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Tag: Speeches

  • David Ramsbotham – 2021 Speech on the Substance Testing in Prisons Bill (Baron Ramsbotham)

    David Ramsbotham – 2021 Speech on the Substance Testing in Prisons Bill (Baron Ramsbotham)

    The speech made by David Ramsbotham, Baron Ramsbotham, in the House of Lords on 16 April 2021.

    My Lords, I strongly support the intention behind the Bill and am glad that the noble Baroness, Lady Pidding, began her excellent introduction with a tribute to the late Dame Cheryl Gillan, whose Bill it is, but I admit to being worried about the practicalities of delivery.

    I have always thought that the Ministry of Justice and Her Majesty’s Prison and Probation Service set too much store by the effectiveness of mandatory drug testing, which, far from being the important tool that they claim, proves nothing except how many people test negative and has always been capable of manipulation.

    To illustrate how easy manipulation is, when I was chief inspector, I once went into a cell and noticed some certificates on the wall. On asking the prisoner what they were for, I was told that they were for testing drug-free, which it was known he was, and that if I came back the next month, there would be another one. Another time, I went into a prison where there were alleged to be no drug users, which I simply did not believe. I found that the prison made a practice of testing only vulnerable prisoners, who were notoriously drug-free. I ordered an immediate test of the whole prison, which found that 47% were users.

    The effects of apparently freely available psychoactive and other substances have been well documented, including increased violence against staff and other prisoners. The absence of, or the inability of many prisoners to access, treatment programmes is also a worry. I would be happier if, in addition to trying to prevent substances getting into a prison, there was evidence of a desire to achieve better testing and more access to treatment.

  • David Ramsbotham – 2021 Speech on the Police Crime Sentencing and Courts Bill (Baron Ramsbotham)

    David Ramsbotham – 2021 Speech on the Police Crime Sentencing and Courts Bill (Baron Ramsbotham)

    The speech made by David Ramsbotham, Baron Ramsbotham, in the House of Lords on 15 November 2021.

    My Lords, I strongly support all the amendments in this group, not least because the cause of prisoners serving indeterminate sentences has been languishing ever since such sentences were formally abolished by LASPO in 2012.

    I commend the tireless work of my noble and learned friend Lord Brown of Eaton-under-Heywood on their behalf. For nearly 27 years, since my first inspection as Chief Inspector of Prisons, I have been campaigning for changes to be made to the operational management structure of the Prison Service to bring it in line with the practice in every business, hospital or school: to appoint named people responsible and accountable for particular functions within the organisation concerned.

    In the case of prisons, I have campaigned for separate directors to be appointed for every type of prison, and for certain types of prisoners—lifers, sex offenders, women, young offenders, the elderly, foreign nationals, and those serving indeterminate sentences. Imagine how easy it would be for Ministers interested in IPP, for example, to send for the relevant director and question him or her about what was happening or not happening to all prisoners in that category. I had hoped that somewhere in the 298 pages of this monstrous Bill, space might have been found for something so practical. However, as that is clearly not going to happen, I stringently commend the change to the Minister.

  • David Ramsbotham – 2022 Comments on the Nationality and Borders Bill (Baron Ramsbotham)

    David Ramsbotham – 2022 Comments on the Nationality and Borders Bill (Baron Ramsbotham)

    The comments made by David Ramsbotham, Baron Ramsbotham, in the House of Lords on 5 January 2022.

    My Lords, when you are speaking 51st on the Second Reading of a Bill which has already generated much controversy in the other place, the chances are that some other noble Lords will have already mentioned any point you wished to make. That is very true in this case, so I will make only one point, which I beg the Minister to take away and reflect on, because it is borne out by practical experience. I break off to thank James Tobin for a most comprehensive Library briefing.

    In 2010, I was asked to chair an inquiry into the death of an Angolan under restraint on an aircraft at Heathrow, on which he was being returned to Angola, guarded by G4S. We were shocked by the poor standard of the Home Office decision-makers and caseworkers involved in returns, to the extent that my committee commented on them in its final report. Worse even than this, there appeared to be no supervision of their work. The arrangements made for families appeared to be better than those for single people, a point which I advise the Minister to respect before embarking on this extremely controversial Bill, about which many noble Lords have expressed their unease.

  • David Ramsbotham – 2022 Speech on the Chagos Islands (Baron Ramsbotham)

    David Ramsbotham – 2022 Speech on the Chagos Islands (Baron Ramsbotham)

    The speech made by David Ramsbotham, Baron Rambotham, in the House of Lords on 28 February 2022.

    My Lords, I strongly support Amendment 1, to which I have added my name. I declare an interest as a vice-chairman of the Chagos Islands (British Indian Ocean Territory) All-Party Parliamentary Group. How do the Government have the neck to condemn others for far less, while at the same time standing condemned by both the International Criminal Court and the General Committee of the United Nations for refusing to allow the Chagos Islanders and their descendants citizen rights to return to their homeland, despite promises that they would be allowed to do so after 30 years? I remember, as long ago as 2013, reading out a letter from a Pentagon Minister to the then Foreign and Commonwealth Office Minister saying that the Pentagon had no objection to the return of the islanders to Diego Garcia, being used to having indigenous people living alongside island military bases in the Pacific.

  • David Ramsbotham – 2022 Comments on the Queen’s Speech (Baron Ramsbotham)

    David Ramsbotham – 2022 Comments on the Queen’s Speech (Baron Ramsbotham)

    The comments made by David Ramsbotham, Baron Ramsbotham, in the House of Lords on 12 May 2022.

    My Lords, it is always a pleasure to follow the noble Baroness, Lady Henig. I have three points to make. First, as other noble Lords have said, I deplore the number of times we were asked by the Commons response to our amendments to a number of Bills in the previous Session to break the rule of law. The noble Lord, Lord Wolfson, did the decent thing and resigned from the Government over the issue. I suggest that the Government Whips and those who voted in favour of the Commons rejection of our amendments ought to examine their consciences to see how happy they are to have voted for so many breaches of the law.

