| Previous Section | Back to Table of Contents | Lords Hansard Home Page |
Lord Beaumont of Whitley: My Lords, do the Government have any plans to raise this matter at the G8 summit? The host will be Canada, which has already committed itself to this approach; and representatives from France and Germany will also be present—France having passed preliminary legislation for such a tax.
Lord McIntosh of Haringey: My Lords, I have no doubt that the matter will be raised at the G8 summit, especially in view of the participation of the countries referred to. The currency transaction tax is not the only global tax that is being considered. The issue has been discussed for a very long time, since Willy Brandt and Gro Harlem Brundtland raised it. There could be global taxes on carbon dioxide emissions, on aviation fuel, and on arms exports. But all present the same difficulty as the Tobin tax; namely, that they require near universal support to be effective.
The Earl of Northesk: My Lords, without in any way gainsaying the worthy intent of those who advocate the so-called Tobin tax, does the Minister recall his observation in a debate on this matter some two years ago? At that time he said:
- "I am sorry, I would like to think that it would work but I cannot believe that it can".—[Official Report, 8/6/00; col. 1323.]
Lord McIntosh of Haringey: My Lords, perhaps I am a little less blunt than I was two years ago. This is what happens—it grinds you down after a time,
doesn't it? Fundamentally, I think I am saying the same thing now as I was then. The problems are, as Spahn said, political will, international co-operation and legal enforcement. There must be near universal acceptance and enforcement in order to make such a tax work.
Lord Newby: My Lords, does the Minister agree that, so far as concerns political will, by far the single most important player is the United States? Will he urge his colleague the Chancellor to use the close relationship that the Government now have with the United States to build on the steps that it took at Monterey to accept some responsibility for the development of the poorest countries in the world, so that fresh impetus can be put into examining how these taxation proposals might be made effective—whether it is the Tobin tax, the Spahn tax, or any of the other options set out by the Minister?
Lord McIntosh of Haringey: My Lords, that is exactly what the Chancellor has been doing. That is exactly what he did so effectively at Monterey in March—from which the additional pledges from the European Union and the United States resulted. Indeed, there have been pledges of 12 billion dollars a year of ODA funding after 2006. In addition, the Chancellor has been pursuing, including with the United States, his plans for an international development trust fund, which I think the noble Lord would agree would be a very effective step forward.
Lord Paul: My Lords, will my noble friend confirm that a tax on foreign exchange transactions before we join the euro would make British products even more expensive, making it difficult to compete in Europe?
Lord McIntosh of Haringey: My Lords, given the Government's view that the precondition for a currency transaction test is that it should be universal, it should not make a great deal of difference whether it is carried out before or after joining the euro. The question to be considered as regards the feasibility of a currency transaction test is whether it would increase currency volatility if it caused trading volumes to fall. That applies whether or not we are in the euro.
Lord Stoddart of Swindon: My Lords, has the noble Lord seen the report that appeared today showing that 39 per cent of aid issued by the European Union is going not to the poorest countries in the world, but to countries in eastern Europe? Bearing in mind that we supply one-third of those funds and that 39 per cent of that is £350 million, is it not a great and crying shame that assistance provided by the British taxpayer for the poorest countries is not finding its way there?
Lord McIntosh of Haringey: My Lords, I can nearly always be caught out by being asked whether I have seen something that was reported today. I do not get up early enough to read all the newspapers. However, it does not follow from what the noble Lord is saying that there is anything wrong with development aid
going from the European Union to eastern Europe. That has been an explicit objective for a considerable number of years—since 1989, in fact—and it is not necessarily in conflict with help for the most deprived countries in the world. Both are necessary.
Lord Campbell-Savours: My Lords, is it fair to say that my noble friend is saying that he is not opposed in principle to Tobin, but he thinks it is unenforceable at the moment?
Lord McIntosh of Haringey: My Lords, my noble friend has said more precisely and concisely what I was trying to say, perhaps with greater verbosity.
Angola
2.51 p.m.
Lord Hylton asked Her Majesty's Government:
- What is their assessment of the situation in Angola, following the agreed ceasefires.
The Parliamentary Under-Secretary of State, Foreign and Commonwealth Office (Baroness Amos): My Lords, we welcome recent moves towards peace in Angola. The agreement signed in Luanda on 4th April between the chiefs of staff of the Angolan armed forces and UNITA is a positive step. Both sides must now commit to an inclusive, transparent and sustainable political process. However, the humanitarian situation remains critical. We are encouraging the Angolan Government to put more of their own resources into the relief effort and to facilitate access and, where necessary, provide security for the relief agencies.
Lord Hylton: My Lords, I thank the noble Baroness for her reply. Does not Angola have oil revenues in excess of 3 billion dollars a year? Will that enable the Angolan Government to disarm and resettle 150,000 ex-soldiers and to cope with 4 million displaced people? Can the noble Baroness give us a little detail about the action plan intended to combine the efforts of Angola with international help?
Baroness Amos: My Lords, the noble Lord is right that Angola has significant oil revenues. There is a two-phase process on the action plan. The memorandum of agreement was signed on 4th April, but that has to go hand in hand with a political process, which, as I said in my original Answer, needs to be inclusive and transparent. Noble Lords will know that we are keen to see implementation of the Lusaka protocol. We agree that the process of DDRR needs to begin urgently. The noble Lord mentioned figures. It is estimated that there are more than 50,000 UNITA fighters and more than 300,000 families in addition to the more than 4 million people who are displaced within Angola. The Portuguese have offered military observers for the disarmament demobilisation
process. We shall continue to work with the UN and other international agencies to make sure that the process stays on track.
Lord Hughes of Woodside: My Lords, does my noble friend agree that at long last there is a real opportunity for the people of Angola to have a peaceful future? The Angolan Government have said clearly that they wish to implement the Lusaka accords in full and are prepared to move on a programme of social reconstruction. However, does my noble friend agree that even with oil and diamond revenues it will take time before the money currently spent on the Angolan army can be redirected to peaceful uses? Given the massive number of mines in the country, what help can we give to ensure that the demining process is accelerated so that the countryside is accessible and the people can get back to a decent economy?
Baroness Amos: My Lords, my noble friend has asked me two different questions. One relates to long-term reconstruction. The Government of Angola intend to have two donor conferences this year, one dealing with the immediate humanitarian situation and the second looking at the reconstruction effort. My noble friend also referred to land mines. Noble Lords will know that we had a demining programme in Angola. We stopped that programme because we had reliable evidence that the areas were being remined. We fund a UN agency that prioritises, on our behalf, areas where it thinks we should go back and remove land mines. If that agency said that the situation in Angola were now such that we could engage in constructive demining, we would do that as a matter of urgency.
Lord St John of Bletso: My Lords, does the Minister agree that peace in Angola is interlinked with peace in the Democratic Republic of Congo? The peace talks in South Africa on the DRC, initiated by President Thabo Mbeki, recently broke down. What action are the Government and the international community taking to get those talks back on track in order to secure long-term peace in the region?
Baroness Amos: My Lords, it is true that, while we have an important moment for peace in Angola after nearly 30 years of civil war, Angola is also involved in the conflict in the DRC. We were concerned at the breakdown of the talks in Sun City, but it is important to remember that a number of issues were agreed through that dialogue process. The political elements of any transition have yet to be agreed. We are doing all we can to support the South Africans and the facilitator of the dialogue process. It is anticipated that the talks will restart shortly.
Next Section
Back to Table of Contents
Lords Hansard Home Page