06/11/2017

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0:00:20 > 0:00:23Hello, and welcome to Monday In Parliament.

0:00:23 > 0:00:26Our look at the best of the day in the Commons and the Lords.

0:00:26 > 0:00:29On this programme, Labour calls for a public enquiry over tax

0:00:29 > 0:00:31avoidance after the leak of millions of documents showing how wealthy

0:00:31 > 0:00:41firms and individuals investing offshore tax havens.

0:00:42 > 0:00:50It is obscene that rich people should seek to get even richer by

0:00:50 > 0:00:57putting their millions in offshore bank accounts.This Government is

0:00:57 > 0:01:01taking -- is taking tax avoidance very seriously.

0:01:01 > 0:01:06Also, pleas for greater support for the mental health sector.

0:01:06 > 0:01:10The sticking plaster approach has not and will not be in the future,

0:01:10 > 0:01:11good enough.

0:01:11 > 0:01:13And MPs vent their feelings about transport issues

0:01:13 > 0:01:17in the North of England.

0:01:17 > 0:01:21The reality is in recent times we seem to have hit the buffers.

0:01:21 > 0:01:23But first, the Shadow Chancellor, John McDonnell, has claimed

0:01:23 > 0:01:26the Government has failed to crack down on the biggest tax

0:01:26 > 0:01:28scandal of a generation.

0:01:28 > 0:01:34It follows the revelations of BBC's Panorama that millions of leaked

0:01:34 > 0:01:39financial documents known as the Paradise Papers disclosed

0:01:39 > 0:01:41by the programme how tax havens such as the Indian Ocean island

0:01:41 > 0:01:45of Mauritius have been used to shelter funds.

0:01:45 > 0:01:49The disclosures include details of how three stars of the BBC show

0:01:49 > 0:01:52Mrs Brown's Boys have diverted fees into companies in Mauritius and sent

0:01:52 > 0:01:55money back as loans.

0:01:55 > 0:01:59The papers show how wealthy individuals, multinational firms,

0:01:59 > 0:02:02celebrities and political leaders have used complex financial

0:02:02 > 0:02:10structures to protect their funds from higher levels of taxation.

0:02:10 > 0:02:12In the Commons, a Treasury minister said the Government had

0:02:12 > 0:02:19a good record on cracking down on tax avoidance.

0:02:19 > 0:02:21HMRC are already benefiting from the exchange of financial account

0:02:21 > 0:02:23information to the common reporting standard,

0:02:23 > 0:02:25an initiative in which the

0:02:25 > 0:02:28UK has led the world with over 100 jurisdictions signed up.

0:02:28 > 0:02:30The Crown dependencies and overseas territories are among those signed

0:02:30 > 0:02:32up to this initiative and have been exchanging

0:02:32 > 0:02:33information with HMRC for

0:02:33 > 0:02:39over a year.

0:02:39 > 0:02:44The use of offshore accounts or trusts do not automatically mean

0:02:44 > 0:02:48dishonesty but this House should be as sure that under this Government

0:02:48 > 0:02:52the HMRC will continue to bed down with bigger on any tax avoidance and

0:02:52 > 0:03:04evasion activities whenever it may be fun. -- with vigour.Unless there

0:03:04 > 0:03:08is a critically overriding reason for the chance to not of the year I

0:03:08 > 0:03:12believe the House will consider it unacceptable he is not here to

0:03:12 > 0:03:17address the biggest tax scandal of this generation. The Minister's

0:03:17 > 0:03:23response today was the same plaster. Every pound of tax avoided is a

0:03:23 > 0:03:28pound taken away from the NHS, our children's education and care for

0:03:28 > 0:03:34the elderly and disabled. Given the chairman of the Conservative party

0:03:34 > 0:03:42and Chancellor Duchy of Lancaster... Has the transfer or any minister

0:03:42 > 0:03:46discussed these revelations with the right honourable member for

0:03:46 > 0:03:50Derbyshire Dales and will she be apologising to our Majesty for the

0:03:50 > 0:03:54embarrassment this episode has caused? Will he now also agreed to

0:03:54 > 0:03:59Labour's proposes to establish an independent public enquiry for tax

0:03:59 > 0:04:06avoidance. If this Government refuses to act, this next Labour

0:04:06 > 0:04:11Government well.He raises the issue of the measures he and his party put

0:04:11 > 0:04:17forward in the last Finance Bill. It is this party that has put an end...

