Anti-Semitism

Lord Leigh of Hurley Excerpts

Thursday 20th June 2019 Lords Chamber

[Lord Leigh of Hurley (Con)]

My Lords, I too congratulate my noble friend Lady Berridge on securing this debate. As your Lordships will see in the register of interests, I am somewhat involved in the Jewish community and am constantly deeply moved by, and in awe of, those people from outside that community who clearly care about and are prepared to fight anti- Semitism, as opposed to others who just walk away.

What is anti-Semitism? When I was 15, Sir Bernard Waley-Cohen, a former Lord Mayor of London, told me that it was disliking Jews more than was strictly necessary—but that was a while ago. I pay public tribute to my noble friend Lord Pickles for his incredible work in securing the internationally recognised definition in the UK, which has eventually been adopted even by those who fought against it, including the recently elected Labour MP for Peterborough.

The Anti-Defamation League’s survey in 2014 really is an extraordinary piece of work; I speak as president of the Institute for Jewish Policy Research, which was mentioned by my noble friend Lady Berridge. The ADL interviewed 53,000 people in 96 languages in 100 countries. Sadly, it found anti-Semitic attitudes in around a quarter to a third of all global citizens, even though 27% of people had never met a Jewish person. Somewhat reassuringly, it found that 99% of people in the UK had heard about the Holocaust, although this dropped to under 10% in certain other countries. Perhaps not surprisingly, 70% of people in the Middle East had heard about the Holocaust but chose to dismiss it as a myth, or as having been greatly exaggerated. It is, of course, not surprising that we see such anti-Semitism in the Middle East. Most Arab countries expelled their Jewish populations without notice or compensation some 60 years ago. It is estimated that some 800,000 people were simply expelled from the countries in which they had lived—not for decades but for millennia—simply because they were Jewish.

We need to challenge those who do not enjoy our enlightened approach to anti-Semitism much more rigorously, particularly when it invades our shores. My noble friend Lady Berridge quoted the Prime Minister of Malaysia, who spoke at Cambridge last weekend. Malaysia is the country that would not allow disabled athletes to swim in the Paralympic Games to be held in Malaysia, simply because they were Israeli. What action do the Government propose to take in speaking to the Prime Minister of Malaysia?

Considering our own country, I am sure we have all asked ourselves how it is possible that a political party with strong Jewish roots, which prides itself on compassion for the underdog, social justice and an abhorrence of racism, has become so mired in anti-Semitism that it faces an investigation by the EHRC. This question was posed most eloquently by the noble Lord, Lord Harris of Haringey. All the surveys consistently show that the UK is one of the world leaders in its abhorrence of anti-Semitism because citizens in the UK are tolerant, open, and welcoming, so how has this been completely reversed by some political leaders? Has left-wing anti-Semitism risen because antagonism to Israel has made it a rallying cause? I am aware that I speak in the presence of the noble Lord, Lord Sacks, but do not forget that my ancestors left the slavery of Egypt—seeking to live in peace in Israel—well before they became Jews. Tragically, the slur that Zionism is racism has taken hold.

I have not the time to examine the depressing path down which otherwise good people were led by lies and misinformation about Israel and who, like Mr Abdullah Patel recently, may have allowed this misplaced hatred of Israel to morph into anti-Semitism. But no one can deny that it exists, and it is left to the bravery of speakers such as those in today’s debate to try to change this flow. Even more parochially to this House, I am sorry to say that many members of the Jewish community were hugely disappointed in the Chakrabarti report, which missed a golden opportunity when it could so easily have changed the attitudes and direction of the Labour Party. The worldwide fight against anti-Semitism is a very noble one, but for us it must start in this country. Let us hope that it is reinforced by this debate today.

