilateral tax

:32:33. > :32:36.treaties with catalogue and other tax havens as part of global efforts

:32:37. > :32:42.to better co-ordinate against tax avoidance and will he regularly

:32:43. > :32:50.update this house on progress? Nicely, given is UK cabinet that

:32:51. > :32:54.agrees government actuals -- textiles, and arrangements with tax

:32:55. > :32:59.havens, with the Prime Minister ensure that all of his cabinet

:33:00. > :33:09.colleagues confirm whether they have ever benefited to offshore financial

:33:10. > :33:13.dealings? -- from. Let me agree with him. There is no doubt that and some

:33:14. > :33:16.of these jurisdictions and countries, there are some very bad

:33:17. > :33:20.things are happening in terms of the hiding of assets, but having a

:33:21. > :33:27.wealth of the avoidance of tax, and that is why we want to authorities

:33:28. > :33:29.to go through to recover the money. Just because those bad things are

:33:30. > :33:35.happening, it does not mean we should condemn unit trust that many

:33:36. > :33:38.investors, pension funds, local government, and trade you can, even

:33:39. > :33:43.the pigeons under this house, might well use as a totally legitimate way

:33:44. > :33:52.of investing and then paint attack. -- paying tax. I agree. But we

:33:53. > :33:56.should not do down the civil action, and the civil penalties that the

:33:57. > :34:03.custom site. 1100 cases going through, they can charge up to 300%

:34:04. > :34:08.of the money. On the issue, taken this it is a fine of, I would say

:34:09. > :34:14.this is the first country in the G7 and G20 to make tax transparency the

:34:15. > :34:18.number one issue at AG eight or G20. No not done before. We have

:34:19. > :34:23.government. You see these permit improvement. I'll think he is meant

:34:24. > :34:26.for only dependencies and overseas territory. Book your stay with a

:34:27. > :34:31.reputation and potentially broad problem. There have been a huge

:34:32. > :34:37.amount to adjust that. Now better placed others similar jurisdictions,

:34:38. > :34:40.states and the US to have left us closer and less repressive than they

:34:41. > :34:43.do. A not be unfair upon dependencies and overseas

:34:44. > :34:55.territories and on the side of the house. In terms of Scottish trust

:34:56. > :34:58.and transparency, happy to work with any WebCam. Again, we are happy to

:34:59. > :35:02.work with and are working with European partners on the issue of

:35:03. > :35:07.shots. The point was making is that we would have any progress on

:35:08. > :35:11.beneficial ownership if the included trust and that debate in the G8. But

:35:12. > :35:16.we did make progress and for the bridge and we do. And the honest of

:35:17. > :35:20.information and the Crown dependencies, he's asking for will

:35:21. > :35:23.be available to you. It will be available to law-enforcement

:35:24. > :35:28.initially, including our own. They are not producing public registers

:35:29. > :35:32.yet. I wanted to but let's be frank. There's only about three countries

:35:33. > :35:36.in the world, including Britain now, that have these public ownership

:35:37. > :35:39.register. If we're trying to push that onto the quad dependencies

:35:40. > :35:45.should away, I think we'll have not got as nearly as far as that we have

:35:46. > :35:48.got it today. A textured, I'm key and attempted cabinet ministers, I

:35:49. > :35:52.think the current rules for registering members interests are

:35:53. > :36:02.broad. As I said, we're going further. According to the official

:36:03. > :36:06.forecast, with likely to lose billion of tax revenue to

:36:07. > :36:10.multinational companies of the ensuing five years. -- 74 3 billion.

:36:11. > :36:15.They will solicit core and get the European Court of Justice to

:36:16. > :36:20.overturn the Texas we were supposed. With another 35 billion at risk.

:36:21. > :36:24.What can be do here to make sure those companies pay their fare

:36:25. > :36:29.amounts, which this Parliament wants but the easy jay doesn't? We take a

:36:30. > :36:33.certain action and the budget, and we have the government profit tax,

:36:34. > :36:37.which is a tremendous weapon of making sure these companies pay that

:36:38. > :36:42.tax and the jurisdictions where they are rightly earning the money. I

:36:43. > :36:46.think this will be able to change tax information, and having a common

:36:47. > :36:52.reporting standards, which is what we set off in 2013, they'll make the

:36:53. > :36:56.biggest difference. Desk that will make. But of the main benefits of

:36:57. > :37:01.the journalism that uncover the Panama Papers was that it showed so

:37:02. > :37:05.much every is that people do not want it to go. The Prime Minister

:37:06. > :37:10.makes great play that his government has done a great deal to improve

:37:11. > :37:14.corporate tax defensive. But it is nowhere near enough. When is he

:37:15. > :37:21.going to step up, and make sure that corporate can publish their tax

:37:22. > :37:28.information, so that everybody, the public, conceived where tax is being

:37:29. > :37:31.paid? -- can see. I am not saying we have a perfect record, but I think

:37:32. > :37:34.this government has done more than any previous government to make this

:37:35. > :37:40.happen. I'll answer it directly that our system is based on full

:37:41. > :37:44.disclosure, by companies to the revenue, but a basic deal of

:37:45. > :37:47.taxpayer confidentiality between companies and the retina. That is

:37:48. > :37:52.the way our system and most of the systems work. That is why the common

:37:53. > :37:55.reporting centres and the exchange of information between tax

:37:56. > :37:59.jurisdictions is so important. The mesh of these companies are telling

:38:00. > :38:02.the truth to us, and telling the truth to others jurisdiction. On

:38:03. > :38:10.happens Will we be able to recover the money. That's only one that

:38:11. > :38:13.happened. The ownership register that comes on place and over six

:38:14. > :38:19.with time, plus the announcement that the Prime Minister has made

:38:20. > :38:25.with regard to the code appendices and in a criminal act, would do much

:38:26. > :38:29.to do with tax evasion. At the house will forgive me, able to far more to

:38:30. > :38:35.ensure that the proceeds of crime, the proceeds of terrorism can not be

:38:36. > :38:43.allowed to do this jurisdiction. An antiseptic be welcomed. I detailed

:38:44. > :38:48.that the province is being -- kicked off a little. I know, personally,

:38:49. > :38:52.that we would never be agreement with the competencies without his

:38:53. > :38:58.personal intervention and without him being very tough. And he should

:38:59. > :39:01.be congratulated. It the deliberate without a single shot being fired of

:39:02. > :39:10.the Leader of the Opposition, putting books on the ground.

:39:11. > :39:14.Decibels underground. But he will remember -- what he will remember,

:39:15. > :39:17.but we did was get the Crown dependencies and the overseas

:39:18. > :39:22.territories around the table in the Cabinet room. The same day at and

:39:23. > :39:26.say we have to make descended. You don't have to go all the way to

:39:27. > :39:30.publish and registers, but another may just information available. As

:39:31. > :39:33.he says, that will mean not only more tax paid, but also great

:39:34. > :39:58.ability to uncover corruption. Can I ask the Prime Minister some

:39:59. > :40:01.questions about his welcome announcement in relation to Crown

:40:02. > :40:05.dependencies? Can ask him personally whether it is right that the British

:40:06. > :40:10.Virgin Islands, Bermuda, and the Cayman Islands have agreed to

:40:11. > :40:13.compile a rich set of beneficial ownership? Canada ask and secondly

:40:14. > :40:19.whether HMRC will have access to that register and cannot has,

:40:20. > :40:27.thirdly if he did not succeed in getting those territories to publish

:40:28. > :40:32.those registers publicly, he would use his powers to the Privy Council

:40:33. > :40:38.to order the tax havens to publish some? There are three things would

:40:39. > :40:44.have been asking the Crown dependencies anew. One is to change

:40:45. > :40:47.tax information, the second is to have a common reporting standards

:40:48. > :40:51.and the third is to establish registers a beneficial cell. They

:40:52. > :40:57.have now been altered. The answer her prescription, they have agreed.

:40:58. > :41:02.The Senate agreement, Guernsey but we hope that will come in the coming

:41:03. > :41:06.days. Second question, will our revenue had access to the register.

:41:07. > :41:10.Guess they will. A third question, I'm going to force them to have

:41:11. > :41:14.public registers. We think they should. We think that at the rate

:41:15. > :41:19.would go. Very few countries in the world, I think saying, Britain, and

:41:20. > :41:23.possibly one of two others have the public registers a beneficial

:41:24. > :41:27.ownership. Hard appendices and territories without the be far in

:41:28. > :41:30.advance of most of the country. The of attacking them, we aren't could

:41:31. > :41:35.raise affect him for what they have done. -- instead of attacking them.

:41:36. > :41:38.We ought to praise him. Shouldn't the credits just not out of the

:41:39. > :41:44.synthetic indignation animate the real point is that they hate anybody

:41:45. > :41:50.who has a hand of 12 and Allied? -- should the critics. May I support

:41:51. > :41:53.the Prime Minister and in the golf those who are attacking him,

:41:54. > :41:58.particularly in thinking of this place. If he does not, we were

:41:59. > :42:02.saying at House of Commons with stuffed full of low achievers, who

:42:03. > :42:07.hate enterprise, hate people who look after their own families, who

:42:08. > :42:18.know absolutely nothing about the outside world. Grateful for his

:42:19. > :42:22.support. We have a system of members interests, which is better placed at

:42:23. > :42:27.the end of 13 years of a Labour government. I think we should

:42:28. > :42:30.maintain that system. I do not want us to discourage people who've had a

:42:31. > :42:33.successful career in business or anything else to come into this

:42:34. > :42:38.house and making a contribution. That is why I said but Prime

:42:39. > :42:43.Minister than shadows, the Prime Minister is, subsequent, it is a

:42:44. > :42:49.different set of originals. That's a different set of derangement.

:42:50. > :42:55.That's does he recall had the time after he became Prime Minister under

:42:56. > :43:00.the Coalition, and had a time when he was dividing the nation between

:43:01. > :43:05.strivers and scroungers, I had to have a very important question about

:43:06. > :43:12.the windfall he receives when he brought off the mortgage of the

:43:13. > :43:19.premises and not until. And I said to him he did not write off the

:43:20. > :43:24.mortgage the one detachment for helping, at Oxford. I didn't receive

:43:25. > :43:46.a proper answer it then, maybe, dodgy Dave will answer it now. By

:43:47. > :43:54.the way,... Order! Order! Order! I must ask the Honorable gentleman, I

:43:55. > :44:01.don't require assistance from a junior minister. Absurd proposition.

:44:02. > :44:04.I advised him to withdraw the hated it that he used a moment ago. He is

:44:05. > :44:11.capable of asking his question without using that word. It is up to

:44:12. > :44:15.him, but I cannot reasonably ask you, Mr to ask that -- answer the

:44:16. > :44:24.question. Just withdraw the word epic or another. -- and think of

:44:25. > :44:30.another. I think he knows the word beginning with the and ending with

:44:31. > :44:34.wide that he inappropriately Jews. -- and appropriately used.

:44:35. > :44:47.There are simple, withdraw. This man has done more good about this

:44:48. > :44:59.patient than anybody else. He has look after his own pocket. And I

:45:00. > :45:07.still referred to him as dodgy Dave. Order! I am sorry, I must ask the

:45:08. > :45:21.Honorable gentleman to withdraw the word. The very well. Under the power

:45:22. > :45:25.given to me by standing order number 43, I order the envelope member to

:45:26. > :45:28.withdraw immediately from the house, for the remainder of this day's

:45:29. > :45:42.setting. -- sitting. Needless to say, no apply is

:45:43. > :45:58.required to that. We will take next. But we now know that the Prime

:45:59. > :46:03.Minister that is the hands of a lot of before becoming promised an

:46:04. > :46:10.unpaid taxes in full. Shocking. -- has paid his taxes. It follows on

:46:11. > :46:12.the question from the chairman of the treasury committee. As others we

:46:13. > :46:18.have the largest tax code in the world after India, on hard-working

:46:19. > :46:23.families away to legitimate ways of trying to minimise their tax bill? I

:46:24. > :46:28.get the gears for headlight attacks, to Madrid. Let me give him one

:46:29. > :46:34.suggestion. The best way to stop people avoiding paying inheritance

:46:35. > :46:42.tax, that tax is to abide by a manifesto commitment and a ball

:46:43. > :46:45.said. -- abolish it. I would say that we met our manifesto commitment

:46:46. > :46:51.on a heritage site, which was to exempt the family home. He is right

:46:52. > :46:53.that would be too simplified, but there is -- painfully into

:46:54. > :46:57.federations which is when you want simplified, but on the other where

:46:58. > :47:01.you see a abuse as a terror, you sometimes need to write new taxes in

:47:02. > :47:10.order to make sure that they cannot begins. -- abuses of care. I think

:47:11. > :47:13.he is right. With the Prime Minister now answer a question that both he

:47:14. > :47:18.and Anna Chancellor refused to answer a few years ago? And can he

:47:19. > :47:23.confirm that they both benefited, personally, from the cut to the top

:47:24. > :47:29.rate of tax, and on the day that the universal credit cards main

:47:30. > :47:32.part-timers can be over ?1000 figure wears off, does he think that the

:47:33. > :47:39.several thousand pound figure and was they both benefited out there?

:47:40. > :47:42.-- are fair. The information is contained in my tax return. And the

:47:43. > :47:48.House of Commons Library, everybody can look at it. But the key point is

:47:49. > :47:53.simply produced the top tax from 50 to 45p, would not only raise more

:47:54. > :47:57.revenue, which is money that we can spend on the public services that

:47:58. > :48:00.she supports, but also the richest 1% and our country are paying a

:48:01. > :48:10.higher overall percentage of income taxed at 27%. But my right

:48:11. > :48:16.honourable friend clarify again that kind of millions of our fellow

:48:17. > :48:20.citizens benefit from tax exempt investments and that most pages

:48:21. > :48:26.games do not pay tax on that investment income, which directly

:48:27. > :48:33.benefits hard-working people, saving for and receiving pensions? He is

:48:34. > :48:37.right about that. But I would also reinforce the point that millions of

:48:38. > :48:41.our fellow citizens own shares and many people choose to make the

:48:42. > :48:45.investments that do get a trust, to a safe form of investment because

:48:46. > :48:49.they share the risk. Many of those unit trust are listed in other

:48:50. > :48:53.countries, and many of them now in Dublin. They are sent up there at

:48:54. > :48:58.night to avoid tax, but to make sure that the revenues of return to the

:48:59. > :49:06.trust holder and then pay tax. That is the key point. Does he accept

:49:07. > :49:11.that the revelations last week that he personally intervened and 2013 to

:49:12. > :49:15.water down the effects of eg transparency rules of the trust that

:49:16. > :49:19.the -- damage his inevitable try himself as some sort of a champion

:49:20. > :49:22.and what he not commit to fully support eg transparency rules,

:49:23. > :49:25.including country by country reporting by corporations, showing

:49:26. > :49:34.exactly how much profit they make and wear? There were no EU

:49:35. > :49:37.proposals, the whole thing was based on a British proposal, a British

:49:38. > :49:41.initiative, to encourage all countries to have registered the

:49:42. > :49:46.beneficial ownership. The EU then joined and by suggesting extending

:49:47. > :49:50.to the trust, and we point out that if that happened, no one would pick

:49:51. > :49:53.up this proposal because trust is set up for all sorts of victim. The

:49:54. > :49:58.care of a disabled child, where support for a local school. Any

:49:59. > :50:02.number of things, perfectly reasonable under English common law,

:50:03. > :50:05.and the advice I had was that if we want for this proposal of going for

:50:06. > :50:10.beneficial ownership of companies and trust, the move that we have

:50:11. > :50:20.made that has happened to change the world and of the guard, would have

:50:21. > :50:25.failed. Would he encourage the Leader of the Opposition too write

:50:26. > :50:29.to him, to set out in detail the allegations he makes against him.

:50:30. > :50:34.I'd advocate a lot or with both the top. Having listened carefully to

:50:35. > :50:40.the Leader of the Opposition, I felt highly to comprehend what it is that

:50:41. > :50:44.he is going on about. -- I failed to cover him. I'm glad to see my friend

:50:45. > :50:49.Center for the overseas territories. You know that they can regularly --

:50:50. > :50:54.the Attorney General had a lot of dealings with him. And encouraging

:50:55. > :50:59.them to chant it just principles. They show themselves to be properly

:51:00. > :51:03.responsive to those representations. And they also agreed that the

:51:04. > :51:07.overseas territories are entitled to provide financial services, and not

:51:08. > :51:13.to beat them for trying to ensure the well-being of their own

:51:14. > :51:17.citizens. He is right. But we have tried to do with the overseas

:51:18. > :51:21.territories is that there is a perfectly legitimate business of

:51:22. > :51:25.providing financial services, but they, like us, should be doing it on

:51:26. > :51:28.the basis of a high standards, not low standards. I think that in the

:51:29. > :51:32.argument that they now accept and I can out and we should thank him for

:51:33. > :51:39.it. As for the first half, I listen to the demo, and I'm not -- I'm not

:51:40. > :51:45.sure how to read it again in letter. You can be forgiven for believing

:51:46. > :51:51.that the only virtue is just fancy, but privacy and inequality above

:51:52. > :51:53.important virtues that we value. -- and equality. That is the promised

:51:54. > :51:56.and agreed that given the many thousands of the painting formers,

:51:57. > :52:02.policy farmers and decision-makers in the country a publicly, the

:52:03. > :52:06.private companies effort to set an principle, it should be the public

:52:07. > :52:15.finance, publisher of fantasy. Who is paid but, by the taxpayers. Flag

:52:16. > :52:19.it with the first half of this question. That is a value and

:52:20. > :52:22.privacy and data slapping would have had this balance between what is

:52:23. > :52:29.disclosed and was not disclosed. -- have this balance. I has issued

:52:30. > :52:31.about a private service companies, the Chancellor had said something in

:52:32. > :52:37.the budget. That's on his issue. There is a case in making sure that

:52:38. > :52:41.people declare these arrangements in the proper way. The changes the

:52:42. > :52:44.Chancellor has spoken about will make sure that whether someone

:52:45. > :52:47.chooses to have a private sales company or chooses to be

:52:48. > :52:55.self-employed, the amount of tax rebate will be much more similar.

:52:56. > :52:58.That's the tax they pay. I'll come to prominence a public announcement

:52:59. > :53:03.there will be a new, no offence applied to corporations who fail to

:53:04. > :53:06.prevent the representatives from commonly facilitated tax abatement.

:53:07. > :53:11.That reflects the value to prevent bribery offences. -- tax abatement.

:53:12. > :53:21.There are nearly 40 begin other economic crimes, which are listed in

:53:22. > :53:25.the crime axle 2013. Well my friend had discussions with the Ministry of

:53:26. > :53:28.Justice and Law officers to measure we can add the tax offences that he

:53:29. > :53:32.was referred to, but those other economic crimes so that they can be

:53:33. > :53:38.dealt with under the failure to prevent system? He has a lot of

:53:39. > :53:49.expertise and I think the point he's making that we have to sure as we

:53:50. > :53:52.set out economic crimes we measured the properly publicise and

:53:53. > :53:55.understood and then properly prosecuted. We need to make sure the

:53:56. > :53:59.National Crime Agency and the Serious Fraud Office work together

:54:00. > :54:05.to integrate that he was keen when he was doing the job. The Prime

:54:06. > :54:09.Minister says that he is leading international efforts to cut down on

:54:10. > :54:14.tax evasion. So could he properly explained why he broke to the then

:54:15. > :54:19.European Council President -- and the boat, and ask him to what about

:54:20. > :54:25.the EU trade principles by trading trust differently than companies?

:54:26. > :54:29.And anti-money-laundering gloss, despite warnings that such a move

:54:30. > :54:36.could create the polls for tax dodges? -- loopholes for tax. I've

:54:37. > :54:46.answered this question several times. We were keen to get progress

:54:47. > :54:49.on the beneficial ownership of companies. If we had a set of

:54:50. > :54:52.proposals to include trust, that would have gotten completely bogged

:54:53. > :54:58.down and would have made nearly the progress that we have where we have

:54:59. > :55:01.every G7 country, Thomas G20 country signing up to have action plans on

:55:02. > :55:04.beneficial ownership of companies. If you do that which is, my advice

:55:05. > :55:12.would the holding would have slowed down to a trickle.

:55:13. > :55:17.As far as I'm concerned, it is perfectly clear that neither the

:55:18. > :55:24.Prime Minister nor his father, for that matter, have done anything

:55:25. > :55:27.wrong at all. Any statement he said that we must defend the right of

:55:28. > :55:32.every British citizen to make money lawfully. I agree with that

:55:33. > :55:37.wholeheartedly. It is slightly of variant to this description of

:55:38. > :55:40.people who have done that, as Morley apartment. Can the Prime Minister

:55:41. > :55:47.give us a promise that he will uphold the rule of law and not

:55:48. > :55:52.question him about the people who act lawfully with regard to their

:55:53. > :55:57.tax arrangements. I am grateful for his support. I agree with what he

:55:58. > :56:02.says. He is completely right. The rule of law is what matters overall.

:56:03. > :56:09.The simple point that I have often made, and will continue to make, is

:56:10. > :56:17.that of course, it is tax edition that is illegal. Not tax avoidance.

:56:18. > :56:21.Or into other perfectly legitimate ways of planning for the future in

:56:22. > :56:25.their family and all the best of it. I would say, what we have seen and

:56:26. > :56:29.sometimes it's oppressive measures, I mention some of them in my

:56:30. > :56:37.statement. People putting properties and envelopes, rather than paying

:56:38. > :56:40.stamp duties. It is difficult for the government to catch up quickly

:56:41. > :56:44.enough with the huge changes that are taking place. I think that a bit

:56:45. > :56:50.of leeway is necessary, but it is right. It is different that what

:56:51. > :56:53.matters. Does the Prime Minister Brill is that there is a difference

:56:54. > :57:06.between the vast majority of our constituents who pay their tax in

:57:07. > :57:10.the usual way, and very rich people who use tax havens for obvious

:57:11. > :57:17.reasons? That is by the accusation is made. Of course there is bad

:57:18. > :57:21.practice that takes place, not least in some of these jurisdictions that

:57:22. > :57:27.needs to be dealt with. That is what the tax transparency and sharing of

:57:28. > :57:31.information is about. The other thing to recognise that happened

:57:32. > :57:35.last week the ?11,000 personal allowance came in, so people could

:57:36. > :57:39.earn ?11,000 before they pay any income tax at all. That completed

:57:40. > :57:46.our work of taking 4 million of the lowest paid people in our country

:57:47. > :57:49.out of income tax altogether. Mr Speaker, the Prime Minister has paid

:57:50. > :57:54.his taxes and behave perfectly properly. Can I commend him for

:57:55. > :57:59.standing up to those who thought to be smart of his father's reputation.

:58:00. > :58:02.Can he remind us how much extra money is coming into the exchequer

:58:03. > :58:05.as a result of his government's closing down the loopholes that were

:58:06. > :58:12.set up under 13 years of Labour government? We have raised an extra

:58:13. > :58:16.12 billion and the last Parliament. We want to raise another 16 billion

:58:17. > :58:21.and this Parliament, stretching up to 2021. Also, by having a lower

:58:22. > :58:25.rate of corporation tax, we have seen more corporation tax come in.

:58:26. > :58:34.Low tax rates, but taxes that people paid. We have heard that the rule of

:58:35. > :58:41.law is paramount. The government controls what is legal. And what is

:58:42. > :58:46.illegal and tax law. Can the Prime Minister guarantee that the ball

:58:47. > :58:54.will make offshore tax dodging in all its form illegal? -- the law.

:58:55. > :58:56.Eve eating tax is already illegal whether you are doing it in the UK

:58:57. > :59:10.or somewhere else. -- elevating. If they were admitting tax. We

:59:11. > :59:15.should not use that to say that it is wrong for people or trade unions

:59:16. > :59:20.or companies or pension schemes to invest in trusts listed in other

:59:21. > :59:27.countries as that is a legal way of investing. Can I congratulate my

:59:28. > :59:31.right honourable friend for bringing the transparency to the office of

:59:32. > :59:34.Prime Minister by publishing his own tax return? Can he say whether he

:59:35. > :59:40.had any thoughts about whether they should be extended to prime

:59:41. > :59:47.ministers many of whom still receive public money. I would be very

:59:48. > :59:55.interested in seeing be tax-deferred of Tony Blair. I would say that I am

:59:56. > :00:00.not claiming some perfect record, but on the coming Prime Minister I

:00:01. > :00:06.have cut the Prime Minister's kbyte 5%. I rejected the Prime Minister's

:00:07. > :00:10.tax allowance of ?20,000 a year. I reform the Prime Minister's pension.

:00:11. > :00:16.It is contributory for the first time. As Mr Speaker knows they have

:00:17. > :00:27.given up their state pension that gives you half your salary in

:00:28. > :00:31.perpetuity. I did it. All of those steps have been taken, which I think

:00:32. > :00:38.they are the right thing to do. Thank you Mr Speaker. Will the

:00:39. > :00:44.Chancellor of the Exchequer be clarifying the tax situation of his

:00:45. > :00:52.family company which he holds a in, but has paid no UK corporation tax

:00:53. > :00:57.in seven years? What I would say is that the Chancellor's family firm is

:00:58. > :01:02.exactly the sort of manufacturing small firm we want to encourage our

:01:03. > :01:05.country. For many years I gather that they have not been making a

:01:06. > :01:09.profit, but I am glad that the company is doing well and are now

:01:10. > :01:14.paying a dividend. That is a bishop should welcome. It's tax matters are

:01:15. > :01:20.a matter between the company and the Inland Revenue. That is the way that

:01:21. > :01:24.it should be. I would like to join members on the side of the House and

:01:25. > :01:27.welcoming the Prime Minister's statement this afternoon. I would

:01:28. > :01:33.like to ask when he meets with world leaders in London this May, for the

:01:34. > :01:36.global anti-corruption summits, what will he pass them to agree actions

:01:37. > :01:43.to expose corruption wherever it exists? I think that it is good beer

:01:44. > :01:48.having the summit. I am writing in a document that will be released

:01:49. > :01:53.before the summit, and no country or politicians can claim that they have

:01:54. > :01:57.a perfect an unblemished record in this regard. All countries are

:01:58. > :02:03.battling against these problems as we did in this House of Commons. I

:02:04. > :02:08.want to encourage people and the Prime Minister of Afghanistan is

:02:09. > :02:11.contributed, the president of Nigeria is contributing, they are

:02:12. > :02:14.admitting that their countries are rife with corruption, but it needs

:02:15. > :02:19.to be dealt with. The problem is that if nobody steps up and talks

:02:20. > :02:31.about these issues and sets out an action plan, nothing will get done.

:02:32. > :02:37.At the last count, 30 6000, 364 properties in London were owned by

:02:38. > :02:42.offshore companies. That is one in ten of one London borough, and 7% of

:02:43. > :02:46.another London Borough. We should know who owns those properties. Many

:02:47. > :02:55.believe that it is dirty money from countries like Russia and the Middle

:02:56. > :02:58.East. Driving up costs 50% increases, what is the Prime

:02:59. > :03:03.Minister are going to do about dirty money propping up the London

:03:04. > :03:09.property market? The first thing that we have already done is to say

:03:10. > :03:12.that if a property is owned by a company, a so called them to look

:03:13. > :03:17.structure, so you can't get to the name of the person that owns that

:03:18. > :03:22.property, they have to pay an annual stamp duty charge of something like

:03:23. > :03:25.15%. This has been a massive money raiser to spend on public services.

:03:26. > :03:30.In a huge disincentive for this sort of behaviour. I want to go further,

:03:31. > :03:36.we need to have more information about who owns what in our country.

:03:37. > :03:41.Can I think the Prime Minister for his very clear statement. This

:03:42. > :03:49.afternoon I received a furious e-mail from a man in my constituency

:03:50. > :03:53.who said that he watched Sky News yesterday. He is so shocked that the

:03:54. > :04:01.Scott Philipp Shadow Chancellor deliberately misled viewers and that

:04:02. > :04:05.his... For a Shadow Chancellor to be so blatantly misleading is not

:04:06. > :04:12.acceptable. I am quoting here. The Marxist's moron was not an excuse.

:04:13. > :04:16.The Prime Minister cannot have paid inheritance tax even if you wish to

:04:17. > :04:24.as taxes leveled on these... Order, order! This is all very well, but is

:04:25. > :04:31.nothing to do with the responsibility of the Prime

:04:32. > :04:34.Minister. Order, order! Don't argue with the chair. The Prime Minister

:04:35. > :04:38.is not responsible for what the Shadow Chancellor has said. I do say

:04:39. > :04:45.that to the honourable Lady kindly. But with some authority in these

:04:46. > :04:51.matters, believe me. No one in this house should have to feel family

:04:52. > :04:55.members are being attacked unfairly. And not, the Prime Minister is

:04:56. > :04:58.absolutely correct. Can I tell him that it is not clear to me what he

:04:59. > :05:05.believes about holding shares in offshore trust and tax havens. Does

:05:06. > :05:09.he think that it is perfectly OK, and which is why was his clothing

:05:10. > :05:14.them be a conflict of interest? Does he think that tax havens are eight

:05:15. > :05:20.problem that needs fixing. And which case why did he have been in the

:05:21. > :05:24.first place. Let me into this question in full. Do I think that it

:05:25. > :05:27.is OK to own shares in eight units trust that is registered in another

:05:28. > :05:34.country whether that is in Dublin, or in Guernsey. Guess I do. That is

:05:35. > :05:38.why trade unions hold the shares. Pension funds. Many people in our

:05:39. > :05:43.countries hold unitrust. Here is the key point. The units trust does not

:05:44. > :05:48.exist to make money for itself. It makes money for the unit holders. If

:05:49. > :05:52.the unit holders used in Britain they pay British income tax and all

:05:53. > :05:58.of the wrecks. That is why these arrangements have been in place for

:05:59. > :06:03.many years. No Labour or policy review has ever thought of getting

:06:04. > :06:10.rid of them. That is my answer to her first question. Why if I thought

:06:11. > :06:13.that there was nothing wrong with that that I sell my shares because

:06:14. > :06:16.there might be a conflict of interest? I sold shares in every

:06:17. > :06:23.company that I own because I thought that there were two back options,

:06:24. > :06:27.you can put things into a blind trust, a very good way to go about

:06:28. > :06:31.it, but I thought that even simpler and more straightforward was to sell

:06:32. > :06:36.everything. Then I was not own any shares of any of the companies that

:06:37. > :06:38.I previously had a shareholding and poop or have deep that had dealing

:06:39. > :06:54.with the government. There was no for the Prime Minister confirm that

:06:55. > :07:02.the only a regular thing about the summary of his tax return is the

:07:03. > :07:06.fact that he voluntarily took the tax allowance something that was

:07:07. > :07:10.enjoyed by many of his predecessors including those opposite. Instead,

:07:11. > :07:13.he rightly focused on increasing the personal allowance so that many of

:07:14. > :07:19.low income earners could appoint paying tax altogether when he

:07:20. > :07:22.pledged to continue that policy. I am grateful to give him that

:07:23. > :07:29.reassurance. We have the target in our manifesto. We want to meet that

:07:30. > :07:32.target. I think that what I did as a Prime Minister was the right thing,

:07:33. > :07:37.not least because as it says in the information from a tax return, there

:07:38. > :07:41.is support for me and my wife from the Conservative Party in terms of

:07:42. > :07:44.some of the costs and issues of travel and other things you have to

:07:45. > :07:49.deal with as the leader of a party. Whether that was a better way of

:07:50. > :07:56.doing it. Party money, not taxpayer money, on which they text charge. Is

:07:57. > :08:02.it the right thing to do to be claiming expenses to live in a great

:08:03. > :08:09.delete make an apartment, but making a big profit out of it. I am baffled

:08:10. > :08:20.by the honourable Bolton summoned. With all of the information

:08:21. > :08:23.necessary. He has not yet made a complaint. I hope that he is going

:08:24. > :08:28.to find the time later on and do what he said he was going to do. The

:08:29. > :08:33.point, I think that he has misunderstood. I am very likely to

:08:34. > :08:40.live in number ten Downing treat. Precisely number 1011 and 12. I

:08:41. > :08:47.received a benefit in kind. Because of that benefit, I pay a tax in that

:08:48. > :08:51.benefit in kind. There is not a subsidy that I am getting. It is a

:08:52. > :08:59.benefit that I am very grateful for, and I get the tax man money in

:09:00. > :09:02.respect of it. May I tell the Prime Minister that he should not be a

:09:03. > :09:07.shame that he has a good fortune to be born into a well-off family. He

:09:08. > :09:12.has nothing to be ashamed about. Make a tiled the Prime Minister that

:09:13. > :09:16.it is not a sin for his parents, quite naturally, to want their

:09:17. > :09:20.savings to be cascaded down to the generations. He has nothing to be

:09:21. > :09:25.ashamed of. Can I warn my right honourable friend, no matter how

:09:26. > :09:28.much information he wants to the voltage, nothing will satisfy some

:09:29. > :09:35.of those people on the Labour front bench. I am grateful for my friend

:09:36. > :09:39.says. I think that there is a point of which were you have to say I

:09:40. > :09:43.published the information that I think is relevant. I came back over

:09:44. > :09:48.the last six years. That is the limit of what I'm going to release.

:09:49. > :09:53.Some people said, well what about your wife's tax returns or your

:09:54. > :09:57.mother's financial affairs. I think that there comes a time or we should

:09:58. > :10:03.say we have a register of member's Angers, Prime Minister, chances,

:10:04. > :10:10.opposition... We should rely on their interested release the rest of

:10:11. > :10:16.our affairs. Given that more of the half of the companies in the Panama

:10:17. > :10:19.Papers are registered in the UK, does the Prime Minister regret

:10:20. > :10:26.telling this house in 2013I don't think that it is there any longer to

:10:27. > :10:29.refer to any of the overseas territories as tax havens. Can he

:10:30. > :10:33.try to rebuild some of the public trust that he has lost in the last

:10:34. > :10:39.week by making sure that in terms of publishing information, the Crown

:10:40. > :10:43.dependencies and overseas territories do you follow the UK's

:10:44. > :10:53.examples and will be taking concrete action, ... We got the Crown

:10:54. > :10:57.dependencies and overseas territories for the first time to

:10:58. > :11:00.share automatically tax information but the United Kingdom government.

:11:01. > :11:03.That is something that did not happen under the last Labour

:11:04. > :11:07.government, something that we did a cheap and it was a different

:11:08. > :11:16.approach. Now he is right we want to go further. The announcement today,

:11:17. > :11:18.but they will give us access to their information about ownership.

:11:19. > :11:23.Just so he knows how different things were under the last

:11:24. > :11:27.government, the then financial Secretary of the Treasury, in

:11:28. > :11:35.response to questions about the overseas territories said this,...

:11:36. > :11:39.Is essentially a matter for the Crown dependencies themselves. He

:11:40. > :11:43.was saying it is nothing to do with me. It is up to them. That is the

:11:44. > :11:51.government that we replace, and we took a different approach. We made a

:11:52. > :11:59.lot of progress. Forgive my lack of voice. I understand the Prime

:12:00. > :12:05.Minister's is due to protect his father. His father did nothing wrong

:12:06. > :12:14.whatsoever. The Prime Minister inch and a long and thoughtful debate,

:12:15. > :12:23.can I'd say that when... That there are no more knee jerk reactions and

:12:24. > :12:28.that's a debate is given it to everybody else. Thank you for your

:12:29. > :12:32.support. He makes the point that we should try to make decisions about

:12:33. > :12:39.these things calmly and rationally after debate. I felt that after all

:12:40. > :12:41.of the questions that I was being asked, the right thing to do with

:12:42. > :12:45.publicist information. I cannot be cleared today that that I don't want

:12:46. > :12:54.to see this as a president. I think that we should be... But taxpayer

:12:55. > :13:00.confidentiality. Some other countries do have complete

:13:01. > :13:15.publication of all tax information. That is not our way. We have... It

:13:16. > :13:24.speaking as a low achiever, the biggest and multinational company

:13:25. > :13:28.earned more income in a single week in the combined income of all and

:13:29. > :13:33.piece together. The Prime Minister had become a transparency before,

:13:34. > :13:35.and that is why many of us want to make sure that the country by

:13:36. > :13:40.country information that multinationals will be obliged to

:13:41. > :13:43.provide to HMRC should be put in a public domain. Or he or a menace to

:13:44. > :13:49.meet with myself and other members of the committee to discuss this

:13:50. > :13:52.proposal? I have always thought of the honourable Lady is a high

:13:53. > :14:02.achiever. She'd certainly put the boot into my predecessor. The point

:14:03. > :14:06.about the country to country reporting, is what we are trying to

:14:07. > :14:10.achieve as I said in my statement, is a common reporting standards

:14:11. > :14:13.about companies purport to tax authorities in the same way, and

:14:14. > :14:20.then the sharing of that information so that you can see if company a is

:14:21. > :14:25.paying a certain amount of tax in one jurisdiction and one in another.

:14:26. > :14:27.I think that at the moment is the most powerful way of achieving what

:14:28. > :14:32.we want to achieve. There are those that say we need to go even further

:14:33. > :14:38.and public declarations of tax. That is an interesting argument. Let's

:14:39. > :14:45.not make the Gilly that the enemy of the good. I want to say that

:14:46. > :14:50.completed. Does my right honourable friend agree that any course of

:14:51. > :14:56.action designed to reduce tax which does not constitute tax evasion must

:14:57. > :15:00.by definition be legal, even if some may regard it as a corrective tax

:15:01. > :15:09.avoidance. It is up to this Parliament to legislate to make such

:15:10. > :15:13.courses of action legal? Where there is aggressive avoidance taken place

:15:14. > :15:16.it is against the spirit of the law. Then Parliament should act. As I

:15:17. > :15:21.said many times, that is what the Chancellor has done and what HMRC

:15:22. > :15:25.advises us about. I think that there sometimes are a for the tax

:15:26. > :15:33.avoidance is so aggressive that it is right to warn those taking a a

:15:34. > :15:41.bit that legislation will follow in that office happens also. He arrives

:15:42. > :15:46.the tax arrangements discussed today as standard. Will he be issuing

:15:47. > :15:49.guidance, perhaps in the form of a leaflet to every UK household, so

:15:50. > :15:56.ordinary taxpayers can find out how they can benefit from offshore tax

:15:57. > :16:02.havens? The point is that there are many people and our country, over 12

:16:03. > :16:09.million shareholders, many hold shares in unit trusts. They don't

:16:10. > :16:14.need any information from me. If you are a UK resident, you must pay UK

:16:15. > :16:21.income and capital gains taxes as in any organisation. I would not

:16:22. > :16:25.recommend doing this, but reading back Hansard over the last 13 years

:16:26. > :16:31.of the label government, I cannot find a single occasion of which the

:16:32. > :16:34.Member for Islington North raised any of these issues. The closest he

:16:35. > :16:43.came with the Labour government's decision to use order in Council to

:16:44. > :16:53.take control of the Turks and Caicos islands as undemocratic. Which he

:16:54. > :16:58.now says is... I am interested to see the right honourable gentleman

:16:59. > :17:02.conducted a U-turn. He has recently suggested taking control of these

:17:03. > :17:08.territories. I cannot see a use for the nuclear submarines as they head

:17:09. > :17:15.off towards the title of man -- Isle of man. . Much more sensible to get

:17:16. > :17:21.them to do the things that they ought to be doing. Life does the

:17:22. > :17:24.Prime Minister think so many companies are registered

:17:25. > :17:29.independents Gilly Panama in the first place? Why not London or New

:17:30. > :17:38.York? The reason why a lot of units trust order in different countries

:17:39. > :17:43.is because they want to be able to market their services not just to UK

:17:44. > :17:49.residents who pay UK taxes, but to other people. That is why if you

:17:50. > :17:53.look at the revenue in the way that they arrange it, they actually want

:17:54. > :17:58.to make sure that UK funds managers can be involved and pay their taxes

:17:59. > :18:05.here in the UK and begin building investment industry that this

:18:06. > :18:08.country can be proud of. Can I think my right honourable friend for his

:18:09. > :18:15.open and frank statement today. I think that he has exonerated

:18:16. > :18:24.himself. Can he confirm under HMRC rules that the supporting

:18:25. > :18:36.information has been... Should he be defined? -- be fine. It is

:18:37. > :18:42.disappointing that we got it at 345I think that when I was on my feet.