0:04:17 > 0:04:23And it was the party opposite that sought by voting against that Bill

0:04:23 > 0:04:32at third reading to stop that happening.Seems to be an

0:04:32 > 0:04:36extraordinary misunderstanding with the Shadow Chancellor between

0:04:36 > 0:04:41avoidance and evasion. Evasion is illegal, avoidance is dormer. People

0:04:41 > 0:04:53putting their money into an ice are avoiding tax. -- ISAs arc is

0:04:53 > 0:04:59completely legal. It is a moral issue. If a political party in a

0:04:59 > 0:05:05tax-exempt company spending £1 million in rent, that is morally

0:05:05 > 0:05:11wrong avoidance. That is what your party does.Does the Minister not

0:05:11 > 0:05:15recognise it is obscene that rich people should seek to get even

0:05:15 > 0:05:18richer by putting away their billions in offshore bank accounts

0:05:18 > 0:05:24whilst working people suffer the longest speculation on wages for 150

0:05:24 > 0:05:30years?With the Minister considered, it is not just a question of

0:05:30 > 0:05:35countries such as Bermuda and the Cayman Islands, but also the

0:05:35 > 0:05:40Republic of Ireland and the Netherlands where tax advantages

0:05:40 > 0:05:44could be set up. Rather than singling out those jurisdictions, we

0:05:44 > 0:05:49should just recognise in a global environments where capital is free

0:05:49 > 0:05:52the importance is the UK tax structure on wealth and that is

0:05:52 > 0:05:56something the Government has got right.It may well be that

0:05:56 > 0:06:00sheltering from the tax authorities yet some is greater than the GDP of

0:06:00 > 0:06:04many countries is not illegal but I would ask the Minister to agree with

0:06:04 > 0:06:09me that that is precisely the problem and the Paradise papers

0:06:09 > 0:06:16revelations and massive sums involved over no hiding place for

0:06:16 > 0:06:19those who were denied a public register of beneficial ownership of

0:06:19 > 0:06:24transcend class as well as businesses.Is the Minister worried

0:06:24 > 0:06:27about the tangled web of Russian money that appears to be involved at

0:06:27 > 0:06:33very high levels as shown by these leaks. Will he not agree that there

0:06:33 > 0:06:39is now a great public interest in having transparency of ownership and

0:06:39 > 0:06:43getting these registers published as soon as possible. Why doesn't the

0:06:43 > 0:06:46Government just make an announcement that the overseas territories are

0:06:46 > 0:06:50going to do that and get on with it? I wanted to highlight the new

0:06:50 > 0:06:55criminal offence we have created problems that don't stop their staff

0:06:55 > 0:06:59facilitating tax evasion. The first time under the criminal offences act

0:06:59 > 0:07:052017 companies will be heard criminally liable if they fail to

0:07:05 > 0:07:11stop their employees facilitating tax evasion. Does he agree that this

0:07:11 > 0:07:21Government is taking tax avoidance seriously?Why will the Government

0:07:21 > 0:07:24not insist that our overseas territories, our tax havens have to

0:07:24 > 0:07:29have public registers of beneficial ownership? Why will they not do that

0:07:29 > 0:07:37now?As the honourable lady will know, there are many good reasons

0:07:37 > 0:07:45why perfectly honest and decent individuals use trust. We have also

0:07:45 > 0:07:50made a great deal of process in the comment using process standards

0:07:50 > 0:07:53across 100 different countries including those to whom she alludes.

0:07:53 > 0:07:54Mel Stride.

0:07:54 > 0:07:56And at the Paradise Papers were also being talked about

0:07:56 > 0:08:02over in the House of Lords.

