Lord Phillips of Sudbury: My Lords, I saw out of my window a car being broken into. I dialled 999 and was answered by a lady from Bombay. Those doing the break-in took their time but the police arrived two days later. What does this incident say about the Question asked?
Lord Phillips of Sudbury: To ask Her Majesty’s Government whether they will establish a Royal Commission to investigate threats to community life in the United Kingdom and their effects; and to recommend counter-measures.
Lord Phillips of Sudbury: My Lords, I thank the Minister for her reply, but if I may say so the Answer was extremely complacent. Most of the indicia of a vibrant society and community life are giving rather the opposite impression. I think of things such as loneliness, a lack of civic engagement and an increasing individualisation of life. Therefore, are we not overdue in looking at admittedly elusive and complex...
Lord Phillips of Sudbury: My Lords, does my noble friend the Minister recognise that with the cutbacks in legal aid and fewer solicitors being willing to do it a greater burden rests on the citizens advice bureaux and law centres? Will he contemplate affording them more resources in order to meet the unmet need?
Lord Phillips of Sudbury: My noble friend the Minister said a number of times that there is insufficient evidence for extending what the Government are doing in this Bill vis-à-vis health to other sectors. Let us think again of the financial centre of this country. The collapse that we had in 2008 was perhaps the greatest financial collapse in our entire island history. It involved extensive and universally accepted...
Lord Phillips of Sudbury: My Lords, my name is also to this group of amendments. I thank the noble Lords, Lord Wills and Lord Low of Dalston, for making most of the points that need making, and making them forcefully. It seems extraordinary that the Government should have introduced Amendment 58A in the wake of the 200-page report by Robert Francis QC, entitled Freedom to Speak Up and published only last month. It is...
Lord Phillips of Sudbury: I think that we need a short debate to answer the question that my noble friend poses. However, I think that the general feeling is that small companies will not be hurt by these provisions. It is these extraordinarily obtuse long chains of shell companies, sometimes in as many as 13, 14 or 15 tax havens, that are the object of this exercise.
Lord Phillips of Sudbury: I did not say that it would not affect them at all; I said that it would affect very few of them to a significant degree, and I stick by that. I have been a small and medium-business lawyer for most of my life, and I can say that these companies will not be significantly inhibited by these provisions or be faced with significant costs.
Lord Phillips of Sudbury: I would not deny for a minute that they know better than the description the noble Lord gave of me. I just repeat that I do not think it will seriously inhibit the small or medium-sized company that operates in a straightforward fashion in this country. I am confident of that.
Lord Phillips of Sudbury: I have a huge amount of sympathy with the noble Lord pointing out the hypercomplexity of this. I can only say to him—I must also put it in the context of having worked in this field for more than 50 years and having been a non-executive director of more than 15 SME companies—that I do not think there is any real prospect of an innocent SME going about its business falling foul, let alone...
Lord Phillips of Sudbury: I am grateful to the noble Lord for giving way. I do not think that he will find in that impact assessment any attempt to assess the cost of the amendments that we are talking about in this group. I will leave it at that.
Lord Phillips of Sudbury: I am most grateful to the noble Lord for giving way a second time, and I promise not to intervene again—but that is not so. He should take account of the fact that if we were to recover even 20% more of the tax that currently is not paid but should be, many billions of pounds will redound to the benefit of SMEs as well as of everyone else.
Lord Phillips of Sudbury: My Lords, my name stands with that of my noble friend Lord Watson of Invergowrie on these amendments. He has introduced them with great panache, and I do not have a great deal more to say but I think that the issues are so important that a few more points are necessary and worth while. First, I shall give the House some of the facts that point to the scale of the problem of fraud and tax...
Lord Phillips of Sudbury: Yes, another lawyer. However, it is very striking because that was in the mid-1960s. In fact, the last case I did was just after the first Rossminster scheme was launched on the British public. Some of your Lordships may remember those schemes. They were the first of the hyperartificial—I would say hyperludicrous—schemes. I remember putting this to the best tax chambers in London at the...
Lord Phillips of Sudbury: My Lords, I thank the noble Lord, Lord Pannick, for tabling this amendment, which I believe is very important—although I note that only those who are speaking are present tonight. I declare an interest as the founder and president of the Citizenship Foundation, a national charity which seeks to prepare young people in our schools for the life they are to lead beyond them by giving them a...
Lord Phillips of Sudbury: Would my noble friend concur with the widely held belief that a high proportion of the foreign purchasers of very expensive London properties are crooks and that they are using the safety of this country in a very cynical way? Has any investigation been made of that? If so, is any action in the pipeline to prevent it?
Lord Phillips of Sudbury: My Lords, does my noble friend the Minister agree that it sends at best a very weak message to young would-be voters if we do not equip them while at school to take their place as citizens in a highly complex society? Will he do something about the steady decline in citizenship education?
Lord Phillips of Sudbury: My Lords, in the course of his Statement my noble friend said twice, I think, that it is more appropriate to deal with these issues by way of civil proceedings. He mentioned that the amount recovered was a sum short of £200 million. My own experience—I must plead guilty to being a practising lawyer of 57 years’ standing—is very clear that one conviction of one major figure in one major...