:18:43. > :18:52.Matters for fines of late production of tax returns, I think that is a

:18:53. > :19:06.matter for the HMRC. 2013 best man was found guilty of an egregious --

:19:07. > :19:11.this man, ... And for taking ?10,000 a month as a payment for lobbying

:19:12. > :19:14.for the Cayman Islands. He had no punishment from his party and was

:19:15. > :19:20.allowed to get away with it with a brief apology to the House of Lords.

:19:21. > :19:25.With the Prime Minister tell us that it's an future if any

:19:26. > :19:30.parliamentarian in his party uses his privileged position and

:19:31. > :19:38.prostitutes it in order to make private gain, he will act ended up

:19:39. > :19:42.doing back discipline them? We have rules in this house for the

:19:43. > :19:47.declaration a member's interest. We have a policeman, as it were, in

:19:48. > :19:53.terms of making sure it they are properly carried out. We also have a

:19:54. > :19:59.punishment, including expulsion for Miss declarations and this

:20:00. > :20:06.behaviour. I am not as the money or -- I am not as familiar. While the

:20:07. > :20:14.conversations around Panama are interesting to the front bench lead

:20:15. > :20:23.back bench and the opposition, actually benefit from inheritance

:20:24. > :20:28.tax. , does my friend agreed with me that the time is now to further

:20:29. > :20:34.reform inheritance tax to help more people, mainly my age, get on the

:20:35. > :20:38.property ladder? There is a role for making sure that people can pass on

:20:39. > :20:42.the family home exempt from inheritance tax. That is why we set

:20:43. > :20:46.out the steps during this Parliament to make sure that that can happen.

:20:47. > :20:53.That's completely set out at our manifesto. I think the public would

:20:54. > :20:58.be taken to TB Prime Minister at word. Had the Prime Minister not

:20:59. > :21:15.appointed this man... Can they say what sorts of money he

:21:16. > :21:26.got to pay this man and does someone with those views through late-night

:21:27. > :21:30.along in the HMRC. The report that was in the paper points out he had a

:21:31. > :21:35.commercial career at Simmons and Simmons, one of the most respected

:21:36. > :21:39.legal practices that there is. It is a good thing that we can attract

:21:40. > :21:42.people from private practice into the Revenue and Customs to make sure

:21:43. > :21:51.that we collect all the money that we should. Can the Prime Minister

:21:52. > :21:55.assured the House that in the future, any changes to the taxation

:21:56. > :21:58.will do nothing to diminish the aspiration of working families so

:21:59. > :22:01.that those families who want to do the right thing and provide for

:22:02. > :22:07.their future, save for their retirement, and pass onto their

:22:08. > :22:12.children, can continue to do that? I think my friend is absolutely right.

:22:13. > :22:14.If you look at our reforms to inheritance tax and pensions,

:22:15. > :22:18.enabling people to take and spend more of their money as they choose,

:22:19. > :22:22.they are also able to pass it onto their children and to help with

:22:23. > :22:27.those key purchases. First come, first car, helping young people with

:22:28. > :22:32.there. All of those cascades down the generations and helping people

:22:33. > :22:36.to do that as a part of our goal. The Prime Minister's announcement

:22:37. > :22:41.that people will be criminalised if they assist with tax evasion,

:22:42. > :22:42.particularly as it was announced by the Secretary of the transitive

:22:43. > :22:53.delete put Ford in Coalition to see if they

:22:54. > :22:59.can also play a significant role in dealing with a really difficult

:23:00. > :23:02.issue of tax evasion? It is true that the Coalition Government

:23:03. > :23:09.achieved a lot in this area. It was led by myself but the second Lord of

:23:10. > :23:12.the Treasury in terms of driving that agenda. Particularly at the G8

:23:13. > :23:21.in the G20, but at the G20, but Abby Fulp Philip at that point we had the

:23:22. > :23:24.full support. I listen carefully to the words of the Leader of the

:23:25. > :23:28.Opposition. Does the Prime Minister share my concern that the reader of

:23:29. > :23:34.this opposition seem to forget or possibly what seemed unaware of the

:23:35. > :23:37.aspiration that determination and prospect of finance reward were

:23:38. > :23:42.ingredients of the strong economy that behalf which lead to jobs and

:23:43. > :23:47.for many. Does my right honourable friend agreed that we should condemn

:23:48. > :23:52.these politics of envy, and will he stick to the politics of opportunity

:23:53. > :23:57.and aspiration? My honourable friend is absolutely right. What we want is

:23:58. > :24:00.a society would be set low tax rates and encourage people to make the

:24:01. > :24:04.best of themselves and for their families. That will build not only a

:24:05. > :24:16.strong economy, but a shocker society. -- stronger society. The

:24:17. > :24:21.Prime Minister referred to his anti-corruption Summit. Can he tell

:24:22. > :24:26.us which countries are going to be represented there and will and

:24:27. > :24:32.imitation be extended to either president Putin or some of his

:24:33. > :24:38.corrupt cronies that fund the propaganda channel to explain the 2

:24:39. > :24:45.billion dollars held in Panama by that corrupt regime? He has been

:24:46. > :24:48.restored to rude health. I welcomed him earlier and I know that the

:24:49. > :24:52.Prime Minister will welcome him. I'm glad to see him back in his summa

:24:53. > :24:57.your place. The guest list is still being worked on for the correction

:24:58. > :25:00.Summit. The point is this. We will be asking people on the basis that

:25:01. > :25:05.that they were in perfect countries or governments, but are they going

:25:06. > :25:11.to commit to public declarations of things like open that official

:25:12. > :25:15.ownership registration, sharing tax information, making sure that when

:25:16. > :25:18.assets are alluded that we can confiscate them and restore them to

:25:19. > :25:22.the people who they belong to. If countries want to sign up for that,

:25:23. > :25:26.however much their record in the past may have been imperfect, you

:25:27. > :25:35.will be encouraging them to come and do just that. My mother spent 32

:25:36. > :25:45.working at a factory. Like the Prime Minister's mother she lost things.

:25:46. > :25:50.Can I say how hurtful those remarks must have been to the Prime Minister

:25:51. > :25:53.over the last few days? Can be Prime Minister tell the House what message

:25:54. > :25:56.they want to send to the millions of people and all of our constituencies

:25:57. > :26:01.who want to do the right thing by the next generation?

:26:02. > :26:07.I am grateful, and I am sure my mother will be too. She says she is

:26:08. > :26:12.developing a thicker skin with every week. He is right that many people

:26:13. > :26:16.want to pass wealth and assets, help their children in all of the ways

:26:17. > :26:21.that they can. That is not something we should be ashamed of, but we

:26:22. > :26:27.should actively encourage it. It would help build a stronger society

:26:28. > :26:29.in our country. The prime minister acknowledged that under current

:26:30. > :26:35.legislation is difficult to prosecute countries to assist with

:26:36. > :26:41.tax evasion. I, and many others would add fraud and corruption to

:26:42. > :26:45.that list to. The government promised in a manifesto to extend

:26:46. > :26:49.corporate offences to deal with all economic crime, not just tax

:26:50. > :26:54.evasion. Would the Prime Minister committed today to urgently review

:26:55. > :27:00.the legislation to extend the offence that would incorporate fraud

:27:01. > :27:04.and corruption to? She makes an interesting suggestion, and I will

:27:05. > :27:11.look at it carefully. We announced a proposal and identified an

:27:12. > :27:14.opportunity in a future bill -- inclusion in the future bill. I

:27:15. > :27:19.think she is arguing for an extension of the offences, so that

:27:20. > :27:27.they can be used in the same way and I will look carefully. We have had a

:27:28. > :27:30.full exchange, and we must move on to the second statement. The

:27:31. > :27:44.secretary of state for business innovation and skills. Thank you Mr

:27:45. > :27:49.Speaker. I would make a statement on Britain's steel industry. We are

:27:50. > :27:57.familiar with the perfect storm that has led to the global still collapse

:27:58. > :28:03.in 2015. For all of the economic challenges, this is a huge one. Over

:28:04. > :28:08.the past 11 months I have visited steel communities all over the UK.

:28:09. > :28:12.There are different plans in different faces, but there is one

:28:13. > :28:16.thing that unites them. The pride, and the dedication of the highly

:28:17. > :28:20.skilled people that I meet. All they want is to carry on doing what they

:28:21. > :28:27.do so well. I am doing everything I can to help them do just that. Mr

:28:28. > :28:33.Speaker, I will talk first about Port Talbot. It's becoming secretary

:28:34. > :28:38.of state for business I have been in frequent contact with the senior

:28:39. > :28:44.management of Tata. This includes several meetings last year and this

:28:45. > :28:50.year. Several weeks ago, Tata told me, and confident, they were

:28:51. > :28:56.considering immediate closure of port Talbot. I would have meant

:28:57. > :29:00.thousands of workers would have been out of a job and thousands more

:29:01. > :29:07.would have been facing a bleak future. I was not prepared to let

:29:08. > :29:17.that happen. Any days that followed I worked relentlessly... . Order!

:29:18. > :29:21.The statement must be heard. The record shows that the chair

:29:22. > :29:28.facilitates a very full and thorough interrogation. The secretary of

:29:29. > :29:35.state will expect nothing less, but he needs the courtesy of being hurt.

:29:36. > :29:41.Thank you. I worked relentlessly to convince Tata that it was within

:29:42. > :29:50.everyone's interest to keep the factory open. I was told they were

:29:51. > :29:56.open to that process. That has paid off. They announced their intent to

:29:57. > :30:03.sell off their planned rather than to close it. Since then I have made

:30:04. > :30:06.with executives here, and in Mumbai. I have been joined by the business

:30:07. > :30:16.minister and our member from Wales. We have been assured Tata will be a

:30:17. > :30:21.responsible seller and find a buyer. The formal process begins today. I

:30:22. > :30:24.have been in contact with potential buyers, making clear that the

:30:25. > :30:29.government stands ready to help. This includes looking at the

:30:30. > :30:34.possibility of how investing with a buyer on commercial terms. We have

:30:35. > :30:46.appointed you why on behalf of the government. -- EY. I cannot divulge

:30:47. > :30:49.ongoing discussions, I will update the house when appropriate. I would

:30:50. > :30:52.take this opportunity to thank the first Minister of Wales for all of

:30:53. > :30:59.his hard work, because his support in all of these works has been

:31:00. > :31:07.invaluable. I will turn to tarmac's one product division. There has been

:31:08. > :31:11.an additional agreement with Tata. They protect jobs, and minimizes

:31:12. > :31:15.costs to taxpayers. We have been closely involved in the sales

:31:16. > :31:19.process from day one, including making a commercial offer on

:31:20. > :31:25.financing if possible. We will continue to work with them to make

:31:26. > :31:28.sure that this gets done. Moving on to Scotland. Friday, we sought

:31:29. > :31:37.liberty house receive the keys to to Tata Mills. It is a great result for

:31:38. > :31:48.the people of Scotland. The Scottish government deserves applause. The

:31:49. > :31:56.steel industry is still a long way from its peak, from its pre-crisis

:31:57. > :32:07.deep. Our support continues. The steel Council, which has been

:32:08. > :32:11.meeting has worked toward solutions. We have worked with unions. I would

:32:12. > :32:18.like to thank the community for its positive and constructive approach.

:32:19. > :32:23.We had taken on power. ?76 million has been paid to steel makers to

:32:24. > :32:29.compensate for bills, and we expect to pay more than ?100 million this

:32:30. > :32:36.year. We have acted on procurement. New rules make it easier for public

:32:37. > :32:40.to buy British. We are leading calls in the EU against unfair trading

:32:41. > :32:45.practices. We favoured anti-dumping measures in our votes last year. We

:32:46. > :32:51.voted in favour of measures on rebar and coal products in February of

:32:52. > :32:59.this year. These measures are having a real effect, with regard down 99%.

:33:00. > :33:04.We are still looking at ways to improve the EU tax mechanism to help

:33:05. > :33:14.the steel industry without harming other sectors. Let me be clear on

:33:15. > :33:18.this. We have, repeatedly, donated, and voted on tariffs for unfair

:33:19. > :33:25.Chinese steel, and we will continue to do so. Mr Speaker, I would love

:33:26. > :33:28.to stand here and declare the crisis is over, to say that not one more

:33:29. > :33:36.jobs will be lost in the steel industry. That is not a promise that

:33:37. > :33:41.I can make. But, I can promise that this government has consistently

:33:42. > :33:47.done all that we can to support Britain's steel industry, and we

:33:48. > :33:53.will continue to do so. We know, Mr Speaker, there are no easy answers.

:33:54. > :33:59.Too many jobs have been lost. Where that has happened we have worked to

:34:00. > :34:05.ensure no one is left behind. The committed ?80 million to help those

:34:06. > :34:14.affected by the closure. We stand ready to help you back industry

:34:15. > :34:20.where it is facing redundancies. Britain's steel industry is a vital

:34:21. > :34:23.part of our economy. I want to secure its long-term future, to see

:34:24. > :34:29.made in Britain stand in steel used around the world, and I want to

:34:30. > :34:36.protect the jobs of the workers who worked in the industry. The people

:34:37. > :34:44.of Port Talbot, Scunthorpe, and of their one industries around the

:34:45. > :34:49.country. I commit this to the house. Can I thank the secretary of state

:34:50. > :34:54.for his statement. Can I also welcome the good news on the sale of

:34:55. > :34:58.the lung products division, Scunthorpe, after nine months of

:34:59. > :35:12.negotiation. I know the business secretary claims it as a business

:35:13. > :35:18.success -- government success. The actual factory said they need help

:35:19. > :35:22.from the government, but it was not forthcoming. This has turned into an

:35:23. > :35:27.existential crisis. This government and this secretary have been found

:35:28. > :35:35.wanting. When I met workers on the 18th of March I noticed the mood was

:35:36. > :35:40.darkening and they were looking forward to the meeting in Mumbai. My

:35:41. > :35:45.friend was so concerned that he flew to Mumbai with the secretary of the

:35:46. > :35:50.community you need to meet directly with Tata. Where was the business

:35:51. > :35:57.secretary? Was he fighting tooth and nail to ensure a UK foundation

:35:58. > :36:04.industry? Mr Speaker, he is not -- was not. He was on his way to

:36:05. > :36:08.Australia to fulfil pleasant engagements down under and leaving

:36:09. > :36:14.his junior minister to take the flak back home. It is this incompetence,

:36:15. > :36:18.this in action which has characterised his response to this

:36:19. > :36:24.crisis from the beginning. He has claimed he was caught unaware by

:36:25. > :36:29.Tata's decision to sell its entire operations, putting at risk of

:36:30. > :36:33.40,000 jobs. A week, on the side of the house, had been a morning there

:36:34. > :36:39.was a gathering of urgency, and that it was coming to a head. Labour MPs

:36:40. > :36:43.have raised this issue more than 200 times since the election a year ago

:36:44. > :36:48.and we have been brushed off with warm words and no action, month

:36:49. > :36:56.after month. The business secretary's indifference to storage

:36:57. > :36:59.steel making and red car, an action that will not be forgiven in the

:37:00. > :37:10.Northeast for a very long time. The government has been the -- accused

:37:11. > :37:19.of plundering by their own backbenchers. -- foundering. Since

:37:20. > :37:23.you steel crisis made the front pages -- we have an ideological

:37:24. > :37:28.disengagement policy because of their dogma. This could be an

:37:29. > :37:34.existential moment for the whole of the UK manufacturing base, but Mr

:37:35. > :37:41.Speaker, I welcome the long overdue admission from this government that

:37:42. > :37:46.it is their duty to help find a place for steel making. I hope it is

:37:47. > :37:49.not too little too late. He is simply telling it because he has

:37:50. > :37:57.overcome his ideological tastes, and if so, I say, we say, about time.

:37:58. > :38:01.Given that the Scunthorpe deal took nine months, can you tell us how

:38:02. > :38:10.long Tata are planning to keep the plant operational until the deal,

:38:11. > :38:13.and can he assure us that any sale is an integrated operation? Does the

:38:14. > :38:19.secretary of state agree with me that for jobs to retained in the

:38:20. > :38:25.industry, it is crucial that the UK retains the capacity to make as well

:38:26. > :38:31.as recycle and remake the steel. Waxing will he take to ensure the

:38:32. > :38:36.blast furnace is kept? What support is the government willing to make

:38:37. > :38:41.available to secure a sale to a responsible owner? If he hasn't

:38:42. > :38:47.already done so, will the secretary of state undertake Emma today, all

:38:48. > :38:53.of the customer base and to reassure them that he plans have a viable

:38:54. > :38:56.future. They will remain open for business so that they can be

:38:57. > :39:05.confident about placing orders. But will the government's Plan B for

:39:06. > :39:09.still making? The business secretary has ruled out temporary

:39:10. > :39:17.nationalization, but his junior minister has not. Which is it? On

:39:18. > :39:23.the dumping of Chinese steel, with the secretary of state rethinks his

:39:24. > :39:28.action on the duty rule light of the tariffs that the Chinese have

:39:29. > :39:39.provocatively imposed on special speciality steel. On procurement,

:39:40. > :39:45.British steel industry was made the priority. With 178 billion

:39:46. > :39:49.commitment to equipment over the next ten years, will the government

:39:50. > :39:57.change this to support the British steel industry was

:39:58. > :40:07.I am ashamed that she has taken this attitude. Instead of working

:40:08. > :40:10.together, Mr Speaker, she seems interested in cheap, political

:40:11. > :40:16.shots. The process, rather than the substance. I suggest she learns from

:40:17. > :40:20.her friend, the first Minister of Wales, who has been nothing but

:40:21. > :40:25.constructive and positive in his approach. The lady talks about

:40:26. > :40:37.Labour's long-running concern for the steel industry. Let us. During

:40:38. > :40:44.Labour's last term in office between 97 - 2010, 40,000 jobs were lost in

:40:45. > :40:48.the British steel industry. Output was more than halved. During those

:40:49. > :40:55.years, the lady herself mentioned the word actor won twice in the

:40:56. > :41:02.House of Commons. The current Leader of the Opposition mentioned the word

:41:03. > :41:09.still not once during that period. And, Mr Speaker, she talks about her

:41:10. > :41:15.long-running concern. In the last Parliament, the then Leader of the

:41:16. > :41:20.Opposition, the shadow Chancellor and shadow business secretary, how

:41:21. > :41:28.many times did they mention steel? Not once. Not once, in five years.

:41:29. > :41:31.To the right honourable Lady I say she and the sheep, political shots

:41:32. > :41:36.and worked constructively with this government and the hard-working

:41:37. > :41:43.people in this industry deserve nothing less. The lady talks about

:41:44. > :41:47.industrial strategy. We have dozens of councils. We set up the good

:41:48. > :41:51.counsel. We are not interested in picking winners we are interested in

:41:52. > :42:03.doing what works. Not ideologically, but what works. Manufacturing is up,

:42:04. > :42:07.employment is up. Our auto industry and aerospace industry are having at

:42:08. > :42:14.their best years ever. May I suggest that she spends less time on whether

:42:15. > :42:17.this score is a strategy and spend more time on celebrating the

:42:18. > :42:28.stunning success of British industry? Now, she asked about the

:42:29. > :42:30.actions that we have taken so far. Action on energy costs, compensation

:42:31. > :42:38.for energy intensive industries which will now be moving to a policy

:42:39. > :42:43.of exemption. We have changed procurement policies applying to all

:42:44. > :42:47.parts of the public sector. We have also taken action on unfair trading,

:42:48. > :42:53.something she asked for. There are 37 measures in place with 16

:42:54. > :42:57.concerning China. What we are interested in our measures that

:42:58. > :43:09.actually work. If you look in the design regard, Chinese emperor is

:43:10. > :43:14.down 99%. Wire rod, down 90%. Interested in what works, we will be

:43:15. > :43:21.given by the evidence. The evidence is here that, so far, the EU

:43:22. > :43:27.policies work. We wanted to to work faster, but we are not interested in

:43:28. > :43:36.rewriting the rule book for trade. We are interested in action for

:43:37. > :43:42.steel. If she gives suggestions for steel, I will listen. She also

:43:43. > :43:48.talked about timing in relation to the Tata sale. These discussions we

:43:49. > :43:54.have had with Tata. The key discussion took place in Mumbai,

:43:55. > :43:59.where Tata has said, while they do not have an unlimited amount of

:44:00. > :44:03.time, something we understand, then upping the down a set time frame.

:44:04. > :44:07.They will assure that there is a reasonable amount of time to find a

:44:08. > :44:15.buyer. Today more information will be released on the sales process. I

:44:16. > :44:18.believe it will reflect that. She asked about government support to

:44:19. > :44:27.secure sales. We have been working on this for weeks. The decision by

:44:28. > :44:31.Tata was sensitive so we cannot discuss earlier. There are a number

:44:32. > :44:38.of areas the government is looking at concerning power supply,

:44:39. > :44:43.pensions, and infrastructure. In doing so, we will work with unions,

:44:44. > :44:47.trustees, the pension plan and the Welsh Government in coming forward

:44:48. > :44:59.with the best offer civil. She also asked about -- best offer possible.

:45:00. > :45:04.We are very clear that the best way forward for any steel operator, if

:45:05. > :45:08.you look at the best operators in the world, they are privately run

:45:09. > :45:12.and nationalization is really the answer. We are working to fight a

:45:13. > :45:18.commercial buyer to ensure the long-term future of our Talbot and

:45:19. > :45:27.all of the other parts of Tata. As I have said, Mr Speaker, steel is a

:45:28. > :45:30.vital industry for the UK. It is important for our economic and

:45:31. > :45:38.national security, and I don't want to live in a country that relies on

:45:39. > :45:43.importing steel. We will do everything we can to assure its

:45:44. > :45:49.future. The workers in the steel industry deserve nothing less. Does

:45:50. > :45:55.he agree that Tata is an excellent company who have succeeded in making

:45:56. > :46:02.access as of Land Rover, turning into one of the finest car

:46:03. > :46:06.companies. It was a nationalised industry, and the fact that they

:46:07. > :46:10.cannot make a goal of British steel reveals the problems that he is

:46:11. > :46:16.facing. Would he also continued to reject the simplistic solutions on

:46:17. > :46:23.offer, like turf wars on China, regardless of whether it is dumping.

:46:24. > :46:27.Subsidy accommodation with Italy in breach of EU rules we have always

:46:28. > :46:31.insisted on, or nationalization on the basis that we carry on paying

:46:32. > :46:36.for the losses and poured billions of pounds any taxpayer's expense

:46:37. > :46:44.until something changes. If the changes. As we all want to see news

:46:45. > :46:47.in Port Talbot as we have seen in Scunthorpe, will he work for a

:46:48. > :46:51.sensible investor who understands steel as a proper business plan, and

:46:52. > :46:58.you can give a credible future for the best products for this business

:46:59. > :47:05.which, no doubt, could have a Bright future with the right plan. I agree

:47:06. > :47:13.wholeheartedly. He speaks with experience. First of all, Tata,

:47:14. > :47:17.beyond skill had shown responsibility investing in this

:47:18. > :47:23.country. What I found with their workforce, unions and others at Port

:47:24. > :47:30.Talbot and others with the Tata group is that they have nothing but

:47:31. > :47:36.good things to say about Tata about their values. I agree with his

:47:37. > :47:39.remarks about terrorists and being careful. I also agree with

:47:40. > :47:44.nationalization. It has to be commercial, that is how the best

:47:45. > :47:54.companies are run and how we want British companies run. I thank him

:47:55. > :47:59.for his statement. I will commit the news that Tata has confirmed a buyer

:48:00. > :48:02.for its operations in Scunthorpe. This will be good news and I hope

:48:03. > :48:07.the same can be found for Port Talbot and other sites. There are

:48:08. > :48:15.concerns about possible erosions of worker conditions, but let's be

:48:16. > :48:21.clear. This has happened in spite of this government's shameful approach

:48:22. > :48:26.to this crisis. Doing as little as possible and as little as if I could

:48:27. > :48:33.get away with. The business secretary was at the other side of

:48:34. > :48:37.the world. A perfect metaphor and personification for the Tory

:48:38. > :48:41.approach to be steel industry. In a stark contrast to the way the

:48:42. > :48:48.Scottish Government approached the crisis facing the Scottish plants.

:48:49. > :48:53.Nicholas Sturgeon said no stone would be unturned to send a crucial

:48:54. > :48:59.industry, and that is what happened. I welcome that the business

:49:00. > :49:06.secretary amended those efforts. We, on the benches stand in solidarity.

:49:07. > :49:25.-- commented. Imagine what could've been achieved,

:49:26. > :49:35.Mr Speaker, had a minister spent the last year three in Europe pressing

:49:36. > :49:49.for action on steel as opposed to visit EU referendum gamble.

:49:50. > :49:56.If you have done the work she has claim she has, he has nothing to

:49:57. > :50:05.hide. It may well repair his tarnished reputation. Thank you, Mr

:50:06. > :50:11.Speaker. As I said in my statement, I commend the Scottish Government on

:50:12. > :50:17.the two mills in Scotland. I hope that he recognises the scale of the

:50:18. > :50:21.problem of the UK is a larger, and you can find it within himself to

:50:22. > :50:27.appreciate the challenge of the industry in the UK. I think he is

:50:28. > :50:33.wrong to suggest that the government has not already taken action in

:50:34. > :50:38.regards to helping the industry. I mentioned a number of things. Energy

:50:39. > :50:43.prices are making a big difference, our action on procurement is also

:50:44. > :50:47.making a difference. Then I urge him, at this point, to work with his

:50:48. > :50:53.colleague in Edinburgh to see if they can change their procurement

:50:54. > :50:59.rules to help not just common, but the UK. Or will he look at finding a

:51:00. > :51:10.long-term, cheap energy solution for Port Talbot. That is crucial, and

:51:11. > :51:19.what restraints are the EU clicking on helping the steel industry? He

:51:20. > :51:24.speaks with experience, and he is ready to identify that energy is an

:51:25. > :51:28.issue. I don't think that the constraints are, really coming from

:51:29. > :51:35.the EU. We have demonstrated that there is action that we can take but

:51:36. > :51:40.there is more that we can do. My friend has good ideas, and I look

:51:41. > :51:47.forward to discussing them. To secure a long-term future the focus,

:51:48. > :51:54.surely, needs to be on developing mainstream comics for sectors

:51:55. > :52:08.collaborating with customers with innovative design. How will the

:52:09. > :52:12.secretary of state ensure that downstream capability is maintained

:52:13. > :52:17.while at potential buyer is found? In his response to the shadow

:52:18. > :52:21.business secretary, he mentions sector groups. What has he

:52:22. > :52:27.facilitated with the sector groups, like the automotive counsel or oil

:52:28. > :52:30.gas and offshore wind councils to ensure closer cooperation to

:52:31. > :52:41.customers to provide a great future for steel steel? Thank you. And I

:52:42. > :52:44.thank him on his approach to this, especially to his chairmanship of

:52:45. > :52:50.the business select committee. He is right to point out other parts of

:52:51. > :52:56.the downstream steel of business. That is where the high value product

:52:57. > :53:01.is. One thing Tata have made clear in approach to this sale is they

:53:02. > :53:05.will not cherry pick. They know the downstream process is important to

:53:06. > :53:10.potential buyers. They will make sure a potential buyer can buy the

:53:11. > :53:16.whole group, an important commitment we have managed to secure. The

:53:17. > :53:19.long-established councils that cover many different sectors, the

:53:20. > :53:28.automotive and the aerospace sectors, both used steel from the

:53:29. > :53:37.UK. We work them -- work with them to maintain the supply chain

:53:38. > :53:49.implementing steel products from the UK. Is the best support a long-term

:53:50. > :53:53.vision supporting long-term, quality sale and an attractive government

:53:54. > :54:04.package? And encourage customers to buy? Thank you. Thank you. She takes

:54:05. > :54:08.an interest on this from the select committee. The issue is that none of

:54:09. > :54:13.us want to be back in this situation years from now. We want to find the

:54:14. > :54:17.long-term buyer who will invest in the business, and that requires

:54:18. > :54:26.government support. We are ready to work with that buyer. Before I

:54:27. > :54:32.start, I would like to pay tribute to the steelworkers in the gallery

:54:33. > :54:38.today, along with the outstanding general secretary of community

:54:39. > :54:45.Union. I would also like to join with the secretary of state in

:54:46. > :54:53.paying tribute. What a contrast to the British Government. Within days

:54:54. > :55:01.?60 million were put on the table. As someone who is closing the gap.

:55:02. > :55:10.Order! I said when the secretary of state was speaking that he should be

:55:11. > :55:14.heard with courtesy. Order! The same goes for the honourable gentleman.

:55:15. > :55:20.It is not appropriate for people to yell, shame! And honourable member

:55:21. > :55:32.who is putting a legitimate question. Learn! The Welsh

:55:33. > :55:36.government put millions of pounds on the table, I hope the UK government

:55:37. > :55:41.will to. He asked for focus suggestions, here are three.

:55:42. > :55:48.Firstly, what is the government doing to secure the customer base?

:55:49. > :55:52.Honda, Land Rover? I hope that the secretary of state is picking up the

:55:53. > :55:58.phone to them and insuring that we maintain the integrity of the

:55:59. > :56:04.industry. Secondly, on the blast furnaces. Does the Secretary of

:56:05. > :56:10.State believe that the blast furnaces in a Port Talbot should

:56:11. > :56:16.continue as an integral part of the UK steel making industry? Thirdly,

:56:17. > :56:23.could he explain why the British Government detainees to block the

:56:24. > :56:29.scrapping of the best duty rule? -- continues to block? We are

:56:30. > :56:33.repeatedly told that by scrapping the lesser duty rule the intake of

:56:34. > :56:39.being measure would have a real teeth to deal with Chinese steel

:56:40. > :56:43.being dumped? Within the UK government rather cosy up to

:56:44. > :56:50.Beijing, rather than work with UK steel workers? First of all, can I

:56:51. > :56:56.say to the honourable gentleman that is a very difficult situation for

:56:57. > :57:01.his constituents. I am working with them and stand ready to work in any

:57:02. > :57:06.way I can to help them and to listen to what he has got to say. The

:57:07. > :57:09.meeting I have had with him has been useful, but I look forward to more

:57:10. > :57:15.as we jointly try to help the situation. He asked three questions.

:57:16. > :57:19.I think one of the most important things that we can do and that we

:57:20. > :57:28.are doing is to revive confidence that we can help to find and secure

:57:29. > :57:33.long-term interest in the steel works. That is what the customer

:57:34. > :57:38.base will want to know. We are in touch with many of them. I talked

:57:39. > :57:42.about the auto and aerospace industry, but providing confidence

:57:43. > :57:47.will be reassuring. He asked about the blast furnaces. The blast

:57:48. > :57:53.furnaces, which I went to see myself in action last week are hugely

:57:54. > :57:57.important. I don't think I am in a position to say exactly what the

:57:58. > :58:02.structure of the business should be going forward. I think that we will

:58:03. > :58:09.work with all parties to make sure that we can secure as many jobs as

:58:10. > :58:15.possible, and make sure that steel making a continues. Lastly, he asked

:58:16. > :58:19.about the lesser duty rule. I will point out that it has been

:58:20. > :58:24.long-standing. The previous Labour government and this government have

:58:25. > :58:32.made sure that it gets the right balance in terms of the industry and

:58:33. > :58:39.consumer. The last British are presented is sent to Brussels,

:58:40. > :58:44.appointed by Labour, supported that rule. I am interested in what works

:58:45. > :58:48.to help the industry. But we have seen is with tariffs imposed, they

:58:49. > :58:55.work. It leads to massive reductions in Chinese imports.

:58:56. > :59:01.That the's front bench interest in steel production is a new

:59:02. > :59:09.phenomenon. The last phenomenon mentions steel... Given the recent

:59:10. > :59:11.grandstanding does my right honourable friend agreed with me

:59:12. > :59:19.that this contributes absolutely nothing. In assisting the many Tata

:59:20. > :59:25.Port Talbot steelworkers who live in my constituency? My honourable

:59:26. > :59:33.friend, first of all I am pleased that we are able to talk the last

:59:34. > :59:36.few days. I agree with what he said, but I would also like to reassure

:59:37. > :59:41.him that we will work closely with him and other members of this house

:59:42. > :59:47.to try to bring back confidence to his constituents that we are trying

:59:48. > :59:50.to do everything we can to help. There is a real danger that the

:59:51. > :59:55.secretary of state is presenting sometimes the idea that everything

:59:56. > :00:01.has been done. The fact is that the issue is we still see... On

:00:02. > :00:03.procurement, the Ministry of Defense is not keeping records of where

:00:04. > :00:07.they're still comes from. On tariffs, he says that he will do

:00:08. > :00:14.everything, but he will not take action to scrap the lesser duty

:00:15. > :00:18.rule. What is he going to change and those industry fundamentals that are

:00:19. > :00:25.going to prevent us from sin crisis after crisis in the steel industry?

:00:26. > :00:29.Let me just pick up on one of the issues. He has identified three very

:00:30. > :00:34.important issues that affect the industry. The honourable gentleman

:00:35. > :00:42.mentions the patient delete like energy costs. The climate change act

:00:43. > :00:48.that he would have supported that was introduced by the last Labour

:00:49. > :00:51.government. This side of the House to but what we have been working on

:00:52. > :00:55.ever since is trying to mitigate some of the problems that was

:00:56. > :01:00.created for industry. I would have bought the honourable gentleman

:01:01. > :01:03.would have supported that. We should be under no misapprehension that the

:01:04. > :01:08.future of the global steel industry will be brutally competitive for

:01:09. > :01:16.many years to come. My right honourable friend is both accessible

:01:17. > :01:21.in finding safe harboured for steel that will be significant compliment.

:01:22. > :01:26.He must do that while upholding the lesser duty rule. It is an

:01:27. > :01:32.underpinning of free trade, it's a choice jobs and many other sectors

:01:33. > :01:36.of our economy. On the issue of tariffs, some talked about the

:01:37. > :01:41.Americans talked about a 200% tariff. That is because the Chinese

:01:42. > :01:45.provided no information defence. In that same instrument, the Americans

:01:46. > :01:52.put a 50% tariff on UK steel manufactured by Tata. I always

:01:53. > :01:58.listen very carefully to what my honourable friend has to say. He is

:01:59. > :02:03.respected member. He is right to point out the issue around tariffs.

:02:04. > :02:06.The concern, always, of any government is to strike the right

:02:07. > :02:10.balance between taking action where there is clear evidence of dumping

:02:11. > :02:14.and unfair trading, but not going any further than that because the

:02:15. > :02:19.real people that will pay that cost our consumers. It is hardly

:02:20. > :02:27.progressive and the poorest will be hit hardest. Steelworkers rocking

:02:28. > :02:41.this including those that travelled here today have pressed the

:02:42. > :02:46.government. They are asking that their... The government act on the

:02:47. > :02:49.pension fund and that there is a long-term industrial strategy to

:02:50. > :02:54.give potential buyers confidence. We are no clear from the secretary of

:02:55. > :03:02.state's statement what Fleet Bank Popsicle examples he has. The

:03:03. > :03:08.honourable Rick Lady raises her concerns. The concerns of her

:03:09. > :03:11.constituents. I can reassure her that we are looking at everything.

:03:12. > :03:16.She is aware of the actions that we have taken. She will understand that

:03:17. > :03:21.there is no magic wand. No government can make these problems

:03:22. > :03:23.go away overnight. This is an international challenge. Over the

:03:24. > :03:30.last few days and heard about problems in the US and Australia. I

:03:31. > :03:37.think that if she respects back, then she will work with us and

:03:38. > :03:41.trying to find a long-term solution. I commend the government on its

:03:42. > :03:44.plans to roll out its guidance on procurement practice to the entire

:03:45. > :03:49.public sector. And I asked my right honourable friend what he is doing

:03:50. > :03:52.to ensure that UK steel companies are aware of those opportunities and

:03:53. > :04:02.how they can be in the best possible place to win this contract. First of

:04:03. > :04:06.all, we have been the first of the EU countries to change our

:04:07. > :04:10.procurement was to take account the new flexibility and economic and

:04:11. > :04:14.social factors. We have now extended at further to the now entire public

:04:15. > :04:19.sector, not just central government procurement. We are also working on

:04:20. > :04:23.what I call the visibility of the pipeline. We have ?300 billion of

:04:24. > :04:29.infrastructure plan of the next five years. That is a huge amount of

:04:30. > :04:32.British steel. We are working with industries and groups like UK steel

:04:33. > :04:38.to make sure that there is maximum visibility. Faster the secretary of

:04:39. > :04:42.state and the Prime Minister said that they were doing everything they

:04:43. > :04:50.can to keep steel working on Teesside. Nothing was done.

:04:51. > :04:56.Deal-making was gone. The town is dealt a devastating blow. Why should

:04:57. > :05:03.the workers of Port Talbot and everywhere else around the country

:05:04. > :05:07.believe a word that he says? First of all, the honourable lady has

:05:08. > :05:12.fought very hard for her constituents and she is still doing

:05:13. > :05:15.a lot to help many of those workers that have lost their jobs. I have

:05:16. > :05:18.met with her and my right honourable friend has met with her. We will

:05:19. > :05:28.continue to work with those who have lost their jobs. She will also

:05:29. > :05:33.build... Know that the solution... She will know that the business was

:05:34. > :05:35.not viable after hundreds of millions of pounds of investment.