0:08:02 > 0:08:05Does the Government is not recognised that the ordinary

0:08:05 > 0:08:09taxpayer hearing again this news today is utterly outraged? That if

0:08:09 > 0:08:14you are rich or if you are a business then you can avoid tax,

0:08:14 > 0:08:19there are schemes on an industrial scale? They are protected by lack of

0:08:19 > 0:08:26transparency.What's we are seeking is the development of a full public

0:08:26 > 0:08:31enquiry into tax avoidance. Nothing less than that, my lords, will

0:08:31 > 0:08:36restore confidence in our nation that in fact this Government is

0:08:36 > 0:08:40inadequate in its approach to the whole wretched issue.I declare my

0:08:40 > 0:08:45interest as an investor in a wide range of assets including offshore

0:08:45 > 0:08:51investments. Would my noble friend agree that millions of UK savers and

0:08:51 > 0:08:55pensions let alone Her Majesty benefit directly or indirectly from

0:08:55 > 0:09:01offshore investments and to suggest that they are avoiding taxes simply

0:09:01 > 0:09:05fake and false news? For those who take the time to properly understand

0:09:05 > 0:09:08offshore investment vehicles, they would realise that the underlying

0:09:08 > 0:09:12purpose is to provide an efficient and predictable umbrella structure

0:09:12 > 0:09:17to track the widest possible range of investors from around the world.

0:09:17 > 0:09:24They are in fact set up to minimise the amount of tax paid within the

0:09:24 > 0:09:28offshore entity and consequently to maximise the return is flowing back

0:09:28 > 0:09:32to investors, allowing them to pay tax directly in their own countries.

0:09:32 > 0:09:34Coincidentally, the head of Revenue and Customs -

0:09:34 > 0:09:37the taxman to you and me - was appearing in front of the

0:09:37 > 0:09:38Commons Public Accounts Committee.

0:09:38 > 0:09:46So what did he know about the Paradise Papers?

0:09:46 > 0:09:51Have you seen the papers that were leaked to the Guardian and the BBC?

0:09:51 > 0:09:57The so-called Paradise papers? No. Did you know anything about this and

0:09:57 > 0:10:00whether it was coming?We knew there was a leak coming, we have known for

0:10:00 > 0:10:05some time, but we do not have access to the material provided by the

0:10:05 > 0:10:11International Consortium of investigative journalist to the BBC

0:10:11 > 0:10:17ought to the Guardian. We have not had access to that. We have

0:10:17 > 0:10:21requested access two weeks ago. How long have you known about it?

0:10:21 > 0:10:25Rumours have said it was coming for a few months.Sue you requested it

0:10:25 > 0:10:31two weeks ago?What has been the result of the request? We have not

0:10:31 > 0:10:37received a reply.Asking the international Consortium of

0:10:37 > 0:10:40journalists and according to provide you with more information?We will

0:10:40 > 0:10:48take intelligence from any source. We have 100,000 meets... We would

0:10:48 > 0:10:57happily take the data so we could investigate whether there is tax

0:10:57 > 0:11:07evasion.From what has been released so far do you believe that HMRC did

0:11:07 > 0:11:15not know already?Potentially in one case. I need to be careful because I

0:11:15 > 0:11:19cannot get into the particular case and I understand there is a second

0:11:19 > 0:11:21episode of panorama today whether there will be further information

0:11:21 > 0:11:32given. Under the 2005 act, we can't discuss any individual taxpayer.You

0:11:32 > 0:11:36are prepared to look at every allegation in full?We certainly

0:11:36 > 0:11:41are. At the same way we did with Panama, we will look at every case

0:11:41 > 0:11:45of tax evasion seriously. We have secured significant revenues from

0:11:45 > 0:11:50overseas for those trying to hide oversees more than £2.8 million. It

0:11:50 > 0:11:56is worth the repeating that because I don't want anyone to feel like we

0:11:56 > 0:12:01are complacent in any way. We will chase those people down who try to

0:12:01 > 0:12:05hide money offshore and update their attacks.He said the serious enquiry

0:12:05 > 0:12:13regarding the Paradise papers two weeks ago. You have had no response.

0:12:13 > 0:12:19There are key British institutions here, the BBC and the Guardian. Does

0:12:19 > 0:12:25this not become an issue that needs to be resolved when HMRC makes an

0:12:25 > 0:12:31enquiry of a British institution or taxpayer it should respond to you?

