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DELEGATED LEGISLATION
Motion made, and Question put forthwith, pursuant to Standing Order No. 118(6) (Standing Committees on Delegated Legislation),
Prevention and Suppression of Terrorism
- That the draft Terrorism Act 2000 (Video Recording of Interviews) Order 2000, which was laid before this House on 1st November, be approved.--[Mr. Robert Ainsworth.]
Motion made, and Question put forthwith, pursuant to Standing Order No. 118(6) (Standing Committees on Delegated Legislation),
Value Added Tax
- That the Value Added Tax (Reduced Rate) Order 2000 (S.I., 2000, No. 2954) dated 2nd November, a copy of which was laid before this House on 2nd November, be approved.--[Mr. Robert Ainsworth.]
Motion made, and Question put forthwith, pursuant to Standing Order No. 118(6) (Standing Committees on Delegated Legislation),
Local Government Finance
- That the Local Government Finance (England) Special Grant Report (No. 69) on Children's Services (Quality Protects) Special Grants for 1999-2000 and 2000-2001 (HC 968), which was laid before this House on 13th November, be approved.--[Mr. Robert Ainsworth.]
SELECT COMMITTEES (JOINT MEETINGS)
- That, for the next Session of Parliament, Standing Order No. 152 (Select committees related to government departments) be amended as follows:
Line 37, before the word 'European' insert the words 'Environmental Audit Committee or with the'.
Line 46, before the word 'European' insert the words 'Environmental Audit Committee or with the'.
Line 48, at the end insert the words:--
'(4A) notwithstanding paragraphs (2) and (4) above, where more than two committees or sub-committees appointed under this order meet concurrently in accordance with paragraph (4)(e) above, the quorum of each such committee or sub-committee shall be two.'--[Mr. Robert Ainsworth.]
BUSINESS OF THE HOUSE
- That, at the sittings on Thursday 30th November and Friday 1st December--
(i) the Speaker shall not adjourn the House until any Messages from the Lords shall have been received, and
(ii) if the House has completed its consideration of any Messages received from the Lords and the Lords have adjourned their sitting, the Speaker shall adjourn the House without Question put.--[Mr. Robert Ainsworth.]
PETITIONS
Andorra
11.30 pm
Mr. David Heath (Somerton and Frome): I wish to present a petition on behalf of British citizens resident in the principality of Andorra. The petition is signed by Graham Watson, a Member of the European Parliament. He is a constituent of mine, as I am a constituent of his. The petition is also signed by 61 British citizens resident in Andorra.
The petition refers to the annual uprating of pensions. British citizens resident in Andorra do not receive it, whereas other citizens resident elsewhere in the European Union do.
- To the Honourable the Commons of the United Kingdom of Great Britain and Northern Ireland in Parliament assembled.
The Humble Petition of citizens of Great Britain and Northern Ireland at present residing in the Principality of Andorra sheweth
That citizens of the United Kingdom who live in the United Kingdom, the United States of America, Croatia and the European Union receive annual increases in pensions; that those who live in Andorra, despite having paid the same amount, do not receive these annual increases, although they are no drain on the public finances such as the National Health Service and are not permitted to use National Health Form E111 when visiting the EU.
Wherefore your petitioners pray that your Honourable House urge the Secretary of State for Social Security to review this anomaly and consider phasing in changes which will put those citizens residing in Andorra on an equal footing with other UK pensioners in this respect, starting with those over the age of eighty-five years, followed by those over 75 and then over 65.
And your Petitioners, as in duty bound, will ever pray.
National Front
Mr. Michael Jabez Foster (Hastings and Rye): I have a petition from the residents of Hastings and Rye regarding the question of racism in the town. Hastings hosts about 700 refugees. Whether that number is too great for a small town is a separate question, but what is not acceptable to the people of Hastings is the racism that is nurtured in consequence by groups such as the National Front--and by some mainstream parties which should know better.
The petition is signed by Raj Rayan and about 7,000 local inhabitants, whose signatures were collected over a period of only a day or so. It states:
- The Petition of Residents of Hastings and Rye
Declares that rallies and marches in the town of Hastings by the National Front and their associated organisations nurture racism, anti-feminism, homophobic attitudes, anti-trade union sentiments and the promotion of social unrest.