:05:36. > :05:39.There were no commercial buyers coming for. I know that it was

:05:40. > :05:43.difficult, but the honourable lady will know that. But we have seen

:05:44. > :05:47.with Tata already, if you look at today's news, with Tata products, we

:05:48. > :05:53.have seen that it is possible to find a commercial buyer. I have no

:05:54. > :05:57.doubt that the Business Secretary is focused on the key issues for

:05:58. > :06:00.potential investors in Port Talbot, like the pension fund in the energy

:06:01. > :06:05.costs. In terms of a bright long-term future for steel from

:06:06. > :06:07.Wales, can I encourage them to have her lead discussions with the

:06:08. > :06:13.Chancellor on the energy secretary about an announcement on the chair

:06:14. > :06:17.of the announced Marine energy review and in particular the

:06:18. > :06:22.proposed title and South Wales which will be an enormous boost to morale

:06:23. > :06:32.and in practice to producers of steel in South Wales. My honourable

:06:33. > :06:38.friend makes a good point. Energy is a big issue and remains a big issue

:06:39. > :06:42.for our energy intensive in industry. The title would do that he

:06:43. > :06:44.mentions is an in an board issued to look at. We have started a

:06:45. > :06:58.feasibility study Betty. Can I make it absolutely clear to

:06:59. > :07:04.the House that this is not just an issue related to whales or Port

:07:05. > :07:09.Talbot. It is a UK problem. I am sure that the secretary of stable to

:07:10. > :07:13.me on that. It is a national issue. The 900 steelworkers in my

:07:14. > :07:17.constituency whose jobs are now on the line, will expect the secretary

:07:18. > :07:21.of state to guarantee that he will do whatever it takes to give them

:07:22. > :07:27.the future than they deserve. However, there was an optimistic

:07:28. > :07:33.note in what he said. He mentioned: investment. Can he explain to the

:07:34. > :07:36.House what co-investment is and does this guarantee that the government

:07:37. > :07:43.is willing to intervene and do what ever is necessary to save our

:07:44. > :07:48.industry. The honourable lady is absolutely right. Is a wide problem.

:07:49. > :07:57.We talked about Scotland earlier as well as Wales. She is absolutely

:07:58. > :08:01.right to bring the House's attention to that. On co-investment, the ice

:08:02. > :08:07.had bad to demonstrate that when I say that we will look at all options

:08:08. > :08:10.be good to look at all options. It is possible I don't know at this

:08:11. > :08:15.point because the sales process is just beginning, but it is possible

:08:16. > :08:21.someone might come forward and ask for investments or funds. Of course,

:08:22. > :08:24.it has to be on commercial terms, but that is a demonstration of how

:08:25. > :08:32.far this government can go to make sure that still as successful. --

:08:33. > :08:36.steel. Customer confidence is mentioned by the honourable

:08:37. > :08:41.gentleman and is crucial. Can he assure the House that he and his

:08:42. > :08:44.colleagues and officials are doing all that they can with regards to

:08:45. > :08:51.existing customers for British Steel to ensure that the British

:08:52. > :08:55.Government is committed to a long-term future for British made

:08:56. > :09:01.steel in this country and that they can feel safe and secure and placing

:09:02. > :09:07.future orders? I can give my honourable friend that assurance. He

:09:08. > :09:13.is absolutely right to point out the confidence that the customers need.

:09:14. > :09:20.Equally be supply chain. We are breaking with suppliers and

:09:21. > :09:29.customers to get them that reassurance, -- working. Can I asked

:09:30. > :09:34.the secretary of state will be UK Government take on the pension

:09:35. > :09:46.liability of 15 billion 415 thousand Tata workers?

:09:47. > :09:52.The honourable lady is right to raise the issue of pensions. I said

:09:53. > :09:56.before that I think it is likely that any buyer that comes forward

:09:57. > :10:00.will want some kind of pension solution. It is going to be a

:10:01. > :10:04.challenge, but what I can reassure her on is that we are looking

:10:05. > :10:07.carefully at that. We are in discussion with the pension

:10:08. > :10:12.trustees. We want to come up with something that will back both

:10:13. > :10:18.mentors and help find a buyer. -- I mentors.

:10:19. > :10:29.When Danny Willett pulled on his jacket in Augusta, the cloth was

:10:30. > :10:35.woven and I do my constituency. I am proud of the infrastructure project,

:10:36. > :10:38.can the business sector secretary confirmed to me that he will be

:10:39. > :10:46.doing everything he can to put British Steel at the heart of this

:10:47. > :10:54.transformational project. I am sure the whole house congratulates Danny

:10:55. > :10:58.Willett on his victory. It is a question about Crossrail and eight

:10:59. > :11:06.asked to and specifically about HS two.

:11:07. > :11:12.The government procurement for aircraft carriers is 90% British

:11:13. > :11:16.Steel, and we will make sure we can do everything it can when it comes

:11:17. > :11:23.to adjust to it will be British Steel. He admitted that UK

:11:24. > :11:34.Government ministers knew in advance about Port Talbot's, -- Tata's

:11:35. > :11:42.contention. -- intention. When the faith of the plans were determined.

:11:43. > :11:47.This does not contrast well with the action of the Scottish Government

:11:48. > :11:52.which nationalise Tata's actions in Scotland to facilitate a private

:11:53. > :11:56.sale. As it not the case of the Welsh economy and workforce being

:11:57. > :12:01.let down by a careless Tory government here in Westminster and a

:12:02. > :12:10.complacent Labour government and Wales? Mr Speaker, the honourable

:12:11. > :12:14.gentleman could not be further from the truth. The reality is that the

:12:15. > :12:18.meeting emblem by that he is referring to was a board meeting

:12:19. > :12:23.deciding whether to accept the decision that was being made by the

:12:24. > :12:27.executive management of Tata Steel. -- mum five.

:12:28. > :12:35.If the British Government have waited it would have been too little

:12:36. > :12:39.too late. Action was acquired weeks before that. When we first heard

:12:40. > :12:42.about closure, that is he took action. I ensure that the honourable

:12:43. > :12:47.gentleman would agree with me that a sales process that has the ability

:12:48. > :12:58.to secure the future of these workers is far better than algebraic

:12:59. > :13:04.closure. -- out right closure. I had a meeting in sapphic. We talked

:13:05. > :13:18.about how to use innovation into the steel work sector. To look

:13:19. > :13:26.to support the 20% century steel industry. I think that my honourable

:13:27. > :13:34.friend makes a very good point. Obviously, in some parts of the UK

:13:35. > :13:38.there are enhanced credit of capital allowances. She makes an interesting

:13:39. > :13:42.suggestion that could help the industry more widely about tax

:13:43. > :13:50.credits. Of course I will meet with her. When the secretary of state

:13:51. > :13:57.comes to the dispatch box he needs to be careful of what he says. He

:13:58. > :14:00.referred to the 80 million promised to read car. I would dispute that

:14:01. > :14:07.figure about what has been delivered in our area and the last six months.

:14:08. > :14:13.Beyond that, today in our meeting, the secretary of state did not rule

:14:14. > :14:19.out a potential option of Tata remaining for all steel sides, not

:14:20. > :14:22.just as relation to these products. What type of investment that could

:14:23. > :14:25.he put forth to the House or that the House can see what potentially

:14:26. > :14:32.will happened to that he can discuss it on the floor of the House about

:14:33. > :14:35.the options available for UK steel? Mr Speaker, I know that the

:14:36. > :14:40.honourable gentleman means well and he has fought very hard for his

:14:41. > :14:46.constituents. I am sure that he understands that in terms of trying

:14:47. > :14:49.to secure a deal, it would not be in the interest of bad deal if the

:14:50. > :14:56.commercial terms were being discussed of the House. A lot of the

:14:57. > :15:00.issues for the buyers in the approach as an Tata, they will be

:15:01. > :15:03.commercially sensitive. Some will want to reveal that they are in

:15:04. > :15:08.discussions. We have to respect that. If we don't, we risk using a

:15:09. > :15:17.deal. I hope that the honourable judge Lincoln also respect that. The

:15:18. > :15:21.only way for the long-term future of the British steel industry is to

:15:22. > :15:28.stop Chinese dumping. The Americans have imposed a 266% tariff on the

:15:29. > :15:37.Chinese, but the British Government can't because it is in the EU. Would

:15:38. > :15:41.a Business Secretary agreed with me that it would be in the interest of

:15:42. > :15:45.the British steel industry and the government imposed a 200 and $.60%

:15:46. > :15:56.tariff now I'm worried about the EU later? -- and worried about the EU

:15:57. > :16:01.later I think that he is interested in Terrace that actually work. The

:16:02. > :16:07.right level has to be the level that actually works. Where as America has

:16:08. > :16:11.imposed higher tariffs, if they are high that will hurt the rest of

:16:12. > :16:16.industry and consumers. They will cost thousands of jobs in the supply

:16:17. > :16:25.chain. With the EU has actually imposed tariffs is driven by the

:16:26. > :16:33.evidence. In rebar, 13% tariff lead to a 99% fall. Thank you Mr Speaker.

:16:34. > :16:39.The European Commission wants to move away from the duty rule. When

:16:40. > :16:44.it is in place, the problem is that the duty of the community is going

:16:45. > :16:48.to be far less than the margin of the dumping. Can secretary of be

:16:49. > :16:56.clear, was the spokesman right when he said, and I quote, that the UK

:16:57. > :17:02.Government was the leader and blocking its reform? The first thing

:17:03. > :17:08.to say is that the duty that it leads to is either one that stops

:17:09. > :17:12.the dumping, or one that writes the entry of its course and industry.

:17:13. > :17:28.That is how the terrorists actually is calculated. All the evidence --

:17:29. > :17:33.the terrorists. -- tariffs. He is absolutely wrong about this issue.

:17:34. > :17:39.You will know that no single government can block this. You need

:17:40. > :17:44.a locking minority to have that. As I said and I will say again, if he

:17:45. > :17:52.has a suggestion that is targeted on steel, that I am willing to listen.

:17:53. > :17:56.My right honourable friend began his statement by saying that the

:17:57. > :18:00.collapse and the global steel price is a human tragedy. Can my right

:18:01. > :18:04.honourable friend of the House on measures that are being taken to

:18:05. > :18:13.support workers in our steel communities? It is a good point.

:18:14. > :18:20.Where there have been losses, we talked about places in terms of job

:18:21. > :18:23.losses, the government has worked with local councils and others and

:18:24. > :18:29.trying to secure more investments to that area to try to replace those

:18:30. > :18:31.jobs with further investment domestically and from abroad, but

:18:32. > :18:36.also with other measures such as skills training and recent illegal

:18:37. > :18:50.workers are that they are ready to take new jobs. It probably... --

:18:51. > :18:53.re-skilling. The secretary of state needs to realise that this is a

:18:54. > :18:58.crisis that affects the whole of the UK steel industry, not only Port

:18:59. > :19:02.Talbot, but we need action that will put us time. Time is key here to

:19:03. > :19:11.find a secure future for the UK plans. The honourable member is

:19:12. > :19:16.absolutely right. Time is going to be key. That's what I was keen to

:19:17. > :19:20.meet with Tata last week to try to get those reassurances. I believe

:19:21. > :19:28.that I have those reassurances. The old cement control of time will be

:19:29. > :19:33.with the seller. -- ultimate. I have every reason to bleed that Tata will

:19:34. > :19:40.be irresponsible seller. -- to believe. Can I also commend the

:19:41. > :19:48.Minister for her tireless work and keeping my neighbouring colleagues

:19:49. > :19:52.up-to-date. Can I also commend the workforce for the approach that they

:19:53. > :19:56.had taken which is been this responsible. Can my right honourable

:19:57. > :20:00.friend elaborate on how he is going to ensure that the public sector

:20:01. > :20:09.infrastructure and construction project are actually using British

:20:10. > :20:17.steel. Can I do join my honourable friend and welcoming 4000 jobs

:20:18. > :20:20.secured. That is hugely welcome news. That is a vote of confidence

:20:21. > :20:26.in the British steel industry. He asked about pie and procurement,

:20:27. > :20:34.about how we can make sure that it is British. The changes that we may

:20:35. > :20:38.to be true but rules -- procurement rules will help to achieve just

:20:39. > :20:42.that. I think that the way the Beacon health is that with these

:20:43. > :20:46.large industrial infrastructure projects we can get a lot more

:20:47. > :20:49.visibility to the steel manufacturers. That is the work that

:20:50. > :21:02.we are looking up to be still counsel. Business rates on plant and

:21:03. > :21:06.machinery are effectively a tax our investment -- on investment. They

:21:07. > :21:07.comprise a significant element of the cost of the steel industry that

:21:08. > :21:24.artists undermine good. Can the Minister confirm that this

:21:25. > :21:29.was so, why it did not take place, and would it be reconsidered and put

:21:30. > :21:37.together for a future buyer for Port Talbot? The honourable gentleman is

:21:38. > :21:40.right to raise this issue of business rates. It is something that

:21:41. > :21:45.has come up from the industry time and time again. It is right to look

:21:46. > :21:48.at it. I think that one of the issues is that if we are interested

:21:49. > :21:55.in looking at issues around the steel industry, that they can be a

:21:56. > :21:59.blunt instrument if you look at the total cost of making that change.

:22:00. > :22:02.How little of that will actually flowed onto the steel industry.

:22:03. > :22:08.There might be more focused way to do it. Having said that, where there

:22:09. > :22:11.are large steel operations, as we know with Port Talbot and Wales,

:22:12. > :22:15.there might be something that can be done there. The honourable gentleman

:22:16. > :22:18.will know that this is rich have Billy Mack can fall, with what we

:22:19. > :22:25.are talking about this issue with the Welsh government. I was pleased

:22:26. > :22:32.to here the secretary of state a few minutes ago acknowledging being part

:22:33. > :22:35.that high energy prices have played in the importunate situation with

:22:36. > :22:41.steel and other energy intensive industries. I am concerned that the

:22:42. > :22:50.carbon price floor in the at ?18 08 per tonne, adds to the price of the

:22:51. > :22:52.EU, placing a burden on each energy intensive industries that is four

:22:53. > :22:57.and a half times that of our European neighbours. I know that he

:22:58. > :23:02.has looked at a lot to alleviate this burden, but what he is group

:23:03. > :23:09.that now might be a good time to look at reducing the carbon price

:23:10. > :23:15.for? My honourable friend raises an important issue for this industry.

:23:16. > :23:19.Energy costs, especially when those are compared to other countries in

:23:20. > :23:25.Europe. He is right to point out the action that we have taken

:23:26. > :23:30.conversation moving to exemption. There are other ways to help. We are

:23:31. > :23:33.actively looking about. One way is looking at more renewable power

:23:34. > :23:40.sources, which are exempt for many of these costs. One of my colleagues

:23:41. > :23:49.mentioned a tidal lagoon. There are other ways of Beacon. We're looking

:23:50. > :23:55.at all of those options. I submitted many questions for the secretary of

:23:56. > :24:00.state's plan. Now I know what he wanted to keep that to do, because

:24:01. > :24:03.the plan proposed cutting over 4000 jobs, 40% of the insolvency services

:24:04. > :24:14.staff, who have been working flat out since the steel crisis. Given

:24:15. > :24:17.the deepening crisis, where the secretary of state go back to the

:24:18. > :24:23.drawing board and rethink those ill thought out through plans that will

:24:24. > :24:29.make his job so much harder to do. I am not sure but that has to do with

:24:30. > :24:41.steel. That is a matter of interpretation. He is in type

:24:42. > :24:45.entitled to to interpret. I am also grateful for the word that he has

:24:46. > :24:52.been taking Ford. To help pharmaceutical sites across the UK

:24:53. > :24:56.to the purpose and revitalise across trends. This he agreed that there

:24:57. > :25:05.are lessons that can be passed onto steel sector? Yes, I do agree with

:25:06. > :25:08.my honourable friend that way or jobs in any industry whether steel

:25:09. > :25:12.or underwent widespread wise where they are lost, that we should look

:25:13. > :25:19.at ways how we should look at ways of Beacon can regenerate that area.

:25:20. > :25:25.We talked earlier about red car in the loss of jobs in that area. One

:25:26. > :25:35.of the things is that attracting more investment and ways to attract

:25:36. > :25:47.more jobs. Can I pitch abuse to all of the people that worked -- pay

:25:48. > :25:53.tribute. Particularly the trade unions and management team, and

:25:54. > :25:57.suppliers as well, in addition to Tata. It is taken a lot of hard work

:25:58. > :26:01.over nine months to get to where we are today. In his statement, the

:26:02. > :26:11.secretary of state referred to the commercial offer it acquired. There

:26:12. > :26:15.are three things that are subject to... Can be secretary of state make

:26:16. > :26:19.it unequivocal that the government will do everything to make sure that

:26:20. > :26:25.that is not a barrier to this deal going ahead and also tackle the

:26:26. > :26:33.other UK based issue and not caveat that is still in place? Let me join

:26:34. > :26:38.the honourable gentleman and welcoming the news today about Tata.

:26:39. > :26:41.It is very encouraging. I am sure that it will bring relief to him and

:26:42. > :26:56.kiss constituents. I am joining him and welcoming back. And ... Heasked

:26:57. > :27:01.about financing and the government's Immelman and not. As I mentioned

:27:02. > :27:05.earlier, we have been involved in a transaction from day one. We put on

:27:06. > :27:06.the table an offer for government financing on commercial terms. That

:27:07. > :27:25.offer stands there. Should it... Having visited a site, I am grateful

:27:26. > :27:28.for the prime minister for having come as well, I am confident on the

:27:29. > :27:33.plan that has been drawn up to maintain the future of the plant. It

:27:34. > :27:38.requires time and investment. At the moment we have a business rates

:27:39. > :27:46.system that penalizes the investment. But will the Secretary

:27:47. > :27:50.of State do to put a stop to that? Can I commend him on how he has

:27:51. > :27:57.approached this issue which is hugely important to him and his

:27:58. > :28:03.constituents. I hope the business minister's visit builds confidence.

:28:04. > :28:09.He mentions business rates. There are an important part of costs. We

:28:10. > :28:17.have looked at them before and I think that all I can say at this

:28:18. > :28:19.point is that we will keep all taxes under a review for the steel

:28:20. > :28:33.industry to see in what ways we can help it. He has spoken about looking

:28:34. > :28:38.at all options to save jobs. Will he assure us that if there is any

:28:39. > :28:42.package to help workers include evenings at every stage of

:28:43. > :28:51.development? I can assure him of that. Again, let me say that I think

:28:52. > :29:00.the approach from the unions has been constructive and positive, and

:29:01. > :29:05.it is absolutely key. I highlighted earlier the collaboration with the

:29:06. > :29:11.Tata and the union on this issue. The people who run the union

:29:12. > :29:20.understand it is a role for everyone, and we will share

:29:21. > :29:26.information with them, of course. Can I take the Labour first Minister

:29:27. > :29:31.and the business secretary at working constructively with the

:29:32. > :29:34.union to look at everything we can possibly do. The government is right

:29:35. > :29:39.to support anti-dumping levels with our EU neighbours and partners. Can

:29:40. > :29:53.I ask him to confirm that these measures are starting to have real

:29:54. > :29:59.affect? -- the fact. I would like to join in and thanking the first

:30:00. > :30:04.Minister of Wales and commend the leader of the conservative group in

:30:05. > :30:11.Wales with his approach to make sure that he and his team help in every

:30:12. > :30:16.way. On the issue of terrorists and measures against dumping, what

:30:17. > :30:20.matters most are measures that work. What we have seen, so far, is just

:30:21. > :30:27.that. We want to make sure it continues. Why can't he admit the

:30:28. > :30:34.secret deal that everyone knows about? The Chancellor has promised

:30:35. > :30:37.to pull his punches on any effective action on steel dumping so that

:30:38. > :30:45.investment from China keeps flowing into this country? Mr Speaker, I

:30:46. > :30:53.don't know where he gets the idea from. I just talked earlier about

:30:54. > :31:00.action that we have led the way with, asking the EU to work faster.

:31:01. > :31:04.Action that we called for back in November in an extraordinary meeting

:31:05. > :31:11.that I called for and went two for more action, and that won't change.

:31:12. > :31:14.I appreciate all of the words the Secretary of State is doing to work

:31:15. > :31:21.with steel workers, and she should be commended. I would welcome the

:31:22. > :31:26.fact that he is already looking at seeing what more can be done to

:31:27. > :31:33.relocate employees who might need to find new jobs. Any west of England

:31:34. > :31:41.you will note we have engineer and manufacturer shortages. We have

:31:42. > :31:44.worked with companies to relocate employees who have lost their

:31:45. > :31:54.employment. Would he make that same commitment today to do the same if,

:31:55. > :32:01.of course, that one is lost? I would say I am positive, and all of us

:32:02. > :32:06.working together the government, the unions, and Tata, the Welsh

:32:07. > :32:14.government, with collaboration and we can have a positive conclusion.

:32:15. > :32:19.Even then, we have job losses and in such cases we will do everything we

:32:20. > :32:31.can to regenerate the area and, also make sure that nearby areas have

:32:32. > :32:37.clever solutions for employment. Can I press him further on pensions,

:32:38. > :32:49.particularly the legacy pensions played under the -- paid under the

:32:50. > :32:57.British steel industry scheme. Does the Tata mainboard in India have a

:32:58. > :33:05.unknowing unwillingness to maintain payments, and if that will be

:33:06. > :33:08.government step in? If not, will the government use the national pension

:33:09. > :33:20.production funds to make sure that comes about. --? We are looking for

:33:21. > :33:26.potential buyers. I think it is likely they wouldn't want to take on

:33:27. > :33:31.legacy costs. I don't think EU rules are in issue here, there are other

:33:32. > :33:35.challenges, of course. We are looking creatively at solutions. I

:33:36. > :33:45.want to reassure him that this is the front of mind when dealing with

:33:46. > :33:49.this charge. Can I congratulate him and his team on acting decisively in

:33:50. > :33:55.doing all of the can to safeguard this industry. Will he agree that

:33:56. > :34:09.part of the solution relies on bringing forward infrastructure

:34:10. > :34:13.projects. --? My honourable friend is right. We set up infrastructure

:34:14. > :34:19.pipelines, the largest in any five-year period with over ?300

:34:20. > :34:25.billion invested. Many of those projects have been announced. With

:34:26. > :34:29.the changes in procurement rules and investment plans we can make a

:34:30. > :34:33.difference here like never before, and make sure that in every project

:34:34. > :34:40.we do everything we can to make sure it is British steel. I am sure the

:34:41. > :34:45.secretary of state civil servants have been working extremely hard

:34:46. > :34:58.trying to safeguard 30,000 Welsh jobs at risk. Will he reassure my

:34:59. > :35:08.constituents that the hundreds of job losses at the solvency centre in

:35:09. > :35:14.Cardiff will happen, adding to the misery of Welsh workers? Why can

:35:15. > :35:19.assure the honourable Lady is that any job reductions taking place in

:35:20. > :35:27.any government department, there are more departments involved in this

:35:28. > :35:34.than just business, but the leader committee won't be involved. The UK

:35:35. > :35:38.wide impact was demonstrated by the tourism Association last week when

:35:39. > :35:44.the indicator indicated the likely impact on the date in South Wales --

:35:45. > :36:01.paid. To have a long-term and viable

:36:02. > :36:04.package for our steel industry? What my honourable friend highlights,

:36:05. > :36:09.rightly so, is that the gents at risk are not just the obvious ones

:36:10. > :36:17.in the steel industry itself. There is a knock on impact on tourism and

:36:18. > :36:21.the supply chain. I can assure you we are looking at all options and we

:36:22. > :36:29.will continue to do that, absolutely. He says the issue of

:36:30. > :36:36.pensions is at the front of his mind. Could he reassure me further,

:36:37. > :36:45.what guarantees is he seeing from Tata in regards to sell a pensions,

:36:46. > :36:48.and he -- can he guarantee no pensioners in my constituency will

:36:49. > :36:55.be worse off as a result of the sale? I can tell him that Tata is

:36:56. > :37:01.aware of its obligations, both legal and otherwise of the pension scheme.

:37:02. > :37:06.I believe when they publish their information they will say more about

:37:07. > :37:16.that. The issues I am focused on are making sure that the pension scheme,

:37:17. > :37:21.the challenges don't become an obstacle to finding a buyer. I'm

:37:22. > :37:37.discussing it with the trustees to make sure we find a buyer. Given the

:37:38. > :37:41.secretary of State's new-found robustness, can he assure us he will

:37:42. > :37:46.no longer be blocking the EU in their attempts to assure the China

:37:47. > :37:51.is not rated market economy status. They affect the steel industry to

:37:52. > :37:59.the tune of thousands of jobs to my buddy will also cause thousands of

:38:00. > :38:09.jobs in own constituency. The market economy status decision, a decision

:38:10. > :38:14.for the EU collectively to make, and she should know that I agree with is

:38:15. > :38:21.that any country that wants market economy status have to earn it. To

:38:22. > :38:25.earn it, in the case of China, for example, they are cutting capacity.

:38:26. > :38:33.I think the EU would want to see evidence. Even where countries have

:38:34. > :38:37.got market economies like in Russia, it does not stop the EU from taking

:38:38. > :38:46.defensive action, including on dumping. The secretary of state

:38:47. > :38:51.credits the Scottish Government. It is fair to say that Scott is still

:38:52. > :38:57.has a bright future things to the diligence of our first Minister and

:38:58. > :39:02.our business secretary. What lessons have been learned from Scotland, and

:39:03. > :39:05.will accelerate commitment be given today to provide cover support in

:39:06. > :39:16.the interim period until an alternative operator can be found?

:39:17. > :39:23.As I said, I am very pleased about the outcome Scotland. I hope she

:39:24. > :39:27.will agree that the reason those mills have a bright and secure

:39:28. > :39:33.future is because of the strength of the British economy. Had Scotland

:39:34. > :39:38.independent, I think the outcome would have been very different. She

:39:39. > :39:44.wants reassurance that we will do everything we can for still industry

:39:45. > :39:56.in other parts of the UK, and we will give that assurance. Tata has

:39:57. > :40:05.invested millions. They had generated a plan to have a negative

:40:06. > :40:07.carbon imprint. Will the secretary of state considered the possibility

:40:08. > :40:20.of a minority equity shareholding in tighter -- Tata steel? With the

:40:21. > :40:27.match any offer he gets to respective buyers, including help

:40:28. > :40:31.with pension funds? I know he has worked hard on this. He comes

:40:32. > :40:40.forward with good ideas, as well. When I visited Port Talbot for the

:40:41. > :40:44.fourth time last week I could see the blast furnaces and learned about

:40:45. > :40:59.the investment that has taken place in the efficiency. I think that we

:41:00. > :41:06.would look at: investment, partly to reflect clearly that there is no

:41:07. > :41:11.option off of the table. Labour has repeatedly called for a strategy to

:41:12. > :41:15.support UK steel and manufacturing. Given the current crisis which grown

:41:16. > :41:24.under his watch with the agree that this is now essential? We have an

:41:25. > :41:29.industrial strategy. You can call a industrial policy, strategy, and you

:41:30. > :41:34.can choose to focus on semantics or you can focus on the results. What

:41:35. > :41:40.of the reasons over the last five years that manufacturing prices

:41:41. > :41:46.employment and manufacturing are up is because of this government has a

:41:47. > :41:52.successful industrial policy. Hundreds of Tata one products jobs

:41:53. > :42:02.and design consultancy will be saved upon completion of the capital

:42:03. > :42:06.projects. We are concerned about the water productivity plan, and in

:42:07. > :42:10.particular water support for the supply chain and maintaining

:42:11. > :42:20.confidence in it. What is he doing to support that? A friend for wills

:42:21. > :42:26.has had some discussions on this, which I think the lady is aware of.

:42:27. > :42:30.She is ready to raise the issue of productivity. I don't think that the

:42:31. > :42:35.issue in our steel industry. You look at our worker output, they are

:42:36. > :42:38.second to none in terms of their productivity and we should take this

:42:39. > :42:49.opportunity to commend those women and men. Productivity, more

:42:50. > :43:02.generally, Jimmy W with the supply chain. -- can be dealt with with the

:43:03. > :43:07.supply chain at home. I think that, given the importance to the UK

:43:08. > :43:12.economy, the government ought to have a recall of Parliament anyway

:43:13. > :43:18.the Welsh Assembly was recalled to debate this very important topic.

:43:19. > :43:28.Given that the Chinese have the capacity to destroy it British steel

:43:29. > :43:31.the dumping and also by placing exorbitant tariffs on British steel

:43:32. > :43:42.in China, Canada government think again about its approach to the EU's

:43:43. > :43:48.lesser duty rule. Can also have a serious think about the granting of

:43:49. > :43:51.China on market economy status? That would be acceptable given the

:43:52. > :44:00.current situation with British steel. When it comes to tariff, I am

:44:01. > :44:05.interested in what works. I would encourage them to study the results

:44:06. > :44:10.and to look at the action that the EU has taken. Then, look at the

:44:11. > :44:17.results. He will find that, in almost every case, there has been a

:44:18. > :44:26.reduction in imports in every case, almost. If you has a particular idea

:44:27. > :44:34.that is focused on still, where the issue really is and will want to be

:44:35. > :44:48.focused on, I am willing to listen. Over have UK steel exports go to the

:44:49. > :44:56.EQ. That's half. I think the Secretary of State, a Europhile, I

:44:57. > :45:05.think, that impact would be devastating on British steel. We

:45:06. > :45:08.have to do everything to help British manufacturing. I think the

:45:09. > :45:22.long-term interests of our economy is to remain in the EU.

:45:23. > :45:28.I would like to make a statement on the EU referendum and public

:45:29. > :45:35.information. On Thursday, the 23rd of June, the British people will

:45:36. > :45:42.vote on whether the UK should remain in the EU or leave. Become a

:45:43. > :45:48.minister told Parmet on the 22nd of February that this referendum is,

:45:49. > :45:59.potentially, the most important choice the British people will make

:46:00. > :46:04.in a lifetime. The government has made it clear recommendation to the

:46:05. > :46:14.British people that we judge it in our national interest that the UK

:46:15. > :46:18.should remain. It is also important that this key decision by the

:46:19. > :46:29.British people should be made on the basis of the facts. LAUGHTER an

:46:30. > :46:34.independent poll, carried out has suggested that 85% of voters wanted

:46:35. > :46:41.more information. In particular, they wanted the government itself to

:46:42. > :47:03.send out more information by which the

:47:04. > :47:10.papers on the first and second of these topics have already been

:47:11. > :47:14.published. The third will be published shortly. These are

:47:15. > :47:17.available on a section of the government .uk website dedicated to

:47:18. > :47:24.the referendum, along with other information. The report has also

:47:25. > :47:29.been laid before Parliament. That is also true of a separate government

:47:30. > :47:38.report on the process of withdrawing from the the you, which, while not

:47:39. > :47:42.an obligation under the referendum act, represents the delivery of an

:47:43. > :47:50.undertaking given from the dispatch box in the House of Lords on my

:47:51. > :47:53.right honourable friend. The Treasury is also, as the Chancellor

:47:54. > :47:58.has already announced, going to publish a conference of the analysis

:47:59. > :48:07.of UK number shipped in a reformed EU, and the alternatives. --

:48:08. > :48:12.membership. The costs, benefits, and the risks associated with an exit.

:48:13. > :48:17.Separately, every household in the UK will receive a leaflet from the

:48:18. > :48:21.government setting out the facts, explaining why the government

:48:22. > :48:29.believes a vote to remain is in the best interests of the British

:48:30. > :48:34.people, and showing some issues we might face if we were to leave. It

:48:35. > :48:44.encourages the public to adjuster to go by the 7th of June -- encourages

:48:45. > :48:52.the public to register to vote by the 7th of June. We feature the

:48:53. > :48:59.leaflet on line and provide further information. Belief that follows

:49:00. > :49:06.precedent from previous referendums, including the membership in 1995, in

:49:07. > :49:18.the Scottish Parliament and Welsh Assembly in 1997 -- 1975, and two

:49:19. > :49:31.leaflets in 2014 on the Scottish referendum. These distributions are

:49:32. > :49:41.entirely lawful. Special rules to limit government sending out

:49:42. > :49:45.leaflets will apply before the vote. The leaflet is 16 pages in length

:49:46. > :49:51.and will be delivered in England from the 11th to the 13th of April,

:49:52. > :50:03.ahead of England's local elections. In Scotland, Wales, and Ireland the

:50:04. > :50:14.week to -- commencing May. The total cost will be a nine 34p per

:50:15. > :50:19.household in the country. We will announce the designation of the two

:50:20. > :50:28.overall campaign groups ahead of the ten week official campaign period

:50:29. > :50:32.leading up to polling day. Those two groups will, in addition to their

:50:33. > :50:39.higher spending limit of ?700 apiece I'm a be entitled to publicly funded

:50:40. > :50:42.delivery of leaflets of their own to be sent to every household or two

:50:43. > :50:50.every collector as the campaign group chooses. This would be worth

:50:51. > :50:57.up to ?15 million for each of the designated lead and remain

:50:58. > :51:02.campaigns. Those two campaigns will be entitled to protests on

:51:03. > :51:09.television, the use of public rooms and a public grant of up to

:51:10. > :51:12.?600,000. This is in addition to the electoral commission's leaflet to

:51:13. > :51:17.every household in which both campaigns will be given a page each.

:51:18. > :51:23.Whether the UK should remain or leave the EU is a huge decision for

:51:24. > :51:29.this country. It is right that this should be a decision for the British

:51:30. > :51:34.people as a whole. Equally, it is right that people have the facts in

:51:35. > :51:42.front of them and understand the reasons for the government's

:51:43. > :51:53.recommendation before they both. Can I thank the Minister's statement and

:51:54. > :52:00.or his early presentation. This is completely legitimate to publish

:52:01. > :52:05.these leaflets, just as the Labour government did decades ago. They

:52:06. > :52:09.have an application to explain their view, not least because this is the

:52:10. > :52:19.biggest choice the British people will face -- will have faced over

:52:20. > :52:25.the last decades. I am told that we need the facts by people. This will,

:52:26. > :52:34.at least, set out the facts. The leaflet is clear about what it is

:52:35. > :52:45.about. The title page setup clearly the government's claim that we

:52:46. > :52:56.should leave -- should not leave the EU. Does the Minister agree with me

:52:57. > :52:59.that some of the reaction to this publication has been more about

:53:00. > :53:03.trying to silence the arguments for remaining than trying to counter

:53:04. > :53:08.them? The Minister will be aware that members of his party who have

:53:09. > :53:14.attacked the leaflet that have claimed it is inaccurate. If he were

:53:15. > :53:20.that these same people who have alleged that we have lost control of

:53:21. > :53:26.our borders even though the leaflet explains the UK is not part of the

:53:27. > :53:28.EU border free zone? We have the right to check everyone, including

:53:29. > :53:36.EU nationals from continental Europe. Kennedy Minister confirm

:53:37. > :53:43.that, if we leave the EU and to retain access to the free market, we

:53:44. > :53:52.would need permission for the budget. This is what Norway has to

:53:53. > :53:58.do to get access to the largest single market in the world. Can he

:53:59. > :54:03.further confirm to those who advocate for a trade deal like

:54:04. > :54:08.Canada's with the EU that it took 70 years for that to be negotiated and

:54:09. > :54:15.that poor sectors are excluded from free trade in agreement? The truth

:54:16. > :54:24.is that those advocating Brexit cannot say what the UK leaving the

:54:25. > :54:27.EU would look like. Members opposite have spent decades wanting to bring

:54:28. > :54:33.to break away, and it still cannot tell us what being out of it looks

:54:34. > :54:38.like. Rather than attacking the booklet, they might do well to work

:54:39. > :54:42.out what I'll looks like. Perhaps, they could share it with the rest of

:54:43. > :54:47.us before the 23rd of June. As the Minister seen another leaflet

:54:48. > :54:58.entitled, the UK and the European Union, the fax. -- the fax?