    Secondly, in the gracious Speech, mention is made of a Bill of Rights. Are the Government really happy about this, when the Secretary of State for Justice, who is presumably responsible for its introduction, has expressed the view that human rights should not apply to prisoners?

    Thirdly, my noble friend Lord Hastings of Scarisbrick referred to a question I asked a number of times in the previous Session. My noble friend indicated that, in the 2019 Queen’s Speech, mention was made of a royal commission into the criminal justice system. As successive Ministers have made clear, this is obviously not going to happen—no announcement has been made of either the name of the chairman or the terms of reference, and the team formed inside the Ministry of Justice to handle the royal commission has been broken up. Surely, the Government should now do the decent thing and apologise to Her Majesty for asking her to make an announcement which they had no intention of implementing.

  • David Ramsbotham – 2022 Tribute to HM Queen Elizabeth II (Baron Ramsbotham)

    David Ramsbotham – 2022 Tribute to HM Queen Elizabeth II (Baron Ramsbotham)

    The tribute made by David Ramsbotham, Baron Ramsbotham, in the House of Lords on 10 September 2022.

    My Lords, I had the privilege and pleasure during my Army career to have audiences with Her Majesty the Queen. When I became Chief Inspector of Prisons, those audiences continued. What was very impressive was the Queen’s knowledge about our prisons. May she rest in peace. God save the King.

  • David Ramsbotham – 2021 Speech on the Health and Care Bill (Baron Ramsbotham)

    David Ramsbotham – 2021 Speech on the Health and Care Bill (Baron Ramsbotham)

    The speech made by David Ramsbotham, Baron Ramsbotham, in the House of Lords on 7 December 2021.

    My Lords, when you are number 55 in a 74-strong speakers’ list, you have not got much new to say. As other noble Lords have said, there is much to be welcomed in this Bill—certainly including its intention and stated aims of integration and innovation, particularly for those who require rehabilitation.

    However, as always, the devil is in the detail. I must thank Nicola Newson for an outstanding Library briefing. I also join others in congratulating my noble friend Lord Stevens of Birmingham on a superb maiden speech.

    Yesterday, the Prime Minister announced in his speech that drug users were to be offered rehabilitation, but I did not hear him refer to the Bill. This is a pity, because I can think of no other form of rehabilitation that is so subject to local conditions and arrangements and therefore so natural to be included in an integrated care system along with speech and language and all the other subjects requiring rehabilitation.

    As other noble Lords have pointed out, when the Bill was in the other place there was considerable concentration on workforce issues, which seem to me to be paramount. There are simply not enough doctors, nurses or other healthcare professionals to go round, particularly in the midst of a pandemic, and the future looks very worrying, particularly where replacements are concerned.

    It seems to me that we will have our work cut out to try to improve the Bill, bearing in mind the fate of perfectly reasonable amendments tabled in the other place. Yet try we must, because there are too many long-term and national issues at stake.

  • Gordon Brown – 1998 Speech in Belfast

    Gordon Brown – 1998 Speech in Belfast

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, at the Parliament Buildings in Belfast on 12 May 1998.

    To be here in Belfast at this historic moment of opportunity for the people of Northern Ireland is a privilege in itself.

    And I am honoured to be able to pay tribute to all those who, not just by their participation in the peace negotiations of recent weeks, but in their everyday actions over many years have brought us closer to peace.

    From a country that has not known a single year, a single month, a single week, in which mothers have not wept for their sons or daughters, we now have, in our grasp, an opportunity that a few years ago only poets could dream of and church leaders could pray for – a lasting peace. The greatest honour history can bestow is that of peacemaker.

    And we owe a debt of gratitude to all those who have played their part in working towards peace. And I am particularly pleased to be here today alongside someone who, with Tony Blair, has done more than anyone else over twelve long and difficult months – Mo Mowlam. And I am pleased to be here with her and also with Adam Ingram who is working closely with her.

    And hopefully – when the decision is completed – some years from now we can look back and say in the words of Robert Frost, the American poet:

    “I can say somewhere ages and ages hence
    two roads diverged in a wood
    and I took the one less travelled by
    and that has made all the difference”

    But let me first repeat how pleased I am to be here. The first serving chancellor to visit Northern Ireland for 18 years. And to be here at such an important time and to make important announcements is a privilege for me.

    I am reminded of the story of Dr Henry Cole, a minister sent to Ireland, on behalf of the Queen in the 1550s and so anxious were some to ensure he did not make the announcements he planned that when he opened his red box to take out the speech there was no speech – but simply a packet of playing cards. I have, I hope, more to offer.

    Now today I also want to pay tribute to all those who throughout the troubles, through dark days and dark years, have continued the long hard work of sustaining the productive base of the Northern Ireland economy, and kept alive the dream of peace with prosperity: those who have invested in Northern Ireland; those who have built up businesses; those who have worked together to tackle the social tensions of some of the worst-hit unemployment areas of Northern Ireland; those who through their actions have offered hope.

    But it is as a result of the hard work, the enterprise, and the commitment of thousands of men and women at work in Northern Ireland – managers and employees – that Northern Ireland has grown at 3 per cent a year on average over the last decade. That inward investment has risen, and that 73,000 jobs have been created in this period.

    For years we have been attempting to build the Northern Ireland economy against a background of violence.

    From today, 1998, we can begin to build on new foundations. Having created a framework for peace we can now create a framework for prosperity.

    Peace underpinned by prosperity. Prosperity made possible by peace. A peace sustained, because it is built on the rock of prosperity.

    So we need a new agenda for prosperity, an agenda for prosperity that is born out of an understanding of the need for growth, founded on new investment in Northern Ireland, driven forward by building up our skills and whose success will be new companies, new jobs, new opportunities in Northern Ireland.

    And let me say that the set of initiatives I am announcing today is not a shopping list dreamed up in a few days to tide us over a few months; it is a strategy that has been developed over many months that offers the prospect of prosperity for many years.

    And so today I want to match the new partnership for peace with a new partnership for prosperity.

