Bank for International Settlements (Immunities and Privileges) Order 2021

Lord Bhatia Excerpts

Wednesday 10th February 2021 Grand Committee

[Lord Bhatia (Non-Afl) [V]]

My Lords, this SI has been prepared by the Foreign, Commonwealth and Development Office. The Bank of England has made a successful bid to host the Bank for International Settlements innovation hub in the UK. In order for it to operate in the UK, it is necessary to grant immunities and privileges which will be effected in the host country agreement between the UK and the BIS when it is signed. These privileges and immunities have been negotiated between the UK and the BIS in the HCA and are the most limited, consistent with the functionality of an international financial institution.

The HCA will come into force once this Order in Council has been approved. The UK has agreed to grant certain privileges and immunities for BIS officials, employees and experts, particularly those who will be located at the BIS innovation hub in the UK. The immunities will include: exemptions from national taxation; immunity from inspection or seizure of official baggage; and inviolability of official papers and documents. BIS employees and their households will also be exempt from immigration control. First, does the Minister agree that these privileges are almost the same as given to diplomats? Secondly, does he agree that these BIS employees and their families will spend considerable sums of money to buy their daily needs from local shops and, possibly, employ local staff for their offices and homes?