Palestinian Territories

Lord Leigh of Hurley Excerpts

Thursday 7th June 2018 Lords Chamber

[Lord Leigh of Hurley (Con)]

My Lords, I begin with the usual declaration of non-financial interests as in the register. I have been to Israel dozens of times since my first trip in 1972 and have come to admire the only country in the Middle East where Jews, Christians, Muslims, gays and atheists can flourish in total equality and freedom. I also chair the Jerusalem Foundation in the UK, which invests substantial funds to promote coexistence and relief from poverty for all citizens of Jerusalem, including east Jerusalem.

How did we get to this position where living cheek by jowl is one nation that is booming, prosperous, free and self-confident, ranking 11th in the happiness ranking—the UK, by the way, is 19th—next to the desperate and heart-wrenching sight of its closest neighbour and near twin at birth, many of whose people are clearly suffering and desperately unhappy? Arguments over who had historical sovereignty over the land is futile when trying to consider some positive ways ahead. There has been massive displacement of people, much discussed in this House. Less discussed is the 850,000 Jewish people who were forcibly expelled from their Arab homes—the Jewish nakba of people who had lived in their host countries peacefully for some 3,000 years. There have been injustices all round.

What hope is there? Can there be any prospect of peace negotiations to achieve what many people believe is the ideal of a two-state solution? Like the noble Lord, Lord Hain, I am not so sure that that will be the way forward. The three-hour speech that President Abbas gave on 30 April before the Gaza incidents was widely condemned as anti-Semitic. It is hard to see how an Israeli Prime Minister can continue to talk to someone who claims that the Jews have no real historic ties to the Middle East. Abbas, who, when originally elected, seemed like a partner for peace, has, at the age of 83, clearly given that up. In Gaza, as has been mentioned, rocket attacks have returned. It is clear that the tragic loss of life on the border was largely caused by Hamas inciting its activists and others to what they knew would be suicidal acts. Tragically, the leadership in Gaza refused to accept humanitarian aid of medical equipment and supplies specifically because it came from Israel.

Israel has remained committed to negotiations to peace, with the only condition being recognition of its right to exist. Interestingly, when Egypt and Jordan recognised Israel’s right to exist, peace came immediately. Settlements are cited as a roadblock, but they are not. All those in Gaza were given back, as the right reverend Prelate said, and the ones in the West Bank can and will be as well. The people of Palestine deserve peace negotiations but in my view they will not get them. Abbas is too weak and regards his legacy as steadfastness—he has used the word himself. It means that he wants to be seen, like Arafat and the Arab leaders in 1948, as someone who consistently says no to everything.

Increasingly in the West Bank other options are emerging. One is some sort of Palestinian country or autonomous place within an Israeli state. Interestingly, opinion polls in the West Bank show younger Palestinians looking to the Israeli system as the one they want for themselves, with equality, rights, a system of benefits to all citizens and an independent judiciary. Will they ever get it from their current leaders? I doubt it.

Arab states are turning away from the Palestinian cause towards Israel throughout the region and against Iran, so new thinking is needed in the region. It is a brave Palestinian who raises this route, but it has many attractions, as Israel will look at anything that guarantees its security, as Mr Netanyahu said only a few hours ago this morning at One Great George Street.

It is perhaps up to those of us who care—I believe all speakers in this House do care—for the welfare of all those in Palestine and Israel to allow new and imaginative routes to be explored as the only short-term options available. Given our historical responsibilities, as some have mentioned, it is the least we can do.

Sanctions and Anti-Money Laundering Bill [HL]

Lord Leigh of Hurley Excerpts

Wednesday 17th January 2018 Lords Chamber

[The Earl of Kinnoull (CB)]

My Lords, I declare my interests as set out in the register of the House, particularly those in respect of financial services.

I greatly respect the noble Baroness, Lady Stern, and the other noble Lords who have signed the amendment, but I wholly disagree with it. If we in this Chamber sought to legislate for Scotland in a matter of devolved competence without consulting or without the consent of the Scottish Parliament, all of us know what a hullabaloo would be raised immediately. We would be reading about it in every newspaper; the media would be full of it. Indeed, the media are fairly full of warnings from the Scottish Government. I know the same to be the case in Wales. I was with the EU Select Committee recently. We visited the Welsh Parliament and, in the course of the day, the same point was made to me by, I think, every political party.

