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3.52 pm

Mr. Michael Fabricant (Lichfield): I congratulate the hon. Member for City of York (Mr. Bayley) on presenting his Bill with such passion and force. However, I oppose the Bill, because I think that it is fundamentally naive, and that it is wrong to introduce such legislation at this time.

The Organisation for Economic Co-operation and Development is endeavouring to find a package of best practice with which to address the problem of bribery around the world. The European Union is also examining that problem at present. However, the House must consider several questions before agreeing to the Bill.

How do we define bribery? If a United Kingdom contractor pays commission to an agent, which is common practice in third-world countries, and that agent passes on some of the commission to those who must decide whether they will purchase the services offered by that contractor, does that constitute a bribe--even though it is once, twice or thrice removed? Would we make it illegal for those companies to give commission? If a company finds that, in order even to be considered for a contract abroad, it must make a percentage contribution to the corporation advertising the contract, would that company also be committing an offence?

It is not by accident that it is not illegal for bribery to be paid to overseas companies from the United Kingdom. If the hon. Gentleman's Bill were enacted, it would probably rule many British companies out of applying for contracts abroad, which would simply fall into the hands of French, German, Japanese, American and other competitors in those countries. What consideration has the hon. Gentleman given to the jobs that would be lost in this country if his Bill became law?

The question of bribery is almost like the question of unilateral nuclear disarmament. Everyone would like the world to disarm itself of nuclear weapons, but Britain and now the Government have resolutely decided that to do so unilaterally would be wrong. I argue that, if the hon. Gentleman's Bill were passed into law, it would be wrong. It would lose valuable jobs, especially in high-tech areas in the sunrise industries in this country.

Although the hon. Gentleman presented his Bill with passion, it reflected an underlying naivety about the way in which business is done in this country and around the world. I say to the hon. Gentleman: wait. His dreams for a bribeless world may well come about. As I said, the European Union is examining the issue, as isthe Organisation for Economic Co-operation and Development. As the hon. Gentleman correctly pointed out, the White House is examining the problem. If the Bill is passed now, it will cost jobs in this country. For that reason, I oppose it.

Question put, pursuant to Standing Order No. 19 (Motions for leave to bring in Bills and nomination of Select Committees at commencement of public business), and agreed to.

Bill ordered to be brought in by Mr. Hugh Bayley, Mr. Gerald Kaufman, Mrs. Maria Fyfe, Mr. Peter L. Pike, Ms Diane Abbott, Mr. Charles Clarke, Dr. Phyllis Starkey, Dr. Ashok Kumar, Helen Jackson, Mr. Malcolm Wicks and Ms Rosie Winterton.

25 Feb 1998 : Column 376

International Bribery and Corruption

Mr. Hugh Bayley accordingly presented a Bill to create offences of international bribery and corruption; and for connected purposes: And the same was read the First time; and ordered to be read a Second time on Friday 3 July, and to be printed [Bill 128].

GOVERNMENT OF WALES BILL (PROGRAMME)

Motion made, and Question put forthwith, pursuant to Order [15 January],


Question agreed to.

Motion made, and Question put forthwith, pursuant to Standing Order No. 82 (Business Committee),


Question agreed to.

Report considered accordingly.

Resolved,


Following is the report of the Business Committee [24 February]:


    That it had come to a further Resolution [24th February] in respect of the Government of Wales Bill, which it had directed him to report to the House:


    That the Resolution of the Committee reported to the House on 19th January be varied so that--


    (a) the sixth and seventh days allotted under the Order[15th January] to proceedings in Committee shall be allotted in the manner shown in the following table, and


    (b) each part of the proceedings in Committee on those days shall, if not previously brought to a conclusion, be brought to a conclusion (in accordance with the Order) at the time specified in relation to that part of the proceedings in the third column of the table.