0:12:31 > 0:12:40In my opinion, it should. To be clear, the ICIJ is based in the

0:12:40 > 0:12:45United States. We will continue to request information. They are making

0:12:45 > 0:12:52a decision to not give it to us. This is non-compliance by the BBC

0:12:52 > 0:13:00and the Guardian?They have to make a decision. I am not responsible for

0:13:00 > 0:13:09the BBC regarding bar for the ICIJ. They have processes they have to go

0:13:09 > 0:13:14through over how they obtain the data and at the minute we have not

0:13:14 > 0:13:16received a reply. Clearly, we would want them to.

0:13:17 > 0:13:18The saga of the Paradise Papers.

0:13:18 > 0:13:20You are watching our round-up of the day

0:13:20 > 0:13:22in the Commons and the lords.

0:13:22 > 0:13:24Still to come, why the north needs a powerhouse to improve

0:13:24 > 0:13:25its transport system.

0:13:30 > 0:13:34MPs from all parties have urged the Government to do more to tackle

0:13:34 > 0:13:37mental health problems problems amongst school pupils in England.

0:13:37 > 0:13:43In a debate in Westminster Hall, one Conservative described the current

0:13:43 > 0:13:45situation as a national crisis.

0:13:45 > 0:13:48The MPs were considering a petition signed by more than 100,000 people

0:13:48 > 0:13:58calling for mental health education to the mandatory for all schools.

0:13:59 > 0:14:14These statistics are startling. Education UK highlight some of them.

0:14:15 > 0:14:25Some 850 children are affected by this.We can actually teach them in

0:14:25 > 0:14:28schools through positive psychology and mindfulness to meet a

0:14:28 > 0:14:33flourishing lives. It is the whole well-being curve of mental health

0:14:33 > 0:14:39that could be shifted if we took this written branch approach to put

0:14:39 > 0:14:44mindfulness and mental education into our schools.

0:14:44 > 0:14:47A number of MPs refer to CAMHS - The child and adolescent

0:14:47 > 0:14:49mental health services.

0:14:49 > 0:14:55The real scandal is the fact of the broken CAMHS system. I have

0:14:55 > 0:14:59constituents who were facing crisis and waited months or years for

0:14:59 > 0:15:11diagnosis. I am sorry, but the CAMHS system is just broken.This is

0:15:11 > 0:15:15something of a real national crisis. This scale is only just beginning to

0:15:15 > 0:15:26be realise. I know the Minister will take this very seriously. This whole

0:15:26 > 0:15:32question of training teachers as Cardinal.I have concerns and

0:15:32 > 0:15:37perhaps sound a note of caution about the compulsory element for all

0:15:37 > 0:15:44schools. Across the country, there is patchy provision. To my mind, it

0:15:44 > 0:15:48is CAMHS provision which is patchy. I want to be slightly wary that we

0:15:48 > 0:15:53don't want to impose upon teachers yet another burden that just becomes

0:15:53 > 0:15:58a tick box exercise that they can say we have done this, end of, we

0:15:58 > 0:16:05have dealt with mental health care of children. We gave that half-hour

0:16:05 > 0:16:09lesson in social education and we don't have good deal with it any

0:16:09 > 0:16:15more.Norman Lamb was the initiator of an initiative called future in

0:16:15 > 0:16:19mind. It secured some funding during the Coalition Government of £1.25

0:16:19 > 0:16:24billion to be spent over the next five years. This should amount to

0:16:24 > 0:16:32about £250 million each year and only 143 million has been released

0:16:32 > 0:16:38in the first year of the programme in 2015 - 16. Shouldn't we all urge

0:16:38 > 0:16:44the Minister to continue the commitment that was secured in the

0:16:44 > 0:16:49last coalition government budget? The sad plans is the government's

0:16:49 > 0:16:56plans for school budgets will result in future cuts to counselling and

0:16:56 > 0:17:01well-being services. We have said we will ensure that every secondary

0:17:01 > 0:17:05school in England and Wales will offer of counselling. Sticking

0:17:05 > 0:17:10plaster approach of this government to our children's health will not be

0:17:10 > 0:17:15good enough.The Prime Minister has committed to a range of other

0:17:15 > 0:17:21activity with regard to children and young People's mental health,

0:17:21 > 0:17:30supporting mental health in schools and colleges. 90% of schools have

0:17:30 > 0:17:38offered at least some training to staff. The Department of Health is

0:17:38 > 0:17:41hosting a training offer for every primary and secondary school in

0:17:41 > 0:17:47England. 1000 schools should receive this by the end of the year. It

0:17:47 > 0:17:54should help teach us how to identify those with mental health problems as

0:17:54 > 0:17:57early as possible.