    And to do that we need to achieve two things: to encourage the creation and growth of small and medium size enterprises and to attract inward investment.

    And there are five building blocks to achieve these goals:

    Stability – economic stability as well as political stability;
    Investment in the physical infrastructure of Northern Ireland, with a new fund for investment;
    Investment in people and in skills, with a new fund for skills;
    Investment in innovation and new ideas, with a new fund for innovation; and
    direct help to boost business investment, with a new fund for enterprise.
    And in each of these areas I want to make new announcements about what the government will do to match the enterprise of the people.

    So our policy is not for or against any one group – but against unemployment, under-investment, poverty and waste of potential.

    The first building block for prosperity is stability. To encourage entrepreneurs to set up in business here and to encourage businesses to locate here, we need stability. First, of course the stability that comes from lasting peace. But also economic stability. And this government has made it clear that it will do everything to ensure monetary and fiscal stability based on:

    Clear long-term objectives by which we will be judged – an inflation target of 2% and a commitment to fiscal stability that will be locked in by the conclusions of our comprehensive spending review; orderly procedural rules which guarantee certainty and therefore credibility in decision-making – making the Bank of England independent and legislating for a code for fiscal stability; and an open and transparent decision-making process which allows proper scrutiny and offers a confidence that a long term view is being pursued free of short term party political considerations.

    This foundation of economic stability is necessary to avoid the boom-bust which we have suffered from in the past.

    But stability is only the first building block for a peaceful and prosperous Northern Ireland. For business to succeed we have to invest in the future. We have to invest in the physical infrastructure, in skills, in innovation.

    So the second building block for prosperity is investment in our physical infrastructure.

    A modern economy needs good transport links, good schools, decent housing, reliable utilities and cutting-edge communication networks. Doing this properly means an end to the sterile old conflicts between public and private sector, it means public and private sector working in partnership to invest in the infrastructure of Northern Ireland.

    So today I want to announce new investment in our social and economic fabric. A 150 million pounds Northern Ireland investment fund to help create the transport network, housing and schools that Northern Ireland needs.

    Completing the best modern transport and communications links for Northern Ireland is a priority – linking up our towns, linking industrial estates to the seaports and airports, cutting the costs and times of travel from production to exports.

    To build a good transport system in road, rail, airports and seaports we need public and private sectors working together as a part of a publicly-led integrated transport strategy.

    We want to cut the time it takes to travel by road. Today I can announce an investment of 15 million pounds to upgrade the road from Belfast to Newry. I have been in contact with the European commission, and look forward to an early reaction on the scope for EU funding in support of further investment.

    The Belfast-Newry road and other new initiatives will be partly funded by the transfer of Belfast harbour from the public sector to a public private partnership which will further enhance the port’s operation and assure its future growth. Measures will be put in place to ensure that all employees will be able to benefit from the change.

    Today’s package will invest a further 87 million pounds to enable progress in other key road programmes:

    In the road from Belfast to Larne which will improve the connection between Belfast and this key port and important link with the mainland; in the west link through Belfast, connecting the M1 and M2 motorways, which will provide a through route from major sites of inward investment to the port and to the city centre; and in the bypass at Toome connecting Belfast and Londonderry, the Antrim to Ballymena road and the Londonderry to Ballygawley road which will all improve the road network of Northern Ireland bringing benefits to business.

    Transport links go beyond the roads. We want to raise the standard of the worst rail rolling stock to that of the best, and the Treasury Taskforce is already examining options for the development of our rail industry.

    And we will also use money from the Northern Ireland investment fund to improve infrastructure of St Angelo airport at Fermanagh.

    Some of the worst housing estates in Northern Ireland need a fresh start. And 11 million pounds has been allocated to the Northern Ireland investment fund to address these problems.

    But investing in Northern Ireland’s future means more than investing in the physical infrastructure. We need to invest in our human infrastructure – our key resource – the people. So the third building block for prosperity is investment in people and in skills so today I can announce a Northern Ireland skills fund.

    I want to remove the barriers that deprive thousands of men and women of training and employment opportunities in Northern Ireland today.

    I want employers to work with us on getting the new deal right here in Northern Ireland, not just for the young people who will benefit but for the companies to whom they will contribute.

    I want the New Deal to become more than ambulance relief for people in difficulty but the smart solution for companies looking for motivated people they can train with new skills.

    In Northern Ireland today – despite 6 years of economic recovery – over 8 per cent of the workforce are unemployed. Unemployment here is consistently above the level in the rest of the UK.

    So today I want to announce some measures to expand the new deal for jobs and training in Northern Ireland.

    Today I was pleased to see Shorts Brothers join with Northern Ireland electricity, Hilton hotels, Moy Park and other northern Irish firms to sign the agreement to participate. 220 employers in total have already signed up for the New Deal.

    Long-term unemployment has – for too long – been a drain on the Northern Ireland economy. People who become unemployed spend on average 45 per cent longer out of work than in the rest of the UK. The modernisation of the Northern Ireland economy means addressing the long-standing problem of long-term unemployment. Only then will we build a growing economy with economic opportunity for all.

    We promised in our manifesto to introduce a 75 pounds a week employment subsidy to help people unemployed over 2 years into work. That measure is particularly needed in Northern Ireland – and will begin here in June. But I want to provide more intensive help to make a real assault on long-term unemployment.

    So I can announce today that the whole of Northern Ireland will participate in a new initiative on jobs. From the autumn – everyone in Northern Ireland over 25 who has been unemployed more than 18 months can get the help they need to find work. We will create 30,000 new opportunities for the long-term unemployed.

    We will offer a gateway of support tailored to individual needs. Work experience. Help in starting a business. Work trials with employers. A “bridge to employment” programme to develop employment-related skills.

    And to give disabled people who want to work the opportunity to work a 9 million pounds pilot programme will begin in the autumn to help disabled people improve their employability through work experience, training and education.