The Petitioners therefore request that the House of Commons urge the Secretary of State for the Home Department to introduce legislation to prevent the National Front and their associated organisations from holding rallies and marches in the town of Hastings and elsewhere.
And the Petitioners remain, etc.
Smuggling (Tobacco and Alcohol)
Motion made, and Question proposed, That this House do now adjourn.--[Mr. Betts.]
11.34 pm
Mr. Russell Brown (Dumfries): I had feared that the House might sit until early morning, so I am delighted to have the opportunity to hold this debate in what is still the evening. This is a vital issue, and I know that some colleagues were disappointed that I was not able to secure a longer debate on the subject in Westminster Hall, as that would have allowed other hon. Members to take part and make valid contributions. Other colleagues have commented during the day that raising this matter in the Chamber is not the wisest thing to do. Comments have varied from "Smuggling of alcohol and tobacco goods is something that everyone does," to "It's a real vote loser to try to stop cheap cigarettes and alcohol coming into the country." This is an issue that we cannot ignore, and while I appreciate that my hon. Friend the Paymaster General will tell me that much is being done, I believe that a lot more can and should be done.
Almost three years ago, my hon. Friend the Member for Waveney (Mr. Blizzard)--he is in the Chamber tonight--had an Adjournment debate on illegal imports of beer. He said then that he felt it wholly appropriate to raise the matter in the run-up to the Christmas period. Three years on, as we approach the festive season once again, it is still appropriate. In my humble view, the situation has worsened.
In the eyes of many, the quick answer to this illegal activity is to reduce significantly all the taxes and duties on tobacco and alcoholic goods. Prices would then fall and the market would close down for the traders and dealers in smuggled and bootlegged goods. Those here tonight know only too well that this will not happen and that we have to deal with the issue that confronts us today.
Cigarette smuggling is so widespread that it poses a serious threat to public health; first, by making cigarettes available cheaply and encouraging consumption; and secondly, because the tobacco industry tries to encourage Governments to reduce taxation in response to smuggling. This results in lower prices, which in turn increase consumption.
How big an issue is this? Frankly, the fact that visitors to the continent buy an extra 200 cigarettes or an extra bottle of spirits, or that business men or lorry drivers on the continent carry a small amount of extra goods for family or friends, is not the issue. Bootlegging is the process whereby tobacco and alcohol products are legally purchased in countries with lower tax rates and then illegally sold on to individuals, distributors and retailers here in the UK. The white van trade, as it is called, appears to account for about 25 per cent. of smuggled cigarettes.
The other 75 per cent. of smuggled tobacco goods are a direct result of large-scale organised crime undertaken by criminal gangs and involve freight consignments of millions of cigarettes. This form of smuggling is increasingly controlled by gangs involved in the trafficking of illegal drugs. The figures show that over 60 per cent. of those found smuggling have been involved in other criminal activities and have other convictions. What is classed as the risk-to-reward ratio for tobacco
smuggling is lower than that for illegal drugs, and many organised crime gangs are increasingly moving from narcotics into tobacco. It is estimated that 15 per cent. of the cross-channel smuggling of cigarettes into this country is a direct result of Italian gangs.With the world of information technology has come another avenue of exploitation. Increasingly, people are purchasing alcohol and tobacco goods via the internet, from sites which are not regulated, which use child-friendly marketing, and which do not--as far as tobacco products are concerned--carry any health warning whatever. By simply entering the term "discount cigarettes" to an internet search engine, somewhere in the region of 2,000 pages of links can be produced.
The impact of all this illegal activity is significant. During the recess, I visited a local store in the Georgetown area of Dumfries, where I met the owner, Mr. George McCall. We discussed at length how this activity is affecting individual businesses. It was no surprise to hear that, on average, independent retailers are losing 16 per cent. of their trade. That is nearly £62,000 a year in lost sales, all due to bootlegging. In my home town, I am aware of one small business which, frankly, is on the verge of stopping selling tobacco and alcohol. In the owner's simple words, he cannot compete with a chap living around the corner who operates a racket.
A further adverse effect is that lower sales can lead to higher prices of other goods on sale in the shops. I am sure that my hon. Friend will keep me right, but I believe that the estimated loss to the Treasury resulting from smuggling alcohol and tobacco goods is in the region of £4 billion a year. That money could be spent on schools, hospitals, pensioners, policing, and additional Customs and Excise officers.