:54:59. > :55:11.On the back you will see that it has been bruised by, believe. That's

:55:12. > :55:14.produced. Shouldn't there be more transparent -- transparency so that

:55:15. > :55:22.the public can distinguish who is behind all of this? Labour campaigns

:55:23. > :55:28.for the UK to remain in Europe because of protection for British

:55:29. > :55:32.workers and consumers that depend on our continued membership. Leaving

:55:33. > :55:34.would put that at risk and diminish our influence in the world. We are

:55:35. > :55:46.better off in Europe. I am grateful to the honourable

:55:47. > :55:52.leading for specific questions that she is proposed to me. I can sadly

:55:53. > :56:00.confirm, but since we are outside the no Borders area we can and do

:56:01. > :56:04.apply border checks to people entering this country including EU

:56:05. > :56:12.nationals and shaker set itself as two UK nationals as well. It is

:56:13. > :56:19.indeed the case but where other cases in countries she said it

:56:20. > :56:24.Norway have an 18 access to the EU trade single market, that has come

:56:25. > :56:28.at a price, and that price has included the acceptance of the

:56:29. > :56:37.principle of freedom from movement for workers. Critically, and

:56:38. > :56:44.acceptance of the country concerned will implement European union rules

:56:45. > :56:51.including on product standards, without being present at the table,

:56:52. > :56:55.having a say, are having a vote how those rules should be made. Part of

:56:56. > :57:00.the government's case is indeed that in the interest of British jobs and

:57:01. > :57:06.growth in the United Kingdom are served by us having a role in

:57:07. > :57:11.leading and shaping the single market not simply excepting the

:57:12. > :57:17.rules that have been worked out by other countries in our absence. She

:57:18. > :57:21.is right to that in the case of Canada, we're looking at seven years

:57:22. > :57:26.so far and still no final agreement, and I think it is a mistake to

:57:27. > :57:33.underestimate the complexity involved in a free-trade agreement

:57:34. > :57:39.negotiation, particularly if it had to be conducted of the UK having

:57:40. > :57:50.decided to withdraw from the eat you. I think that no one could have

:57:51. > :57:54.any doubt that the leaflet is being distributed this week represents the

:57:55. > :57:58.views of the government. I have said the government is not neutral on

:57:59. > :58:04.this issue. We accept that this is an issue on which there are long

:58:05. > :58:11.standing, and honorably held differences of opinion by people of

:58:12. > :58:20.different political parties and... I have always respected those who had

:58:21. > :58:27.different views of my own. But the government not only has the right,

:58:28. > :58:30.it has a duty to explain to the electorate the reasons why the

:58:31. > :58:40.government has come to the recommendation that it has. It is an

:58:41. > :58:46.absurd proposition that the government of today is not entitled

:58:47. > :58:53.to form an Apollo policy or opinion on the role of the government in the

:58:54. > :58:58.modern world. Nor is it allowed to communicate the reason for having

:58:59. > :59:04.that policy to the electorate. As the general public are demanding

:59:05. > :59:08.more factual statements about the issues, rather than less, does he

:59:09. > :59:13.agree that those who disagree should actually come up in some calm

:59:14. > :59:18.description of the factual basis on which they believe they can

:59:19. > :59:25.negotiate some alternative role in this country and not just read

:59:26. > :59:31.resort to clustering about fear mongering or that we are somehow

:59:32. > :59:42.bending the rules and they think what the referendum represents? I

:59:43. > :59:53.think the government would want to the Dever box lability... I think

:59:54. > :59:58.that there is an equal obligation on those who booed championing a

:59:59. > :00:02.British exit from the European Union, to spat out both the

:00:03. > :00:10.arguments to which my right honourable friend referred, but also

:00:11. > :00:14.critically to spell out what the future relationship is with the

:00:15. > :00:19.European union that they are seeking. Because, having taken part

:00:20. > :00:23.in many debates and exchanges on the subjects of the European Union and

:00:24. > :00:30.the last for years, I find that there are almost as many visions for

:00:31. > :00:39.the future of the relationship of the EU and the United Kingdom as a

:00:40. > :00:42.are advocates for a British exit. The Minister will be aware that the

:00:43. > :00:46.Prime Minister said the debate comes from with grace and the difficulty

:00:47. > :00:57.that was from his own cabinet. He will also be aware of the so-called

:00:58. > :01:00.unity reshuffled that... What is more in quite wearing is that the

:01:01. > :01:06.Prime Minister saying that the work of the government could possibly

:01:07. > :01:14.suffer. These benches can offer a bit of advice. After the Scottish

:01:15. > :01:17.government enjoys the highest trust levels in Europe, significantly

:01:18. > :01:22.higher than the UK government and does he agree with me that there's a

:01:23. > :01:32.need to follow the gold standard set by the independent referendum. Hear,

:01:33. > :01:40.hear! I think what the leaflet we are dealing with this afternoon does

:01:41. > :01:58.is to explain the government's case in what is plain English, but it

:01:59. > :02:10.explains that in a language that is clear, it is not egg over the

:02:11. > :02:14.putting -- putting. Does the Minister accept that this is not

:02:15. > :02:19.some projects fear so much the project is slightly wearing as it is

:02:20. > :02:23.being done now, but is it a abusive public money and insult to the

:02:24. > :02:32.electors, and does he realise it would drive many more people to vote

:02:33. > :02:42.to leave? I returned to what I say earlier that there is clear evidence

:02:43. > :02:48.from an independent poll in research the methodology of that has been

:02:49. > :02:51.published by the country -- company concerned on its website. More

:02:52. > :02:59.information is wanted by the British public. That research finding bears

:03:00. > :03:07.out what I suspect many other honourable members on both sides of

:03:08. > :03:14.the House in conversations we comes with constituents. I am spending

:03:15. > :03:19.time virtually every day signing replies to members of Parliament who

:03:20. > :03:21.have enclosed letters to constituents where those

:03:22. > :03:25.constituents have said they feel they do not yet have enough

:03:26. > :03:33.information on which they can form a decision and he would like to have

:03:34. > :03:39.some more. I would hope that people look to the argument put forward to

:03:40. > :03:45.campaign groups once they have been designated, they will come to a

:03:46. > :03:48.decision about what they believe to be in the best interest of the

:03:49. > :03:53.United Kingdom as a whole. That is how the government is approaching

:03:54. > :03:59.this matter. The Minister will try as hard as he can to bolster --

:04:00. > :04:08.bluster but the public will see through this and they will realise

:04:09. > :04:17.it is deeply, deeply unfair. One fact, over 3 million UK jobs are

:04:18. > :04:21.linked to EU exports. Trade with countries in the EU with EU

:04:22. > :04:29.membership. He knows it is bit green is not necessary to be a member of

:04:30. > :04:34.the EU to trade with the EU. But the public will see from this leaflet,

:04:35. > :04:37.will be that they know the government, the Prime Minister in

:04:38. > :04:44.particular is not realising he is on the wrong side of this argument and

:04:45. > :04:47.he's going to lose in June. The honour I think the Honorable lady

:04:48. > :04:51.what she really wishes for is that the government should be neutral in

:04:52. > :04:56.this debate. The government is not neutral in this debate, the

:04:57. > :04:59.government is advocating that the British people should vote in favour

:05:00. > :05:07.of continuing membership with the EU. The Prime Minister, Chancellor,

:05:08. > :05:14.Foreign Secretary, other ministers have consistently said when the time

:05:15. > :05:17.came for the referendum to be held, the government would express its

:05:18. > :05:23.view clearly and make its recommendation known. We are

:05:24. > :05:28.delivering on what we have always said to the British people as

:05:29. > :05:36.regards to the honourable lady but one particular element in the

:05:37. > :05:42.leaflet. The footnote that support each of the statements made in that

:05:43. > :05:46.leaflet have themselves been published by the government online

:05:47. > :05:55.and she and other honourable members are welcome to go and check out

:05:56. > :05:59.these as source material. The weakness in my right honourable

:06:00. > :06:09.friend's case that this dodgy person does not actually contain fax. Not

:06:10. > :06:12.only is it a waste of public money, it effectively doubles the

:06:13. > :06:19.campaign's budget the budget has -- government has betrayed... The

:06:20. > :06:23.content of this leaflet that is advocated the responsibility to tell

:06:24. > :06:28.the truth on the issue. It is bad enough that we get junk mail but had

:06:29. > :06:39.junk more junk mail with our own taxes is the final straw? Hear,

:06:40. > :06:46.hear! I think Mr Speaker as I say in response for Vauxhall the source

:06:47. > :06:52.material on which there are various facts and arguments presented in the

:06:53. > :06:55.art -- government's leaflet. We are being completely transparent about

:06:56. > :07:02.the basis on which we are making those arguments to the British

:07:03. > :07:07.people. As I said earlier, what we are doing is following a precedent

:07:08. > :07:10.that has been set in many other referendum campaigns in this

:07:11. > :07:16.country. We are doing nothing that will stop the two campaign

:07:17. > :07:19.organisation in due course from putting their case to the British

:07:20. > :07:26.people with as much vigour as they choose. In the last 20 days of the

:07:27. > :07:33.campaign the government's ability to publish a tour on these matters will

:07:34. > :07:39.be severely limited but by statute law itself as well. I reject that

:07:40. > :07:45.this is somehow being unfair, I think the government is taking

:07:46. > :07:49.responsibility for presenting its case and recommendation to the

:07:50. > :07:53.British people over a decision that will have enormous consequences, not

:07:54. > :08:02.just for those voting this year but for future generations. Ten years of

:08:03. > :08:13.uncertainty? Economics incurred he added and? Prices will go up world

:08:14. > :08:18.stability questions these so fax called to the Minister agree that

:08:19. > :08:22.these facts are in dispute and it is for that reason that this document

:08:23. > :08:29.should come with a very significant and significant health warning the

:08:30. > :08:38.British people believe in fair play and fairness is the fundamental

:08:39. > :08:46.unfairness and Fairplay this is a scandal. I would refer the

:08:47. > :08:55.honourable gentleman to the detailed notes on the various statements made

:08:56. > :09:01.in the leaflet. Since he quoted the Honorable Lord I think he and others

:09:02. > :09:11.represent northern Ireland might say Lord Lawson expressed over the

:09:12. > :09:15.weekend that border controls would need to be established on the

:09:16. > :09:24.northern Ireland, Republican -- Republic of Ireland border. He needs

:09:25. > :09:31.to consider the serious impact on Northern Ireland businesses as well.

:09:32. > :09:36.Hear, hear! My right honourable friend must accept that any

:09:37. > :09:39.reasonable person would regard this not only of propaganda in their arty

:09:40. > :09:47.saying in all the national newspapers and blogs. Right away

:09:48. > :09:52.through the lands it is unfair, unfair to the British taxpayer who

:09:53. > :09:59.is having to bear the burden of the cost of this leaflet. Will he please

:10:00. > :10:04.explain to me personally, why he has broken the oath he gave me on the

:10:05. > :10:11.floor of the House when I put forward an amendment calling for

:10:12. > :10:14.accuracy and impartiality. When I said I would give way on my

:10:15. > :10:21.amendment if he was prepared to say so, he said certainly it is going to

:10:22. > :10:23.leaflet is not with the please leaflet is not with the please

:10:24. > :10:32.explain to the House why he has broken that oath? I reject that

:10:33. > :10:39.assertion. Not only was his intervention last year about

:10:40. > :10:48.information brought forward under the terms of the Lords amendment.

:10:49. > :10:54.This leaflet is out with the scope of the obligation under that act.

:10:55. > :10:59.Also, I referred to him as I have referred to other honourable members

:11:00. > :11:03.to the fact that the government has published the factual and

:11:04. > :11:08.statistical evidence upon which each of the statements made in this

:11:09. > :11:16.leaflet are based. If my Honorable friend wants to go and challenge

:11:17. > :11:22.some of those findings, the statistical survey, the Independent

:11:23. > :11:27.reports, which recite in those footnotes he is free to do so. But I

:11:28. > :11:31.believe the government has acted reasonably and responsibly in

:11:32. > :11:40.presenting its case clearly to the British people. Does the Minister

:11:41. > :11:47.agree with me that by publishing this leaflet the government is

:11:48. > :11:55.simply responding to huge public appetite for more information. The

:11:56. > :12:07.European Union stopped the recycling of tea or children under the age of

:12:08. > :12:09.eight from blowing up balloons? I hope when people read the

:12:10. > :12:17.information the government has published, that they will judge as

:12:18. > :12:24.ministers have done on behalf of the government that membership of the EU

:12:25. > :12:25.makes the United Kingdom stronger, safer, and better off than it would

:12:26. > :12:37.be outside. This really is a crass move by the

:12:38. > :12:42.government. It will hugely galvanise those who want to leave the EU and

:12:43. > :12:51.will do nothing to help those who wish to her main. It makes it very

:12:52. > :12:54.clear that if there is to be a balanced presentation, the view of

:12:55. > :12:59.the opposing side should be expressed. Will the Minister make ?9

:13:00. > :13:09.million available to the leave campaign? As I said earlier Mr

:13:10. > :13:15.Speaker, we judged that the benefit to the leave campaign to remain

:13:16. > :13:27.campaign once designated of a public funded leaflet distribution would be

:13:28. > :13:33.of the odd ?15 million. Those two campaign bodies will of course be

:13:34. > :13:40.free to campaign and communicate right up until the pulley and a.

:13:41. > :13:50.These last 20 days which the government -- Napoleon day. I have

:13:51. > :14:00.never felt that those who supported the British exit is a much

:14:01. > :14:08.galvanizing. LAUGHTER EU membership is valuable for Wales. We believe

:14:09. > :14:14.that there is another give you a little companion as such. There is

:14:15. > :14:21.negativity in the government campaign. We see it this morning and

:14:22. > :14:29.it is labelled as snappily titled. Will the Minister consider the

:14:30. > :14:38.mistakes of project fear LAUGHTER And the online version of this

:14:39. > :14:45.leaflet on sites available... The online version doesn't appear to be

:14:46. > :14:55.available in Welsh. Maybe thankfully so LAUGHTER I do not agree with the

:14:56. > :15:00.honourable gentleman. I think that when people consider how they vote

:15:01. > :15:07.on the 23rd of June will want to weigh up both the argument and

:15:08. > :15:15.benefits that the United Kingdom games from membership in the EU. And

:15:16. > :15:18.the potential risks to culture and trying to forge some other kind of

:15:19. > :15:25.relationship with the European union from outside. The judgement about

:15:26. > :15:37.whether or not we should remain members of the EU, is the one that

:15:38. > :15:41.is pragmatic I would say. We accept that not everything about the

:15:42. > :15:47.European Union is perfect. You cannot be a Europe minister and not

:15:48. > :15:52.know -- not think everything about it is perfect. We believe that the

:15:53. > :15:58.clear balance of the argument lies in continued membership that will

:15:59. > :16:00.help keep us more secure, and more prosperous and that is the balance

:16:01. > :16:13.we have tried to express in this publication. My right honourable

:16:14. > :16:17.friend, had many inquiries from Mike agencies eager to know more about

:16:18. > :16:33.what the government position is. May I tell him that this incestuous hot

:16:34. > :16:36.ice in this dismal press almost all grown-ups same opinion will want to

:16:37. > :16:51.know what the government's position is. I completely agree with my right

:16:52. > :16:56.honourable friend. LAUGHTER Me my constituents are concerned about the

:16:57. > :17:07.leucine or cutting our ties with the biggest market -- losing at a time

:17:08. > :17:11.when the media will be dominated by a bit empty EU press. The BBC has

:17:12. > :17:19.been dumbed down to give more weight to the flat Earth errors propaganda

:17:20. > :17:22.and the merits of continued membership so will the Minister

:17:23. > :17:29.undertake out not just to do a leaflet, but to do much more

:17:30. > :17:36.posters, TV, etc and other media to ensure the prison can make a

:17:37. > :17:43.rational judgement? I can't make the commitments that he is asking me to

:17:44. > :17:47.do, but I can't say to him that the Prime Minister and Foreign Secretary

:17:48. > :17:54.and other ministers on behalf of the government be continuing to press

:17:55. > :17:58.and strongly persuade as strongly as he can the case for Britain's

:17:59. > :18:12.prosperity forever formed European Union. Can I remind my right

:18:13. > :18:17.honourable friend, the question I take from the debate is this how do

:18:18. > :18:21.we provide the critical assurances of what my friend said that the

:18:22. > :18:29.government will be restrained in their use of public money, and have

:18:30. > :18:35.no wish to compete with the umbrella campaign organisation whose job it

:18:36. > :18:41.is to leave the yes what is secret regrets more? That public money is

:18:42. > :18:51.entirely wasted and rid achieved the opposite of his position. I think my

:18:52. > :18:56.Honorable friend would like to check back, you will find my right

:18:57. > :19:09.honourable friend the Foreign Secretary in the Commons were of the

:19:10. > :19:12.centre. My Honorable friend spoke of this, that the government might be

:19:13. > :19:21.thinking of spending public money to deliver doorstep money -- mail. The

:19:22. > :19:31.government has no intention of doing such things. I said more or less the

:19:32. > :19:43.same thing during report stage on the 7th of September of last year.

:19:44. > :19:47.The turnout for the Scottish intervention was 85%. Could the

:19:48. > :19:53.Minister confirm which target it is setting for itself in terms of

:19:54. > :20:03.quarter turn out in what measure is trying to take for Dimock... I'm not

:20:04. > :20:10.going to set an arbitrary target but for particularly decision of this

:20:11. > :20:14.importance we want to see registration and turnout both as

:20:15. > :20:26.high a level as can possibly be achieved. I hope that everybody

:20:27. > :20:33.young, or old, Welsh, Irish Orwell Scottish, Jacob R key position. The

:20:34. > :20:39.government, as I have said, has linked in our leaflet and in our

:20:40. > :20:42.website to the procedures which electors should use in order to

:20:43. > :20:48.ensure they are properly registered for the deadline in addition to what

:20:49. > :20:52.the government is doing the electoral commission is conducting

:20:53. > :20:59.his own awareness campaign to maximise both registration and voter

:21:00. > :21:05.turnout. My right honourable friend is made much of the president

:21:06. > :21:10.sending the government handing out leaflets. But I am afraid people

:21:11. > :21:17.will see this as double standards. Because in the Welsh referendum, the

:21:18. > :21:20.government decided to remain strictly neutral believing that the

:21:21. > :21:25.people would trust the outcome of that referendum better if we

:21:26. > :21:29.with my right honourable friend take it from me that this is a matter of

:21:30. > :21:35.trust and are the people would address the government now when they

:21:36. > :21:41.are so blatantly trying to load the dice? There is a key difference

:21:42. > :21:47.which my right honourable friend alluded to. She said the government

:21:48. > :21:52.took a decision to respect the Welsh referendum intervenes strictly

:21:53. > :22:00.neutral. The government is not neutral in this river of rep

:22:01. > :22:14.referendum artist is about public the publication support that

:22:15. > :22:27.principle. White LAUGHTER Can I just suggest a little bit more balanced

:22:28. > :22:34.on red tape. This person can only dream of this rather than 28 or more

:22:35. > :22:38.at the moment. Indeed is a simplification that makes EU

:22:39. > :22:45.membership attractive to businesses. So could I suggest to the Minister

:22:46. > :22:52.that disputed issue of a follow-up booklet to expand the matters of

:22:53. > :22:57.debt. I think the honourable gentleman he is on an important

:22:58. > :23:05.point that the world single market is very successful in terms of

:23:06. > :23:15.trained in goods and in services. We are leading the debate within Europe

:23:16. > :23:22.on liberalization of the services. I think that particularly foreign

:23:23. > :23:32.economies such as ours roughly 80% of GDP comes in the service of our

:23:33. > :23:37.sector it would be a very violent risk to turn from that into being

:23:38. > :23:38.takers of rules set by other European countries with us absent

:23:39. > :23:49.from the table. This house has passed legislation

:23:50. > :23:58.allowing the government to produce this leaflet, as long as it is not

:23:59. > :24:03.within the last of the eight days of the referendum. Does the Minister

:24:04. > :24:06.agree that it is all part of a strange strategy when, instead of

:24:07. > :24:19.arguing the case, the league campaign prefers to, whether it is

:24:20. > :24:22.the had a bank or the head of the country, they prefer to say that

:24:23. > :24:28.that person should not say it at all. Does he agree that that is a

:24:29. > :24:37.nonsensical strategy? I think he puts his point well. I am waiting to

:24:38. > :24:42.hear from the league campaigners. I'm waiting to hear a consistent

:24:43. > :24:57.view of the alternative to European membership. I am sure he would agree

:24:58. > :25:01.that the leave leaflet is misleading and reprehensible. Does he share my

:25:02. > :25:11.concern that in large parts of Wales, this has been distributed

:25:12. > :25:16.instead of a leaflet about the Welsh Assembly and elections? We are

:25:17. > :25:19.trying to get to the root of how this happened, but if it was the

:25:20. > :25:28.Royal mint, when he joined me in condemning them? I will take no of

:25:29. > :25:34.what the gentleman says. I would want to understand what exactly has

:25:35. > :25:39.gone on, and whether what has gone on is the result of a policy or

:25:40. > :25:44.something that has been done by an individual deliver. I will draw the

:25:45. > :25:54.attention of the electoral commission to what he has described.

:25:55. > :25:59.Has he noticed that those who have mounted objection to the public

:26:00. > :26:03.provision of information at the taxpayer's expense appear not to

:26:04. > :26:09.have noticed that getting on for double the sum will be made

:26:10. > :26:15.available by the taxpayer for the we campaign? If they have a principal

:26:16. > :26:18.objection to such principle of taxpayer funding, they will

:26:19. > :26:27.presumably refuse that funding, or does he think that they are making

:26:28. > :26:36.better points? I tended toward the sacred interpretation -- the second

:26:37. > :26:42.interpretation he listed. Those who perfectly, properly and honorably

:26:43. > :26:47.advocate for departure wish that the government were neutral and silent.

:26:48. > :26:51.The government believes that there is a compelling case for continued

:26:52. > :27:02.membership in the EU in both economic and political interests.

:27:03. > :27:05.Put you remind us how many of those criticised his a surgeon voted for

:27:06. > :27:23.the legislation allowing it to happen? How many who raise their

:27:24. > :27:32.voice when the government distributed leaflets on the Scottish

:27:33. > :27:37.independent referendum? Misleading propaganda supporting things, not

:27:38. > :27:44.far candidate that things they disagree with. I think what the

:27:45. > :27:49.government has published is phrased with language that is both

:27:50. > :27:55.reasonable and accessible, and presents the case, I hope,

:27:56. > :28:02.persuasively in a moderate tone throughout. In the interests of

:28:03. > :28:10.fairness wouldn't it be better for funds to be made available or an

:28:11. > :28:15.increase in the leaf funding to be commensurate with -- can he agree

:28:16. > :28:23.with fundamental fairness and reasonableness of this argument? The

:28:24. > :28:28.two designated campaign organizations will have four weeks

:28:29. > :28:31.in the run-up to polling day when they will be completely free to

:28:32. > :28:36.publish and deliver whatever messages it was two to the

:28:37. > :28:42.electorate, and the government will be constrained severely and what it

:28:43. > :28:45.is able to do. But we have done, on this occasion, is in line with the

:28:46. > :28:51.precedent set under both conservative and Labour governments

:28:52. > :29:01.in the past. I see nothing inappropriate with what the

:29:02. > :29:03.government has done. The Minister will know that the ST LP will be

:29:04. > :29:19.campaigning for remain, -- do also know that even though you're

:29:20. > :29:29.campaigning for a stay, will not be welcoming of a leaflet from the

:29:30. > :29:33.government. --? The government was going to leave if we didn't have a

:29:34. > :29:41.special status. How will the government approach the risks if

:29:42. > :29:46.that is going to be decommissioned? The government position was

:29:47. > :29:55.announced after the February counsel this year whereby we secured very

:29:56. > :30:00.important reforms to the EU which, in particular, Congress under the

:30:01. > :30:03.notion of ever closer political union and ensure that no permission

:30:04. > :30:12.to buy euro zone countries against those who have chosen not to join

:30:13. > :30:25.the euro. I think we are advocating in the leaflet that even people in

:30:26. > :30:32.his constituency, and though they may not offer, I know they will be

:30:33. > :30:38.campaigning strongly and I welcome the.

:30:39. > :30:45.I was worried about the member, I wouldn't want him to be perturbed in

:30:46. > :30:53.any way. Thank you, I sometimes worry about myself. Inform my right

:30:54. > :30:58.honourable friend that public administration select committee is

:30:59. > :31:02.receiving evidence that this will be less fair referendum then in 1975

:31:03. > :31:08.before there were over rules for referendums. At least in that

:31:09. > :31:13.referendum be granted or not to campaigns were worth twice these

:31:14. > :31:18.grants. When the government distributed its own leaflet they

:31:19. > :31:25.distributed information on de novo as well as the yes vote. -- the

:31:26. > :31:34.noble. The idea that this has accident. Who now believes we live

:31:35. > :31:38.in a reformed EU? Or that we will keep our own border controls who

:31:39. > :31:44.says they are in EU citizen? Or we will not be part of further

:31:45. > :31:55.integration? Doesn't this compare to the claim that, decisions can only

:31:56. > :32:04.be taken after all members agree? We've heard all of these stories,

:32:05. > :32:11.but they are not facts! I don't think, Mr Speaker, the anything I

:32:12. > :32:15.can say that was published will influence my honourable friend,

:32:16. > :32:19.given his track record in this debate. He has been absolutely

:32:20. > :32:24.consistent and I respect that, even though I disagree vehemently with

:32:25. > :32:27.them. I take the serious point he made about the timing of the

:32:28. > :32:32.distribution, the fact that this was not going out at the same time as

:32:33. > :32:39.the leaflets for the remain and we campaigns. We would have preferred

:32:40. > :32:50.to, I think, circulate the leaflets later in the campaign, but the

:32:51. > :33:01.statutory rules that prohibited us from such medication did that do not

:33:02. > :33:13.apply any 1975 referendum period -- publication. It would be wrong to

:33:14. > :33:18.distribute the government leaflet that would interfere with

:33:19. > :33:25.distribution in Ireland and Wales and Scotland. In an ideal world, we

:33:26. > :33:33.had earlier than we might have chosen. The Minister is possibly the

:33:34. > :33:41.first Minister of the conservative persuasion that he is -- that I

:33:42. > :33:49.haven't felt sorry for her. He is a sacrificial lamb. In the support of

:33:50. > :33:52.the the EU, I am worried that the government is alienating as opposed

:33:53. > :33:58.to informing voters. If the government plan any follow-up the 20

:33:59. > :34:06.referendum? Can I recall the line from the Scottish national anthem?

:34:07. > :34:14.Sent homewards, to think again? We have no plans for further leaflets

:34:15. > :34:17.for every household. I did, in my statement, indicate the further

:34:18. > :34:26.publications which we have already committed ourselves to providing. He

:34:27. > :34:35.will be aware that governments are rarely shy of explaining their dues

:34:36. > :34:41.to the public about their campaigns. That is perfectly acceptable, and

:34:42. > :34:47.also to use taxpayer money. Since the government is not neutral in the

:34:48. > :34:52.campaign can he give me any indication that he understands the

:34:53. > :35:00.false argument that this should not be done, or should Brexiteers the

:35:01. > :35:06.believes that they should have editorial control? That should be

:35:07. > :35:13.answered by others, rather than by me. During the Scottish independence

:35:14. > :35:19.referendum in the UK government spent about three quarters of ?1

:35:20. > :35:26.million signing leaflets urging people to stay in the UK. One of

:35:27. > :35:30.promise made that Scots would maintain an influential vote in the

:35:31. > :35:36.EU. What is the government refused to uphold the in the event of

:35:37. > :35:46.Scotland voted to remain and the the rest of the UK voted to leave? Allen

:35:47. > :35:53.has a more powerful voice in the EU as part of the EU -- Scotland, more

:35:54. > :36:03.than she would have on her own. You can see the authority that the

:36:04. > :36:10.Scottish industry of whiskey has with power around the world. It has

:36:11. > :36:16.given the growth and jobs in Scotland. She is biting me to

:36:17. > :36:23.revisit territory of the House debated and voted on at the time of

:36:24. > :36:28.the Referendum Bill. It is the UK that is the Member States whose name

:36:29. > :36:35.is written into the treaties as the member State, so it is right to make

:36:36. > :36:40.the decision as a whole UK. I believe the Minister is a fair man,

:36:41. > :36:46.and this should have been a fair campaign. The spending of this

:36:47. > :36:49.money, clearly, is clearly unfair. Does he understand the anger in my

:36:50. > :36:56.constituency where there is pressure on public spending of this level of

:36:57. > :37:00.taxpayer money spent on electioneering? I was fortunate to

:37:01. > :37:04.get my copy this morning by was slightly disappointed that it was

:37:05. > :37:09.printed on a shiny, glossy paper. Had he been printed on something

:37:10. > :37:23.more absorbent or at least my constituents would have been able to

:37:24. > :37:30.put it to good use. LAUGHTER had Mr Speaker, the facts are the 85% of

:37:31. > :37:32.the public have been telling us that they wanted more information and

:37:33. > :37:44.that they want more information from the government, in particular. The

:37:45. > :37:49.cost of this leaflet is roughly 34p per household. I don't think, given

:37:50. > :37:56.the gravity of the decision, that that should be seen in any way a

:37:57. > :38:02.disproportionate. Thank you Mr Speaker. When the Scottish

:38:03. > :38:16.government had a white paper printed it had a catalytic impact. It was

:38:17. > :38:23.ordered over 100,000 times. People actively and proactively paid for

:38:24. > :38:29.it, irrespective what site of -- side of the campaign that they were

:38:30. > :38:34.on. Does he think this goes anywhere close to the success of the Scottish

:38:35. > :38:39.Government's White paper? I do not expect this to appear in the Amazon

:38:40. > :38:45.bestseller list, by Hope that every household that receives this will

:38:46. > :38:55.consider seriously the arguments the government is making. If people wish

:38:56. > :38:57.to explore in any greater detail the particular aspects of our EU

:38:58. > :39:03.membership that are not covered in this leaflet, they can follow up the

:39:04. > :39:07.source material from which the statements are derived. Those have

:39:08. > :39:14.been published. Or, they can look at the link for government publications

:39:15. > :39:24.that we have placed online under our governmental duty, and they can look

:39:25. > :39:33.at that too. The gentleman who represents the STL P is not the only

:39:34. > :39:38.one to take the position to remain but against the spending of taxpayer

:39:39. > :39:41.money on this leaflet. It was said on Radio 4 on Friday evening that is

:39:42. > :39:45.not acceptable for the government to be putting out propaganda in this

:39:46. > :39:55.way. Can the Minister tell us which of the two lines is being put

:39:56. > :39:58.forward to, which does he subscribe to? Does he subscribe to the line

:39:59. > :40:06.that this is information that the public wants, or does he commits

:40:07. > :40:11.himself to the line that this is, actually, the government arguing for

:40:12. > :40:14.one side of the debate? That is what the government's position is, and

:40:15. > :40:24.you cannot have it both ways. Either it is impartial and factual, or it

:40:25. > :40:32.is a commitment to one side. It will be for the two campaign

:40:33. > :40:37.organizations that make their own campaigns to promote their own

:40:38. > :40:41.messages to the public as they choose without the government

:40:42. > :40:46.interfering. The opinion research that we commissioned told us is that

:40:47. > :40:57.people wanted more information including clerk ask permission from

:40:58. > :41:05.the government as to -- clearer explanation from the government as

:41:06. > :41:19.to why we were making a commitment to our recommendation. Constituents

:41:20. > :41:23.have been asking for more information but I don't think that

:41:24. > :41:25.anyone has given a second of consideration as to how our

:41:26. > :41:32.constituents have been impacted by austerity cuts, how would they feel

:41:33. > :41:40.about ?9 million spent on a glossy leaflet that amounts to nothing more

:41:41. > :41:47.than a booklet of glossy pictures? I also wonder if people are asking for

:41:48. > :41:52.information about both sides of the argument? They are not asking for

:41:53. > :41:57.propaganda or facts which are not facts. They are not asking for a

:41:58. > :42:05.glossy booklet. They want unbiased information on both sides of the

:42:06. > :42:09.argument. Therefore, will you spend another ?9 million representing the

:42:10. > :42:18.other side of the argument? The two giving groups will have a -- the two

:42:19. > :42:25.campaign groups will have a grant for whatever leaflet they choose to

:42:26. > :42:29.produce, half to ?50 million apiece. In addition to that benefit, in

:42:30. > :42:35.terms of free delivery, they will each have a ?7 million spending

:42:36. > :42:41.limit which is higher than any other participant in the referendum

:42:42. > :42:47.campaign. They will be entitled to a television drug test and a

:42:48. > :43:06.government grant of ?600,000. -- the entitled to a television broadcast.

:43:07. > :43:12.There will -- for -- her views on Europe are consistent and well

:43:13. > :43:18.known, but given the seriousness of what it is at stake in this boat,

:43:19. > :43:24.for the government to be spending 34p per household I'm presenting its

:43:25. > :43:31.use in an accessible form seems, to me, to be utterly unreasonable.

:43:32. > :43:37.Perhaps we should be reasonably relaxed. Most of these leaflets will

:43:38. > :43:43.end up in the waste paper bin straightaway. People don't actually

:43:44. > :43:51.like propaganda, especially if they are being asked to pay for it. I

:43:52. > :43:56.think his answer to the chair of the foreign affairs committee was weasel

:43:57. > :44:00.words. We got from commitment that there would be brought equality of

:44:01. > :44:05.spending as far as the government was concerned, that was our

:44:06. > :44:10.understanding. It was weasel words to do that in the last four weeks,

:44:11. > :44:19.but not now. Why is it fair that while the taxpayer would give ?7

:44:20. > :44:27.million to the league campaign but ?60 million to the remain campaign?

:44:28. > :44:32.-- 16 million? Warned that leave a lasting taste of bitterness and

:44:33. > :44:37.unfairness? I advise my honourable friend to look back at the reports

:44:38. > :44:46.of the committee proceedings and debates that he cites. He will see,

:44:47. > :44:48.absolutely clear in black and white, that the government has always drawn

:44:49. > :44:57.a distinction between the last 28 days of the campaign period and the

:44:58. > :45:01.rest of the campaign. Indeed, there were amendments tabled during

:45:02. > :45:09.committee and report status on the Referendum Bill that would have

:45:10. > :45:13.extended to a much longer period the restrictions covered by the Liberal

:45:14. > :45:21.party's referendum act. Parliament decided not to extend the period.

:45:22. > :45:31.Thank you, Mr Speaker. The remaining template suggests that our security

:45:32. > :45:44.-- the remaining template -- leaflet. It suggests that we will be

:45:45. > :45:50.in more danger. How can that be when terrorists are travelling with EU

:45:51. > :45:58.travel documents, which, in future and now, would deny them access to

:45:59. > :46:02.the UK? That is actually an argument for a more effective cooperation

:46:03. > :46:09.between police forces and intelligence agencies. One reason

:46:10. > :46:16.why our security would be a hazard if we were to withdraw would be

:46:17. > :46:22.because living would mean leaving arrangements for police and judicial

:46:23. > :46:29.cooperation would have enabled us to detect and disrupt the work of

:46:30. > :46:38.terrorists and other criminals and to bring to justice people who have

:46:39. > :46:44.fled other countries to seek refuge. Also, it would remove jurisdiction

:46:45. > :46:47.for people to come to the UK. In the EU we could do that quickly and more

:46:48. > :46:55.cheaply than we could possibly do outside of it. Can't my friend

:46:56. > :47:01.explain why there is no reference in this document to the massive trade

:47:02. > :47:12.deficit which the UK has with the rest of the EU? There is a reference

:47:13. > :47:16.to various percentages but my constituent has e-mailed this

:47:17. > :47:23.afternoon, pointing out that those figures are, at best, meaningless

:47:24. > :47:30.and, at worst, totally misleading. What are the figures in terms of

:47:31. > :47:36.millions of pounds for our deficit? Does he agree with my response to

:47:37. > :47:43.those who are angry about this that rather than get angry, they must get

:47:44. > :47:50.even? My advice to Alan would be that we export roughly 44% of

:47:51. > :47:56.everything exported from the UK to the EU. I would not want to see that

:47:57. > :48:03.put at risk. Particularly when the fact that only 8% of the EU 27th

:48:04. > :48:10.exports go to the UK suggest that any event of a British from the EU

:48:11. > :48:19.the negotiation went over any future deal would lie with the 27% rather

:48:20. > :48:23.than us. My friend mentioned that the government's leaflets were sent

:48:24. > :48:27.out this week. They acknowledged then that it was not the case in

:48:28. > :48:30.Wales, Scotland and Northern Ireland where they will not be distributed

:48:31. > :48:37.until after the elections on the 5th of May. This falls squarely in the

:48:38. > :48:40.referendum period and is a matter, which you will know, that the

:48:41. > :48:44.electoral commission have expressed great concern about. Would he accept

:48:45. > :48:48.that the late distribution of the leaflets in those parts of the

:48:49. > :48:54.country were given a very advances to the remain campaign given the

:48:55. > :49:03.sensitive nature of the documents? No, I don't. The fact that the

:49:04. > :49:09.remain and lead campaigns will be able to circulate their material and

:49:10. > :49:13.communicate as they think fit in the last 20 days of the campaign while

:49:14. > :49:22.the government is restricted in what they can say will enable both sides

:49:23. > :49:32.to be profamily to the electorate. In 2011 we held the referendum on

:49:33. > :49:37.the voting system. Can he confirm whether the Pentagon's quest but

:49:38. > :49:41.then? This was a referendum that could change the political makeup of

:49:42. > :49:47.our country for generations to come, and also the whole voting system?

:49:48. > :49:51.The crucial difference is that we are part of a Coalition government.

:49:52. > :49:59.The two parties took opposite views on the preferred outcome of that

:50:00. > :50:04.referendum. Therefore, there was no agreement on what the government's

:50:05. > :50:10.collective message should be. This time, the government has a very

:50:11. > :50:16.clear collective view that we should remain in a reformed European unit.

:50:17. > :50:26.The way we communicate the literature which we are distributing

:50:27. > :50:30.reflect the fact. He has made the point of the government came to a

:50:31. > :50:35.balanced view that the UK should remain within the EU. It was

:50:36. > :50:40.balanced I think it's to assume that the government thinks there are

:50:41. > :50:48.force and against a double-sided. What benefit does the government

:50:49. > :50:54.believed would be positive if we were to leave, and why wasn't that

:50:55. > :50:57.included? You had to come into a judgement about the costs and

:50:58. > :51:03.benefits of European Union membership. The government having

:51:04. > :51:09.considered this at considerable length and having gone to the

:51:10. > :51:15.considerations that precipitated the February counsel we came to the

:51:16. > :51:20.conclusion we would remain a more secure within the EU. One of the

:51:21. > :51:25.challenges to my honourable friend and those who share his view is that

:51:26. > :51:31.in an absence of a clear and coherent view of the UK's

:51:32. > :51:38.relationship with the EU, it is hard to form a judgement about the

:51:39. > :51:44.difficulties involved. We can estimate risks and we will certainly

:51:45. > :51:53.do that. It is incumbent on those championing the cause for leaving to

:51:54. > :51:59.explain it clearly exactly the nature of what our relationship

:52:00. > :52:04.would be. This follows on it so well with my honourable friend's remarks.

:52:05. > :52:18.The title missing is, what will it be like if we remain? There is no

:52:19. > :52:24.indication. The latest data shows that 60% of all of our laws are made

:52:25. > :52:30.in the EU. If the Minister has not noticed, is part of the remain

:52:31. > :52:36.campaign. In this booklet is opinion, partial and certainly not

:52:37. > :52:39.fact. Through the turmoil of this week we have seen a partial facts

:52:40. > :52:49.are dangerous thing to have a leaflet. She is disagreeing with the

:52:50. > :53:03.government about the government's relationship with the EU. I would

:53:04. > :53:07.correct on the points of the proportion of legislation here and

:53:08. > :53:15.in the EU. You're looking at roughly 40% of the total that have to do

:53:16. > :53:21.something with EU membership. The Brendon Todd leaflets are a view of

:53:22. > :53:24.part of the government. I don't know if the Minister has noticed, but

:53:25. > :53:28.there are half a dozen Cabinet ministers who are camping to leave

:53:29. > :53:33.alongside other ministers as well. When will the other side of the

:53:34. > :53:37.government get their leaflet? As a member of the Council of Europe,

:53:38. > :53:42.part of my responsibility is election observing. I look at the

:53:43. > :53:49.conduct of the campaign buyer to polling day. If I witnessed, in any

:53:50. > :53:53.of the countries I go to him but he sort of antics I is seen by this

:53:54. > :53:55.government I would condemn the conduct of that election as being

:53:56. > :54:17.not fair. If he reflects on what he just said,

:54:18. > :54:24.and on the election campaigns in Zimbabwe involving the murder,

:54:25. > :54:27.maiming and intimidation of voters, he might recognise that what he has

:54:28. > :54:38.just said was not his finest moment in the house. What the government is

:54:39. > :54:42.doing at the cost of 34p per household is a reasonable expression

:54:43. > :54:52.of the government's case for staying in the EU. It is a collective

:54:53. > :54:59.position, and quite exceptionally, he has agreed the individual

:55:00. > :55:01.ministers who dissent may do so in a public and personal capacity. That

:55:02. > :55:05.does not alter the fact that there is a collective government you

:55:06. > :55:10.agreed upon by the Cabinet that we are better off remaining.