    But the New Deal is only one way in which to invest in people. Modern employers will succeed when we get the best out of all our people, and to succeed in mastering the waves of technological change and fiercer competitive pressures we must invest in our key resource: people.

    One priority is improving standards in our schools, to which we are committed. And 18 million pounds from the Northern Ireland investment fund will be used to improve the infrastructure of our schools – building new schools and improving existing school buildings.

    But 80 per cent of those in employment today will be in the workforce in ten years time, education cannot stop at the school gates. There must be a concerted effort to improve skills and enable lifelong learning if we are to achieve the productivity gains we want in the years to come. We must have a stronger relationship between education and business in charting the way forward.

    The new University for industry will enable people from their homes all over urban and remote and rural areas to benefit from education from home, on a range of areas beyond the university level courses catered for by the open university.

    14 million pounds from the Northern Ireland investment fund will be used to support lifelong learning. More I.T. will be available to support the national grid for learning and capital investment in further education colleges.

    Adam Ingram has commissioned a skills audit in Northern Ireland to consult employers, to look at whether our education and training systems are equipped to meet the changing skill demands of business, and to identify mismatches between the skills we have in Northern Ireland and the skills we need for the future.

    And today I can announce a 14 million pounds investment in skills – targeted on the needs of business in Northern Ireland:

    conversion courses for graduates and new apprenticeships;
    technician-level training in the software and I.T. industries,
    in engineering and in hospitality – designed to meet the needs of inward investors and other employers.
    These industries are key to Northern Ireland’s future economic prosperity.

    The challenge we face is to get people back to work and equip people with the right skills. Many of you are employers who know the damage that long term unemployment can do to motivation and employability, and you know too the right skills which people need to succeed today. So we need to work together to make the new deal a success and to provide Northern Ireland with the right skills base.

    Northern Ireland has a growing reputation in research and development. But for too long great scientific advances here have gone on to become the manufacturing successes of other countries. We want the inventiveness and creative talents of Northern Ireland to flourish. But we want to ensure that ideas created in Northern Ireland are turned into successful businesses based in Northern Ireland. So we must invest in innovation, and this is the fourth building block for prosperity.

    We will therefore be inviting proposals for a new science park to provide a centre of excellence for businesses spun out from the universities and from our enterprise excellence programme.

    10 million pounds has been set aside as part of the Northern Ireland innovation fund to create the science park.

    The new university challenge fund which I announced in my budget will help convert today’s ideas in universities across the United Kingdom, into innovative businesses that will create wealth and jobs tomorrow.

    In addition a challenge fund of up to 5 million pounds will be made available to meet the funding gap faced by innovative spin-off firms at the science park and elsewhere in Northern Ireland.

    The final building block is the direct help we can give to business to boost investment and help small businesses turn themselves into large and growing businesses.

    Economic success will depends on the vision and ambition of entrepreneurs setting up businesses and making them grow.

    We must encourage these ambitions and give everyone the chance to realise them.

    So today I can announce a series of measures to encourage entrepreneurs and entrepreneurship in Northern Ireland, a Northern Ireland enterprise fund to help Northern Ireland businesses invest and grow.

    In the last two budgets we have cut tax on profits, cutting the main rate of corporation tax from 33p to 30p. And because we know that jobs and prosperity will come, not simply from having a small number of large businesses, but from a large number of small and growing businesses we cut the corporation tax rate for small companies from 23p to 20p. And to encourage investment in small and medium size companies we increased their first year capital allowances.

    It is upon this stable platform for business that we must build. So i want to announce an additional boost to investment in small and medium size companies in Northern Ireland.

    Every pound invested in plant and machinery in the coming four years will be fully offset against tax and therefore be wholly tax deductible.

    This extra tax help, to speed up investment for the rest of this parliament, will be an 100 million pound investment in the economy of Northern Ireland , 99% of businesses in Northern Ireland will benefit, including the tourism and service industries.

    Modern business investing in Northern Ireland will therefore benefit from two new sources of help: this special tax relief and the skills measures I announced earlier which will allow them to train and equip their workforce.

    In the United Kingdom our venture capital industry is proportionately much smaller than in the United States. Only 5 per cent of venture capital funds in the United Kingdom go to start-ups and early stage companies. While in the USA, nearly 25-30 per cent goes to these companies. The amount of hi-tech in venture capital is 50 per cent in the USA, but only around 20 per cent in the UK.

    For businesses to start-up, grow and be successful we need a strong venture capital market. This is a challenge facing the whole of the United Kingdom and the whole of Europe.

    I can announce that options for setting up a venture capital fund of at least 15 million pounds are being considered for Northern Ireland as a result of joint work by the department of economic development and the European investment bank. The intention is that the fund will be run on a public private partnership basis and will focus on the development of smaller businesses and the service sector, including tourism.

    Northern Ireland needs more small businesses but it also needs higher value-added businesses with potential to grow into the drivers of Northern Ireland’s future. That is why we are establishing an enterprise excellence programme. It will provide training, advice and access to finance to help today’s senior managers and research academics to become tomorrow’s entrepreneurs.

    Northern Ireland is a place of great natural beauty, a place of culture and history, and of creativity in music and in art. So with peace comes the opportunity to build a thriving tourism industry. And to kick-start the growth in this industry, as well as the tax help for investment, a 4 million pounds challenge fund will be set up together with a wide range of business support measures provided by the local enterprise development unit.

    And following the lifting of the EU ban on Northern Ireland beef there is a chance to boost overseas sales so we are setting up a 2 million pounds overseas marketing programme.

    Northern Ireland has been very successful at attracting inward investment which has helped to create many new jobs and reduce unemployment to its lowest level for a generation. 1997 was Northern Ireland’s best ever year for inward investment creating 5,000 new jobs. Fujitsu and Nortel have both located their software development facilities in Northern Ireland – bringing in 250 R&D jobs this year alone – and bringing the total jobs provided by these two companies to 700. This success at attracting inward investment must continue to grow.

    Mo Mowlam is already looking at how best to co-ordinate the work of the existing agencies, the industrial development board and the local enterprise development unit, including the possibility of creating an economic power house offering a wide range of support and services for businesses looking to invest in Northern Ireland.

