Wednesday Volume 607 16 March 2016 No. 134 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Wednesday 16 March 2016 £5·00 © Parliamentary Copyright House of Commons 2016 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 931 16 MARCH 2016 932 Justine Greening: As the hon. Gentleman will be House of Commons aware, HMRC leads on these negotiations, but they are progressing well and the House may be interested to know that the Government of Malawi issued a press Wednesday 16 March 2016 statement on how they feel the negotiation is going. They talked about The House met at half-past Eleven o’clock “fruitful discussions to review and modernize the existing agreement” and said that in their view: PRAYERS “These discussions are progressing very well”. I can assure the hon. Gentleman that we will continue to work alongside the Treasury to ensure that tax systems [MR SPEAKER in the Chair] in the countries in which DFID works are developed so that in time they can self-fund their own development, releasing the UK from doing that. Oral Answers to Questions Ms Diane Abbott (Hackney North and Stoke Newington) (Lab): But the UK’s current tax treaty with Malawi severely restricts the ability of the Government of Malawi to tax British firms operating there. Is this not a case of INTERNATIONAL DEVELOPMENT DFID giving with one hand while UK tax policies take away with the other? The Secretary of State was asked— Justine Greening: I do not agree at all and, perhaps Malawi: Development Support most importantly, neither do the Government of Malawi, who said: 1. Richard Arkless (Dumfries and Galloway) (SNP): “Whilst the current agreement is admittedly aged, there is no What development support her Department plans to evidence that the agreement has motivated some British investors to deprive the Malawi Government of its revenues. On the contrary, provide to Malawi over the current spending review both the Malawi Government and the British Government, as period. [904125] well as the nationals of the two countries, have evidently acted in good faith to ensure that neither party is exploited on the basis of The Secretary of State for International Development the current agreement.” (Justine Greening): The UK continues to provide essential support to Malawi in areas including health, education Ms Abbott: But does the Secretary of State agree that and economic development as well as life-saving the era of outdated and unscrutinised tax treaties that humanitarian assistance for food-insecure households. create opportunities for multinational tax avoidance We support increasing access to justice for women and must come to an end? vulnerable groups, increasing accountability and governance reforms. Justine Greening: It is time that the international tax system worked more effectively so that countries such Richard Arkless: Does the Secretary of State agree as Malawi can mobilise their own domestic resources, that domestic resource mobilisation is one of the best including tax. The hon. Lady will know that this particular ways to ensure that poorer countries can fix their own treaty was last updated in 1978. The Government have problems? What conversations has she had with the taken the initiative to work with the Malawi Government Chancellor of the Exchequer to ensure that the new tax to update this relatively old treaty and, as I have set out, treaty between Malawi and the UK helps the people of those negotiations are going well. Of course, it sits Malawi in that respect? alongside the rest of the work the Government have done on beneficial ownership and improving transparency Justine Greening: The hon. Gentleman raises an in tax so that developing countries can get their fair important point, and the UK helped to establish the share. Addis tax initiative, which will see our country and many others, including in Africa, stepping up their West Bank: Humanitarian Situation support to develop tax systems. We do that in conjunction with Her Majesty’s Revenue and Customs. One of the first things I did in this role was establish a joint 2. Ruth Cadbury (Brentford and Isleworth) (Lab): working group between the Department for International What recent representations she has made to the Israeli Development and HMRC to send HMRC officials out government on the effect of home demolitions in the to countries such as Malawi to help with their tax west bank on the humanitarian situation in that region. systems. I can assure the hon. Gentleman that we work [904126] very closely with the Treasury. The Minister of State, Department for International Stephen Twigg (Liverpool, West Derby) (Lab/Co-op): Development (Mr Desmond Swayne): Their increase adds On the tax treaty, may I ask the Secretary of State more to the sum of human misery, undermines any prospect broadly what role DFID will play as the tax treaty with of a peace process and is contrary