:55:11. > :55:18.Thank you Mr Speaker they have said that the distribution of the leaflet

:55:19. > :55:23.is an unfair advantage to the state. Whether they come covering

:55:24. > :55:33.commission reviews whether they disparate distribution if not why

:55:34. > :55:38.not? The electoral commission is entitled to its view. We don't agree

:55:39. > :55:46.with that, on this point of principle, but we did as I said

:55:47. > :55:50.earlier, change our plans regarding the timing of leaflet distribution

:55:51. > :56:00.to take into account that it the effect impact might have on the

:56:01. > :56:02.election in the three areas. The independent, highly respected

:56:03. > :56:08.electoral commission says the government is wrong. But what is far

:56:09. > :56:14.worse and I have to wear this carefully, is that the time of the

:56:15. > :56:19.debates will reset from the dispatch box was with certain come certain

:56:20. > :56:29.conservative MPs were told we were told the government would not issue

:56:30. > :56:34.a leaflet. We have not clearly good clearly she would not have

:56:35. > :56:39.deliberately does let us. So when did government policy change and can

:56:40. > :56:43.the Minister confirm when his assurances were given, there was no

:56:44. > :56:52.intention of issuing this leaflet. When did the policy change? Mr

:56:53. > :56:58.Speaker, the government has always said that we would take and to

:56:59. > :57:04.express a clear view. The Prime Minister said as far back as last

:57:05. > :57:09.year in June. I do not want us to be neutral on this issue, I want to

:57:10. > :57:15.speak clearly and frankly. The Foreign Secretary and I have both

:57:16. > :57:22.repeated that point on several occasions in the House of Commons.

:57:23. > :57:29.If my Honorable friend refers back to those select committee reports,

:57:30. > :57:36.he will see that the Minister is consistently debate and referred to

:57:37. > :57:44.the absence of any intention to publish leaflets to carry out door

:57:45. > :57:47.drops, advertising in the context of debates and questions about the

:57:48. > :57:57.final 20 days of the campaign and whether or not a range of up to be

:57:58. > :58:06.the British public record as a deficit when they see one. This

:58:07. > :58:12.leaflet has unfair and on British and its nature. The moment it was

:58:13. > :58:18.announced, I've been inundated by people who wish to tell me to leave.

:58:19. > :58:21.Can my right honourable friend release figures for the propaganda

:58:22. > :58:32.leaflets that are returned in the post and have this been budgeted

:58:33. > :58:41.for? The cost for 34p per household I thought is reasonable. The public

:58:42. > :58:51.would be East honest -- astonished... I think the truth is

:58:52. > :58:55.that what my Honorable friend yearns for, is silence and neutrality on

:58:56. > :59:07.the part of the government and that is not what he's going to get. This

:59:08. > :59:11.is a factual document? If that is the case then I must have a few

:59:12. > :59:18.missing pages from mind LAUGHTER Because I don't see any fax, if the

:59:19. > :59:25.Minister is so keen on the fax he told us, with the devs that was last

:59:26. > :59:31.year between United Kingdom within the European Union and what our net

:59:32. > :59:37.contribution is to the EU budget every year because the summer reason

:59:38. > :59:39.those facts are missing from my particular document, salt like to

:59:40. > :59:48.apologise for that omission? LAUGHTER The Treasury analysis is

:59:49. > :59:54.published, but he will find that the full account given of the net

:59:55. > :00:00.contribution in the way that he would expect. The calculation of the

:00:01. > :00:09.net contribution is published every year by HM Treasury and that budget

:00:10. > :00:15.office. Who would have thought this week that the Labour Party would

:00:16. > :00:24.join my own government in supporting the plutocratic the investment

:00:25. > :00:29.banks, against the people. We wonder why politics is held in such a low

:00:30. > :00:38.regard. If I can address the Minister, he will know to date the

:00:39. > :00:50.vice president of the European... The government went too far with

:00:51. > :00:52.these EU leaving concessions. The negotiations are legally

:00:53. > :00:58.non-negotiable. Is it purely coincidence therefore that there is

:00:59. > :01:05.any records of his actual negotiations in this propaganda

:01:06. > :01:09.document? I've been looking at how the European Council is reported in

:01:10. > :01:15.the media around Europe, I have seen, the plenty about this being a

:01:16. > :01:18.big win for the United Kingdom diplomacy and in some cases outrage

:01:19. > :01:24.at what people in those countries have seen as the Trail of federalist

:01:25. > :01:27.ideals. I'd simply say to my Honorable friend, the president of

:01:28. > :01:33.the EU Parliament has made it clear that he wants the deal agreed to go

:01:34. > :01:41.through and she will work to that end. The head of the Council of

:01:42. > :01:45.legal services in the EU has made it clear that the agreement made in

:01:46. > :01:55.February is legally binding in every state. If I may just pick up on that

:01:56. > :02:02.point. The prime minister promises people in this country of a treaty

:02:03. > :02:06.change by June 23. We have no treaty change, so the propaganda that the

:02:07. > :02:11.government is pushing out cannot be guaranteed 100%. That any of the

:02:12. > :02:21.reforms we have got with the law. At the moment, we are consumed by the

:02:22. > :02:29.EU if we go to stay in, the courts both of the power to change what we

:02:30. > :02:34.have tried to do. What was agreed in February, including those aspects of

:02:35. > :02:37.the agreement that required the amendment to the EU treaties take

:02:38. > :02:47.the form of international law decision which is legally blind --

:02:48. > :02:52.binding. Of the 28 EU Member States and cannot be changed unless

:02:53. > :03:01.unanimous agreement. That is why I'm very confident this will go through.

:03:02. > :03:05.Hear, hear! Can the Minister confirmed there been any EU fights

:03:06. > :03:09.in the production of this leaflet and what procurement fraud processes

:03:10. > :03:27.were going through for the leaflet in the leaflets. -- websites.

:03:28. > :03:33.LAUGHTER The money involved is coming out of the Cabinet office

:03:34. > :03:38.departmental spending. Do the best of my knowledge, is coming straight

:03:39. > :03:46.out of the Cabinet offices departmental spending. There are no

:03:47. > :03:50.EU funds involved. In fact, it -- the president of the EU commission

:03:51. > :03:56.said it would be wrong for the commission to be participating in

:03:57. > :04:05.the British election -- referendum campaign. We will come to points

:04:06. > :04:09.order, but I want to do with the next matter on my agenda so the

:04:10. > :04:19.Honorable members are patient they will be heard ere long. In a moment

:04:20. > :04:24.I will call the shadow secretary to make an application for leave to

:04:25. > :04:30.propose a debate on the specific and important matter which she believes

:04:31. > :04:39.she got urgent consideration under the terms of standing order number

:04:40. > :04:48.24. To make such an advocation, the advocation -- Honorable Lady has up

:04:49. > :04:53.to three minutes and Eagle. The House should debate a specific and

:04:54. > :05:04.important matter. The House should consider that that Tata steel to

:05:05. > :05:10.sell its Corporation. On the 29th of March, Tata announced it would sell

:05:11. > :05:15.its entire British timetable for the future of the UK steel industry is

:05:16. > :05:19.now hanging by a thread. He a suitable buyer is not found, there

:05:20. > :05:26.will be enormous repercussions. 40,000 jobs are at stake at Tata and

:05:27. > :05:33.the supply of steel faced a deep and uncertain future. Steel is a

:05:34. > :05:41.foundation industry, and it is essential for the UK's manufacturing

:05:42. > :05:48.base. Defense, construction, automotive, nuclear all depend on

:05:49. > :05:56.steel. This crisis is also a threat to our manufacturing sector which is

:05:57. > :06:03.already struggling. The cost of failing would-be eight additional

:06:04. > :06:08.?4.6 billion over the next ten years. The UK current account

:06:09. > :06:15.deficit already standing at a high of 30 billion would widen even third

:06:16. > :06:22.further. We are dangerously reliant on overseas manufacturers. As all

:06:23. > :06:28.the economic cost, there'd be a holy human cost is well the devastation

:06:29. > :06:33.of entire communities and those who rely on the industry. These steel

:06:34. > :06:37.industry is sick and can be preserved for a strong future but

:06:38. > :06:51.only the right decisions are taken now. It is a matter brink of concern

:06:52. > :06:54.to the House -- grave concern. As top top announcement came during a

:06:55. > :07:00.recess, there has not been a chance to have a debate about this

:07:01. > :07:04.important matter. Not least because the government refuses, despite a

:07:05. > :07:12.petition signed by 52,000 people asking for them to do so. While Mr

:07:13. > :07:14.Speaker I welcome the Secretary of State statement earlier today I

:07:15. > :07:21.believe I was to follow this debate to allow members to not just pose

:07:22. > :07:27.questions but to scrutinize members plans in more detail. Mr Speaker,

:07:28. > :07:39.given the potentially devastating impact on... I begged for leave to

:07:40. > :07:44.seek this emergency now. Hear, hear! I have listened carefully to the

:07:45. > :07:47.application from the honourable member and I'm satisfied that the

:07:48. > :07:55.matter is proper to be discussed. Under the terms of standing order

:07:56. > :08:10.number 24. As the honourable lady have leave of the House? Aye

:08:11. > :08:17.LAUGHTER Thank you. The honourable member has obtained the leave of the

:08:18. > :08:24.House. The debate will be held tomorrow Tuesday the 12th of April

:08:25. > :08:29.is the first item of public business. The debate will last for

:08:30. > :08:35.up to three hours and will arise on a motion that the House is

:08:36. > :08:42.considered specified matter set out in the Honorable member's

:08:43. > :08:56.application. Order. I hope that is helpful.

:08:57. > :09:06.So, order I think I saw the Honorable lady first for her. Thank

:09:07. > :09:16.you Mr Speaker Avenue member and when I arrived there is a strict...

:09:17. > :09:21.I was there for surprised to learn that the Secretary of State have

:09:22. > :09:26.made in ministerial visit to my consistency without any visit to

:09:27. > :09:30.meet. This is disappointing me because I freeze this issue

:09:31. > :09:44.especially the rural parts of my constituency. Can you tell me what

:09:45. > :09:48.is available and is anyway to convey for your office Mr Speaker I be

:09:49. > :09:52.happy to arrange for the Minister to make a more informed visit on this

:09:53. > :09:57.occasion he may wish to read this and it just this me directly. I

:09:58. > :10:03.think the honourable lady for her point of order, and for her courtesy

:10:04. > :10:09.and giving me notice the of it. She is right. There is a firm convention

:10:10. > :10:13.that ministers should give advance notice to Honorable members that

:10:14. > :10:19.they plan to visit the constituency of those members on official as

:10:20. > :10:23.opposed to private or personal business. Indeed, this is required

:10:24. > :10:34.and spelled out in the ministerial code. The apparent failure to do so

:10:35. > :10:39.on this occasion is regrettable. Be so, it is regrettable to me to

:10:40. > :10:43.because I know the right honourable gentleman I've known him for 25

:10:44. > :10:50.years and knew him as a person of utmost courtesy. This does appear to

:10:51. > :10:55.be out of something of a lapse. In terms of remedy she can she wishes

:10:56. > :11:01.that the Minister arranges a perspective more informed visit. She

:11:02. > :11:05.has been most effective in putting this point on the record. The chair

:11:06. > :11:08.cannot facilitate such a visit and it does not for me to say whether it

:11:09. > :11:12.should take place. I'm sure the office has been hashed over husband

:11:13. > :11:33.heard. I have noticed that a former member

:11:34. > :11:38.of this House Doctor Bob has described himself and it is a number

:11:39. > :11:42.of occasions in his websites as a former Minister. I've cut a check

:11:43. > :11:48.with other colleagues with the House of Commons library and they are not

:11:49. > :11:56.able to confirm that. Do you Mr Speaker have any remedy or sanction

:11:57. > :11:58.for a former member of the House inaccurately or deceivingly

:11:59. > :12:09.described himself as a former minister? LAUGHTER The short answer

:12:10. > :12:16.to the honourable gentleman is no. I remember the good doctor of course I

:12:17. > :12:25.do. He certainly wasn't a government minister. I am not aware of what he

:12:26. > :12:30.may have may not set beyond what the honourable gentleman has just

:12:31. > :12:33.reported to the House. Let me just say this, whether someone has or has

:12:34. > :12:46.not been a minister of the Crown, is a matter of public record. It is

:12:47. > :12:53.indeed a matter of fact. One way or another. If someone is wrongly

:12:54. > :13:00.claimed to be a government minister, that is curious. I have however to

:13:01. > :13:06.say it is not a matter for the chair to seek to resolve notwithstanding

:13:07. > :13:10.the eagerness of the honourable gentleman that it should be.

:13:11. > :13:23.LAUGHTER We will have to leave it there.

:13:24. > :13:33.Is a want of clarity is that I perceive the ministers and national

:13:34. > :13:39.conduct authority. Please have clear and honest -- proper answers. I'm

:13:40. > :13:44.still Jenny get the butter of this matter and look for your guidance on

:13:45. > :14:06.this topic and what your current correspondence. The SCA does meet

:14:07. > :14:14.its requirements. ... Mr Speaker not once but twice that the SCA asking

:14:15. > :14:22.for additional time we've note not confirmed but the orders withholding

:14:23. > :14:25.can you guide me an out of confidence in the ability to do so

:14:26. > :14:29.independently of this government when you see we cannot answer my

:14:30. > :14:39.simple question without authorisation from 11000 Downing St.

:14:40. > :14:53.I think the honourable lady for this point of order. I understand, her

:14:54. > :15:00.frustration that she is not secure and clear on and people answering

:15:01. > :15:06.her questions. The information requested by the at CA is not a

:15:07. > :15:12.matter for any member of this chair to decide. She is made or concerned

:15:13. > :15:23.clear, very explicitly on the record and no doubt it will be heard on the

:15:24. > :15:26.Treasury bench indeed. There is a lustrous representative on the

:15:27. > :15:37.French best of her Majesty -- front ... I can say with certainty they

:15:38. > :15:45.have heard her grievance. My overall advice to the lady is to be

:15:46. > :15:52.persistent. If the honourable lady does not secure these answers she

:15:53. > :15:56.should keep asking questions in the best and proper sense of the term

:15:57. > :16:02.make an absolute parliamentary nuisance of herself in the end it

:16:03. > :16:17.very well may be felt if it is not worth the candle. Should stick at

:16:18. > :16:23.it. Point of order we just had a debate about the leaflet the

:16:24. > :16:30.government put out and I did say the legislation that comes from the

:16:31. > :16:36.European Union was not in their its about 13 or 14%. I had the Prester

:16:37. > :16:40.answer in March I went to the library and ask what the actual

:16:41. > :16:50.legislation amount was as that I would like to have the figures show

:16:51. > :16:56.2010 research paper the figure I got this figure only covers 13 to 15% an

:16:57. > :17:03.EU directive decision does not include EU regulations but without

:17:04. > :17:11.directly UK further measures EU directives require further

:17:12. > :17:16.implementation of the UK. I have dated the 20 10th paper in January

:17:17. > :17:24.2015, UK implemented a decision since grown she is, she is

:17:25. > :17:29.calculated at 2013 as you see it as racist because percentage to an

:17:30. > :17:34.average of 59% now I believe Mr Speaker, by repeating this low

:17:35. > :17:40.figure of 13 to 15% there's an absolute misleading the House

:17:41. > :17:44.inadvertently this is not a figure that can be accurately relied on in

:17:45. > :17:54.this the government is to put it out there issues up-to-date information.

:17:55. > :17:58.Mr Speaker what can we do to correct that error which has repeated after

:17:59. > :18:02.the Prime Minister gave that figure as well. The figure is not to be

:18:03. > :18:11.relied on the British people should not rely on it. She has found her

:18:12. > :18:19.own salvation through the ingenious use of point of order procedure.

:18:20. > :18:27.This is not uncommon, I didn't think... In raising a point of order

:18:28. > :18:29.sheet she was more actually what she had to say to me than what I might

:18:30. > :18:50.say to her. Point of order to get energy from waste

:18:51. > :18:54.plants in my constituency. It saves taxpayers from ?84 million of gear.

:18:55. > :19:00.They failed to the new technology working and planned to work away the

:19:01. > :19:05.cost hundreds of jobs and leaving the plans incomplete. Are you aware

:19:06. > :19:10.of any plans for ministers to make a statement to the House of how the

:19:11. > :19:13.ramifications and the government contract for ministers are doing to

:19:14. > :19:23.help seeking new developer could take over the plans and secure the

:19:24. > :19:27.jobs? No, but it is only Monday. There are other days in the

:19:28. > :19:31.parliamentary week and I have a feeling that the honourable

:19:32. > :19:36.gentleman will be waiting all of Gog to see whether his curiosity is

:19:37. > :19:44.satisfied. Forgive me but I can add nothing beyond the stage. Is there

:19:45. > :19:52.anyway I can bring to the attention of the House the fact that as of a

:19:53. > :20:00.few moments ago 207 thousand... Had signed a petition that they stop

:20:01. > :20:04.spending our money on by his campaign to keep bringing the EU.

:20:05. > :20:08.That figure is already almost certainly out of date which the rate

:20:09. > :20:17.of signatures are being added. Out of all the thousands of petitioners

:20:18. > :20:20.on the website the fifth most signs one that is still open for

:20:21. > :20:29.signature. It would be helpful to get that fact rather than net

:20:30. > :20:32.opinion on the record in some way. There was a wait you to bring this

:20:33. > :20:40.important matter into the House, there is and he sounded. He has

:20:41. > :20:48.demonstrated that with his care Rick characteristic point. I wondered if

:20:49. > :20:54.you could add for clarification explained about how the rest of the

:20:55. > :20:59.business will operate in terms of the hunt term of content a blood

:21:00. > :21:01.sport who need it because they received contaminated blood. I'm

:21:02. > :21:05.concerned because there's a lot of people travelling all around the

:21:06. > :21:10.world for that debate I want to be reassured that the debate will take

:21:11. > :21:18.place tomorrow, and will not be put on for another day. It is a fair

:21:19. > :21:23.inquiry, and I had to talk about this earlier in the short answer is

:21:24. > :21:29.that the subject to any discussion that might take place between the

:21:30. > :21:33.usual channels of which at this stage I'm unaware, debate of

:21:34. > :21:42.particular interest to the honourable lady will follow the S oh

:21:43. > :21:52.24 debate moreover it is protected time of three hours for that debate

:21:53. > :21:57.on contaminated blood but absolutely appreciate -- I absolutely

:21:58. > :22:09.appreciate the point she makes of people travelling to the House.

:22:10. > :22:15.Unless and strange decision is made, their expectation should be

:22:16. > :22:26.satisfied. That is on the record I sincerely hope no other plan is

:22:27. > :22:31.afoot. Good. If we have exhausted the appetites for point of order we

:22:32. > :22:39.camped proceed at 756 to the main business of the House. Order. The

:22:40. > :22:52.Clark will proceed to read the orders of the day. I called the

:22:53. > :22:56.Minister. Hear, hear! I do hope this will be worth waiting for. I baked a

:22:57. > :23:04.move that the bill will now be read a second time. Mr Speaker is my

:23:05. > :23:09.right honourable friend... The government long economic term plan

:23:10. > :23:34.is to. Our Labor market is to one of the most open economies in

:23:35. > :23:38.the world means that we are not immune to slowdowns, and shocks.

:23:39. > :23:44.That makes it all the more imperative that we continued hard

:23:45. > :23:50.work being carried out over the six years and that our economy face up

:23:51. > :23:56.to those challenges. This finance bill demonstrates the governments

:23:57. > :24:02.control. I will very happily take into consideration this afternoon,

:24:03. > :24:11.but let me first set out to the right honourable members all firstly

:24:12. > :24:15.outline how this bill out provides opportunities for households,

:24:16. > :24:25.promotes British businesses, and make sure British businesses pay the

:24:26. > :24:34.tax they owe. In the context of the European sign of the question to

:24:35. > :24:40.which he is referring, if you aware of the substantial deficit in the

:24:41. > :24:44.last quarter. In her relations with Europe which is causing a lot of

:24:45. > :24:51.difficulty for our economy to month last year we had a deficit of credit

:24:52. > :24:57.card transactions and goods and services of 58 billion or had a

:24:58. > :25:05.surplus with the rest the world the same services of all around 30

:25:06. > :25:09.billion where Germany had a surplus of 67 billion in relation to their

:25:10. > :25:15.dealings with the other 27 states which showed it different reason why

:25:16. > :25:22.we should leave the EU is the single market just doesn't work

:25:23. > :25:29.My honourable friend takes me to areas away from this finance bill.

:25:30. > :25:33.Let me say in response to him that I don't particularly accept his

:25:34. > :25:39.analysis. I think the first point is that when it comes to trade both

:25:40. > :25:51.parties and any transaction, both voluntary parties to benefit from

:25:52. > :25:55.trade. In terms of looking at trade deficits or surpluses, we have to

:25:56. > :26:00.remember that these are a series of transactions, decided by individuals

:26:01. > :26:06.on a basis of what they see is of value. I would argue that it is

:26:07. > :26:13.always desirable to seek to remove trade barriers to facilitate fair

:26:14. > :26:18.and free trade. The fact that there are removal of trade barriers within

:26:19. > :26:21.a single market is, I think, one of the advantages of that membership of

:26:22. > :26:27.the European Union, so I'm not persuaded, I have to say, by my

:26:28. > :26:32.honourable friend's argument. Madam Deputy Speaker, let me start by

:26:33. > :26:36.looking at those measures that provide opportunities for families

:26:37. > :26:40.who were caught hard and save. The government has long been committed

:26:41. > :26:44.to the principle that those who work should be able to keep more of the

:26:45. > :26:47.money they earn. As a result of action taken over the last

:26:48. > :26:55.Parliament, almost 28 million individuals received a tax cut with

:26:56. > :27:01.a typical tax bill reduced by ?825, this finance bill goes even further.

:27:02. > :27:08.Increasingly tax-free personal allowance to ?11,500 in 2017-18. A

:27:09. > :27:12.?500 increase from 2016-17. Furthermore, high rate threshold

:27:13. > :27:22.will increase by 2000 points -- ?2000 from 43,000 pounds in 2016-17

:27:23. > :27:26.to ?45,000 to 2017-18. As a result, we will be cutting tax for over 31

:27:27. > :27:31.billion people bite 2017-18, compared with 2010... A typical

:27:32. > :27:42.basic rate taxpayer would be paying over ?1000 less in tax. In April,

:27:43. > :27:46.2017. That is a proud record. We still have one of the most complex

:27:47. > :27:49.tax systems in the world and I know if my right honourable friend was

:27:50. > :27:51.here for the Prime minister's statement about that we've had a

:27:52. > :27:58.long question time about avoidance of tax. I wrote to him a year or two

:27:59. > :28:05.back, and I've led debate on this, on trying to move towards a flatter

:28:06. > :28:11.tax system. I appreciate we can move in one mouth, but does he agree that

:28:12. > :28:15.unless we can stop our tax system becoming so complex and move towards

:28:16. > :28:19.a faster rate and merge rates and allowances, we would never get rid

:28:20. > :28:23.of these vast tax avoidance industry. I'm not expecting an

:28:24. > :28:27.answer now, but at least a nod in this direction that, as a Treasury

:28:28. > :28:30.prepares itself for the next budget, the next on statement, then there

:28:31. > :28:34.will be thinking in terms of simplifying our taxes. I think what

:28:35. > :28:38.I would say to my honourable friend is that simplification does matter.

:28:39. > :28:41.One of the measures, for example, was announced in the budget. It's

:28:42. > :28:45.not any finance bill for reasons that we've covered, but it was the

:28:46. > :28:51.abolition of asked insurance contributions. National insurance

:28:52. > :28:58.contributions are covered in finance bill, but there is an example of a

:28:59. > :29:02.tax being removed, a tax which created considerable administrative

:29:03. > :29:09.burden, both for taxpayers and HMRC, this is also a bill that was the

:29:10. > :29:15.office for it simplification on a statutory footing. The OTS in the

:29:16. > :29:20.last Parliament made something like 400 recommendations, almost half of

:29:21. > :29:26.those have been admitted, but the OTS is been strengthened. It has a

:29:27. > :29:31.new chair, Angela Knight, who is already performing a very valuable

:29:32. > :29:35.role in terms of leading the debates. Its resources have been

:29:36. > :29:37.increased. I think that, I'm sure my right honourable friend will follow

:29:38. > :29:44.the progress of the OTS very closely. And ensure that he

:29:45. > :29:51.scrutinizes their informants and see if he takes... If he takes measures

:29:52. > :29:59.in the direction that she approves. I give way. As I've asked them

:30:00. > :30:04.before, would you welcome this more fundamental tax subrogation? Perhaps

:30:05. > :30:07.a wholesale of individual tax revenue than looking at small

:30:08. > :30:14.individual parts of Texas, as a way to move us to a much more simple tax

:30:15. > :30:17.system? I think my honourable friend raises an important one. I think

:30:18. > :30:21.there is considerable value of the OTS looking at specific areas, but I

:30:22. > :30:24.think there is a chance for the OTS looking at broader matters and

:30:25. > :30:27.indeed in their reviews of the taxation of small business, for

:30:28. > :30:37.example, they're adjusting some of those bigger points. I think the

:30:38. > :30:42.Minister for giving way. Looking at part ten of the bill, considering

:30:43. > :30:47.the pressure that the Prime Minister has been under this week with the

:30:48. > :30:52.Panama papers and the statement today, why does the bill not include

:30:53. > :30:57.a measure to allow HMRC to publicly name those people who are involved

:30:58. > :31:01.in tax avoidance? Not having to wait until the third warning, but perhaps

:31:02. > :31:04.being able to probably name and shame them after the first warning

:31:05. > :31:10.-- properly. Sending out a much clearer signal. The honourable

:31:11. > :31:15.member touches upon an issue I will address avoidance and evasion in a

:31:16. > :31:19.moment or so, but in terms of that specific proposal, we have

:31:20. > :31:28.strengthened in HMRC's capabilities in this area. The ability to name

:31:29. > :31:31.and shame facilitators of tax avoidance is something which this

:31:32. > :31:34.government has brought in. I think it's right between that in terms of

:31:35. > :31:40.the particular process I'm a weeping the balance is about right after

:31:41. > :31:45.three warnings about you see that after two warnings it is substantial

:31:46. > :31:48.difference in terms of the effect. The whole idea of this regime is

:31:49. > :31:56.something that has been brought in Vadis government. Madam Deputy

:31:57. > :31:59.Speaker, this government, as well as healthy working households are also

:32:00. > :32:04.committed to creating a nation of savers. In this finance bill, we

:32:05. > :32:08.will introduce the personal savings allowance. From April 20 16. This

:32:09. > :32:14.will mean that a basic rate taxpayer will pay no tax on a savings income

:32:15. > :32:18.up to ?1000. And up to ?500 for high ratepayers. As a result, 95% of

:32:19. > :32:26.taxpayers who pay their income tax on savings, while supporting savers.

:32:27. > :32:29.It will also ensure that support is targeted, pensioners lifetime

:32:30. > :32:36.allowance is currently set at one point however 96% of individuals

:32:37. > :32:41.currently have a pension pot worth less than ?1 million. That's

:32:42. > :32:48.currently set at ?1.5 million. We wanted to be sustainable. As why the

:32:49. > :32:52.finance Bill will reduce the pensioners of time allowance from

:32:53. > :32:56.one points to ?5 billion to ?1 million. This change will only

:32:57. > :33:02.amount on the wealthiest pension savers -- from one point to ?5

:33:03. > :33:06.million. At about the current dividend tax system was designed at

:33:07. > :33:12.a time when total tax due on dividends was as high as 80% for

:33:13. > :33:15.some taxpayers. It also provides incentives for individuals to set up

:33:16. > :33:19.the company and they themselves were dividends in order to reduce their

:33:20. > :33:25.tax bill. It is for these reasons that the government is modern not

:33:26. > :33:29.pass modernizing the tax system. This bill will abolish it and repays

:33:30. > :33:37.it would be ?5,000 cat tax free allowance. It'll also set the

:33:38. > :33:42.dividend tax rate... Basic rate taxpayers at 32.5% for high rate

:33:43. > :33:47.taxpayers and 38.1% for additional rate taxpayers. 95% of all taxpayers

:33:48. > :33:49.and more than three quarters of those receiving dividend income,

:33:50. > :33:55.will other gain or be unaffected by these changes. Finally, in this

:33:56. > :34:00.area, supporting homeownership for the first time buyers is a key

:34:01. > :34:05.piracy for this government. Qualities that people should be free

:34:06. > :34:09.to purchase a second home or invest in a property, this can impact on

:34:10. > :34:12.other people's ability to get on the property ladder. Therefore this

:34:13. > :34:16.finance Bill will implement higher rate of STL T for the purchase of

:34:17. > :34:21.additional residential properties, which are 3% points above the

:34:22. > :34:25.standard rates. Madam Deputy Speaker, I have been made aware that

:34:26. > :34:29.the drafting the bill as introduced Mike lead to some main house is

:34:30. > :34:33.within an annex for older relatives attracting the high rates of STL T

:34:34. > :34:39.am intended to apply to additional properties. I'd like to thank my

:34:40. > :34:44.right honourable friend, member of Brentwood, for bringing my attention

:34:45. > :34:47.to this matter. I'm happy to reassure at the House that this is

:34:48. > :34:50.not our intention. The government will introduce in a memo to be

:34:51. > :34:56.finance bill at committee stage to correct this error and ensure fair

:34:57. > :35:04.treatment for annexes. I certainly give way. I'm grateful. I'm most

:35:05. > :35:09.grateful for this clarification from the government. I think it is

:35:10. > :35:13.important, it is an important social policy. He doesn't just play to be

:35:14. > :35:17.elderly relatives, it also relates to members of families, disabled

:35:18. > :35:22.children was vessel needs, and I think it's an important statement

:35:23. > :35:28.put out by the government, these annexes should prosper. I hope my

:35:29. > :35:34.honourable friend will forgive me, I will look in great detail at the

:35:35. > :35:36.amendment, but I will like to express my gratitude from a

:35:37. > :35:41.courteous way in which he dealt with them. I'm grateful to my right

:35:42. > :35:46.honourable friend. At for the courteous way in which he dealt with

:35:47. > :35:52.me. As well. I think the point I would make to him is that he

:35:53. > :35:54.achieved a great deal in his role as Secretary of State from the

:35:55. > :35:57.community stage of government, in terms of addressing this issue in

:35:58. > :36:00.the context of council tax. I think what he will find in this particular

:36:01. > :36:03.case, and I'm sure you'll want to look at the details, in fact were

:36:04. > :36:09.going a little bit further than the Council tax rules to provide support

:36:10. > :36:13.and reassurance to families. I think I'm in reality, it would have been a

:36:14. > :36:19.very small number of transactions that would be affected by this

:36:20. > :36:22.measure, but it's important that we find clarity. We certainly don't

:36:23. > :36:28.want to discourage those people who, for example, wish to create an annex

:36:29. > :36:34.supporting, whether it be an elderly or disabled relative, providing them

:36:35. > :36:38.with support the best they can. Madam Deputy Speaker, the measures I

:36:39. > :36:42.have outlined are important measures helping working people keep and save

:36:43. > :36:46.more of what they earn him a while ensuring that we have a modern and

:36:47. > :36:52.targeted tax system. I'd like to address briefly one important issue,

:36:53. > :37:01.which we discussed during the budget debates. That's the 18th on Cemetery

:37:02. > :37:04.parts. We hurt peoples anger loud and clear. He said we will fight for

:37:05. > :37:10.agreement to reduce the VAT rate to zero. All European leaders agreed on

:37:11. > :37:19.that, to do just that. Last week the European commission plan on VAT was

:37:20. > :37:22.published, and it is important to see that the system is for British

:37:23. > :37:24.businesses and people. The government is interested in making

:37:25. > :37:27.this change and we make this point to those who have raised it whether

:37:28. > :37:35.this is the honourable member from these very glassy... Indeed other

:37:36. > :37:38.honourable members, that this government is committed to making

:37:39. > :37:42.this change and I am proud to say that the finance Bill will legislate

:37:43. > :37:46.to enable zero rates of VAT for women's sanitary products. Hear,

:37:47. > :37:51.hear! I give way. I'm grateful and I

:37:52. > :37:57.congratulate him on the progress he is making on this. Why is it that

:37:58. > :38:01.because 115 of the bill -- Clause 115, says the measure will not come

:38:02. > :38:05.into effect when the bill gets reticent but is subject to the

:38:06. > :38:08.Treasury bringing forward some later stage. Why can't we actually

:38:09. > :38:17.legislate on this in this finance bill without any competition? It is,

:38:18. > :38:24.when it comes to changes of the VAT rates to give retailers some notice.

:38:25. > :38:30.It is not usual for VAT changes to be coming into place at the date of

:38:31. > :38:33.Royal assent, some notice is usually provided. Let me reassure my

:38:34. > :38:37.honourable friend, the intention is to give a short period of time

:38:38. > :38:40.following the Royal sent and which there will be the opportunity to

:38:41. > :38:47.adjust prices. This is not a desire by the Treasury to kick this into

:38:48. > :38:53.the long run, we want to make progress on this matter. I will

:38:54. > :38:57.certainly give way to the honourable member who also deserves some

:38:58. > :39:02.recognition for her efforts in handling this matter? Think the

:39:03. > :39:05.Minister for giving way on that issue. Can he tell the House what

:39:06. > :39:11.exactly he's going to do to make sure that that price is passed on to

:39:12. > :39:15.consumers by retailers, that they don't seek to continue the price

:39:16. > :39:27.rather than passing on the reduction? When it comes to pricing,

:39:28. > :39:32.this is essentially a matter of... For the producers and retailers and

:39:33. > :39:38.customers. We would certainly expect this to be passed on. I have no

:39:39. > :39:43.doubt that there will be considerable attention to what

:39:44. > :39:48.happens to the pricing of sanitary products in the context of the VAT

:39:49. > :39:55.induction. There will be considerable pressure on retailers

:39:56. > :40:01.to pass on benefits to customers. We don't have a position, frankly, we

:40:02. > :40:05.don't have the capability of direct in or ordering people. We don't have

:40:06. > :40:09.a prices policy as such, but our expectation is that these reductions

:40:10. > :40:14.will be passed on to customers. I would certainly give way. I think

:40:15. > :40:20.the Minister for giving way and accommodating. I've written to

:40:21. > :40:23.retailers and manufacturers on female sanitary products asking them

:40:24. > :40:26.to meet with me to discuss this. I will be grateful if the Minister

:40:27. > :40:30.would actually offer his support to this cause of action and, perhaps if

:40:31. > :40:37.the government are willing to do this, then we may need to consider

:40:38. > :40:41.provision in the bill forbids. -- for this. I support her cause and

:40:42. > :40:46.she supports my call. At manufacturers and retailers pass on

:40:47. > :40:52.the reduction in the VAT, or the abolition of the VAT to customers.

:40:53. > :40:57.We would expect to see that. Madam Deputy Speaker, now I should do to

:40:58. > :41:00.the way in which this finance Bill will support British business and

:41:01. > :41:07.ensure that our employees have the skills they need. This government,

:41:08. > :41:10.committed in the budget about the ability first because this gives

:41:11. > :41:16.businesses the certainty they need to grow and employ people. The

:41:17. > :41:21.budget provides the biggest ever cut in business rates, worth over 61 ?7

:41:22. > :41:27.billion over the next five years, measures in this finance Bill will

:41:28. > :41:33.do more -- six points ?7 billion. It will reduce to 17% in 2020, ensuring

:41:34. > :41:36.that we have the lowest corporation tax in 2020. By the end of this

:41:37. > :41:46.Parliament, Corporation tax cuts will be saving businesses almost ?15

:41:47. > :41:49.billion a year, providing them more for international competitiveness.

:41:50. > :41:51.Labour market will bring the highest employment in our history, but we

:41:52. > :41:54.need to ensure the labour market has the right skills and that this

:41:55. > :42:09.finance Bill introduces an apprenticeship levy of 0.5% on the

:42:10. > :42:12.employee's hey Bill. By 2019 - 20, government spending on

:42:13. > :42:19.apprenticeships in cash terms will be double the level of spending in

:42:20. > :42:22.2010-11. Putting money in the hands of employers to ensure that it

:42:23. > :42:25.delivers the training that they need with apprenticeship funding in

:42:26. > :42:30.England. In the last Parliament we took important steps to help to

:42:31. > :42:34.start and grow businesses. We also want to ensure they can access the

:42:35. > :42:37.investment they need as they grow. To this end, we are legislating to

:42:38. > :42:45.reduce the high rate of capital gains tax, from 28% to 20%. From a

:42:46. > :42:49.basic rate to 18% to 10% from April 20 16. Property and receipt of

:42:50. > :42:54.carried interest will remain unchanged. The standards will create

:42:55. > :42:57.an incentive to invest in shares over property and will help reduce

:42:58. > :43:02.companies access the finance they need to expand and create more jobs.

:43:03. > :43:05.Finally, the recent budget also took necessary radical action to support

:43:06. > :43:11.the oil and gas tax regime through difficult times. This bill will

:43:12. > :43:17.legislate for a keep heart of this strategy impermanent as your rate

:43:18. > :43:24.petroleum revenue tax from April 20 16th, petroleum revenue tax will

:43:25. > :43:28.reduce from 35% to 0%. We believe that, where possible, we should use

:43:29. > :43:34.the tax system to stimulate growth and investment in whatever sector

:43:35. > :43:41.that might be. I give way. Thank you for giving way. All these skills

:43:42. > :43:51.before from the government. Can the Minister explain the productivity,

:43:52. > :43:58.because productivity appears to be going down rather than up? Why is

:43:59. > :44:00.this? Mobley had, in every public -- one we've had, in every budget, so

:44:01. > :44:07.much attention to skill? What's going wrong when it comes to the

:44:08. > :44:10.Nativity in this country? The honourable gentleman raises an

:44:11. > :44:14.important point. It is a long-standing issue for the United

:44:15. > :44:19.Kingdom economy, but I would argue that the steps we are taking as a

:44:20. > :44:24.government, ensuring that we have a competitive this this friendly tax

:44:25. > :44:29.environment, ensuring that we do invest in skills, we keep increasing

:44:30. > :44:34.the number of heart apprenticeships, ensuring that we do more on

:44:35. > :44:37.transport and infrastructure, spending over ?60 million over the

:44:38. > :44:41.course of this Parliament. All of these are measures that will help

:44:42. > :44:45.drive up productivity and without those measures, our productivity

:44:46. > :44:50.levels would not be as high as they are. There is still further work

:44:51. > :44:56.that needs to be done and we accept that, but I would make the argument

:44:57. > :45:02.that policies that, for example, result in financial crisis and we

:45:03. > :45:05.can't afford transport infrastructure spending, or policies

:45:06. > :45:10.that drive investment away from this country by being unfriendly to

:45:11. > :45:13.business, but only damage productivity and would not help.