    Later this year I will accompany Mo Mowlam on the first stage of a ten city tour of the United States and Canada, taking the case for investing in Northern Ireland to the captains of North American industry.

    The package I have announced today amounts to a 315 million pounds investment in the renewal and modernisation of Northern Ireland. The challenge we face is to build on economic and political stability, to promote enterprise and inward investment, to get people back to work and equip them with the right skills, and to build the infrastructure for a modern economy. And this is a challenge that we must face together – government, business and citizens, public and private sectors in partnership.

    The Northern Ireland agreement offers peace for Northern Ireland. A fresh start that offers a way out of 30 years of violence. This package offers faith in the future, the chance to build peace with prosperity, an economy of opportunity for all.

    And out of the dark days of recent years I believe we can look forward with new hope to an era of opportunity, leading Northern Ireland to a new age of achievement.

  • Helen Liddell – 1998 Speech on Money Laundering

    Helen Liddell – 1998 Speech on Money Laundering

    The speech made by Helen Liddell, the then Economic Secretary to the Treasury, on 1 June 1998.

    I welcome the opportunity to speak to such an important gathering, to welcome you to London and to wish you well in the difficult and important work you are tackling here over the next two days.

    Financial crime covers a multitude of sins ranging from advance fee fraud to market manipulation and insider dealing. Today I want to focus on one particular aspect of financial crime, the theme of this conference, money laundering.

    This gives me an excellent opportunity to emphasise the importance the UK places on the fight against money laundering. The Treasury – and indeed the whole Government – is committed to defending the integrity of our financial systems and building stable and sustainable economic growth.

    Money laundering is a threat to our democracies and our people. International organised crime, corruption, subversion, violence and misery inevitably thrives wherever criminal activities go unchecked. Estimates of the amount of money being laundered suggest that it is at least $500 billion per year. The risk that such flows of dirty money may destabilise our economies and corrupt our financial and legal institutions is apparent to all. And unless we can successfully tackle the proceeds of crime, we are not going to be effective in combatting the criminals themselves.

    The international nature of money laundering means we have to tackle the problem together. Through international cooperation we can meet the challenge of building an alliance against crime that respects our legal, political, cultural and economic differences. Organised crime thrives on international inertia so we must act soon to seek out and plug the gaps in our approach.

    The Commonwealth has always set high standards in this area and I am sure your work will add to that record of achievement.

    The problem

    Money laundering presents an ongoing challenge. The techniques and structures used by launderers are changing all the time as they try to circumvent the preventive measures we have introduced. Only ten years ago, in most of the world criminals could walk into a bank with the proverbial suitcase of ‘dirty money ‘ with little fear of challenge or detection. In many countries this has now changed – certainly the UK.

    But if the criminals cannot risk putting the cash directly into the financial system, they transport it abroad to countries where questions are not asked. So issues concerning the use and transportation of high denomination notes are still with us. Indeed, this is one area where we are working closely with our European partners, as we prepare for the launch of the Single Currency. However, criminals are using increasingly sophisticated and complex ways of managing their financial affairs to legitimise assets, obscure profits and hide identity. There is increasing use of securities, derivatives and insurance products as well as the services of accountants, lawyers and financial advisors to launder money.

    The Internet and electronic money also provide particular challenges, as they enable money to be moved around the world with relative ease and with little trace. So there is a need to constantly adapt and develop the fight against money launderers. Systems need to be flexible and experiences shared to ensure constant access to best practices.

    The Commonwealth

    The Commonwealth plays a crucial role in the fight against money laundering. Its role in the exchange of information is essential and I hope existing initiatives will be built on.

    I particularly welcome the multi-disciplinary approach you are taking. To succeed, the legal and financial aspects of laundering must be tackled together.

    We have worked together long enough to understand each other’s concerns. There is enough common ground to make us uniquely placed to contribute to raising the benchmark of international work on money laundering.

    Financial Action Task Force

    The leading international body concerned with developing policies to combat money laundering is the Financial Action Task Force – FATF. As many of you will know, the FATF has recently carried out a review of its future mission and strategy and the UK has played an active role in the agreement to extend the FATF’s mandate for a further five years.

    The FATF’s 40 Recommendations are now widely recognised as the international benchmark in this area. But the FATF is not becoming complacent. It acknowledges that, although standards have improved enormously in the past few years particularly within its own membership, the challenge is to make those standards truly global. The FATF’s strategy for the future therefore emphasises the importance of establishing and strengthening regional efforts in every part of the world.

    The great success and professionalism of the Caribbean Financial Action Task Force demonstrates how vital regional efforts are in moving forward. There are several reasons for the success of this regional approach. It encourages the use of mutual evaluation and peer group pressure. And crucially, it offers the flexibility to tackle local challenges with local solutions.

    The Deputy Chairman of the Caribbean Task Force will be addressing you later. I urge you all to consider what role you can play in establishing and building up your respective regional bodies. Success is important not only in the fight against crime but also in encouraging soundly-based and sustainable economic growth.

    Development and expansion of the regional Task Forces will be accompanied by the gradual expansion of the FATF itself. New members to Task Force are likely to be have key regional roles to play. The main Task Force should therefore to continue to grow in understanding and become more truly international in character.

    The twin track approach, of strengthening and widening both the regional and main Task Forces will ensure real progress is made in the coming years.

    G7

    Encouraging news on international action to tackle financial crime also emerged from the recent meeting of the Finance Ministers of the G7. Ministers agreed to review the laws and procedures on international cooperation and information exchange between financial regulators and law enforcement agencies. The review will identify ways of improving our systems and ways of implementing these measures as quickly as possible. The review will be completed by October.

    Finance Ministers also decided to take a number of practical steps to improve cooperation. A G7 reference guide to procedures and contact points on information exchange in our countries has been drawn up and we intend to expand this Guide to cover all major financial centre countries.