Parliamentary questions tabled on this matter over the past year number well in excess of 50, but I am disturbed to see from the answers that we do not appear to have any real idea of the number of prosecutions. That is indeed worrying. It is important to show that we are not sitting idly by while all this happens. Only by giving accurate figures of arrests and prosecutions will we be able to send out the message to the public that we are serious. We want to tell them that we are determined to put a stop to this illegal activity, and that people who are involved are likely to get caught.
Penalties also need to be reconsidered. In recent weeks, the national press has carried stories to the effect that Customs and Excise officers are threatening to seize and sell the cars of members of the public who buy cigarettes from bootleggers. I do not know how much truth there is in that report, but I believe that something as radical as that must be done if we are to curb this activity.
The same report made mention of a number of vehicles belonging to bootleggers that were seized in Scotland. It also reported the confiscation of an ice cream van loaded with thousands of cigarettes, parked near a school. That is the aspect that I want to consider next. Within neighbourhoods, households can pinpoint the house where cheap cigarettes, tobacco and alcohol can be purchased. However, it is not only adults who know about those houses--schoolchildren as well as adults know where such goods can be bought. Quite honestly, those who are supplying the goods do not even give a second thought to
the age of the customer or purchaser. Children as young as nine or 10 can be seen in many neighbourhoods buying cigarettes and alcohol, not only for their parents but for their own consumption.In considering the debate and the answers given to parliamentary questions, I see that my hon. Friend said in a reply given in April that it was intended to employ a further 1,000 Customs and Excise officers to deal with this matter, with a substantial number to be based at Dover. Although I believe that additional officers are required in the field, it concerns me that some of them may have been taken from other Customs and Excise activities.
In my constituency and that of the hon. Member for Galloway and Upper Nithsdale (Mr. Morgan), staff have been reduced from 12 in 1995 to the current three visiting officers, one home officer and one administration and secretarial officer. It is expected that the latter will be removed from her post in about six months. If we are determined to pursue best value, is it appropriate that four Customs and Excise officers should have no administrative support? Those individuals will have to open their own mail, and carry out typing and other clerical duties, even though their expertise lies in the profession for which they were trained.
Examination of the situation indicates that in Scotland and elsewhere we are seeing a centralisation of certain areas of business. I do not believe that constituencies such as mine and that of my hon. Friend the Member for Ayr (Ms Osborne), where there are similar reductions in Customs and Excise staffing, provide the Customs and Excise services that businesses and individuals are looking for. Reductions in the numbers of officers dealing with VAT and debt management are but two examples of situations in which I believe that there is significant pressure, leading to a possible decline in the quality of service.
I said earlier that, owing to the risk-to-reward ratio, many organised crime gangs were moving their activities from drugs to illegal tobacco. However, it must be said that many of those who have become involved in the sale of smuggled tobacco and alcoholic products later use the moneys generated from it to fund the beginnings of a new activity: dealing in drugs.
It is not uncommon in my area--and, I know, having spoken to colleagues, in many other parts of the country as well--for some people involved in such activities to purchase cars and properties with cash. We are talking about sums of £30,000, £40,000, £50,000, and beyond. They have that money readily available because of their activities. It is big business, and business that cannot be ignored. It is inevitable that, as more and more individuals become involved in the sale of such goods, they start to encroach on what is seen as someone's else patch. As one might expect, that brings with it acts of violence.
In the scenario of illegal activity, some individuals generate significant sums for themselves, but there are always those who have to pay a price. In this instance, they are law-abiding citizens who pay their taxes. If we could put an end to all such smuggling tomorrow, just think of what we could do with the extra £4 billion.
We must also ensure that those who believe that they are doing nothing wrong by purchasing a few cheap cigarettes or a bottle of cheap whisky realise that they are involved in illegal activity. It is not uncommon for such
goods to be on sale in the workplace as well as the local pub or club. People need to understand that they could be jeopardising their livelihood if a responsible owner of a business or employer discovered what was happening where such people were gainfully employed.I hope that my hon. Friend will take on board my concerns. This debate is about protecting independent retail business and children; it is about the loss of revenue to the Treasury; it is about adequately resourcing Customs and Excise, and not just to combat smuggling. Above all else, this debate is about supporting those who pay their taxes. I appreciate that much has been done, but there is much more to do.
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