:45:14. > :45:20.Hear, hear! Madam Deputy Speaker, I will give

:45:21. > :45:23.way to the top... On the issue of investment in transport

:45:24. > :45:33.infrastructure, the budget Julie says that between -- surely says

:45:34. > :45:38.that between 2018-19 and 2019-20, you'll cut infrastructure investment

:45:39. > :45:40.by a whole ?7 billion in one year in order to accommodate the

:45:41. > :45:45.Chancellor's desire to run a budget surplus in 2020. How does that

:45:46. > :45:48.justify what was just said? What the budget does is bring the expenditure

:45:49. > :45:54.on transport and infrastructure forward. Earlier in this Parliament,

:45:55. > :45:59.so that we can gain the benefits of that investment and an earlier

:46:00. > :46:02.point. It's something I would've thought he should welcome. Madam

:46:03. > :46:07.Deputy Speaker, before discussing the measures which addressed

:46:08. > :46:10.avoidance and evasion in this bill, I might go to the issue which the

:46:11. > :46:15.Prime Minister addressed yesterday, which is the Panama papers. These

:46:16. > :46:19.papers have again put spotlight on the global sports of tax evasion and

:46:20. > :46:25.you avoidance. As set out by the Prime Minister earlier today, we are

:46:26. > :46:28.taking further action. First HMRC antinational crime agency will

:46:29. > :46:33.create a task force to analyse the Panama papers and take action where

:46:34. > :46:37.there is wrongdoing. It would've initially have new funding of up to

:46:38. > :46:40.?10 million and will report to the Chancellor and home secretary later

:46:41. > :46:43.this year. Second, we will bring forth plans to introduce a criminal

:46:44. > :46:49.offence for corporations who fail to stop their staff facilitating tax

:46:50. > :46:52.evasion ahead of next month's Summit to tackle corruption in all its

:46:53. > :46:56.forms. For the first time, companies will be held criminally liable if

:46:57. > :47:01.they fail to stop their employees from facilitating tax evasion.

:47:02. > :47:06.Third, our crown dependencies and territories have agreed to provide

:47:07. > :47:08.UK law enforcement and tax agencies with full access to information on

:47:09. > :47:15.the beneficial ownership of companies. We have finalised

:47:16. > :47:20.arrangements with all of them except Anguilla and Guernsey, Guernsey

:47:21. > :47:26.because they have elections at the moment and their Parliament isn't

:47:27. > :47:31.sitting, but we expect both those territories to follow in the coming

:47:32. > :47:34.days and months. For the first time, UK tax and law enforcement agencies

:47:35. > :47:42.will see exactly who really owns home. Animal controls that's what

:47:43. > :47:45.controls every company and this -- and what controls every company.

:47:46. > :47:50.Madam Deputy Speaker, this government's messages where. There

:47:51. > :47:54.are no safe havens for tax evasion is and no one should be in any doubt

:47:55. > :47:58.that the days of hiding money offshore to evade tax are gone. I

:47:59. > :48:03.will give away one last time. Either way it's a question of information

:48:04. > :48:13.that I'm seeking. That is whether the agreements with the six

:48:14. > :48:24.Caribbean overseas territories are still nonreciprocal. Or rather that

:48:25. > :48:28.has changed. The move is towards reciprocal agreements, but the point

:48:29. > :48:33.here is for the first time our law enforcement agencies and tax

:48:34. > :48:40.authority on HMRC, will have access to information held about beneficial

:48:41. > :48:46.ownership. That is the significant step forward. It must be viewed in

:48:47. > :48:49.might of the fact that we've introduced the common reporting

:48:50. > :48:50.standards, meaning that more information is provided

:48:51. > :49:00.automatically to our tax authority and respect of money, not about... I

:49:01. > :49:05.want to make a little more progress. It is vital that we support

:49:06. > :49:09.businesses through low taxes, and we must also ensure that tax is paid

:49:10. > :49:13.where it is due. This government has set out a comprehensive package to

:49:14. > :49:23.tackle avoidance and evasion, in total this package will raise ?12

:49:24. > :49:27.million by 2020-21. We are leading the way international by being the

:49:28. > :49:35.first company to adopt you recommend sages -- the OPC recommendations.

:49:36. > :49:38.This will introduce new rules for those avoiding paying their fair

:49:39. > :49:45.share of UK tax. This is estimated to raise ?1.3 million over the next

:49:46. > :49:48.five years. Secondly, we are ensuring that profits from the

:49:49. > :49:52.development of UK property are always subject to UK tax. This will

:49:53. > :50:00.level the playing field between UK based and non-UK -based developers

:50:01. > :50:04.and raise 2.2 billion pounds by 2020-21. We will target small

:50:05. > :50:10.businesses where they fail to compete against companies on the

:50:11. > :50:17.ever -- Internet. Companies are evading between one billion and ?1.5

:50:18. > :50:22.billion of VAT each year on sales to UK customers by the Internet.

:50:23. > :50:25.Unfairly undercutting British business and abusing the trust of

:50:26. > :50:30.British customers. The bill will provide a stronger powers to require

:50:31. > :50:34.overseas sellers to a point UK tax representatives who can be made

:50:35. > :50:38.liable for VAT old -- to a point. This is part of a package of message

:50:39. > :50:43.assigned to level the playing field in the UK. Once again, this

:50:44. > :50:47.government has introduced a bill which makes clear that everyone has

:50:48. > :50:55.a responsibility to pay the tax they owe. I'll give away one last time.

:50:56. > :50:59.Thank you. For the prime ministers announcement and the ministers today

:51:00. > :51:04.on tax, can I make to suggest is to the Minister? One is that the UK,

:51:05. > :51:09.through HMRC, consider adopting the US model that requires taxpayers to

:51:10. > :51:13.list all foreign bank accounts where they hold over a minimal amount of

:51:14. > :51:18.money as part of their tax return, which would force UK citizens to

:51:19. > :51:20.list those bank accounts they might hold in other jurisdictions and,

:51:21. > :51:25.secondly whether the government would consider looking into

:51:26. > :51:29.worldwide taxation of earnings, which of course the US has, which

:51:30. > :51:33.would force UK passport holders to decide whether they want to pay UK

:51:34. > :51:39.taxes for the privilege and security of holding a passport? Are grateful

:51:40. > :51:43.to my honourable friend for those suggestions. Were not persuaded by

:51:44. > :51:50.the move towards worldwide taxation. I don't think that we have been

:51:51. > :51:54.persuaded by the case on that. In terms of providing information about

:51:55. > :51:58.offshore accounts, it is the case of taxes due them people do have to

:51:59. > :52:04.provide that information. It is also worth pointing out that we are

:52:05. > :52:08.moving to a different environment where it is that much easier for

:52:09. > :52:15.HMRC to obtain information about foreign bank accounts. It is much

:52:16. > :52:19.more harder to evade tax thanks to become a reporting standard and now

:52:20. > :52:22.the progress that were making in terms of beneficial ownership. Madam

:52:23. > :52:27.Deputy Speaker, the finance bill before us today provides

:52:28. > :52:30.opportunities for announcements. It supports British firms seeking to

:52:31. > :52:33.create jobs and growth, and it ensures that businesses pay the tax

:52:34. > :52:39.that they owe. At a time when some clouds are gathering, it is right we

:52:40. > :52:43.do all we can to make our economy strong and secure. To put stability

:52:44. > :52:48.first and to ensure that the UK remains fit for the future. That is

:52:49. > :52:56.what this finance bill does and I'm delighted to commend it to the

:52:57. > :53:00.House. Hear, hear! Thank you, Madam Deputy Speaker. We

:53:01. > :53:07.just had a speech from the financial secretary which puts a positive spin

:53:08. > :53:13.on the finance Bill. Certainly, whilst he sought to put a positive

:53:14. > :53:19.spin as well on the measures announced by the Prime Minister

:53:20. > :53:22.today on tax avoidance, certainly she had no further light on the

:53:23. > :53:29.issue, the critical issue, of offshore trusts and the need for a

:53:30. > :53:34.public register of beneficial ownership. Indeed, fell far short of

:53:35. > :53:40.the measures that we have announced in our tax transparency and

:53:41. > :53:43.enforcement programme also today. Madam Deputy Speaker, the House is

:53:44. > :53:50.back after three weeks of turmoil at the top of the Tory government.

:53:51. > :53:53.Which has called into question the competence and credibility of the

:53:54. > :54:01.Prime Minister and his senior ministers. They were in trouble,

:54:02. > :54:12.even before the business secretaries in it, handling of the crisis at

:54:13. > :54:16.Fort Hall book. -- Port Talbot. Since then we have had ducking and

:54:17. > :54:21.dodging from the Prime Minister about the Panama papers. He and his

:54:22. > :54:25.colleagues can get top marks from talking the talk, but when it comes

:54:26. > :54:30.to walking the walk their scorecard is far less impressive. The bill we

:54:31. > :54:35.are debating today seems to put into law the tax related measures set out

:54:36. > :54:46.in the budget and, what a budget Madam Deputy Speaker. The author

:54:47. > :54:50.delivered a mega samples... Nothing unraveled as quickly and

:54:51. > :54:53.comprehensively as this one. As a government, it failed to add up and,

:54:54. > :54:57.as we enter the debate on the finance Bill, we do so against the

:54:58. > :55:02.backdrop of a huge gaping black hole with estimates with around 12

:55:03. > :55:09.billion or more that have yet to be funded. Faced with a rill prospect

:55:10. > :55:14.of the budget not passing, within days of the policy, cuts in

:55:15. > :55:20.personnel in attendance papers over 300,000 disabled people. They proved

:55:21. > :55:25.too much, even for the work and pensions secretary. His party shot

:55:26. > :55:28.and at the chancellor complained of a Tory government heading in a

:55:29. > :55:35.direction that divides society rather than United. The budget and

:55:36. > :55:40.this finance bill have unfairness at their very core, Madam Deputy

:55:41. > :55:43.Speaker. We will be voting against the finance bill today, because it

:55:44. > :55:49.fails the fairness test and it fails the test adequately investing for

:55:50. > :55:54.our future. It is a bill that cuts Corporation tax already. Already the

:55:55. > :56:00.lowest in the G7. Whilst the budget supports cuts to working people,

:56:01. > :56:06.which will leave over 2 million families on average ?1600 a year

:56:07. > :56:10.worse off by 2020. It is a bill that cuts capital gains tax, which

:56:11. > :56:14.benefits the wealthiest. This is at a time when the Chancellor fails

:56:15. > :56:21.from his own deficit and debt reduction. How can it be at this

:56:22. > :56:27.time, fear to fund tax breaks from his friends on the backs of the poor

:56:28. > :56:29.and the honourable? Madam Deputy Speaker, growth has been revised

:56:30. > :56:33.down last year this year and every year of this forecast. So too

:56:34. > :56:38.business investment and productivity. He said to meet its

:56:39. > :56:43.export target, by more than 14 years. Growth in average wages is

:56:44. > :56:49.being revised down while household debt is going up. The Chancellor has

:56:50. > :56:53.admitted failure on his key targets. He's breached his own welfare cap.

:56:54. > :57:00.And his government is set to borrow 38.5 billion more than planned.

:57:01. > :57:11.Public-sector, net investment is set to fall as a share of GDP over this

:57:12. > :57:15.Harmon. This is a recovery built on, and it's not just us saying this.

:57:16. > :57:19.The conservative member for the Cities of London and Westminster

:57:20. > :57:25.told readers of conservative home that, for all the Tesla's talk about

:57:26. > :57:30.investment and export led growth -- Chancellor's talk. "The Growth in

:57:31. > :57:35.our economy comes from dead, fuel, consumption on and a property boom."

:57:36. > :57:40.And it is young people who will be punished by these choices. A recent

:57:41. > :57:46.YMCA survey of young people found that 41% said that that was the

:57:47. > :57:52.biggest issue facing their family in 2016. So much, Adam Deputy Speaker,

:57:53. > :57:58.for a budget for the next generation. The Chancellor has

:57:59. > :58:02.singularly failed to rebalance the economy and that failure has

:58:03. > :58:09.implications for this finance bill. The bill contains a series of tax

:58:10. > :58:15.cuts that he simply cannot afford. That ?12 billion estimate doesn't

:58:16. > :58:19.include new figures published in an answer to a parliamentary question,

:58:20. > :58:26.for feeling that Tory's plans to force every school to become an

:58:27. > :58:31.Academy could come at a cost of ?1.3 billion. Yet just 140 million was

:58:32. > :58:36.allocated for these plans, leaving a funding shortfall of more than 1.1

:58:37. > :58:40.billion. Before the government seeks, once again, as the Minister

:58:41. > :58:45.attempted to do to hide behind the turbulent conditions in the world

:58:46. > :58:46.economy, let's be clear that most of the problems are of the Chancellor's

:58:47. > :58:59.on making. That is the basis for prosperity and

:59:00. > :59:06.security for Britain's family and businesses. We haven't got it. Of

:59:07. > :59:12.course there are some positive measures anti-avoidance measures

:59:13. > :59:18.come industry support measures which we welcome him. Supporting oil and

:59:19. > :59:23.gas industries. Apprenticeships, the quality of apprenticeships and the

:59:24. > :59:29.fact that 30%, currently appear to be completing... Those are issues we

:59:30. > :59:34.want to explore. Frequent tax avoidance, these matches do not go

:59:35. > :59:40.far enough as I will highlight later. There is little good news for

:59:41. > :59:44.manufacturing, and overall industrial strategy, which of course

:59:45. > :59:52.include the need of the stomach industry. I will give way. -- steel.

:59:53. > :00:01.We would like to welcome the increase in employment and that the

:00:02. > :00:05.deficit has been cut. He obviously talks about me being in a positive

:00:06. > :00:09.frame of mind, I tend to be in a positive frame of mind, I am just

:00:10. > :00:15.concerned about the economy. Perhaps he will also want to raise the issue

:00:16. > :00:21.from the resolution foundation that suggest the result of the measures

:00:22. > :00:28.in the budget, the poorest 20% of the population are set to be ?565

:00:29. > :00:34.worse off in the Richards, 30% of the population, are said to be ?280

:00:35. > :00:38.better. And perhaps he will think about his own constituents and how

:00:39. > :00:45.they are said to suffer as a result of the budget before he makes

:00:46. > :00:51.another intervention. -- richest. I was talking about the steel

:00:52. > :00:58.industry, I will continue on steel. What is important is also to talk

:00:59. > :01:04.about what is missing from the finance Bill. A serious mistake

:01:05. > :01:08.opportunity was greater support for manufacturing and for steel. --

:01:09. > :01:14.missed. The collapse of the industry could mean a 4-6p cost to the

:01:15. > :01:19.government over the next two years. What a thousand jobs could be lost

:01:20. > :01:26.to the devastation for steel industries that depend on -- and

:01:27. > :01:34.industries that depend on it. We welcome news... Also, congratulate

:01:35. > :01:43.others who played a very important role in those negotiations, leading

:01:44. > :01:48.to that deal. Again, comes the revelation of a U-turn by the

:01:49. > :01:52.Chancellor on business rates. Before the budget the engineers, employers

:01:53. > :01:55.Federation made a strong case for giving companies an allowance on

:01:56. > :02:00.business rates for plant machinery which could have applied to assess

:02:01. > :02:09.such as class, furnace and the steel sector. We learned that while he was

:02:10. > :02:12.planning to act, board plans to give the struggling factories that relief

:02:13. > :02:21.on business rates. -- pulled. Why would he do a? The analyst suggested

:02:22. > :02:24.that British manufacturing has been sacrificed on the Chancellor's

:02:25. > :02:29.obsession with getting a ?10 billion budget surplus in the final year of

:02:30. > :02:33.this Parliament. We wait to hear and see what materializes from the

:02:34. > :02:38.statement today in the actual support and whether that comes

:02:39. > :02:44.forward, particularly for poor Tolbert. It was revealed that this

:02:45. > :02:48.decision was taken so late it was actually no time to change the

:02:49. > :02:54.calculations and their economic outlook for fiscal forecasts. That

:02:55. > :02:57.means the OBR forecast for the level of business investment in this

:02:58. > :03:03.Parliament could well, in fact, be an overestimate. -- port. Families

:03:04. > :03:07.in Britain are you yet to suffer from another missed opportunity as

:03:08. > :03:13.well come a Madam deputies bigger, on housing. By 2025, nine out of ten

:03:14. > :03:19.Britons under 35 on modest incomes will not be able to afford a home.

:03:20. > :03:26.Late in the private sector are soaring. So much for a budget for

:03:27. > :03:36.the next generation. -- ranked in the private sector. --

:03:37. > :03:45.... One of those changes was to give people a chance to buy their houses,

:03:46. > :03:50.they have not got that Hamas is something we can do to help with

:03:51. > :03:54.yellow the honourable gentleman makes an important point and I would

:03:55. > :03:56.agree with him that we should explore this particularly as we go

:03:57. > :04:03.into committee about measures that can support house-building and home

:04:04. > :04:08.ownership indeed. Because we know, Madam Deputy Speaker, that from the

:04:09. > :04:17.English housing survey that 2001000 fewer households own a home now than

:04:18. > :04:27.at the start of the Chancellor's holding of ten error. That compares

:04:28. > :04:34.to an increase of 1 million under Labour -- tenur. ... The

:04:35. > :04:39.Chancellor... What is clear is that this country needs a massive

:04:40. > :04:45.programme of capital investment in and affordable homes to rent and

:04:46. > :04:51.buy, nothing less will do in tackling the growing housing crisis.

:04:52. > :04:56.And that is why Labour has far more coherent plans to build homes, to

:04:57. > :05:00.make sure that we can tackle spiraling housing cost. That is the

:05:01. > :05:04.way to control the housing benefit bill. Madam deputies bigger, today's

:05:05. > :05:12.report from the women's budget group also shows that e-mail, parents and

:05:13. > :05:19.single FEMA pensioners will on average see their living standards

:05:20. > :05:26.fall by 20% by 2020. Women are now set to bury staggering 80% of cost

:05:27. > :05:33.of changes and cut in taxes, tax credits and benefits by 2020. This

:05:34. > :05:37.has worsened also by the 81% figure identified last year. The tax cuts

:05:38. > :05:43.in the finance bill are likely to benefit minute more than women and

:05:44. > :05:49.it is surely time that the government conducted a full gender

:05:50. > :05:55.impact analysis of this proposal. -- means more than women. And that will

:05:56. > :06:00.give the opportunity for greater parliamentary scrutiny. And when it

:06:01. > :06:07.comes to measures on the capital gained tax, cooperation tax, the

:06:08. > :06:10.budget, the finance bill must pass to test. Are they fair and are they

:06:11. > :06:15.effective? The bill confirms that the main rate of corporation tax

:06:16. > :06:29.will be cut further to 17% from the 1st of April 2020, a cut worth 945

:06:30. > :06:34.million. If corporation tax can be reduced, yet further, perhaps as an

:06:35. > :06:37.alternative money can be found, the government can think again about

:06:38. > :06:44.cuts to working age benefits and public services. More importantly,

:06:45. > :06:47.it cuts a corporation tax will not address the underlying weaknesses of

:06:48. > :06:51.our economy. Such is the challenges and productivity, skills, the

:06:52. > :06:56.investment in infrastructure that is required, and businesses will talk

:06:57. > :07:00.to the Minister, as well as those who talked to us will say are the

:07:01. > :07:10.biggest issues affect team their future growth. It indeed the

:07:11. > :07:13.investment needed in the technology. I will give way. I think the

:07:14. > :07:18.honourable member for giving way. She noted that the response from the

:07:19. > :07:22.Federation for more businesses contradicts what she says. They said

:07:23. > :07:27.that the decision to further lower corporation tax by 17% is an

:07:28. > :07:35.important statement of intent that will provide booze for boost for

:07:36. > :07:43.affected firms. He doesn't have the same conversations that I do with

:07:44. > :07:48.businesses directly to also raise questions on timing. He raised the

:07:49. > :07:56.issue of housing which was affected the stability of their growth. It

:07:57. > :07:59.affected their opportunities to grow, the investment needed to

:08:00. > :08:05.support this gal of their businesses could the development and there's a

:08:06. > :08:12.whole host of issues this is also about judgment, timing and what

:08:13. > :08:21.could be most effective in increasing productivity. I will take

:08:22. > :08:27.another intervention. On the issue of lower corporation tax, it is she

:08:28. > :08:34.aware that there is ample evidence in the United States and in the UK

:08:35. > :08:39.that while it is half of the earnings from the lower corporation

:08:40. > :08:46.tax, goes into shared by banks and the end and the pockets of the

:08:47. > :08:53.original shareholders and does not get invested in industry but goes

:08:54. > :08:57.back into property of others... The honourable member makes a very

:08:58. > :09:03.important point and that is indeed one of the concerns, which is that

:09:04. > :09:07.there is an assumption made that proposing from those tax cuts it

:09:08. > :09:11.will go into investment, but the evidence does not stand up for that.

:09:12. > :09:18.There are about 500 billion estimated in in this country that is

:09:19. > :09:22.not being invested. That is why it requires greater analysis and

:09:23. > :09:27.scrutiny in conversation about what actually will make the difference

:09:28. > :09:31.for them for the long term. Madam Deputy Speaker, I want to move on to

:09:32. > :09:38.a few comments about capital gains tax him a which is the basic rate is

:09:39. > :09:47.to be reduced from 18% to 10% and the higher rate from 20% to 20%.

:09:48. > :09:57.This is that the cost 735 million. -- 28%. Capital gains tax was paid

:09:58. > :10:03.by only 200,000 taxpayers in 2013, around .3% of the population who

:10:04. > :10:08.would benefit from the giveaway of more than 600 million in total from

:10:09. > :10:13.the first year. This was not called for or expected, in fact, the

:10:14. > :10:17.Financial Times described it as an unexpected gift for wealthy

:10:18. > :10:23.investors. In 2010, the Chancellor told the House that raising capital

:10:24. > :10:28.gains tax was necessary to create a fairer tax system and it would be

:10:29. > :10:38.interesting to know in the wind-up what indeed has changed. I will

:10:39. > :10:48.briefly give way. One of the things that the residential landlord

:10:49. > :10:56.Association will point out... Is a small thing that could sacrifice if

:10:57. > :11:01.it was done the right weight? -- right weight.

:11:02. > :11:11.I think you also agree that the key issue addressing our housing crisis

:11:12. > :11:15.is the rapid building of new homes and the strategy to effectively

:11:16. > :11:21.deliver that. Madam Deputy Speaker, I want to move on to some further

:11:22. > :11:26.comments, but you clearly just a few comments around entrepreneurs relief

:11:27. > :11:32.in the government knew investor relief. We welcome the endeavor to

:11:33. > :11:36.encourage investment, particularly for long-term. The question will be

:11:37. > :11:42.whether these measures passed the test of what businesses are looking

:11:43. > :11:45.for, simplicity, stability and a strategic approach to fiscal policy.

:11:46. > :11:50.Our concern is that tinkering is no substitute for a clearer long-term

:11:51. > :11:55.strategy to support investment. That's what we are currently taking

:11:56. > :12:03.a review on tax week to see what the evidence is and what incentivized

:12:04. > :12:07.them. Our aim is to ensure a strategic approach to supporting

:12:08. > :12:12.investment in the transparency around it. These are questions we

:12:13. > :12:18.will pursue as we go forward into committee stage. Madam Deputy

:12:19. > :12:23.Speaker, we also welcome clauses on the reduction of oil and gas

:12:24. > :12:26.Corporation tax and petroleum revenue tax. The Chancellor

:12:27. > :12:32.announced that he reduce petroleum revenue tax from 35% to zero and

:12:33. > :12:38.reduce the corporation tax supplementary from 20% to 10%. There

:12:39. > :12:43.is no doubt that the struggling North Sea oil and gas industry needs

:12:44. > :12:52.support. In fact we think the Chancellor could have gone further,

:12:53. > :12:58.our bold new proposal to invest in the industry is in the -- based on

:12:59. > :13:04.the creation of a new public body. To identify areas for temporary

:13:05. > :13:11.public investment. The purpose of this new body was spelled out last

:13:12. > :13:17.month by the British Labour leader. It would conduct an open of review

:13:18. > :13:22.with the oil and gas Authority to identify assets that have long-term

:13:23. > :13:28.viability and profitability. That in turn would give evidence to allow UK

:13:29. > :13:35.oil to commit to public investment in strategic infrastructure and

:13:36. > :13:40.potentially profitable assets. Clause 115 gives the government

:13:41. > :13:48.power to reduce the bat rate on sanitary products from 5% to zero.

:13:49. > :13:53.-- VAT. This is welcome as are the ministers comments. I am by the

:13:54. > :13:58.Chancellor has finally recognized that women's sanitary products are

:13:59. > :14:03.not in fact a luxury, however the Paul's crucially needs a firm

:14:04. > :14:08.deadline for this to happen. -- cloth. While we have moved in that

:14:09. > :14:11.direction in the Minister's comments, perhaps they did not go

:14:12. > :14:16.far enough and I am sure that we will continue to address this point

:14:17. > :14:22.as we move forward in committee and beyond. I was to congratulate those

:14:23. > :14:29.on these pages, particularly my honorary friend -- honourable

:14:30. > :14:34.friend. In forcing the government than on this issue. I do think it is

:14:35. > :14:39.a sad indictment of this government that it took a Labour amendment and

:14:40. > :14:51.embarrassing defeat to achieve this result. So, we ask where is in the

:14:52. > :14:57.finance public Clause reflecting the government's other U-turn, that on

:14:58. > :15:00.energy-saving material. The government accepted our commitment

:15:01. > :15:03.to the budget resolution, which allowed for the government to

:15:04. > :15:09.legislate on this issue, given the finance Bill. The lack of

:15:10. > :15:14.legislation, the contradictions and no answers is causing uncertainty

:15:15. > :15:19.within the industry. We simply call on the government to commit that it

:15:20. > :15:26.will not be including a rise on that and other green measures in this or

:15:27. > :15:30.future finance bills. Madam Deputy Speaker, on tax avoidance, but two

:15:31. > :15:37.key issues we face are structural reforms and public confidence. It

:15:38. > :15:41.has sought to be invested, the Chancellor himself, in the past has

:15:42. > :15:47.said that aggressive tax avoidance is morally repugnant. But the

:15:48. > :15:52.reality is yet to match the rhetoric. Indeed, we have also seen

:15:53. > :15:59.the tax gap having gone up under this government to 34 billion.

:16:00. > :16:05.Serious measures to tackle the tax avoidance estimate to be around 7

:16:06. > :16:09.billion of that or even more critical. It has been two years does

:16:10. > :16:16.the Prime Minister wrote to UK overseas Territories calling on them

:16:17. > :16:19.to publish a public register for friends and individuals who are

:16:20. > :16:23.sheltering their money on it yet virtually no progress has been made

:16:24. > :16:31.self are. And today's statement did nothing to move forward on that.

:16:32. > :16:34.This issue fundamentally, is about a rotten system that undermines the

:16:35. > :16:40.faith of ordinary families and the fairness of our tax stump, and

:16:41. > :16:44.indeed a definitive analysis by the Financial Times shows that the

:16:45. > :16:51.Labour government corporate tax avoidance measures was still raising

:16:52. > :16:57.ten times as much as those introduced in the last Parliament.

:16:58. > :17:03.While we welcome the measures in the bill, they simply do not go far

:17:04. > :17:07.enough. We believe there must be far greater transparency and enforcement

:17:08. > :17:13.it it is those who are trying to hide their wealth in tax havens. The

:17:14. > :17:17.Chancellor, as ever and the Prime Minister gave the impression of

:17:18. > :17:25.acting tough while in reality proposing half measures. Instead, it

:17:26. > :17:31.Labour can... Spell out what is required is the introduction of a

:17:32. > :17:40.general avoidance principle which proactively... Our programme

:17:41. > :17:54.includes an immediate public inquiry into Panama papers, more resources

:17:55. > :18:03.for HMRC and... I think we can see that 10% of those were cut and real

:18:04. > :18:14.returns raised about the impact -- concerns. We will call for a

:18:15. > :18:25.specialized enforcement unit. I will give way.

:18:26. > :18:37.Would she also consider some research into the impact of the

:18:38. > :18:45.disclosure facility and how that has been used over the last 2-3 years in

:18:46. > :18:55.order to subvert us the government's tenant on tax? This comment is

:18:56. > :19:01.extremely well-made and he's absolutely right and that is an area

:19:02. > :19:07.we should explore, because what we want is evidence about what works as

:19:08. > :19:16.we move forward with urgency on the issue of tax avoidance. And tax

:19:17. > :19:23.evasion. Indeed, if we want to ensure tax avoidance and make sure

:19:24. > :19:29.they're fair shut up taxes paid, this finance Bill will need to be

:19:30. > :19:32.toughened up considerably. -- share. Get the Chancellor fails to listen

:19:33. > :19:39.to our arguments, the public will want to know why. Madam Deputy

:19:40. > :19:42.Speaker, this bill also fails the fairness test. The resolution

:19:43. > :19:48.foundation announces shows that 80% of the gains from this budget's

:19:49. > :19:54.changes to income tax will go to the top half of the income distribution

:19:55. > :19:59.in the top 20% of households will get the Sheriff. The estimate that

:20:00. > :20:06.during this Parliament households in the lower half of the distribution

:20:07. > :20:12.will raise an average of ?375 a year, those in the top half set to

:20:13. > :20:16.gain 200 or ?85. We are lucky that they can tell us this, it is a

:20:17. > :20:21.matter of shame, the Chancellor no longer produces his own full

:20:22. > :20:26.distribution of analysis, this is a Chancellor who either doesn't want

:20:27. > :20:31.to know what impact his decisions are having or he does not want to

:20:32. > :20:35.tell. So neither competent nor compassionate, that Madam Deputy

:20:36. > :20:41.Speaker, after the budget is the verdict on this Chancellor. In

:20:42. > :20:45.closing, this country faces huge economic challenges, the challenge

:20:46. > :20:50.of automation, the challenge of competition for nations like India,

:20:51. > :20:56.China and other growing economies. Grossly, imbalanced economy,

:20:57. > :21:00.outgrowing current account deficit -- are growing. They spoke these

:21:01. > :21:06.challenges, what do we get Booth cuts to corporation tax that the

:21:07. > :21:11.office they would do nothing to reverse the outlet for business

:21:12. > :21:19.investment, heart activity and export. Cuts to capital gains tax

:21:20. > :21:21.that will benefit a tiny minority, but nothing for the millions of

:21:22. > :21:32.struggling to stay out of debt. Let alone helping them save for a loan

:21:33. > :21:34.-- home or pension. It is doing nothing to secure our long-term

:21:35. > :21:40.public finances or economic stability. What is missing is a

:21:41. > :21:45.clear vision of the future. Eight vision of a Britain with a strategic

:21:46. > :21:50.ridership between government and business. A vision of a Britain that

:21:51. > :21:55.are stronger because prosperity is shared more fairly. So, Madam Deputy

:21:56. > :22:02.Speaker, we will vote against this finance Bill, because it is unfair.

:22:03. > :22:05.Unfair on women, low-paid workers, children living in poverty, children

:22:06. > :22:09.in poverty has increased by half a million since this government came

:22:10. > :22:17.into power. People who are seeing their living standards fault to pay

:22:18. > :22:21.for their child... Unfair on the workers and our steel and

:22:22. > :22:27.manufacturing industries, worried about their jobs and their families.

:22:28. > :22:30.Unfair on all the hard-working families and responsible businesses

:22:31. > :22:36.who play by the rules and pay their fair share of tax. And we will vote

:22:37. > :22:41.against this finance bill because it fails the test of moving this

:22:42. > :22:53.country forward to a more prosperous and secure future for Britain's is

:22:54. > :22:56.this is an Britain's families. I will be strongly supporting the

:22:57. > :23:00.finance bill that we see before us this evening which will actually

:23:01. > :23:05.encourage saving, worrywart work, encourage business and tackle... --

:23:06. > :23:11.we ward work. These are the things we want to see. I cannot see why

:23:12. > :23:16.anyone would choose to vote against it. There are changes to capital

:23:17. > :23:22.gains tax and corporation tax, I go back as far as Gordon Brown's first

:23:23. > :23:25.budget and he had eight effective capital gains. Perhaps that is a we

:23:26. > :23:44.can amend on. I have... Patsy can explain why the

:23:45. > :23:57.president Chancellor has dropped it from 28%. I am sure we regret that

:23:58. > :24:09.strongly. It is quite right not to bring that down to a more sensible

:24:10. > :24:16.level. We do this every year and it is quite heavy and we add new pauses

:24:17. > :24:23.to it, I don't think we have a recollect of the finance Bill and I

:24:24. > :24:27.think the government did look at it previously. We have to find a way to

:24:28. > :24:35.get off of this merry-go-round of further complicating this system. We

:24:36. > :24:54.add new taxes every year, I think this bill recognizes that. Perhaps

:24:55. > :24:57.we are making... I think we need to free them up to do some more

:24:58. > :25:02.long-term payments and strategic work rather than focus on small

:25:03. > :25:09.things which don't affect many taxpayers. They have done the work

:25:10. > :25:16.on small business taxpayers, but we really need to see how we can

:25:17. > :25:18.simplify the taxes we have, make it easier for HMRC to imply and

:25:19. > :25:26.enforced. ... Not having to wire into whether

:25:27. > :25:55.certain items... I hope it allows us to work in

:25:56. > :26:03.certain situations and allow them to encourage some simplifications

:26:04. > :26:11.fundamentally. Individual measures in the bill that are welcome on the

:26:12. > :26:17.savings in dividends, they are a welcome part of the tax system for

:26:18. > :26:22.many people who struggle to work out what they are paying. It moves us in

:26:23. > :26:27.the right direction on how we start, people incorporating themselves just

:26:28. > :26:32.to get a tax advantage that is not intended, it is going to a fairer

:26:33. > :26:40.system. There are some things that have not had much help. We are

:26:41. > :26:54.leading the world and how we encourage that.

:26:55. > :27:03.... There are some things I would like to see the bill that actually

:27:04. > :27:10.aren't here. I think we have to accept that it's widespread lack of

:27:11. > :27:16.except it's in the public that our largest corporations that are not

:27:17. > :27:22.paid what they are meant to. Most are paying the taxes, but it's a

:27:23. > :27:28.relatively small proportion. Everyone gets tarred by this same

:27:29. > :27:32.brush. I think the measures we've been trying in the last five or six

:27:33. > :27:37.years just aren't tacking a fundamental lack of confidence in

:27:38. > :27:40.the system. I think we do need to have more transparency from large

:27:41. > :27:44.companies so we make them published a tax returns and we can see how

:27:45. > :27:49.much for profit they record, actually down to the tax... You can

:27:50. > :27:52.see a calculation of that. We know which ones have got some aggressive

:27:53. > :27:55.tabulations there and which ones have some strange things that we

:27:56. > :28:00.don't understand. It with ones are actually paying the right amount,

:28:01. > :28:05.just happen to have some capital allowances they haven't used yet. I

:28:06. > :28:07.think that would lose the concept everybody has an newbie we wouldn't

:28:08. > :28:16.need to keep seeing these every few months, another story about a large

:28:17. > :28:20.audit. We just don't know because we don't have that detail in the public

:28:21. > :28:24.domain. We could help this debate to move forward, have both large

:28:25. > :28:26.companies be more chance parent. If you would at a set of company

:28:27. > :28:30.accounts not, they have to disclose so many things about the directors,

:28:31. > :28:34.their investment strategies, their business practices, and a number of

:28:35. > :28:36.other things. I don't think having a little bit more transparency on the

:28:37. > :28:42.tax affairs would actually put much more in the public domain. We could

:28:43. > :28:46.boost the confidence. I would hope that all those large companies out

:28:47. > :28:49.there, after complying with the rules, are trying to do that and

:28:50. > :28:52.actually want to. I think it is nothing to be scared of, if were

:28:53. > :28:56.just using the rules and incentives that have been put there for the use

:28:57. > :29:00.of their intended, perhaps he should be a welcome thing that we all

:29:01. > :29:02.understand. I think we'll be practicing one thing we can do

:29:03. > :29:05.domestically to take this debate forward so we can actually have the

:29:06. > :29:07.confidence that our largest companies are doing what we want

:29:08. > :29:13.them to do. And not doing things that they ought not to be doing. I

:29:14. > :29:20.welcome this bill, and I will be excited for it later. Hear, hear!

:29:21. > :29:24.Thank you very much, Madam Deputy Speaker. This finance bill follows

:29:25. > :29:27.in the wake of yet another budget. It began to fall apart within the

:29:28. > :29:33.future of the Chancellor's statement. Indeed, perhaps future

:29:34. > :29:37.statements by the Chancellor should be entitled "Not the budget".

:29:38. > :29:42.LAUGHTER If the budget statement itself

:29:43. > :29:46.created disarray and the rights of the government benches, this finance

:29:47. > :29:52.bill, with its clam jam tree of uncoordinated clauses, criticises

:29:53. > :29:58.get more failure. It fails to address some of the failed economic

:29:59. > :30:04.challenges of her time -- she fails to address. It was a great joy to

:30:05. > :30:09.read all 580 pages of the finance bill over the recess, but I will

:30:10. > :30:12.come to a number of specific issues and technical problems of the

:30:13. > :30:17.finance bill later, but there is one overriding message these benches

:30:18. > :30:23.have for the government. You cannot build economic success on the back

:30:24. > :30:31.of social injustice. Hear, hear! Every social injustice hurts

:30:32. > :30:34.economic progress. In recent times, we seen the ways in which this

:30:35. > :30:39.government wanted to place further injustice on the shoulders of the

:30:40. > :30:45.disabled. The disadvantaged, the 1950s born women. But at the same

:30:46. > :30:48.time operating an economic system that disproportionately protects and

:30:49. > :30:54.enhances the privileges of the most wealthy in society. Creating such

:30:55. > :31:01.division does not bring progress. As I said in my speech quoting Adam

:31:02. > :31:05.Smith, no society can surely be flourishing and happy of which the

:31:06. > :31:16.far greater part of the members are poor and miserable. Times move on,

:31:17. > :31:20.of course. Perfections are I think based on professor when he states

:31:21. > :31:25."Rather than justice for all, we are evolving into a system of justice

:31:26. > :31:28.for those who can afford it". I am confident to my honourable members

:31:29. > :31:32.will be able to rehearse many instances of social injustice

:31:33. > :31:38.created by this government. So allow me to move on and reflect an issue

:31:39. > :31:45.I've raised in this house in February this year. The problem of

:31:46. > :31:48.tax evasion and particularly preview use of tax havens in British

:31:49. > :31:53.overseas territories. Little did I know at the time, placing the debate

:31:54. > :31:58.in February was going to prove to be. How very disappointing, I have

:31:59. > :32:04.to say, the Prime minister's statement earlier today has been.