    The G7 also agreed a new initiative to improve the coverage of anti-money laundering systems and the effectiveness of tax authorities. The Initiative is designed to ensure that financial institutions report suspicions of tax related crime and that this information is shared both domestically and internationally.

    This work will begin to address the potential loophole which allows criminals to masquerade as tax-dodgers in order to avoid the reporting obligations of our anti money laundering systems.

    I think we all welcome these measures taken by the G7 and other international organisations to tackle financial crime more widely, money laundering in particular.

    UK

    However, it is not only on the international stage that we are doing much to tackle money laundering. Many of you have active domestic programs. We are very busy in the UK too.

    The anti-money laundering systems in place in the UK have, on the whole, been successful. There is, as indicated by the Financial Action Task Force’s mutual evaluation of the UK, some room for improvement.

    We are actively addressing these issues. As a result of the Task Force report and an internal Treasury review of the impact of our money laundering systems, a number of weaknesses were identified which are now working to remedy.

    Firstly, the Financial Services Authority, our new single regulator, will take a pro-active role in regulating compliance with money laundering requirements. This will be underpinned by a high level objective in primary legislation obliging the FSA to monitor, detect and prevent financial crime.

    The FSA will have the power to make rules in relation to money laundering and bring criminal prosecutions for breaches of the UK’s money laundering regulations that are applicable to internal systems and training.

    Secondly, we intend to introduce a system of civil penalties for behaviour which, though falling short of criminal, nevertheless damages, or has the potential to damage, financial markets. Again this power will be exercised by the Financial Services Authority.

    Finally, our approach to asset confiscation has not been as successful as we had hoped. We are actively considering the idea of a national confiscation agency, that would have the remit to confiscate not only cash but also all property that might be derived from the proceeds of crime. These views are still at a tentative stage but the Government is determined to do all it can to take the profit out of crime.

    Conclusion

    I am delighted to have had the opportunity to address you on some of the key areas of activity on money laundering both internationally, and here in the UK.

    I would also emphasise again my belief in the key role the Commonwealth can play in raising international standards in the struggle against financial crime. We have shown already how much we can achieve through working in partnership. We have to build on this success to ensure we tackle the ever more complex and dynamic challenges we face.

    1 June 1998 wish you well in your work over the next two days – and perhaps more importantly – in carrying this work forward on the ground in the coming years.

  • Alistair Darling – 1998 Speech to the FSA European Conference

    Alistair Darling – 1998 Speech to the FSA European Conference

    The speech made by Alistair Darling, the then Chief Secretary to the Treasury, to the FSA European Conference on 1 June 1998.

    Introduction

    1. The Financial Services industry is of immense importance, not just to the United Kingdom but throughout the world. It is a global industry with millions of people depending on it. It transcends political and geographical boundaries. It has brought immense benefits. And because of its nature, it brings new risks every day. That’s the nature of the industry. And that is why the way in which we regulate and supervise the Financial Services industry is so important. In a world where the markets are continually changing, we need a regulatory system that can develop with them.

    The Financial Services Industry

    2. Here in the UK, the industry accounts for 7% of our GDP. It employs over 1 million people. Many towns and cities depend on it for employment. Not just London, but throughout the country – Leeds and Manchester for example. And in terms of funds under management, Scotland ranks fourth in Europe. Edinburgh is the UK’s second financial centre. And of course millions of people rely on its services. The industry is an example of how the UK can compete on quality and excellence at home and throughout the world.

    3. Of course, at the heart of the UK’s financial services industry is the City of London, one of the world’s three leading financial centres. The London Stock Exchange is the largest trade centre for foreign equities in the world. The Foreign Exchange market here is the largest and most important in the world, with an average daily turnover of $464 billion. Net overseas earnings of the UK financial services industry amounted to 23 billion Pounds (in 1996) – equivalent to 3.5% of national income.

    4. The City has a critical mass of expertise. It is home to 520 foreign banks. It is a major insurance centre with Lloyd’s and the London Insurance Market. The Baltic Exchange is here, trading throughout the world.

    5. Their presence has built up a formidable range of expertise, attracting investment from all over the world. There are brokers, loss adjusters, risk managers, accountants, actuaries and of course lawyers. All of them providing quality employment and generating significant earnings. And supporting considerable expertise and skills.

    6. London’s success has been built on individual flair and innovation. No Government can do that – but it is for Government to complement that process. To create an environment where business can flourish. Where business can expand and where the public has confidence in the integrity of the system. That’s why getting the supervisory and regulatory regime right is so important. Not just in the UK – but in Europe and indeed throughout the world. Before I turn to our proposals here, I want to say a word about Europe, and its implications.

    Europe

    7. The introduction of the euro on 1 January next year will also have significant implications for the financial services industry.

    8. In October last year we became the first British Government to declare that in principle, a successful single currency, like the Single European Market, would be of benefit both to Europe and to the United Kingdom. We don’t believe there is any constitutional bar to membership: the test for us is what is in Britain’s best economic interest. That’s an important point. We are the first Government to declare in principle for support for the single currency.

    9. The fact is of course that it would not be in our economic interests to join next January as there is not the necessary convergence with the rest of Europe. To join now would be to accept a monetary policy which suited other European economies but not our own. Our official interest rate is 7.25% (base rate), while in Germany and France it is 3.3% (repo rate), reflecting the different stage of the economic cycle we are at compared with them.

    10. We need a period of stability and settled convergence before we can join, and our policies are designed to achieve that. And in order to ensure a genuine choice in the future, we must also make the necessary practical preparations now. We are working closely with business to do just that.

    11. The existence of the Euro will present a huge challenge to the Financial Markets. Not just in preparation but also because of increase competition for business.

    12. The industry and the City of London must maintain its competitive advantage. We cannot be complacent. There is a lot of business in Europe. There are plenty of people and institutions that would love to get some of the business now conducted in London. We need to anticipate that competition. Business comes to London because of our competitive advantage. But no one – no institution – can rest on its laurels. The Government is determined to do everything it can to enhance London’s reputation as one of the world’s foremost financial institutions.