0:17:57 > 0:17:58The debate over mental health.

0:17:58 > 0:18:00Now, three years have passed since the

0:18:00 > 0:18:02former Chancellor George Osborne announced a concept of the Northern

0:18:02 > 0:18:03Powerhouse.

0:18:03 > 0:18:06The idea was to close the wealth gap between the north and

0:18:06 > 0:18:07the South of England.

0:18:07 > 0:18:09The then Chancellor believed a key way to

0:18:09 > 0:18:11doing that was by improving the North's transport links.

0:18:11 > 0:18:13Starting with railways to improve connectivity between the large urban

0:18:13 > 0:18:15centres of Liverpool, Manchester and Leeds.

0:18:15 > 0:18:18The powerhouse concept also included greater investment in

0:18:18 > 0:18:25industry and science and more devolution for the North.

0:18:25 > 0:18:27In a general Commons debate, a Labour MP

0:18:27 > 0:18:29contrasted spending on transport in the North with spending

0:18:29 > 0:18:36on transport in London.

0:18:36 > 0:18:40Crossrail one, a single project in London, cost more than the north

0:18:40 > 0:18:46will get in this entire put Parliament, 14.8 billion. The new

0:18:46 > 0:18:52station at Tottenham Court Road cost £1 billion. It takes longer to

0:18:52 > 0:18:58travel from Liverpool to halt when it does from London to Paris. If the

0:18:58 > 0:19:01North had received the same transport investment as London over

0:19:01 > 0:19:07the past decade, we would have received an additional 59 billion.

0:19:07 > 0:19:13So we cannot afford to ignore three regions with a population almost

0:19:13 > 0:19:18twice that of London and an economy larger than the three devolved

0:19:18 > 0:19:23nations put together. There are immense economic games to be realise

0:19:23 > 0:19:27of the plug the gap in transport investment.The government

0:19:27 > 0:19:32recognises the need for investment. In my constituency, upgrades to the

0:19:32 > 0:19:38A1 and a 66 are welcome. But there is much more to do. The northern

0:19:38 > 0:19:41powerhouse is a wonderful phrase. But the people of northern England

0:19:41 > 0:19:48deserve more than a slogan, they need action.And many of us were

0:19:48 > 0:19:51hopeful that transport for the North would become a powerful advocate for

0:19:51 > 0:19:54rebalancing our economy and closing the divide in investment between the

0:19:54 > 0:19:58North and the South. With the powers to back that up. But the reality is

0:19:58 > 0:20:07that in recent times we seem to have hit the buffers. As the Transport

0:20:07 > 0:20:10Secretary recently seen in the Yorkshire Post, it was not his

0:20:10 > 0:20:14responsibility to invest in Yorkshire's Railways. This came

0:20:14 > 0:20:19shortly after he universally cancelled electrification projects

0:20:19 > 0:20:24planned for some of the busiest routes in the country outside of

0:20:24 > 0:20:28London.Very importantly, there has to be political will. This is

0:20:28 > 0:20:35critical. At a local level and national level. All credit to the

0:20:35 > 0:20:39government as to a large extent a start has been made. There is a

0:20:39 > 0:20:49recognition of the importance of the North. And delighted this covers

0:20:49 > 0:20:55what I consider to be the true North, Carlisle.If the same had

0:20:55 > 0:21:00been spent in the North as has been spent in London over the last ten

0:21:00 > 0:21:08years, there would have been £59 billion more spent in the North.