TABLE
Allotted dayProceedings in Committee Time for conclusion of proceedings
Sixth day Amendments to subsection (2) of Clause 118 beginning before line 11 on page 56 of the Bill6.00 p.m.
Other amendments to subsection (2) of Clause 1187.30 p.m.
Clause 118 so far as not disposed of8.30 p.m.
Clause 119, Schedule 9, Clause 120, Schedule 10, Clause 121, Schedule 11, Clauses 122 to 1319.00 p.m.
Clause 132, Schedule 12, Clauses 133 to 136, Schedule 13, Clauses 137 to 14010.00 p.m.
Seventh day New Clauses standing in the name of Mr. Secretary Davies and New Clauses 1 to 136.00 p.m.
New Clause 146.30 p.m.
New Clauses 15 to 218.30 p.m.
New Clauses 22 to 309.20 p.m.
New Clauses 31 to 349.35 p.m.
New Clause 3510.00 p.m.
New Clause 3610.30 p.m.
Remaining proceedings11.00 p.m.

25 Feb 1998 : Column 377

25 Feb 1998 : Column 378

Orders of the Day

Government of Wales Bill

[6th Allotted Day]

Considered in Committee [Progress, 3 February].

[Sir Alan Haselhurst in the Chair]

Clause 118

Extension of functions

3.58 pm

Mr. Denzil Davies (Llanelli): I beg to move amendment No. 374, in page 56, leave out lines 9 to 13.

The Chairman of Ways and Means (Sir Alan Haselhurst): With this, it will be convenient to discuss the following amendments: No. 493, in page 56, leave out lines 10 and 11.

No. 523, in page 56, line 11, at end insert--


'(aa) in paragraph (a), for "or any" substitute "and every", and'.

No. 519, in page 56, line 13, at end insert--


'(d) after paragraph (d) insert--
"(f) to promote social equity in Wales.".'.

No. 540, in page 56, line 26, at end insert--


'(e) after paragraph (i) insert--
(j) to encourage the development of exports from Wales.'.

Mr. Davies: The amendment focuses on two aspects. First, there is the insertion into section 1(2)(a) of the Welsh Development Agency Act 1975 of "and social" after the word "economic". For the future, if the clause is accepted as it is drafted, one of the purposes of the Welsh Development Agency--it has to operate through its purposes--will be not merely the furtherance of economic development throughout Wales but the furtherance of economic and social development. That being so, the WDA will take upon itself the purpose of social development as well as and in addition to its present purpose of economic development.

The second focus of the amendment is on the replacement--if the clause becomes law--of the word "industrial" with "business" and "businesses" in relation to the purposes of the WDA. When it comes to the agency's functions, "industrial" is replaced by "business". I wish to consider the definition of "business", which is contained in paragraph 2 of schedule 10 to the Bill. The definition of "business" is important in relation to the replacement of "industrial" with "business".

I shall deal first with the importance of the words "social" and "social development", as I have explained, after "economic development". We are faced with a major change in the function and the purpose of the WDA. It may seem to be a small matter, but it presents a major change.

My right hon. Friend the Secretary of State, in one of his memorable soundbites during the referendum campaign, referred to an "economic powerhouse". Perhaps that was the most memorable phrase of all. The WDA was to be, rightly, after devolution, an economic powerhouse. It was a ringing phrase that sounded well.

25 Feb 1998 : Column 379

However, when we read the clause, we see that the WDA will not be an economic powerhouse. Instead, it will be a "economic and social powerhouse". To my ear, that is not such a ringing phrase as "economic powerhouse". I am not even sure whether a body can be a social powerhouse, but perhaps that is possible. It is clear that something has happened on the journey from the devolution and referendum campaign to this awful drafting of proposed legislation, which always concentrates the mind.

We now have an economic and social powerhouse--in other words, a change or addition to the functions of the WDA. The insertion of those few words--this may seem pedantic--changes the nature of the WDA. I always thought--some of us were in the House of Commons and in government when the WDA was established--that under old Labour, which was very old-fashioned about these things, it was brought into being as a wealth- producing agency or an agency to promote wealth production.


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