As a Parliament, we developed the Sewel convention to cope with this very situation. That has been put in the memorandum of understanding, and the October 2013 version of it states that,

“the UK Government will proceed in accordance with the convention that the UK Parliament would not normally legislate with regard to devolved matters except with the agreement of the devolved legislature”.

Indeed, we put it into statute in, for instance, the Scotland Act 2016, which has of course now been litigated. I have here the Miller judgment. In his outstanding judgment, the noble and learned Lord, Lord Neuberger, rather elegantly reminds us in paragraph 144 that the Sewel convention was not invented recently but that its substance was in effect between, for instance, the UK and Southern Rhodesia in the 1960s. The Sewel convention represents something that this Parliament has had for a long time, and it stretches out to our overseas territories as well as to our devolved Administrations here.

In the final paragraph of five pages considering the convention, the noble and learned Lord says:

“In reaching this conclusion we do not underestimate the importance of constitutional conventions, some of which play a fundamental role in the operation of our constitution. The Sewel Convention has an important role in facilitating harmonious relationships between the UK parliament and the devolved legislatures”.


I repeat all that and make a meal of it because I have to say that the six countries named in the amendment are proud and sophisticated places. Money laundering is rightly a devolved matter for them. Bermuda, for instance, is especially highly developed. Its GDP per head is much bigger than that of the UK, and it was not mentioned once in the Panama papers. Therefore, were we to legislate without even consulting these parliaments, let alone asking their consent, it would be deeply wrong. Just as with Scotland and Wales, our overseas territories would feel angry, which is why the Sewel convention is and has been a good thing. Westminster has the power to intervene and should exercise it were things badly awry. However, I have to say that evidence of “awryness” is in fact the other way. I looked yet again at the Wikipedia article on the Panama papers; about halfway down a long and extensive article, there is rather a good league table of banks that have been involved in the affair. Four of the top 10 banks listed in the league table were based in Luxembourg; none of the top 10 banks was based in any of the countries listed in this amendment. Therefore, there appears to be a bit of work to do at home, in the EU.

A second and much larger piece of evidence comes very recently from the EU itself. On 5 December last year, the EU adopted Council conclusions concerning non-co-operative tax jurisdictions. On page five of the adopted 38 pages I have in my hand, the EU Council affirms that,

“these actions collectively taken by EU Member States are in line with the agenda promoted by the G20, the OECD and other international fora”.

None of the six countries named in this amendment is on the black list.

Annexe 2 of the adopted conclusions lists countries in various categories that have agreed to make changes by the end of this year. It is a large list of countries. In other words, provided that changes are made by those countries, in the EU Council’s view they will be fully compliant with the EU, G20 and OECD thinking in this area. Only two of the six countries in this amendment are even part of that list of co-operative countries. Anguilla, the British Virgin Islands, Montserrat and the Turks and Caicos are not. In that respect, they are doing rather better than Switzerland or Hong Kong, which are. Indeed, 23 countries are making changes to improve transparency. None of the six countries of this amendment is listed. Twenty-two countries are making changes to anti-BEPS measures. Those are sophisticated corporate tax dodges. None of the six countries in this amendment is listed. Twenty-six countries, including Switzerland and Hong Kong, are making changes to amend or abolish “harmful tax regimes”. None of the six countries of this amendment is listed. Six countries, including Bermuda and the Cayman Islands, have agreed to,

“address concerns relating to economic substance”.

Among those six are also Guernsey, Jersey and the Isle of Man, the only time the Crown dependencies appear in the annexe. But, of course, they do not appear in the amendment.