    13. That is why we’re preparing Britain for the euro. Indeed, why we’re modernising the governance of London itself. Modernising the Underground system. And why we’re determined to put in place a regulatory environment fit for the 21st Century. London and the UK must be the market of choice for the global industry. All of us – Government and industry need to do what we can to achieve that goal.

    The Single Market in Financial Services

    14. I said that the Financial Services market was global. It needs to be. And the Government is committed to pursuing open markets in Europe and throughout the world. The European Single Market in financial services is not complete, but its evolution has been significant. Banks, investment firms and insurance companies now have a “passport” to sell across borders on the basis of their home state authorisation.

    15. But local rules, differences in implementation, and gaps in legislation mean that further action is needed to consolidate what has been achieved.

    16. Some new and amending legislation has been identified as necessary. For example, the Commission intends to update the UCITS directive and bring forward a new directive reducing the restrictions on investments by pension funds.

    17. The Prospectus Directive has been identified as a candidate for updating to enable firms to raise capital more easily and cheaply. Something that is particularly important for small firms.

    18. But legislation alone will not complete the single market. It has to be implemented in a consistent way across the Union if we are to benefit consumers and businesses that rely on financial markets to provide the dynamic which leads to higher growth and more employment.

    19. One of the most significant changes we have seen in recent years is the recognition that regulators need to exchange information with each other all the time. The industry is global. So must be the regulators.

    20. That cooperation will be key in completing the single market in financial services. We need to ask ourselves how we are facilitating the single market, breaking down barriers, and ensuring that the regulatory system complements this process, and that it doesn’t simply add another layer of bureaucracy.

    21. Within the UK, bringing together existing regulators will mean that rules and practices will be re-examined. In many areas the rules will be similar, in others they will be very different, but the objectives will be the same. There may be a logic to some rules being different to reflect sectoral or cultural differences but in many areas best practice can be identified and a common approach agreed. National legislation, including implementation of European legislation, will be updated. That process is going on here now.

    22. The same must apply in Europe. We have the bulk of the single market directives in place. The framework is in place but differences remain. We need to examine those differences, and ask ourselves how we can simplify the system and make it more effective.

    23. The Commission is well placed to facilitate consensus without the need for new legislation, although in examining implementation in member states and developments in financial markets it may identify areas where legislation needs to be updated through amending directives.

    24. The regulators will have to talk and exchange best practice, explain problems and accept change. Accepting change should be much easier when it is offered rather than imposed.

    25. Following the informal ECOFIN at York we are examining our implementation of the Prospectus Directive. The directive includes options which permit member states to review and update their implementation to meet tomorrows challenges. But that may not be enough and a new directive introducing the concept of a passport may be necessary.

    26. Over time we will need to examine other directives to ensure implementation keeps pace with developments in the markets and the demands of users of financial services. This is something all member states will need to do if their financial institutions are to prosper in the global marketplace.

    27. Global competition is intense but within Europe we are moving into a period of consolidation in the single market. But we must face up to the need to change and adapt if Europe as a whole is to remain competitive. It is in all our interests that the European as well as the UK market is as efficient as possible.

    The UK regulatory system – the case for reform

    28. Let me now turn to our approach here. We have in the front of our minds not just the global changes to the nature of the market I talked about but also the problems and failures of the regulatory system at home. We wanted to build a new modern regulatory system. One that would be designed for both our domestic and international needs. And we were determined that any reform would be managed efficiently and effectively.

    29. For some years now, a consensus has been developing for change. There is a recognition that change is necessary, both in terms of structure and, importantly, in terms of the nature of the regulatory system, at every level.

    30. Both the industry and the public have recognised that the present system, underpinned as it is by the somewhat misleading concept of “self regulation” could not continue. The system was not self-regulating in the proper sense. And serving two masters – the trade interest and the public interest – proved to be too difficult in many cases. The system pleased neither the industry or the consumer and general public.

    31. And reform is necessary not just because of the domestic needs of industry. As I have said, the need for international cooperation and a regulatory system that can deal with complex international dealings has become increasingly urgent.

    32. So, in the UK, it was clear that we needed a new system. One that had sufficient clout, and stature to command respect both in the domestic and international markets. One that enhanced the credibility of our financial services industry.

    33. There have been, of course, substantial changes in the structure of the industry here and elsewhere. The distinction between banks, insurance companies, building societies and other institutions is becoming so blurred that a regulatory system that is modelled on an old industrial structure that no longer exists is inappropriate.

    34. We have nine financial regulators at the moment. It isn’t uncommon for large institutions to find that they are regulated by many or most of them usually requiring several different systems to cope with their demands. The distinction between regulators, especially for consumers has become especially confusing. And the costs escalated.

    35. Many firms are currently subject to a range of statutory regimes, for insurance, investments and deposit taking. In many cases equivalent provisions relating to different kinds of business are subtly different – in some cases radically so. It is not in anyone’s interests for firms to have to consider in each case which regime they are operating under. Neither in theirs nor their customers.

    36. Also, the current system is riddled with many anomalies. Firms supervised by different regulators receive different disciplinary sanctions for similar offences. And perversely, punishment depends not on the offence but on the regulator. These anomalies are unfair and blatantly damage the credibility of the financial regulation.

    The case for a single regulator

    37. The case for a single regulator is clear. A single regulator will be able to provide effective and consistent regulation across the traditional financial services sectors. It can get away from outdated and increasingly irrelevant distinctions between business sectors.

    38. Firms will no longer be regulated by multiple bodies and have to deal with overlapping regulatory demands.

    39. A single regulator will be more effective because there will be no duplication of effort and no doubt about which body is responsible. There can be no passing the buck.

    40. Consumers will benefit because a single regulatory structure will be able to provide single points of access for the public for enquiries, complaints and compensation.

    41. Providers will benefit because bringing different regulators together should make regulation more cost effective.

    42. A single, efficient, transparent regulatory regime which commands the confidence of the industry and its customers will be of competitive advantage to the UK’s financial services industry in the global financial services market. The global market place is ever more sophisticated, changing ever more rapidly. Right regulatory structure will enhance prospects for growth in this global marketplace.

