(Except clauses 3, 5, 6, 15, 21, 49, 90 and 117 and new clauses amending section 74 of the Finance Act 2003) - Schedule 16
Finance Bill
Jimmy Hood (Lanark and Hamilton East, Labour)
I remind the Committee that with this we are discussing the following amendments: No. 79, in schedule 16, page 232, line 28, leave out paragraph 3.
No. 80, in schedule 16, page 232, line 28, leave out paragraphs 3 to 6.
Mark Hoban (Shadow Minister, Treasury; Fareham, Conservative)
Let me summarise the position that we had reached on the amendments before lunch. As parliamentarians, we should be jealous of our rights to determine tax law. Parliament fought for those rights and we should not give them up lightly. I am not convinced that the Economic Secretary has fought as vigorously as she should have done to make sure that Parliament kept the rights that the amendment would enshrine in the Bill.
The Minister said three things that gave me some comfort, the first of which was that Her Majesty’s Revenue and Customs would consult the industry on how the regime would work.
Stephen Hesford (PPS (Vera Baird QC, Solicitor General), Law Officers' Department; Wirral West, Labour)
Climbdown.
Jimmy Hood (Lanark and Hamilton East, Labour)
Order. The hon. Member for Wirral, West must not interrupt the hon. Gentleman when he is speaking.
Mark Hoban (Shadow Minister, Treasury; Fareham, Conservative)
The hon. Lady said that the consultation process included principles to enable clarity of how the regime would operate. The third thing that the Minister said was reassuring. She said that there would be transparency about the EU arrangements and that they would be posted on a website so that there was no doubt about what instruments were deemed investment transactions and what instruments were not. In that spirit of openness and consultation, I am minded to withdraw the amendment. However, if HMRC goes back to its previous habit of not consulting fully with the industry, the industry will put pressure on the Treasury to reinstate parliamentary scrutiny of the legislation. The amendments would be effective only if the open spirit of consultation that the Minister spoke about earlier continues. If it does, there will be no uncertainty. If it does not, there will be and we shall return to such issues when we discuss the Finance Bill further.
Kitty Ussher (Economic Secretary, HM Treasury; Burnley, Labour)
I am bemused as to why the hon. Gentleman made it clear a few hours ago that he would press the amendment to a Division. I said that that meant he did not understand the financial services sector, and he has now decided not to call a Division. What happened in the intervening few hours?
Mark Hoban (Shadow Minister, Treasury; Fareham, Conservative)
The Minister should quit while she is ahead, rather than push her luck. I have reflected on what she said. Her argument improved somewhat, after a bit of pressure from the Tory Benches. Her exchanges towards the end of the debate on the amendments were much clearer than they were at the start. I do not want to draw out the proceedings for too much longer. Some safeguards that are in place should ensure that the provision works well and, if it is does not, I am sure that the industry will tell us. On that basis, I beg to ask leave to withdraw the amendment.