Thus, after all the work of Pierre Moscovici and his officials—and he is no great friend of our overseas territories—and work aligned with that of the G20 and OECD, we are presented with this amendment. Six of the 14 British Overseas Territories have been singled out. Four do not appear on the definitive list at all; two do, and have agreed to take a very small amount of corrective action—the same corrective action that the Crown dependencies are taking, yet their names do not appear. I cannot fathom how this list of names was arrived at. To me, it looks unjust. I leave it to others to comment on mechanical aspects of the amendment, which also look problematic to me—but time is pressing.

The Government and the overseas territories, and indeed the Crown dependencies, have discussed these issues around the table regularly and, over the years, there has been continual incremental progress on this very important issue. The success of this approach can be seen in the work of Mr Moscovici and his very thorough 38 pages, with not one on the blacklist, and only a very small amount of agreed work to be done by a small number. We should continue to take this road, and the amendment is constitutionally wrong and unjust in casting unwarranted aspersions on a number of our loyal overseas territories.

[Lord Leigh of Hurley (Con)]

My Lords, I will not reiterate the many arguments made in Committee on the ineffectiveness of foisting public registers on the overseas territories for tax or law enforcement, but rather pay tribute to the noble Earl, Lord Kinnoull, and my noble friend Lord Naseby for making similar points to those that I would have made. Instead, I rise to make a different point.

I spoke in response to an identical amendment tabled by the noble Baroness, Lady Stern, to the Criminal Finances Bill on 3 April, memorably, as she said, one year after the Panama papers. That amendment was ultimately not moved but it has appeared by and large in the same form today. A similar amendment to the same Bill was moved in the other place regarding the Crown dependencies, which the Opposition Front Bench stated it was keener to legislate for than the overseas territories. The amendment was defeated by the substantial majority of 301 to 180. The interest of the UK, and the interest of fairness, is to achieve a level playing field between the members of the British family of territories. Clearly, it is also the intention of the Opposition Front Bench to legislate for the Crown dependencies, so that clear steer from the other place should be noted and the impact on the Crown dependencies considered. Still, much has changed even in those few months to make the call for public registers possibly less compelling.

Since then, both Crown dependencies that have been assessed by the OECD’s Global Forum—the world’s standard-setter for beneficial ownership, retention and international exchange—have been rated as among the few jurisdictions fully compliant with international standards. Indeed, they have a better rating than the UK. Moreover, since then, the overseas territories’ 2016 exchange of notes with the United Kingdom, under which they agreed to introduce government central registers of beneficial ownership, have come into effect. Those registers are accessible by UK tax and law enforcement on a same-day basis, giving the UK access to information that is unparalleled by any other jurisdiction in the world.

Even more so, partly in response to the debate in this House last year, the Criminal Finances Bill was amended to introduce mechanisms to review the effectiveness of the overseas territories’ and Crown dependencies’ registers and their exchange agreements with the United Kingdom. That amendment, now Section 9 of the Criminal Finances Act, requires the Government to prepare and lay before Parliament a report by July 2019 on the effectiveness of these new systems. This will allow your Lordships’ House to have the full evidence in front of it before taking any further steps. That was most wise. It buttresses the systems that have been adopted in the overseas territories, rather than undermining them; it meets international standards, rather than conflicting with them; and it gives the UK oversight of the overseas territories, rather than pushing them around. David Cameron was quite right and prescient in setting out tax evasion and counter-fraud legislation as a priority, and I pay tribute to him for that prescience—long before “McMafia” was aired.

To legislate now would be to pre-empt that report, which has already been legislated for and which would greatly inform your Lordships’ House on the strengths and weaknesses that might require improvement. Moreover, by legislating now—before evaluating the overseas territories’ systems, as the Government are now required to do—the United Kingdom may jeopardise the good will and unparalleled relationship that it has with those overseas territories and Crown dependencies. I therefore urge your Lordships to show caution in the approach adopted to avoid undermining the progress that has been made. Even in difficult times, with some of the overseas territories named in this amendment having been devastated by recent hurricanes, they have made progress to remain at the fore of international standards. Let us not pre-empt the evaluation that Parliament has already compelled the Government to conduct by approving this amendment.