0:21:08 > 0:21:15Desai Wedgwood could not get his product around the country. He had

0:21:15 > 0:21:17to persuade governments and investors to invest in roads and

0:21:17 > 0:21:22canals to get product around the country. Otherwise the Industrial

0:21:22 > 0:21:25Revolution would have petered out. Any business person will tell you

0:21:25 > 0:21:28they want the government to put the infrastructure in place and business

0:21:28 > 0:21:35will come in to fill the gap.I had to travel to Lewisham via Charing

0:21:35 > 0:21:39Cross United go. When I arrived, I was struck by how quiet it was. All

0:21:39 > 0:21:43I could hear were the footsteps of the commuters as the ignored each

0:21:43 > 0:21:51other on our way home. As I watched my train, I was puzzling why the

0:21:51 > 0:21:56station didn't sound the same as the one in half. I wondered if it was

0:21:56 > 0:22:00the stereotype of people from the North been more chatty and friendly

0:22:00 > 0:22:04was true. That wouldn't explain the difference in the air. As my train

0:22:04 > 0:22:08pulled away, the answer struck me. The reason why the station is silent

0:22:08 > 0:22:14and here is different is because all the trains are electric. There are

0:22:14 > 0:22:26no noisy engines spewing out diesel fumes in London or creating dart.

0:22:26 > 0:22:30Now, after a bit of a breather in the story of Brexit, it is back.

0:22:30 > 0:22:32Or at least it will be back later this week.

0:22:32 > 0:22:34On Thursday, the European Commission's chief negotiator,

0:22:34 > 0:22:36Michel Barnier, and the Brexit Secretary, David Davis, will resume

0:22:36 > 0:22:38negotiations on the terms of Britain's EU departure.

0:22:38 > 0:22:40The previous round of talks left Michel Barnier sounding warnings

0:22:40 > 0:22:41about apparent deadlock.

0:22:41 > 0:22:44But do we care very much about the future shape and direction

0:22:44 > 0:22:46of the EU after Britain has left?

0:22:46 > 0:22:53That was an issue for Question Time in the House of Lords.

0:22:53 > 0:22:58The Minister has given three replies now which imply that from the day we

0:22:58 > 0:23:02leave the European Union we shall not have the slightest interest in

0:23:02 > 0:23:07how it develops but we will not think it proper to express our views

0:23:07 > 0:23:11on how it develops. I think his successor on those benches may find

0:23:11 > 0:23:16that a pretty hard one to swallow. Could you perhaps consider again

0:23:16 > 0:23:22what he has been saying, because they do not think it is the case

0:23:22 > 0:23:26that we no longer have any interest in the future of Europe, even after

0:23:26 > 0:23:33we have left?I don't think I said that. We have an interest and

0:23:33 > 0:23:37cooperation with our European partners. We will want to take

0:23:37 > 0:23:40forward a close and constructive partnership, including on Security

0:23:40 > 0:23:49and defence matters. Of course we will have an interest.If the

0:23:49 > 0:23:52government feels to get anything but the hardest of hard Brexit and these

0:23:52 > 0:23:58ideas of the future of Europe developed, will he confirm that the

0:23:58 > 0:24:03government still has the option to withdraw its Article 50 application.

0:24:03 > 0:24:12We had a referendum on the subject and both houses 42 trigger Article

0:24:12 > 0:24:2150. We are leaving the European Union in March 2019.With the noble

0:24:21 > 0:24:29Lord agree we should be talking to our European friends about a special

0:24:29 > 0:24:34relationship with the EU after March 2019, and not about being at war

0:24:34 > 0:24:41with them?I would agree totally with the noble lady and I'm sure

0:24:41 > 0:24:45she's not asking me to comment on everything the media and the press

0:24:45 > 0:24:49save. We will be here for a long time if we were going to do that. I

0:24:49 > 0:24:57agree with those points.As his predecessor accepted, the normal

0:24:57 > 0:25:01standard in treaty negotiations is that nothing is agreed until

0:25:01 > 0:25:05everything is agreed. Will he confirm that today and confirm that

0:25:05 > 0:25:11it is on the basis of everything being agreed that this House, as the

0:25:11 > 0:25:14rest of parliament, will have a vote on what the future relationship

0:25:14 > 0:25:22should be?Yes, I can confirm that to the noble Lord. Nothing is agreed

0:25:22 > 0:25:27and everything is agreed, that is a standard principle in European

0:25:27 > 0:25:32negotiations that I have taken part in. We are committed to a meaningful

0:25:32 > 0:25:37vote at the conclusion of those negotiations.

0:25:37 > 0:25:38Lord Callinan.

0:25:38 > 0:25:40And that is it for this programme.

0:25:40 > 0:25:43One more day before Parliament goes off on its brief half term break.

0:25:43 > 0:25:46But for now, from me Keith McDougall, goodbye.