:32:05. > :32:09.Despite one or two modest proposals, that I would welcome. Let us put

:32:10. > :32:14.this in some context. According to Jason of the London school of

:32:15. > :32:22.economics, tax havens hide one sixth of the worlds total private wealth.

:32:23. > :32:28.Somewhere an order of in excess of $20 trillion. As I have already

:32:29. > :32:34.commented on elsewhere, the revelations regarding Moss that

:32:35. > :32:38.Fonseca and the millions of papers released or about the tip of

:32:39. > :32:43.adjusting dentate -- gigantic iceberg. In fact, this doesn't even

:32:44. > :32:46.meet the top ten of tax havens, but taken together in our overseas

:32:47. > :32:52.territories, are the number one outdoing Switzerland by some margin.

:32:53. > :33:01.Commenting on a single address in the Cayman Islands, president Obama

:33:02. > :33:06.has said" that's idea of the biggest tax scam undirected calls go. Not

:33:07. > :33:14.surprising that he said that given that there are 19,000 businesses

:33:15. > :33:21.registered at that one address. A big house! LAUGHTER

:33:22. > :33:23.Less favorably. There are at least four major issues related to tax

:33:24. > :33:28.havens which need addressing. The first is the subject of much come

:33:29. > :33:33.debate, the extent of which the makers of loss of the guardians of

:33:34. > :33:37.the wider public interest have themselves been benefiting from tax

:33:38. > :33:42.scams. Hear, hear! You like this is an understandable

:33:43. > :33:46.issue of concern, but I have to say we fool ourselves if we think this

:33:47. > :33:50.is the soul of the prime issue. But it does regard openness and

:33:51. > :33:56.transparency. I do agree with my honourable friend from Ari that it

:33:57. > :34:01.would be a very positive and welcome move indeed if the Cabinet members

:34:02. > :34:05.shoals, willingly, to open up their tax returns to public view as well

:34:06. > :34:09.as the prime minister -- if the Cabinet members chose. The second

:34:10. > :34:12.issue which deserves more focus is the avoidance of tax and I

:34:13. > :34:17.deliberately say avoidance, which of course is legal. It strikes me that

:34:18. > :34:22.for the average member of the public, it's no convincing defence

:34:23. > :34:25.for the type of institutional behaviour we have witnessed in

:34:26. > :34:31.recent times, such as from about more the national -- large

:34:32. > :34:37.multinational corporations to say it's legal. I am sure I am not the

:34:38. > :34:42.only new MP who has been subject to huge lobbying from corporations and

:34:43. > :34:47.financial bodies. They mobilise vast resources to help government. They

:34:48. > :34:51.are very successful. They have managed to influence the creation of

:34:52. > :34:57.an international system of finance that enables tax avoidance on a huge

:34:58. > :35:03.scale, not only that... They happily operating system that hides from

:35:04. > :35:09.scrutiny the owners of vast wealth. All the ordinary man in the street

:35:10. > :35:15.has no such luxury. Certainly, and to me, rather surprisingly, the

:35:16. > :35:18.subject is so far much less scrutiny if the extent of which there is the

:35:19. > :35:24.ovation of disclosure on the source of money itself. There are very good

:35:25. > :35:30.reasons for supposing that it is not only corrupt political leaders, but

:35:31. > :35:34.also drug traffickers, terrorists organizations, and other types of

:35:35. > :35:40.criminals who also inhabit this shady world of international

:35:41. > :35:46.finance. Sadly, the Panama papers suggest some legal institutions may

:35:47. > :35:49.have colluded in the pretension of criminals who stashed their cash

:35:50. > :35:55.behind anonymous, untouchable trusts and other financial vehicles. I hope

:35:56. > :35:57.we can take it from the Prime minister's statement today and from

:35:58. > :36:05.the welcome remarks of the Minister earlier regarding making it a

:36:06. > :36:08.criminal offence for some types of this advice to be proffered by

:36:09. > :36:12.otherwise legal institutions, that we will see some considerable

:36:13. > :36:18.progress in this matter. The fourth issue I wish to ways in relation to

:36:19. > :36:22.this is something to wear these funds are and how they are set to

:36:23. > :36:28.work for their beneficiaries. As we know, these funds don't actually sit

:36:29. > :36:32.in Panama or the British Virgin Islands or the Cayman Islands. One

:36:33. > :36:38.of their biggest centres is of course, as we know, London. For

:36:39. > :36:40.example, hundreds of very instruments of -- very expensive

:36:41. > :36:44.properties in London have been brought by unknown persons. We need

:36:45. > :36:51.conspiracy here too. Some, like my honourable friend, have argued that

:36:52. > :36:54.it should be illegal to own property on land in the UK where the

:36:55. > :37:02.beneficiary is unknown. Hear, hear! A breathtaking lease" measure to

:37:03. > :37:08.address a great cause of concern as a breathtakingly simple measure. We

:37:09. > :37:15.need reform as each of these four areas, but I'm sad to say that the

:37:16. > :37:17.finance bill goes nearly far enough to inspire in any confidence that

:37:18. > :37:24.the matter is going to be adequately addressed. It's very disappointing,

:37:25. > :37:27.for example, that the Prime Minister continues to resist calls to do

:37:28. > :37:33.something about trusts. Even if he is right, in his interpretation

:37:34. > :37:38.three years ago about how to proceed, this is three years later.

:37:39. > :37:42.Public perceptions throughout the world have changed radically. It's

:37:43. > :37:48.time to broaden the scope of action. The truth is, Bob is government

:37:49. > :37:53.previous finance bill, takes feeble measures to tackle tax evasion, it

:37:54. > :38:00.is at the same time and in act of social and economic injustice, not

:38:01. > :38:03.an attack on small individual contractors who serve rural

:38:04. > :38:07.communities, preventing them from having travel expense of relief.

:38:08. > :38:16.These people are not tax dodgers. They are flexible workers with where

:38:17. > :38:21.both private and public is essential to many rule communities in

:38:22. > :38:26.Scotland. Yet as these people are attacked, the government at the same

:38:27. > :38:30.time is protecting tax dodgers and millionaire Tory donors by

:38:31. > :38:34.continuing to allow you to post in the system. We must get a commitment

:38:35. > :38:39.to a more open and transparent system that involves all overseas

:38:40. > :38:43.territories, trusts as well as companies and through an

:38:44. > :38:48.intervention -- independent scrutiny of the so-called Panama papers.

:38:49. > :38:51.There is hope and committee for the government to be much more ambitious

:38:52. > :38:58.and prudent -- present the causes for debate. It should be our

:38:59. > :39:03.intention to do so. Furthermore, the claim in this finance Bill will be

:39:04. > :39:05.adamantly to addressing other tax dodges, consider the bills

:39:06. > :39:10.implications of so-called Mayfair tax loophole. We do not believe the

:39:11. > :39:17.finance bill makes anything like sufficient progress and is treatment

:39:18. > :39:20.of so-called carried interest. This is seen by many members of the

:39:21. > :39:25.public. Another example, one rule for those with modest means and huge

:39:26. > :39:29.favours them into those of considerable wealth and income.

:39:30. > :39:37.This, again, is a pursuit in committee. Turn to wider economic

:39:38. > :39:41.matters. In his 2012 budget speech, the chancellor acknowledged

:39:42. > :39:56.written's world exports and stated "We want to double our nation's

:39:57. > :39:59.exports to 1 trillion this decade. " However, the figures are moving in

:40:00. > :40:05.the wrong direct them. The Chancellor is likely to fall short

:40:06. > :40:08.of his target for one Trojan in exports -- 1 trillion in exports by

:40:09. > :40:16.2020 by at least some hundred billion pounds. -- ?300 billion.

:40:17. > :40:20.Failing to meet target is of course one of the great characteristics of

:40:21. > :40:31.the Chancellor. LAUGHTER But to miss it by such a huge margin

:40:32. > :40:34.create a new category of failure. Furthermore, rather than making even

:40:35. > :40:40.modest progress, we find that in the last three months of 2015 the UK had

:40:41. > :40:46.achieved the record-breaking near ?33 million deficit. Part of that

:40:47. > :40:50.declining relative performance speaks to a long-term failure to

:40:51. > :40:55.adequately address the central issue of productivity in our economy.

:40:56. > :41:00.Productivity, this brightness bill fails to address fundamental

:41:01. > :41:05.concerns as finance bill. Raising levels of productivity is essential

:41:06. > :41:12.to raising growth in the economy. My honourable friend from East Lothian

:41:13. > :41:15.pointed out on the 22nd of March, the countries of higher levels of

:41:16. > :41:21.growth including Australia, Sweden, Spain, United States, to name

:41:22. > :41:26.some... Have higher levels of growth in 2015 largely because of faster

:41:27. > :41:31.productivity growth. We need productivity growth too. To enable

:41:32. > :41:37.cash economy to grow. To enable wage growth and to grow tax receipts.

:41:38. > :41:40.There are many factors, of course, that affect productivity growth.

:41:41. > :41:45.Some are well-known relatively uncontroversial. Areas such as

:41:46. > :41:49.investment and research, developments and innovations and of

:41:50. > :41:52.course investment in infrastructure, but in these areas the UK lags well

:41:53. > :41:59.behind many of our major competitors. I have a number of

:42:00. > :42:04.occasions in this house, relative decline in investment in research

:42:05. > :42:08.and development compared to our G8 competitors. As things stand, we are

:42:09. > :42:15.at the bottom of the G8 in terms of public and private sources and has

:42:16. > :42:19.been a reluctance to raise infrastructure spending to the

:42:20. > :42:25.necessary levels. The SNP believe that in order to achieve a

:42:26. > :42:30.sustainable future, our expenditure investment could benefit from

:42:31. > :42:34.territorial review. And that there should be increased land

:42:35. > :42:37.infrastructure spend beyond the narrow confines of London and the

:42:38. > :42:43.South. Hear, hear! And in terms of stills would have

:42:44. > :42:52.already been raised by the honourable member... I'm sorry, I

:42:53. > :43:00.forget your constituency. I'm delighted you are a member. You

:43:01. > :43:03.mentioned the importance of skills. Skills is fundamental to

:43:04. > :43:08.productivity growth. For some 30 years, the UK has been failing

:43:09. > :43:13.particularly intermediate and higher intermediate skills level. I can

:43:14. > :43:20.return again to another dealing with D in this bill. The continuing

:43:21. > :43:24.favour -- failure to release Scotland's fire and rescue services

:43:25. > :43:27.from the bottom of VAT. -- another delinquency in this bill. The

:43:28. > :43:33.government excuses on this are well rehearsed, but the actions in

:43:34. > :43:40.Scotland rather than supporting the police and fire services, the Tories

:43:41. > :43:43.are their enemies. This finance bill arrives uneasily alongside the

:43:44. > :43:50.Chancellor's they've made to the House in the 22nd of March... "We

:43:51. > :43:55.are going to deliver a strong and compassionate society for the next

:43:56. > :43:59.generation". I don't know a single young person of couple that will be

:44:00. > :44:09.able to take advantage of raising the amount they can be invested to

:44:10. > :44:16.?20,000 a year. I do know that all too many constituencies, many of

:44:17. > :44:23.them are young, have much less than ?20,000 a year annually to live on.

:44:24. > :44:28.The actions of this government are not building a strong economy for

:44:29. > :44:32.the future. And certainly doing nothing to create a compassionate

:44:33. > :44:37.society. This government and this Chancellor are not merely the

:44:38. > :44:42.failures, they are purveyors of misery. Hear, hear!

:44:43. > :44:50.Thank you, Madam Deputy Speaker. This finance Bill will go along to

:44:51. > :44:54.ensuring that there is no some on the scales which balance the

:44:55. > :44:59.interests of small business and multinational companies. So it is,

:45:00. > :45:04.in that sense, a budget of direct redistribution. But there are ways

:45:05. > :45:09.in which that principle can and should be extended further, I think.

:45:10. > :45:12.The ?9 billion gained the restrictions on interested options,

:45:13. > :45:20.the strengthening of wood folding tax and the mixmaster rules would

:45:21. > :45:24.all mean a great deal... To provide support for small business and

:45:25. > :45:27.that's what great news to some audio like me coming from a career in

:45:28. > :45:31.small business and now chairing the all party groups for small and micro

:45:32. > :45:37.businesses. In fact anyone who's run a small business will know that

:45:38. > :45:40.business rates can take up an intimidating lead large proportion

:45:41. > :45:44.of fixed costs. The changes to those, together with the cut in

:45:45. > :45:49.corporation tax, are very welcome. Agonising both the value of small

:45:50. > :45:52.businesses as employers and the fact that they are the engine of growth

:45:53. > :45:57.-- recognising the value. I think the revised business rates section

:45:58. > :46:01.will be a benefits to companies in the glorious Southwest were small

:46:02. > :46:05.businesses are not just economic units, but power the communities

:46:06. > :46:12.that surround him. Apart from having apparently more cows than any other

:46:13. > :46:15.constituency, of which we are very proud and Somerton and Froome, my

:46:16. > :46:20.constituency is the constellation of 140 small town and villages and many

:46:21. > :46:25.of those pivot around and depend on a single company or enterprise.

:46:26. > :46:28.Because of this that we need to recognise the significance of a

:46:29. > :46:34.level of jobs created in the last six years, more rapid growth than

:46:35. > :46:39.since the Second World War. This isn't just some abstract figure, but

:46:40. > :46:43.it's a reflection of tangible improvements in the conditions for

:46:44. > :46:48.local businesses. Therefore, for the people that depend on them. This

:46:49. > :46:54.entrepreneurial spirit shows itself also in the so-called sharing

:46:55. > :46:58.economy, and other economic sector which very much helps those in rural

:46:59. > :47:03.areas and be tax-free allowance of ?1000 for all my micro-entrepreneurs

:47:04. > :47:06.is a small step, but it's a welcome one. There are a number of community

:47:07. > :47:11.energy and transport projects in my constituency which can benefit from

:47:12. > :47:14.these incentives and from the fact that this tax-free allowance

:47:15. > :47:17.recognises the important role they play. Of course, there's a great

:47:18. > :47:22.deal more that can be done, but a better budget is not a government

:47:23. > :47:28.to. It is a occasion to met desperation against reality. Like

:47:29. > :47:32.many members, I'm sure, I've received a bit of correspondence

:47:33. > :47:34.recently suggesting that we reduce foreign aid and that would give a

:47:35. > :47:39.small scope for domestic expenditure. That is certainly true

:47:40. > :47:45.and pure economic terms, but what would be the moral cost was not as

:47:46. > :47:50.of last year, money provided through British foreign aid has gone to 55

:47:51. > :47:56.million children against foreign diseases. 55 million people provided

:47:57. > :47:59.with a means to work their way out of property and save the lives of

:48:00. > :48:06.50,000 women in pregnancy and childbirth and helps prevent

:48:07. > :48:09.children going hungry. I think we have to take every step possible to

:48:10. > :48:14.ensure the money goes to the honourable rather than some clap

:48:15. > :48:19.talk or see or other, that the question of means rather than ends.

:48:20. > :48:23.Ready fifth the -- we are the fifth richest country in the world and I

:48:24. > :48:26.believe our continuing commitment to foreign aid is a recognition of the

:48:27. > :48:31.humanitarian duties of such a position of relative strength. The

:48:32. > :48:33.approach in this bill is hugely positive. Incentivizing and

:48:34. > :48:40.empowering individuals or small companies happily addressing

:48:41. > :48:43.Corporation to skip around in no man's land between tax avoidance and

:48:44. > :48:49.evasion. Bridging the gap of generational unfairness, reaffirming

:48:50. > :48:53.our commitment to those who suffer from abject poverty abroad while

:48:54. > :48:58.continuing to facilitate our economic recovery at home. Lastly,

:48:59. > :49:06.Madam Deputy Speaker, in a previous budget notion, my honourable friend

:49:07. > :49:10.summarised the priority for the Southwest as railroad housing and

:49:11. > :49:13.broadband. I couldn't agree more. I'm delighted to see recognition of

:49:14. > :49:17.all these priorities in the financial measures that the

:49:18. > :49:22.Chancellor has set out. Of course the commitment of have ?1 billion to

:49:23. > :49:26.speed introduction of a fair national funding formula for schools

:49:27. > :49:30.is something that many of us have campaigned for for some time and can

:49:31. > :49:33.benefit many schools in my constituency. This has been a

:49:34. > :49:39.long-term imbalance and it's a release to see the Chancellor

:49:40. > :49:41.committing to writing it. Despite international pressures, our economy

:49:42. > :49:46.continues by any comparative measure to develop strongly. I believe that

:49:47. > :49:52.the measures contained in this bill will enable small business to

:49:53. > :49:59.continuing to empower the jobs and therefore that grove of which we

:50:00. > :50:04.really do depend. -- that growth. Thank you, Madam Deputy Saiger. In

:50:05. > :50:09.the 2010, the Chancellor promised us a new growth model based on higher

:50:10. > :50:13.savings investment and exports will stop despite the speech we just

:50:14. > :50:19.heard from the honourable member from summer tenant and Froome, those

:50:20. > :50:23.fundamentals have underpinned the economy of the finance Bill and they

:50:24. > :50:31.are not going as well as we might be hoping. Our national savings ratio

:50:32. > :50:36.has now gotten to an all-time low of 3.3%. Investment is being revised

:50:37. > :50:39.down in the latest numbers with a staggering ?87 billion wiped off

:50:40. > :50:44.forecast business investment. Just since last November. Public

:50:45. > :50:49.investment falls as well. There's been a further deterioration in our

:50:50. > :50:55.export performance that a gap between Osborne's 2020 target for ?1

:50:56. > :51:01.trillion worth of exports and the OBR's expectations now widening to

:51:02. > :51:04.?357 billion. That is before you factor in the calamity that the

:51:05. > :51:14.government is allowed to unfold in our steel industry, all the

:51:15. > :51:18.enemies... Indeed, in just a few weeks, sinister budget -- since the

:51:19. > :51:22.budget statement we've seen even more bad news, not just about steel

:51:23. > :51:30.but also about the sector in general. This country has seen since

:51:31. > :51:35.the Second World War, with our deficit now in the fourth quadrant

:51:36. > :51:40.2015, reaching a staggering 7%. This is all impacting on living

:51:41. > :51:43.standards. It's expected earlier to have been revised out in every

:51:44. > :51:52.single year of this forecast period. Of this Parliament. On top of the

:51:53. > :51:55.admissions that we saw in November. Taken together, if we look at the

:51:56. > :52:00.deterioration in earnings expectations, since the budget just

:52:01. > :52:05.after the last general election, the average UK worker and the final year

:52:06. > :52:10.in this Parliament is not forecast by the office of budget the

:52:11. > :52:14.possibility to be ?22 a year worse off. That's a total loss, if we add

:52:15. > :52:18.up over the course of this Parliament, of ?2000 because of

:52:19. > :52:23.those bad revisions since the last budget that we had just under a year

:52:24. > :52:28.ago. We know, of course, that that will impact from those on modest and

:52:29. > :52:30.low incomes the most. Indeed, if you look at what's happened to be

:52:31. > :52:35.national living wage because it is linked to average earnings, somebody

:52:36. > :52:39.who is on minimum wage will now be ?600 a year worse off than when the

:52:40. > :52:47.government originally announced national living wage. Those reflect

:52:48. > :52:51.this government's... That would've been under the previous pants for

:52:52. > :52:55.the national living wage, so just less than a year, the average worker

:52:56. > :52:59.during the course of this Parliament, ?2000 worse off and

:53:00. > :53:07.somebody on the minimum wage ?600 worse off. You would think that

:53:08. > :53:10.against this background, a Chancellor who once proclaimed that

:53:11. > :53:16.we were all in it together will want to use the budget and this finance

:53:17. > :53:23.bill to target how an ordinary working families and those are below

:53:24. > :53:25.pay. It's that will we have is a package of measures that

:53:26. > :53:28.disproportionately benefit for the better off rather than those people

:53:29. > :53:33.who most need support. Let me give me examples. First, few of the one

:53:34. > :53:39.in five taxpayers will gain from a ?2 billion cut to the higher rate

:53:40. > :53:44.income tax in the Clause two of the finance Bill. This group will also

:53:45. > :53:48.receive the largest benefit from the expensive targeted increasing the

:53:49. > :53:52.personal allowance in Clause three, while a 4.6 million lowest earning

:53:53. > :53:58.workers in this country will receive no benefit at all from either of

:53:59. > :54:02.those changes. At a time when earnings of those on a middle, in

:54:03. > :54:05.the middle and does almost incomes are being squeezed, and public

:54:06. > :54:09.finances remain extremely tight, I believe that raising the threshold

:54:10. > :54:14.when you start paying the higher rate of income tax, is the long

:54:15. > :54:17.priority -- wrong priority at the moment. Second, Madam Deputy

:54:18. > :54:22.Speaker, the cut to capital gains tax in Clause 72, will cause that

:54:23. > :54:25.payers more than ?2.7 billion over the course of five years. But

:54:26. > :54:32.directly benefits only a very small minority of taxpayers. Just 130,000

:54:33. > :54:38.individuals will share the gains and a majority of them are higher rate

:54:39. > :54:44.taxpayers. About a fourth paper I just 5000 individuals, so they will

:54:45. > :54:50.hit a windfall. The bulk of this benefit falls. This is a particular

:54:51. > :54:54.tax break that will be pocketed by a relatively fortunate few. Again, not

:54:55. > :55:00.the right priority for ordinary people, squeezing the living

:55:01. > :55:05.standards. And not the right Purdy for our public finances when they

:55:06. > :55:09.are so scourge. This is the price worth paying for the entrepreneurial

:55:10. > :55:14.energy that this capital gains tax on these. The official documents

:55:15. > :55:18.reveal that the office of budget responsibility has made no upward

:55:19. > :55:22.revision at all to forecast for investment, productivity, or grove

:55:23. > :55:27.as a result of this measure of the constituents to 7p. I would argue

:55:28. > :55:30.that the most wide impact of this move will is to increase the

:55:31. > :55:36.incentive to avoid tax bite converting income to capital gains.

:55:37. > :55:39.Perhaps the tester has been taking advice from the prime minister who

:55:40. > :55:46.seems to enjoy the benefit of this himself, but again, I would argue

:55:47. > :55:48.that squeezed family finances and tight public finances, this is

:55:49. > :55:55.neither fair nor fiscally responsible. Third, as part of his

:55:56. > :55:59.budget, the Chancellor has chosen to increase the amount any individual

:56:00. > :56:04.can contribute to a tax-free savings account, ?20,000 a year, as the

:56:05. > :56:10.honourable member spoke about in his speech. I welcome action to make it

:56:11. > :56:16.easier for ordinary workers and families to save. But we have to ask

:56:17. > :56:20.if this approach should be deferred Purdy when most of our constituents

:56:21. > :56:25.are lucky to earn ?20,000 a year and half anything left to say at all --

:56:26. > :56:28.if this should be a priority. Average earnings of just under

:56:29. > :56:31.?20,000 a year for most and many people would struggle to put

:56:32. > :56:41.anything aside, let alone take advantage of a ?20,000 length. In

:56:42. > :56:44.the latest data available, the average subscription was less than

:56:45. > :56:51.?4000 in the year. You love them one intent, contributed to an ice and

:56:52. > :56:55.were able to save the maximum amount of over ?60,000 currently. With a

:56:56. > :57:00.disproportionate number of those people who did manage to say that

:57:01. > :57:04.maximum amount and having owners of ?150,000 a year. That's having

:57:05. > :57:08.earnings. Recent years suggest that him as the government was focused on

:57:09. > :57:13.raising the... The total amount put into these has increased sharply,

:57:14. > :57:17.even as the total number of people contributing to an ice that has

:57:18. > :57:21.fallen. In other words, moving them away from their original purpose as

:57:22. > :57:28.a platform to support broad saving investment and increasing the use as

:57:29. > :57:34.a way to minimise tax liabilities by those with large amounts of money to

:57:35. > :57:39.move around, is having the wrong affect anyone people are benefiting.

:57:40. > :57:44.I support tax-free savings, but only if it is to support those people who

:57:45. > :57:51.need to save and what we're seeing a falling savings ratio and the most

:57:52. > :57:55.wealthy people being incentivized to save why what we need to do is help

:57:56. > :58:00.those people on more modest incomes put something aside for their

:58:01. > :58:03.future. Mr Speaker, the finance Bill, like those before it under

:58:04. > :58:10.this Chancellor, contains a long list of clauses aimed at reducing

:58:11. > :58:14.tax evasion and avoidance. Anything that genuinely advances this end is

:58:15. > :58:17.to be welcomed. But we just be government's achievements, not on

:58:18. > :58:21.the number of clauses in its bill, but on the real progress made

:58:22. > :58:23.towards closing the tax gap and ensuring that everyone pays their

:58:24. > :58:27.share. I would urge the government to do more by supporting,

:58:28. > :58:33.non-blocking, measures the European Parliament that strive to make done

:58:34. > :58:39.that meet this objective. The truth is that the HMRC's on pages so do

:58:40. > :58:44.not show the tax fell by ?4 billion over the last ideas of a Labour

:58:45. > :58:48.government, but has risen by ?1 billion under the current

:58:49. > :58:52.Chancellor. The consequence of this government's refusal to take the

:58:53. > :58:54.necessary action on UK Crown dependencies, I'm having to take an

:58:55. > :59:09.intervention... She wanted to comment on a

:59:10. > :59:14.percentage tax gap? If he is so concerned about the tax cap, why did

:59:15. > :59:20.his Tory members of the European Parliament lock measures in the

:59:21. > :59:26.European Parliament to crack down on tax avoidance? And why did the Prime

:59:27. > :59:31.Minister right in 2013 asking to exclude trust. As I said, instead of

:59:32. > :59:35.the numbers of clauses in the bill we should judge the government by

:59:36. > :59:40.its record and by its actions and by what is happening to the tax gap,

:59:41. > :59:44.under Labour it narrowed under Tories it is widening. They teach in

:59:45. > :59:50.a -- take many more efforts to ensure that those are particularly

:59:51. > :59:54.at top, but corporations, pay their fair share. That is not happening

:59:55. > :00:01.under the conservative administration. Mr Speaker, I hope I

:00:02. > :00:08.have demonstrated that the finance bill is putting vital support from

:00:09. > :00:15.the Bible -- pulling support. My honourable friend cited the

:00:16. > :00:18.resolution foundation earlier and have captivated that the tax and

:00:19. > :00:23.benefit measures already taken by this translucent bi-election will

:00:24. > :00:30.cut the incomes of the poorest 30% by ?565 a year while increasing the

:00:31. > :00:34.incomes of the richest 30% by ?280 a year. And that is before a factor in

:00:35. > :00:37.the impact of any further cuts to Social Security needed to meet the

:00:38. > :00:42.government's welfare cut and fill the mold compound called for its new

:00:43. > :00:47.term for personal independence payments. When I press the

:00:48. > :00:51.Chancellor on all this at the Treasury Select Committee,

:00:52. > :00:54.particularly on the changes to disability benefits, all he would

:00:55. > :01:01.say was that he had no plans for further raids on the fragile

:01:02. > :01:04.finances on disabled people, or children living in poverty. But

:01:05. > :01:10.frankly that is little reassurance to those people who rely on social

:01:11. > :01:13.purity because they cannot work, they are sick or disabled or because

:01:14. > :01:17.they're an low-paid work and struggle to make ends meet. It is

:01:18. > :01:20.nothing to reassure that those families were bringing up children

:01:21. > :01:27.in poverty, that the government are not going to once again hit their

:01:28. > :01:32.family finances. What is even more problematic than the measures in the

:01:33. > :01:36.finance Bill is perhaps measures missing from it. This was supposed

:01:37. > :01:40.to be the finance bill that would have reformed our unfair system of

:01:41. > :01:46.pension tax relief. At the moment we stand ?34 billion on pension tax

:01:47. > :01:51.relief. 14% of that goes to people earning more than ?150,000 a year,

:01:52. > :01:57.even though they represent a tiny proportion of all taxpayers. Just 2%

:01:58. > :02:00.of those benefits go to the whole bottom half of the income

:02:01. > :02:06.distribution. That is why argue that they should have a 32% rate that

:02:07. > :02:11.would have been fiscally neutral but fairer to families on lower incomes

:02:12. > :02:16.than those trying hard to put something aside for the future. It

:02:17. > :02:18.would have also provided a powerful incentive to save for millions of

:02:19. > :02:24.more people effectively offering simple two-for-one offers for every

:02:25. > :02:30.?2 into it the government adds another ?1. Every time when the

:02:31. > :02:33.possibilities are... The cost of an aging society are increasing number

:02:34. > :02:37.of this would have provided a powerful incentive to save millions

:02:38. > :02:44.of poor people and would help more people than the ?20,000 ISA limit.

:02:45. > :02:47.The finance Bill is also an opportunity for the government to

:02:48. > :02:53.admit they've made a mistake into reverse the Chancellor's cuts. The

:02:54. > :03:01.cuts that are due to be phased in next year. It confirms that this

:03:02. > :03:03.policy will "Likely benefit higher income and wealthy households

:03:04. > :03:07.concentrated in London and South East of England". It also stated

:03:08. > :03:11.that they are not strong economic arguments for the cuts which will

:03:12. > :03:16.push house prices and ends up. You make it more difficult for younger

:03:17. > :03:20.households to buy a house. Yet this is a priority of this government.

:03:21. > :03:25.Meanwhile, the overall cost is set to rise to ?1 billion a year as this

:03:26. > :03:28.policy is introduced. I believe, that this money could be much better

:03:29. > :03:36.used to help ordinary families who struggle to sustained work when the

:03:37. > :03:42.children are young. That will be a more prudent use, when I say family

:03:43. > :03:49.finances are stretched and so our public finances. To conclude, I

:03:50. > :03:57.remember when I was shadow secretary to the... When we had what we

:03:58. > :04:06.don't... This budget has unraveled even faster than that budget of

:04:07. > :04:10.2012, with a measure and changes to disability benefits being dropped

:04:11. > :04:15.and the changes to pension and tax of it being dropped before they were

:04:16. > :04:25.even announced. In the 20s of budget, the flagship measure, the

:04:26. > :04:31.cut in the top rate did stay. -- 2012. This year it means that

:04:32. > :04:34.flagship measure that was dropped, I believe the Chancellor wanted to

:04:35. > :04:40.reform pension tax relief in his budget, but he couldn't because Tory

:04:41. > :04:47.MPs protested too loudly. So instead, the last minute he decided

:04:48. > :04:54.make a disability budget, and it was recognize it did not get in with his

:04:55. > :05:00.rhetoric. And that is why this budget has unraveled so quickly, but

:05:01. > :05:05.most important is why the little prospect that the Chancellor have

:05:06. > :05:10.unraveled so quickly as well. The highest price for this budget is

:05:11. > :05:13.going to be paid by ordinary taxpayers and working families and

:05:14. > :05:17.future generations in this country. That is why I am my colleagues will

:05:18. > :05:25.be voting against it this evening it is the wrong priority for us. I am

:05:26. > :05:36.grateful for the chance to follow that speech. She knows I respecter

:05:37. > :05:39.and her experience. But there is no question that there will be a tax

:05:40. > :05:42.required on the sugar in that speech, it was over lease our honest

:05:43. > :05:51.occasion and I prefer the analysis that my honourable friend made. As a

:05:52. > :05:54.result, congratulate the government on the finance Bill. Before I go

:05:55. > :06:01.into the reasons filed also like to congratulate my honourable rent, the

:06:02. > :06:07.Chancellor's PPS on his recent addition to his family, we are all

:06:08. > :06:11.happy for the safe arrival. It is a pleasure to speak on this important

:06:12. > :06:14.finance bill, it is a bill that builds on the success of this

:06:15. > :06:17.government long-term economic plan in Indy takes a number of long-term

:06:18. > :06:22.measures to make life better and more prosperous, at least for now,

:06:23. > :06:29.for featured durations as well. -- future generations. It has the

:06:30. > :06:35.introduction of the savings rate, and it was promised in the Autumn

:06:36. > :06:39.Statement, it excludes the highest earning additional tax rate and

:06:40. > :06:44.allows for up to ?1000 of zero rate savings in income for basic

:06:45. > :06:50.taxpayers and up to 500 or higher rate payers. This is after the other

:06:51. > :06:57.measures that the Chancellor also put in place. They rightly focus on

:06:58. > :07:06.younger savers. The budget works to support further stability with

:07:07. > :07:14.necessary upgrading on such taxes as those in Clause 140 in tobacco in

:07:15. > :07:20.Clause one for two. It deals with fairness as well. -- 100 42.

:07:21. > :07:32.And at the exit waiting thinkings in Clause 147 it also promotes economic

:07:33. > :07:35.with taxes on income and dividend income, raising personal allowance

:07:36. > :07:44.in part one and the new dividend income in Clause five. It goes on

:07:45. > :07:48.and also introduces, in Clause 25, welcome improvement in affect

:07:49. > :07:52.ability to profits for tax treatment of farmers, extending from two years

:07:53. > :08:02.to five years. In Indy for creative artist as well. Farmers have long

:08:03. > :08:06.been centered in world life in many constituencies and creative artist

:08:07. > :08:17.increasingly add to our economic and cultural mix in my constituency. I

:08:18. > :08:24.hope the new tax relief in Clause 50 will also add to that mix. The bill

:08:25. > :08:33.is radical in performing enterprise taxes and has -- as has been

:08:34. > :08:39.previously mentioned,. In the quitting of Corporation tax to just

:08:40. > :08:42.17% in 2020 under Clause 42. These are measures that show that Britain

:08:43. > :08:46.is open for business and measures for the future benefit of young and

:08:47. > :08:51.enterprising entrepreneur is, what we need in the next generation of

:08:52. > :08:59.business leaders. It is this that enables the long-term economic

:09:00. > :09:01.objects and the ones the government are rolling out for benefit the

:09:02. > :09:05.working lives of our children and grandchildren Indy. What young

:09:06. > :09:10.people understand and certainly understand far better than the old

:09:11. > :09:18.Labour from beaches is that supporting enterprise economy is not

:09:19. > :09:22.a selfish pessimistic thing, but a recognition that we will be more

:09:23. > :09:27.advanced by putting our comparative advantages and today, more hip

:09:28. > :09:33.economy. According to the UK TI and economist intelligence research

:09:34. > :09:40.published, running my own business as the number one career aspiration

:09:41. > :09:45.among young people in the UK for the year that might have elicited

:09:46. > :09:54.debates in this, we must remind us of why young people are champions

:09:55. > :09:57.for this and why it is so important that this plan is the response to a

:09:58. > :10:02.comment that is key to explaining why in this bill it is so important

:10:03. > :10:07.to build the younger foundations of discovery's economic success.

:10:08. > :10:10.Enabling measures for the feature generations. All business

:10:11. > :10:15.transactions must involve at least two parties, the supplier and the

:10:16. > :10:22.consumer. They derive from joint undertakings which have been prized

:10:23. > :10:30.and extracted and working for me advantage. It is a perfect force for

:10:31. > :10:34.good. It therefore carries the elements of the only opportunity,

:10:35. > :10:37.but suitably manage risk. For risk to be suitably manage, supplies need

:10:38. > :10:42.to be flexible than he to be responsive to demand to survive and

:10:43. > :10:44.thrive in competitive markets. The government needs to ensure that the

:10:45. > :10:50.freedom to be flexible and the confidence to be bold exist for

:10:51. > :10:57.enterprise to thrive. The government is to remove barriers and provide a

:10:58. > :11:01.stable environment. This government is doing it in Clause 22 of this

:11:02. > :11:08.will and also in tackling and incentivizing capital gains through

:11:09. > :11:12.Clause 70 two. So the investment is improving. As I have said previously

:11:13. > :11:19.in my intervention into the shadow minister, and it welcomes this.

:11:20. > :11:25.Government needs to ensure that we have descent stands of education,

:11:26. > :11:30.hint the importance of the enterprise in part six of this bill.