to international law. I Malawi is being renegotiated, particularly as regards have left the Israeli Government in no doubt about the supporting Malawi in its efforts to reduce poverty and strength of our disapproval; our embassy continues to develop more generally? do so. 933 Oral Answers16 MARCH 2016 Oral Answers 934 Ruth Cadbury: I thank the Minister for his response. disbursement of UK aid because these changes align The latest figures from the UN, from early this month, well with the UK’s focus on conflict, fragility and show that there have been 400 demolitions since the economic development. start of the year, more than four times the rate of demolitions last year. The wave of demolitions is depriving Tom Blenkinsop: Given the changes in definition and Palestinians of their homes and their livelihoods and the increasing proportion of UK aid spent by Departments preventing European taxpayer-funded organisations from other than DFID, how will the Secretary of State providing essential humanitarian support. As the British ensure that UK aid continues to help the poorest in the Government made representations when demolitions world? trebled, what more effective action or sanction will the Minister impose now that demolitions have quadrupled? Justine Greening: The hon. Gentleman will be reassured to know that the modernisation of the ODA definition Mr Swayne: The hon. Lady is right that the rate of had to be under consensus by a number of countries increase is now faster than at any time since calculations involved. In addition, the primary purpose that underpins began to be made, and it is essential that the occupied aid—economic development and improving the welfare territories, and in particular Area C, are governed in of the recipient country—remains in place. This was accordance with the fourth Geneva protocol. We will really about modernising the definition to reflect how continue to make these representations to the Government. aid is delivered today. I know the hon. Lady wants to push me further, and I entirely understand the strength of her frustration and Mr Gary Streeter (South West Devon) (Con): Given anger, but jaw jaw is better than war war. that so much poverty and misery is caused by conflict, is it not about time that the OECD definition of ODA Michael Tomlinson (Mid Dorset and North Poole) included peacekeeping and anti-terrorist activity at the (Con): Will the Minister join me in condemning incitement very least, as that bears down directly on poverty? to violence or glorification of violence on either side? Justine Greening: I agree with my hon. Friend. In Mr Swayne: Absolutely. We are wholly opposed to fact, the sustainable development goals agreed in the incitement, and when instances of incitement are brought UN in September 2015 had a goal 16 that was all about to my attention, I go straight to the telephone to raise the need to improve not only peace but security. It is the matter with the chief executives of those organisations nonsensical for us to work so hard on tackling sexual and make absolutely clear our fundamental disapproval, violence in conflict and not be able to use our aid and our requirement that things are put right. programmes to help work with the military to prevent that. Tom Brake (Carshalton and Wallington) (LD): With any prospect of a two-state solution fast disappearing, Mr Gareth Thomas (Harrow West) (Lab/Co-op): Given it is of course right that we recognise Israel’s right to the changes to the definition of overseas development self-defence, but is it not also time that we recognised assistance, and given that there are still some 37 million Palestine as a sovereign state? people living worldwide with HIV and AIDS, as well as 2 million new infections each year, can the Secretary of Mr Swayne: We can only recognise Palestine once. It State tell the House whether her Department’s spending is essential, therefore, that we do so at a moment where on HIV and AIDS will be rising or falling over the we will have maximum impact on any peace process. comprehensive spending review period? That is a fine judgment. Justine Greening: The hon. Gentleman will be aware Mr Gregory Campbell (East Londonderry) (DUP): that we plan to set out the results of our bilateral aid What recent checks have the Government made in review over the coming weeks, but I can assure him that relation to support offered in the west bank to moneys our support for multilateral mechanisms, such as the that end up in the coffers of terrorist-supporting groups Global Fund, that do so much great work on tackling on the west bank? aid, will continue, and he will obviously be aware that HIV and AIDS particularly affect adolescent girls in a Mr Swayne: Absolutely none of UK British aid, growing proportion, so it is important that we stay the multilateral or bilateral, ends up in the hands of terrorists.