    43. But the new system will succeed only if it works in partnership with the financial services industry. And the new system of regulation must reflect the diverse nature of the industry.

    44. We promised reform at the election. And three weeks after the election we set out how we would deliver the radical overhaul to the regulatory system we promised.

    45. And in October the new Financial Services Authority was launched. It will take over the work of nine existing regulators – assuming responsibility for the supervision of banking, insurance (including Lloyd’s), investments and securities firms, investment exchanges and clearing houses, building societies and friendly societies.

    46. This is radical reform. The City of London and the UK market will be the only major financial centre in the world with a single supervisor.

    47. It will put the UK at the cutting edge of financial supervision. It will offer huge competitive advantages for us.

    48. I recognise that bringing together the supervision of banking, building and friendly societies, securities and insurance is a formidable challenge. The existing supervisors each have their own rules and culture.

    49. But the creation of a single body is the only answer to the challenge of supervising the modern financial services industry.

    The role of the regulator and the role of management

    50. It’s important to remember that regulation must be seen as a complement to business. It isn’t a substitute for individual judgement or good management. Far from it. It’s management that sets the ethos of a business. It’s management that should know the risks to which it is exposed.

    51. I have said many times before that it is not the Government’s job, nor it is the job of the regulators, to sit in the boardroom and try to run a business. Good regulation should be a complement to business and should create a climate where the industry and individuals can deal with each other with confidence and trust. That’s our objective.

    52. It’s also important to remember that the industry itself benefits from a decent regulatory system. It’s in the interests of the industry that investors, both domestically and internationally have confidence in the financial system to bring in their money.

    Flexibility

    53. It is important for the regulator to be flexible. Markets are changing rapidly and the statutory framework that underpins the regulatory system has to allow for continuous development and changes in the future. Development of over the counter products and derivatives, for example, have transformed the market. Selling to consumers has changed, with more telephone sales and direct selling.

    54. Regulation shouldn’t drive changes in the market. The market should provide what the consumer wants. And it is the job of the regulator to complement that and ensure that it doesn’t distort that process in harmful ways.

    55. One of the key functions of the regulator is to reconcile the balance of the cost of the regulatory regime and the perceived benefit. The cost of the regulatory system is borne by the industry, but ultimately of course, by the consumer. And the cost therefore must be clearly related to the benefit of the regulatory system.

    56. There is a balance between what is reasonable for the regulators to require and what becomes unreasonable because of the excessive cost compared to the gain.

    Single Regulator – what we’ve done so far

    57. For the first time ever, the regulator will have statutory objectives covering market confidence, consumer protection, consumer awareness and financial crime. The FSA will be required to pursue them in an efficient and economic way, which facilitates innovation and takes account of the international dimension.

    58. The Government is committed to strong consumer protection. But caveat emptor is an essential part of any regulatory system. It is no part of the regulator’s job to stand in the shoes of the consumer. But the regulatory system can ensure that the customer has sufficient information to make an informed decision. Customers should be aware of the risks attached to different products. And they should know what their investment will cost. And it is in the interests of the economy, the industry and the public that people have the confidence to buy the products they need.

    59. A vital part of the new single regulator’s job is to sustain confidence in the market, and assist in the detection and prevention of financial crime. We are determined to ensure that the financial markets remain open and clean places to do business.

    60. That is why we have announced a number of measures, including civil fines for market abuse and new prosecution powers, which will help ensure that those who abuse the markets, including insider dealers, do not get away with it.

    61. The powers of intervention and discipline given to the regulator will be tough and effective – and they will be exercised fairly. The Bill will create a new single Tribunal, which will be entirely independent of the FSA, to consider appeals against the exercise of its regulatory powers.

    62. Having a strong and effective regulator will further enhance the UK’s reputation as one of the best regulated and attractive financial markets in the world. We are determined to maintain the UK’s position as one of the world’s foremost centres. We value our reputation as a clean market to do business.

    Phase I – Bank of England

    63. Reform is being implemented in a manageable way. The first stage of reform, is already complete. The reforms to the Bank of England come into force today. The Bank of England Act which gave the Bank operational independence in monetary policy as well as moving banking supervision from the Bank to the FSA comes into force today. And as you know, the FSA has already started work – publishing a number of consultation documents following its launch last October. The progress that it has made and the ready acceptance of its very existence is due to a large extent to the work of Howard Davies and his colleagues not just in the FSA but in the existing SROs who are all working hard to make the new system work.

    Phase II – New Financial Services Legislation – moving on from here

    64. The next stage is the new Financial Services legislation which we will publish in draft in the summer. We will publish draft legislation in the summer. There is now consensus over the broad framework for financial regulation, but it is important to get the detail right. We are committed to reform and have set out our approach. But we are also committed to consulting as widely as possible. We want a system that will endure, and time listening is time well spent.

    65. Getting the detail right is as important as getting the overall framework right. The period of consultation on the Bill will allow us to get the detail right.

    66. There remains much work to be done to ensure the single regulator works. The Government and the FSA are determined to put in place long overdue reform, and to get it right. The consultation period for the Bill is one way in which the industry can help us make it work.

    Conclusion

    67. I have covered a wide field. But that is inevitable. Regulation of the financial markets – and the pursuit of open markets are, by their very nature, objectives which are no longer domestic concerns.

    68. The rationale for change is clear. The first stage in our reforms is already complete, and we will be publishing the new financial services legislation in the summer. It is important to get this right. We are creating a new regulator for the new millennium. A single regulator to replace the outdated divisions of responsibility in the past. A regulator capable of adapting to change – adapting to a single market and a single currency in Europe and a rapidly changing global industry beyond. A regulator that is outward looking and as international in outlook as the markets themselves. And a regulator which commands the respect of the industry and enhances public confidence.

    69. There’s a lot of work to do in the meantime. But we’re making good progress. I am confident that the FSA will become a role model for the future.