:11:31. > :11:36.Government need to clear barriers to growth, beating necessary regulation

:11:37. > :11:41.and taxes for poor infrastructure and transport and communications,

:11:42. > :11:44.these are sometimes known as horizontal measures that stretch

:11:45. > :11:47.across the whole economy across large sectors, not just to a few

:11:48. > :11:54.selected individual winners with in that sector. But across the whole of

:11:55. > :11:59.the economy, this government has been right to facilitate joint

:12:00. > :12:03.working between Whitehall and local authorities and business on the

:12:04. > :12:16.ground to growth deals and city deals and to encourage local

:12:17. > :12:19.enterprise partnerships. He makes a point about goals and

:12:20. > :12:24.apprenticeships, would he share my concerns been, that apprenticeships

:12:25. > :12:29.in the way they are being delivered are still adopting this sort of

:12:30. > :12:33.gender segregation of the past and that most of the people going on

:12:34. > :12:36.engineering apprenticeships are boys and men and most of those going on

:12:37. > :12:42.chapter apprenticeships are young women. Would it be a good idea to

:12:43. > :12:44.ensure that those in the seat of the apprenticeship levy should

:12:45. > :12:51.demonstrate how they have made every effort to undo this job segregation

:12:52. > :12:54.that exist within our workplaces and in apprenticeships? IBB honourable

:12:55. > :13:02.member makes a very important point we want to tackle this absolutely, I

:13:03. > :13:06.am pleased to see the that in my constituency, a great pharmaceutical

:13:07. > :13:11.company which employs many engineers has 30 apprentices that start this

:13:12. > :13:16.summer and many of them are women and that is that route we need to

:13:17. > :13:23.take group. And hopefully with the new levy there will be greater say

:13:24. > :13:26.for businesses as to how the apprenticeships will be taking

:13:27. > :13:36.forward, and that the quality engineer make symptoms as well. --

:13:37. > :13:41.and gender mix improves as well. Productivity rates are too low, as

:13:42. > :13:47.we heard in the budget, there are long-term challenges, words that

:13:48. > :13:53.they previously thought, the Redbook shows that point of productivity

:13:54. > :14:00.challenges and many other countries as well as in the UK. The government

:14:01. > :14:05.is tackling this hat on, honourable members will take a careful look at

:14:06. > :14:11.page 66 of the Redbook and see the rate of initiatives that have been

:14:12. > :14:17.taken forward to address this. They enable local enterprise all over the

:14:18. > :14:20.country, this is the first Chancellor West looked at the powers

:14:21. > :14:23.of the Treasury and actively sought to the vault entrance for those

:14:24. > :14:33.powers, it is progressive and the right thing to do. Members

:14:34. > :14:39.opposition welcome this in cities like Liverpool and Manchester. The

:14:40. > :14:41.government is committed to forging local strategic partnerships for the

:14:42. > :14:51.success of others such protect effect to such as life sciences. In

:14:52. > :14:59.productivity rates that are 42% higher in the UK -- than the UK

:15:00. > :15:05.average. Hired a minisub regions, but they cannot be alone, so I

:15:06. > :15:09.welcome again the tax measures in Clause 72 and 42 that reduce the

:15:10. > :15:14.barriers aren't capital gains tax in corporation tax. And see the

:15:15. > :15:17.government encouraging business across the UK. Not least in a highly

:15:18. > :15:22.productive fields of advanced manufacturing and innovation, we see

:15:23. > :15:27.that clearly in the work they are doing with treatments, not just in

:15:28. > :15:30.my constituency but across the country and other businesses need to

:15:31. > :15:35.follow suit. It is vital for our economic growth. As a speaker, let

:15:36. > :15:39.me conclude by saying that this bill delivers concrete measures that will

:15:40. > :15:43.enable a more enterprising economy. It is a bill for the long-term to

:15:44. > :15:46.make us more flexible for short-term impact and it is a bill for

:15:47. > :15:51.rebalancing the economy and for promoting product dimity that is a

:15:52. > :15:59.vital challenge and that is why I am proud to support it in the division

:16:00. > :16:04.lobby later this evening. I have no doubt that the horrible member 4-mac

:16:05. > :16:08.is filled his heart felt in his support for greater productivity and

:16:09. > :16:14.for skills. But, sadly, as has been outlined by my honourable friend,

:16:15. > :16:17.this finance bill falls short of that meeting the needs on low or

:16:18. > :16:22.even average incomes in this country to do better for themselves and for

:16:23. > :16:27.their families. It is interesting that today, when actually the second

:16:28. > :16:31.reading of the finance bill should be the centerpiece of discussion, it

:16:32. > :16:38.has been knocked off track, somewhat, by the disclosure of the

:16:39. > :16:42.Panama pipe papers. It is right that we have a major finance bill,

:16:43. > :16:46.considering whether it addresses the central issue of fear taxation and

:16:47. > :16:54.how it can click down on tax avoidance and evasion. Recent of

:16:55. > :17:00.these have exposed... In the most of... Their taxes are deducted

:17:01. > :17:04.automatically. January is the month when 10 million everyday systems

:17:05. > :17:09.were submitting their tax returns home of the first week of April is

:17:10. > :17:16.when most of the 22.7 million people who save it for an ISA is looking at

:17:17. > :17:19.how they can top it up. That is the world of most of our citizens, the

:17:20. > :17:23.people who were paid their taxes and follow the rules they meet the

:17:24. > :17:28.deadlines, the people will put in an occasionally need to take out of the

:17:29. > :17:32.system, there is another world a shadow world occupied by a group of

:17:33. > :17:37.people, small in number, but big influence to share another set of

:17:38. > :17:41.characteristics. These are the people who play by different set of

:17:42. > :17:46.roles. They are wealthy, but not satisfied with just being wealthy,

:17:47. > :17:52.they also want to be tax-free. Being rich isn't rich enough. They lift

:17:53. > :17:58.across borders, homes and several countries, businesses located in low

:17:59. > :18:05.or no tax regimes. This isn't because they are busy or simply they

:18:06. > :18:09.are successful, it has has one overriding purpose to maximize the

:18:10. > :18:13.income, sheltered and other cured by tax authorities. Tax avoidance is

:18:14. > :18:17.not illegal, but the Prime Minister himself has criticized the

:18:18. > :18:23.aggressive tax avoidance schemes which so greatly... To muddy the

:18:24. > :18:28.waters over the last few days, some have suggested that ISA and helping

:18:29. > :18:32.your children are forms of tax avoidance. They are not. To my mind,

:18:33. > :18:38.avoidance is when you deliberately do something that Parliament never

:18:39. > :18:41.intended. Now, governments have legislated against particular means

:18:42. > :18:47.of avoidance, but to close this specific loophole eat time, this

:18:48. > :18:52.kind of tax work policymaking has been described as Ledeen holds in a

:18:53. > :18:56.colander or playing whack a mole. The point is that given the

:18:57. > :19:01.complexity of our tax system, tackling tax avoidance measure by

:19:02. > :19:04.measure is very hard to get right. The disclosure of tax avoidance

:19:05. > :19:10.games regulations introduced by the last Labour government in 2000 for

:19:11. > :19:14.work he to helping HMRC uncover new information about tax avoidance

:19:15. > :19:21.practices and get hold of that information early. -- Matt Groves

:19:22. > :19:27.two -- 2004. Intimacy as a result of that. And they can act quickly to

:19:28. > :19:35.set the schemes down. -- HMRC. These were the first estimate tipping for

:19:36. > :19:40.transparency. Cooperation with them is to be welcomed. As if the

:19:41. > :19:43.introduction of accelerated payment which I believe is successfully

:19:44. > :19:49.recovered more than ?2 billion in unpaid taxes. This bill includes a

:19:50. > :19:52.range of measures, including updates to general avoidance rules, the

:19:53. > :19:56.publication statements of tax trust and planning and a new asset-based

:19:57. > :20:01.energy system for large scale tax evasion. It is yet unclear what

:20:02. > :20:06.affect, if any, each measure will have. Even the most intense

:20:07. > :20:09.challenge to tax avoidance by government must compete with the

:20:10. > :20:14.ingenuity of legal and accounting experts, that the very wealthy and

:20:15. > :20:17.corporate giants have access to and the global nature of their

:20:18. > :20:20.enterprises. That is what I want Parliament to tackle one of the

:20:21. > :20:24.strongest weapons in the tax avoidance armory, that is secrecy.

:20:25. > :20:28.If there is one thing that the Panama papers have shown as is the

:20:29. > :20:35.urgent need for more chance parents the. While it is tempting to focus

:20:36. > :20:44.on the tax returns of MPs this week, for the records my taxable income

:20:45. > :20:53.for 2014-50 with ?50,000 on which I paid ?12,965 and 80 and syntax. The

:20:54. > :20:57.largest multinational is more in one week a combined annual income of

:20:58. > :21:01.every member of our limit. Not surprising and thank goodness, some

:21:02. > :21:04.effect, I want to make sure that in the midst of all the comments on tax

:21:05. > :21:09.we do not let the multinational companies off the hook. They agreed

:21:10. > :21:15.to pay eight HMRC 130 million in back taxes, the Chancellor Clinton

:21:16. > :21:24.victory. With my across party colleagues, we question both HMRC,

:21:25. > :21:29.after a long session not only was Google Middle East president unclear

:21:30. > :21:33.about his salary, we remain unclear as to whether the ?130 million

:21:34. > :21:36.represented a good deal. On top of what I then discovered that the

:21:37. > :21:43.government advert to profit tax does not in effect apply to them. This is

:21:44. > :21:48.still not certain as to what gaming revenue the government hopes for

:21:49. > :21:50.from this measure. Even the government estimates of the hundred

:21:51. > :22:00.?60 million a year are forthcoming it is not a drop in the ocean... I

:22:01. > :22:04.decide to introduce a role bill, that -- the transparency bill, the

:22:05. > :22:13.herbs of my bill is to require Argenta prizes to provide HMRC on a

:22:14. > :22:24.country by country basis information as a part of the annual return.

:22:25. > :22:31.I wonder if she would agree with me, that as well as taxpayers losing out

:22:32. > :22:36.on the multinational payment, the other loser are small businesses who

:22:37. > :22:42.have to pay tax and therefore it is not a level playing field, because

:22:43. > :22:46.they're paying taxes while some of the multinationals are getting away

:22:47. > :22:53.with it. She is absolutely right. This is a co-business measure, for

:22:54. > :22:57.so many small and medium businesses in other countries the world, there

:22:58. > :23:02.is no place to hide in terms of where they pay their tax and how

:23:03. > :23:10.much they pay. I believe putting information in a domain will help.

:23:11. > :23:18.After all the Chancellor himself told a meeting of European finances

:23:19. > :23:23.that he was in favor of it and he also tweeted about it, so it must be

:23:24. > :23:28.happening, I suppose. I have not heard reply yet, but I wait and

:23:29. > :23:30.anticipate it. One Treasury minister I am not sure if it is the

:23:31. > :23:35.honourable member on the permit suggested we cannot possibly do this

:23:36. > :23:39.unilaterally for fear we would disadvantage in comparison to our EU

:23:40. > :23:42.colleagues. I say this time we step up, the British people are sick of

:23:43. > :23:45.hearing story after story about big business is not paying their taxes

:23:46. > :23:53.stop to be honest, in the digital age of today and the future, privacy

:23:54. > :23:56.I don't think it will last. As that of relying on the exposure,

:23:57. > :24:01.whistle-blowing or technical mishaps we need government to lead our

:24:02. > :24:04.public chance parents eat. To those who argued that greater transparency

:24:05. > :24:07.for disadvantage -- would disadvantage is, as it is that's a

:24:08. > :24:13.good look at the settlement that France or Italy are pursuing with

:24:14. > :24:16.Google. Both governments look set to recover a greater sum in unpaid

:24:17. > :24:20.taxes than we were able to him despite each having a much smaller

:24:21. > :24:25.share of Google's business than we do. I also challenge the argument

:24:26. > :24:29.that public reporting would damage businesses. The information I

:24:30. > :24:31.propose that should be placed in the public domain is information that

:24:32. > :24:38.these businesses are required to get to HMRC, not of a commercial

:24:39. > :24:40.sensitive nature. Publication is a straightforward way to persuade

:24:41. > :24:45.those countries to come clean and explain their tax payment, but also

:24:46. > :24:50.to restore their tarnished reputations. I believe it will deter

:24:51. > :24:55.companies from using tax... It will send a strong signal to developing

:24:56. > :24:57.countries were often short-changed by corporations with huge

:24:58. > :25:04.undertaking to pay little or no taxes. Charities say that developing

:25:05. > :25:12.countries lose more advocates of revenue each year by corporate tax

:25:13. > :25:14.dodging then the amount given annually by all richer countries.

:25:15. > :25:19.They captivate the revenue losses of developing countries are 2-5 times

:25:20. > :25:26.higher than in developing countries. In this simple measures can help

:25:27. > :25:30.those countries to prosper and be more self-sufficient. It is vital

:25:31. > :25:34.for poorer nations, but just as important is the hand up, not just a

:25:35. > :25:39.hand down. In that will happen unless we force these companies to

:25:40. > :25:44.come clean. As illustrated, the Democratic Republican Congo --

:25:45. > :25:48.Digard Republic of Congo was deprived of money, twice the

:25:49. > :25:57.education and health budgets combined, due to contracts and five

:25:58. > :25:59.anonymous countries. How can a country like that ever be

:26:00. > :26:03.self-sustaining if deprived of vital taxes. I am grateful to the 50

:26:04. > :26:10.colleagues from six different parties... Perseid.

:26:11. > :26:25.The question is... The deferred divisions motion as on the order

:26:26. > :26:29.papers. I think the ayes have it. Thank you, Mr Speaker. I am very

:26:30. > :26:32.grateful to be 50 colleagues from six different parties who supported

:26:33. > :26:36.my ten minute rule, among them every backbench member of the public

:26:37. > :26:41.accounts committee. I hope to build that cross party support as I seek

:26:42. > :26:45.to amend this finance Bill. My interest today is not to grandstand,

:26:46. > :26:49.but to change the law. In January, 2012, the Prime Minister said we

:26:50. > :26:51.need a tougher approach. One of the things that were going to be looking

:26:52. > :26:55.at this year is whether there should be a general anti-avoidance power,

:26:56. > :26:59.that HMRC can use, particularly with very wealthy individuals and with

:27:00. > :27:02.the bases companies to make sure they pay their fair share -- the

:27:03. > :27:06.bigger companies. Many in this house agree. We must later, the Chancellor

:27:07. > :27:09.said "I was shocked to see that some of the very wealthiest people in the

:27:10. > :27:13.country have organised their tax affairs and, to be fair, it's within

:27:14. > :27:18.the tax laws so that they would regularly pay virtually no income

:27:19. > :27:23.tax, and I don't think that's right. Many would agree." In January, 2013

:27:24. > :27:26.the Prime Minister said "We want to drive a more serious debate on tax

:27:27. > :27:30.evasion and tax avoidance. This is an issue whose time has come. After

:27:31. > :27:36.years of the group views people across the planet are calling for

:27:37. > :27:40.more action and there is more political will to actually do

:27:41. > :27:45.something about it. Just last week. The Prime Minister said it's not

:27:46. > :27:47.their when you've got companies that are basically shuffling their

:27:48. > :27:50.profits around the world number rather than paying them in the

:27:51. > :27:55.country where they make their money. All the more reason than why help

:27:56. > :27:58.the government might adopt the purpose of the multinational

:27:59. > :28:04.enterprises financial transparency bill. However interesting, the Prime

:28:05. > :28:10.minister's current or recent tax returns are, they are but small

:28:11. > :28:12.compared to the need for openness by sophisticated multinationals using

:28:13. > :28:16.various needs to legally avoid paying tax in the countries where

:28:17. > :28:19.they earn much of their revenues. The reputation of the UK is

:28:20. > :28:26.tarnished by the number of tax havens that fly the Union Jack. A

:28:27. > :28:31.World Bank review of 213 corruption cases found that over 70% relied on

:28:32. > :28:35.secret company ownership. Company service providers registered in the

:28:36. > :28:37.UK and its overseas territories and Crown dependencies were second on

:28:38. > :28:43.the list and providing these companies. When government said

:28:44. > :28:46.banks should pay tax on their bonuses as on their wages, companies

:28:47. > :28:51.like Deutsche Bank, when the business secretary work there, put

:28:52. > :28:55.them out of reach offshore. I'm not a cynic, I'm an optimist and I

:28:56. > :28:59.believe in the good of people to do the right thing. I don't believe

:29:00. > :29:02.they would ever be a perfect system to catch those who will use every

:29:03. > :29:07.device they had to avoid paying the tax that is due. But I do believe

:29:08. > :29:12.that backing public, country by country, reporting is vital to

:29:13. > :29:15.addressing deliberate and sophisticated tax avoidance. So I

:29:16. > :29:21.urge the government, do not wait for the EU or the OECD, adopt my public

:29:22. > :29:27.disclosure measure into this finance bill and let the UK lead where I'm

:29:28. > :29:33.sure other follow. Hear, hear! Kirsty Blackmon. Thank you very

:29:34. > :29:36.much, Mr Speaker. It's a pleasure to have the opportunity to speak in

:29:37. > :29:42.this second reading of the finance Bill. I'm delighted that you're back

:29:43. > :29:46.in the chair, not what -- not least because I get totally confused if

:29:47. > :29:51.it's a different speaker who's actually in the chair. Can I say to

:29:52. > :29:57.the honourable Lady, it is good to know what one's use it. LAUGHTER

:29:58. > :30:04.I'm sure that there are many in viewing, Mr Speaker, not just him.

:30:05. > :30:07.As a relative newbie to Parliament, I find myself fascinated by the fact

:30:08. > :30:13.that this house manages to have incredibly complicated and

:30:14. > :30:17.incredibly cumbersome processes hoops to jump through in order to

:30:18. > :30:22.get the legislation through. At the same time these processes are

:30:23. > :30:26.entirely open eight and provide the public with the smallest hostel

:30:27. > :30:30.amount of useful information. Mr Speaker, I want to speak about

:30:31. > :30:34.numbers. I want to talk about oil and gas, which won't be in any way

:30:35. > :30:41.surprised about. I want to talk about the changes for those in rural

:30:42. > :30:45.communities, particularly. I want to start by talking about one of the

:30:46. > :30:49.things that my honourable member from Leeds West was talking about,

:30:50. > :30:54.which was safety issues. I want to briefly mention the savings so is

:30:55. > :31:00.that the UK government's attempted to undertake here. This is not a

:31:01. > :31:05.budget for hard-working and young people. At all. Increasing the level

:31:06. > :31:11.of tax evens only helps those people that can afford to save thousands of

:31:12. > :31:14.pounds every year. Most hard-working people aren't helped by this. Just

:31:15. > :31:17.because somebody earns a high income doesn't necessarily mean they're

:31:18. > :31:23.hybrid -- hard-working. A lot of hard-working people are pretty low

:31:24. > :31:26.incomes. Early in the Chancellor's pertain to living wage, which is not

:31:27. > :31:30.a recognised as being enough to live on, struggle to make it to the end

:31:31. > :31:35.of the month let alone having their money to save for the future. The

:31:36. > :31:39.hell does a scheme which is included in the budget is welcome, but for

:31:40. > :31:43.working the minimum of 16 hours a week on the continued living wage

:31:44. > :31:46.will only be earning ?500 a month and they are hardly likely to be

:31:47. > :31:50.able to spend 10% of that income on savings. Rather than on immediate

:31:51. > :31:55.concerns. The tax measures in this finance Bill is proportionately

:31:56. > :32:03.reward unaired income. It continues to ensure that tax avoidance is not

:32:04. > :32:06.illegal, only immoral. Many of my constituents find himself living

:32:07. > :32:10.from paycheck to paycheck and they cannot imagine having the comfort

:32:11. > :32:15.and by those with 6-figure salaries, large savings and stocks and shares.

:32:16. > :32:22.I presume this is the case for much... But have no idea what it's

:32:23. > :32:25.like to exist in a low income with a lack of financial long-term

:32:26. > :32:29.security. An absolute necessity to have a reliance on the state also.

:32:30. > :32:34.For some people there is no ability to have a cash in the bank to fall

:32:35. > :32:38.back on. Rather than opening this together, too many members of this

:32:39. > :32:41.house cannot comprehend the real world that most of my constituents

:32:42. > :32:46.live in. If you'd deal with reality check for being allowed to make tax

:32:47. > :32:55.dollars he, this changes are hardly so for anyone. As has been said,

:32:56. > :33:02.disproportionate numbers of those earning above ?120 that's one of the

:33:03. > :33:04.50 -- 100 ?50,000 a year that is not helpful for hard-working rural

:33:05. > :33:08.income families, ridiculously young people. I am delighted that

:33:09. > :33:15.repetition is encouraged in this place. You'll be talking about the

:33:16. > :33:19.get about oil and gas. Quite useful, you can recycle the speech. LAUGHTER

:33:20. > :33:25.Oil and gas, yes I'm also recycling my college and my research B says

:33:26. > :33:31.well. LAUGHTER Oil and gas is vital for editing and

:33:32. > :33:34.Scotland as well. Some measures in this bill go a little way to

:33:35. > :33:37.introducing the situation for a little and gas companies in the

:33:38. > :33:40.current economic climate. The Buddy Guy knows when the oil price is

:33:41. > :33:46.going to go back up. Or what level it will finally go to. -- nobody

:33:47. > :33:49.knows. Oil prices are completely unpredictable. Just know the UK

:33:50. > :33:53.government needs to be sure that they are committed to the future of

:33:54. > :33:59.this in the North Sea in order to ensure investor confidence. There is

:34:00. > :34:03.a limited charge, reducing that from 20% to 10%. Oil and gas companies

:34:04. > :34:07.will still be significantly more than most companies. The industry is

:34:08. > :34:12.vital to Scotland and reticulating northeast of Scotland and to my city

:34:13. > :34:20.of Aberdeen. Back in 2014, Sir Ian published a report and the energy

:34:21. > :34:23.bill which is currently due to be discussed again tomorrow, submits

:34:24. > :34:33.the position of the oil and gas is to streak. I would like to call the

:34:34. > :34:38.OGA,... Maximise the work every of the UK offshore. This can only

:34:39. > :34:42.happen if there is serious consideration to the tax regime for

:34:43. > :34:47.companies starting oil and gas in the UKCS. This will be built up over

:34:48. > :34:50.the last half a century with members being added and taken away as the

:34:51. > :35:01.government deems and decisions change. Now that the UKCS can be

:35:02. > :35:04.considered mature, in fact some are calling in super mature, I would

:35:05. > :35:07.suggest that now is the time to look afresh at the fiscal measures in

:35:08. > :35:11.relation to taxation on the oil and gas industry. And so the UK

:35:12. > :35:14.government can commit to doing this though, there are some individual

:35:15. > :35:21.issues that I things should be looked at and a matter of urgency as

:35:22. > :35:27.opposed to an major overhaul. If we are doing minor overhauls, this is

:35:28. > :35:33.the key one for us. Corporate plan for 2016-21. The 28 in testing issue

:35:34. > :35:38.and recovery strategy the first half of this year. -- the OGA. If the UK

:35:39. > :35:42.government was to take actions for the activity of enhanced oil and tax

:35:43. > :35:45.allowance that could be offset against income, rather than counting

:35:46. > :35:52.as operational expenditure, then that would suggest that the OGA

:35:53. > :36:01.strategy could be easily more ambitious, but still be achievable.

:36:02. > :36:05.... We really need to be working in different and new ways in order to

:36:06. > :36:08.get the oil out it. It's much more difficult and it's much more costly.

:36:09. > :36:15.Therefore, I think it would benefit from a fresh look at tax regime. And

:36:16. > :36:20.how that income is considered, or that expense. Finally on specific

:36:21. > :36:29.issues about gas industry. I welcome the fact... I think is really

:36:30. > :36:31.important that this relates particularly to the industry and

:36:32. > :36:36.have got the ability to take on those assets in the North Sea

:36:37. > :36:43.expletive for a longer period of time there may be a big player

:36:44. > :36:48.would. I want to mention terms of decommissioning. We moved during the

:36:49. > :36:53.energy bill suggestion that decommissioning tax incentives are

:36:54. > :36:58.put in place in relation to UK decommissioning, so that as much of

:36:59. > :37:01.that as possible is taking place in the UK and was benefiting UK

:37:02. > :37:04.companies. It's really important that the UK becomes very good at

:37:05. > :37:09.decommissioning because then we can export that full stop I would

:37:10. > :37:13.appreciate it if the guy that would consider incentivizing UK spends,

:37:14. > :37:17.whatever way that could be. That's something that work gone to be

:37:18. > :37:21.talking about in the next instance of the finance Bill. Moving on from

:37:22. > :37:24.oil and gas, on a more general point, I want to find out the issues

:37:25. > :37:28.with the government to propose tax on travel provided by those

:37:29. > :37:35.intermediaries. There is no question that this disproportional hits rural

:37:36. > :37:40.communities. It's perfectly legitimate and sometimes include the

:37:41. > :37:42.sensible that individuals gang go through intermediaries. I would

:37:43. > :37:46.suggest that the government on this one hasn't really thought it

:37:47. > :37:50.through. Or perhaps they are just not grasping quite how brutal some

:37:51. > :37:55.of these communities are. -- world. It can be absolutely necessary for

:37:56. > :37:59.people who do were to stay overnight. And the course of

:38:00. > :38:03.fulfilling a task that can in no way be seen as part of a daily commute.

:38:04. > :38:07.I understand what the government assigned to do in terms of this, but

:38:08. > :38:12.it just doesn't apply to every situation. There are islands off the

:38:13. > :38:15.coast of Scotland where local police teacher may have to stay because

:38:16. > :38:19.they are not particularly having regular taskbar. They should receive

:38:20. > :38:23.tax receipt -- relief on a hotel stay that are experiencing, and it

:38:24. > :38:30.is not a daily commute, it is a necessary part of the job. And make

:38:31. > :38:34.may not possibly get home. About were that is heavily reliant in oil

:38:35. > :38:39.and gas companies, this can make impact. Due to specialisation in oil

:38:40. > :38:43.and gas, many people from the oil and gas industry are employed

:38:44. > :38:48.contractors, disproportionately so. Removing the tax allowance that

:38:49. > :38:53.workers can use... It would surely be a bizarre way to go about

:38:54. > :38:57.supporting the oil and gas industry or rural communities. I think a

:38:58. > :39:00.specific case could be argued. Many of our rural communities are not

:39:01. > :39:06.diverse. In terms of the appointment that they have. Impact like this

:39:07. > :39:11.could have a significant and disproportionate negative impact on

:39:12. > :39:17.those rural communities. Mr Speaker, the S are concerned both about the

:39:18. > :39:20.future of oil and gas industry and about the factors in rural

:39:21. > :39:24.communities. When we reach the committee stage of the finance Bill,

:39:25. > :39:28.we will be making an immense. The Tesla has claimed he will listen and

:39:29. > :39:32.learn. We will be testing him. Ask the Chancellor has claimed he will

:39:33. > :39:44.listen and learn. Thank you, Mr Speaker. Packed to the rafters...

:39:45. > :39:51.LAUGHTER I knew you were coming. And your

:39:52. > :39:53.news with the shadow Chancellor is in the speech, which would give me

:39:54. > :40:01.the opportunity to give a little bit of advice. It's also an opportunity,

:40:02. > :40:09.not for the first time and not for the second occurred, but for the

:40:10. > :40:11.fourth time, to have the government recognise the advice that I have

:40:12. > :40:20.given the House, that they've accepted. Starting with the past

:40:21. > :40:27.attacks and... When the government listen to the advice I gave. This

:40:28. > :40:35.time it's the thousand pounds on interest in the threshold on

:40:36. > :40:40.taxation. When I propose that it was for different reasons that I pretend

:40:41. > :40:44.it was incentive for saving as the government is vainly attempting to

:40:45. > :40:51.do, I suggest it's a rather sensible because so many people have an

:40:52. > :40:54.irritation with their tax returns and try to work out minuscule

:40:55. > :41:04.amounts of interest. It's been accepted and I will do have

:41:05. > :41:11.therefore a fifth proposal under this Chancellor, taken that I'm sure

:41:12. > :41:17.at this moment, that in waiting... In order to improve future budgets.

:41:18. > :41:21.This time I'm a Chancellor is keen on certain regions. One of the few

:41:22. > :41:28.things he's doing where I'm not totally increased -- disagreement

:41:29. > :41:31.with them. -- I'm not totally in disagreement with them. This is

:41:32. > :41:37.moving ahead appropriately with the support of our counsel amongst

:41:38. > :41:44.others. It would be sensible. In the near future. For the government to

:41:45. > :41:50.be devolving, as I've are ready propose, some support funding to

:41:51. > :41:54.certain regions but they would've gone a lot further. None of the key

:41:55. > :41:58.problems in our infrastructure in this country is broadband. I would

:41:59. > :42:07.like to see the delivery of broadband default to city regions

:42:08. > :42:15.over the next year. In order that areas like mine can get ahead of the

:42:16. > :42:18.game, that city regions can get ahead of the game which they will

:42:19. > :42:24.need to be because one of the great failures of this government is that,

:42:25. > :42:31.when it comes to broadband, we are lagging behind too much of the world

:42:32. > :42:34.we should be leaders. We are not leaders in this as we should be.

:42:35. > :42:42.It's a false comfort that the government gives every year. About

:42:43. > :42:49.progress, progress is far too slow. Indeed, as was in Japan last week,

:42:50. > :42:56.the opportunity for a little bit of Skype using the superfast broadband

:42:57. > :43:02.available from our country. It gives connectivity, which we do not have.

:43:03. > :43:07.In this country. That would be appropriate in a certain region. A

:43:08. > :43:12.second idea, that would hope to be accepted by the Chancellor because

:43:13. > :43:16.he says it in favour of being a world leader in superfast broadband,

:43:17. > :43:23.but as well and terms of housing delivery. I would like to see the

:43:24. > :43:31.targets on housing, city regions, having to agree with government.

:43:32. > :43:36.Tied to a borrowing potential in order that that housing can be

:43:37. > :43:41.delivered. So allow a borrowing potential that is directly linked to

:43:42. > :43:49.the agreed housing target for city regions. To allow city regions such

:43:50. > :43:53.as Sheffield city regions -- regions to develop ahead of many parts of

:43:54. > :43:58.the world, superfast broadband, but also to getting housing delivery

:43:59. > :44:03.moving, and of course we have, as I've said previously, it's not been

:44:04. > :44:06.documented it -- it has not been adopted yet but sure will be woolly

:44:07. > :44:14.talk about housing... The key demand in my area is for bungalows and we

:44:15. > :44:18.have now prefabricated bungalows coming on stream. The biggest

:44:19. > :44:23.producer anywhere in the country, but by bungalows? Because we have a

:44:24. > :44:30.lot of people, the government ridiculously attempted the bedroom

:44:31. > :44:39.tax. Of course there were elderly, single pensioners. Also there, HDTV

:44:40. > :44:44.modern bungalow. Many people would read them willingly. The demand

:44:45. > :44:48.would be huge and others would buy them. Evolved that power away from

:44:49. > :44:58.central government. And housing delivery. It would be dramatically

:44:59. > :45:01.faster to... Said to be a key government priority. I put that idea

:45:02. > :45:06.forward optimistically, knowing that as with the community

:45:07. > :45:12.infrastructure, with the Jonathas is, as with the past attempts, as

:45:13. > :45:18.with the interest on savings. That it is adopted, of course, it needed

:45:19. > :45:28.the asthma of those are attributed to me -- it needn't be. To my own

:45:29. > :45:33.friends manage with the shadow Chancellor here, my advice would be

:45:34. > :45:39.in honing in on the key fundamental weaknesses of this government that

:45:40. > :45:48.there are four, and that we should be sticking repeatedly to four key

:45:49. > :45:53.things. The first is inequality. The reason being, and this has been well

:45:54. > :45:56.articulated, the rich are getting richer and the poor getting poorer.

:45:57. > :46:03.The country does not want that and that why there is such a huge

:46:04. > :46:10.reaction to be prime minister and the off shoring. People don't like

:46:11. > :46:13.the idea that the rich are getting so much richer and the poor are

:46:14. > :46:17.getting poorer. That is not a British value. We as a party should

:46:18. > :46:24.be honing in on that because that is economic policy. Second,

:46:25. > :46:30.productivity. The government is in a huge dilemma because it is not

:46:31. > :46:33.delivering on productivity. It is not delivering on productivity

:46:34. > :46:38.because in this country when it comes to be skills agenda, we

:46:39. > :46:43.commanded around apprenticeships as if it's anything and everything.

:46:44. > :46:49.From 80,000 hairdressing apprenticeships that never become

:46:50. > :46:54.jobs, through to be 60,000 McDonald's... What is wrong with

:46:55. > :46:56.that? Nothing is wrong, but what's wrong is having 80,000

:46:57. > :47:00.apprenticeships who don't go into the industry because there the

:47:01. > :47:07.vacancies there and not spending the money in the areas where we need

:47:08. > :47:09.apprenticeships, which more complex, it's more difficult in

:47:10. > :47:13.manufacturing, craft skills, building skills, so we don't get and

:47:14. > :47:17.we docket in the government and the government has ducted and that is

:47:18. > :47:22.why productivity fails to grow. We ask that should be honing in

:47:23. > :47:30.productivity. The 30th homeownership. It was regarded as

:47:31. > :47:34.the third is homeownership. It was regarded as the thing most

:47:35. > :47:37.associated with Margaret Thatcher and certainly, in terms of winning

:47:38. > :47:44.over labour voters, it was the fundamental one that shifted from

:47:45. > :47:47.labour voters voting Tory, particularly in 1979 and 1983. The

:47:48. > :47:54.concept that Tory party was the party of homeownership. It has been

:47:55. > :47:59.the story. Over the last six years. We should be taking that mantle up.

:48:00. > :48:05.We are in favour of homeownership and the young people in my area, of

:48:06. > :48:08.course they want rented accommodation, temporarily, but

:48:09. > :48:14.their vision am in their aspiration is to own home. I don't know any who

:48:15. > :48:22.don't want that and this government has repeatedly made that harder and

:48:23. > :48:25.more distant. That is a core label value that we should be having that

:48:26. > :48:30.score Labour value. The fourth one is this government has repeatedly

:48:31. > :48:35.refused the last labour government of mortgage in the future, of

:48:36. > :48:41.loading debt on future generations. The fact of the matter is that I'm

:48:42. > :48:46.as this Chancellor, who more than any other in British peacetime

:48:47. > :48:54.history, has loaded the national debt up with his backbenchers,

:48:55. > :49:00.confusing deficit Index, the national debt keeps going up

:49:01. > :49:04.dramatically under him. Under him is gone dramatically up. This year itch

:49:05. > :49:09.or medically up. The projections are for the next five years a goes

:49:10. > :49:16.dramatically up. This is fundamental economic failure of an unprecedented

:49:17. > :49:20.level by this government. We should be, I certainly give way. The

:49:21. > :49:26.confirmation of the fax from a member of the tertiary select

:49:27. > :49:29.committee. I'm very grateful. Two are present the back benches would

:49:30. > :49:33.be to be defence of the Chancellor. Would he not agree that the rate of

:49:34. > :49:41.increase of the debt was 156 billion pounds a year in 2010, and he reduce

:49:42. > :49:46.that rate. He's done a terrific job, you can't deny that. Hear, hear!

:49:47. > :49:53.So the loss is not as big as it was, but they are still losses. LAUGHTER

:49:54. > :49:59.One can imagine if I put that argument in 2010 one 2009, what the

:50:00. > :50:07.response would have been. I haven't got the references here. So I won't

:50:08. > :50:10.waste time, Mr Speaker. But that there because they had been shadow

:50:11. > :50:14.Chancellor, the then Leader of the Opposition and many backbenchers

:50:15. > :50:21.were happy to make precisely that kind of point. This is a fundamental

:50:22. > :50:26.economic weakness. And it is one that is put in this country is

:50:27. > :50:30.putting his country to a use long-term economic is advantage

:50:31. > :50:41.compared to our competitors. Therefore, when I met my proposal in

:50:42. > :50:43.the city regions and broadband, that wasn't a shopping issue, that was

:50:44. > :50:48.fundamental to getting this country economically competitive again. How

:50:49. > :50:57.can we have the new growth industry in areas like mine... Or in villages

:50:58. > :51:00.like mine? You can get even simple broad man boast of the time. And you

:51:01. > :51:07.struggle to get a mobile phone signal. This is not where the world

:51:08. > :51:12.is at and where, and get this country is added to its fundamental

:51:13. > :51:18.economic failure. There's one other failure, it this is slightly long,

:51:19. > :51:23.Mr Speaker... Because the wind has not been made and it's incredibly

:51:24. > :51:29.important in my view. I'm sure the House will agree with me. On all

:51:30. > :51:37.sides. The failure of the government when it comes to tackling tax

:51:38. > :51:44.avoidance and off shoring. Referred a lot of the dairy. -- Thierry. Let

:51:45. > :51:49.me tell you what the people who do the advising on tax avoidance say.

:51:50. > :51:58.Because they are the best source on this. A politician from whichever

:51:59. > :52:01.party of persuasion, not them but the people who are competing for the

:52:02. > :52:06.business of the very people who want to minimise their taxes. By off

:52:07. > :52:15.shoring because they are wealthy enough to do them. Here we seem that

:52:16. > :52:20.they are eulogizing the facts that the agreements reached with the

:52:21. > :52:32.Canaanite rulings, the British Virgin Islands, Bermuda and to

:52:33. > :52:36.Cagle's are not reciprocal, meaning" the UK financial institutions will

:52:37. > :52:43.not have any reported obligations under the terms of the agreements

:52:44. > :52:48.also. It's a fundamental weakness. A fundamental weakness highlighted in

:52:49. > :52:56.comparison with what the Americans have done. We are not the leaders in

:52:57. > :53:03.this. We are well behind what the United States has done. In terms of

:53:04. > :53:11.enforcing transparency. And these are people, countries who rely on us

:53:12. > :53:24.for their defence. We pay for their defence. Not them, us. We haven't

:53:25. > :53:33.been for ages. While these overseas territories... Quirks of history...

:53:34. > :53:40.If they wish to remain as parts of the United Kingdom, then they need

:53:41. > :53:47.to abide by our rules. Play by our rules. If you like, speak our

:53:48. > :53:54.language. I'm a strong supporter that we then will defend them, via

:53:55. > :53:59.Falklands Islands, Bermuda, the Cayman Islands, but what is not

:54:00. > :54:04.acceptable is not reciprocal agreements whereby, if you're a

:54:05. > :54:11.resident living in those Caribbean tax havens... You can't do anything

:54:12. > :54:22.about the so-called great advanced world leading, already implemented.

:54:23. > :54:25.Proposals of previous governments budgets. Nothing in this budget and

:54:26. > :54:31.nothing in the announcements today deal with that. But there's a second

:54:32. > :54:39.one. The Liechtenstein disclosure facility. What has that got to do

:54:40. > :54:45.with these territories and tax havens? Well, I thought probably not

:54:46. > :54:48.because you need to set up some interesting that nine in order to

:54:49. > :54:56.qualify to the which is kind disclosure facility. Until I read

:54:57. > :55:05.about worry we are with financial compliance obligations, according to

:55:06. > :55:08.those advising people who want to avoid taxes. They are absolutely

:55:09. > :55:29.clear in relation to it. " It may be better to come forward

:55:30. > :55:34.under the LGF now and clients who can benefit need to be identified.

:55:35. > :55:41.Although there are several ways to make voluntary disclosures to HMRC,

:55:42. > :55:44.the LGF continues to offer extreme benefits of times despite the new

:55:45. > :55:48.restrictions in eligibility and remains one of the most dynamic

:55:49. > :55:53.roots of disclosing to HMRC". According to taxation.co.uk.

:55:54. > :56:00."Participants Will achieve immunity from prosecution. There is no need

:56:01. > :56:09.to have held and offshore asset at all, in order to access the LGF. The

:56:10. > :56:15.only people who can't are those who have are ready been investigated

:56:16. > :56:20.criminally. I HMRC. So what this goes through, under the gas and

:56:21. > :56:28.there are many of these in huge detail, is expanding how people

:56:29. > :56:34.ask... Example of someone who is self-employed and how they could

:56:35. > :56:40.then go forth with a which is fine the closer facility. How people, and

:56:41. > :56:44.this has been widely advertised across the Caribbean and other tax

:56:45. > :56:48.havens, should shift to this because I do because of April this year, for

:56:49. > :56:58.the last three years, people have been able to minimise their tax by

:56:59. > :57:05.early disclosure, cheap them back cheaply and beneficially. -- by the

:57:06. > :57:10.5th of April this year. That's what's been going on for the last

:57:11. > :57:13.three years. When the figures finally come out, which they will,

:57:14. > :57:17.we will see the vast numbers who have used this loophole to live

:57:18. > :57:20.really set up, deliberately advertised.