I did not expect to be called to sum up so soon. I will try to stick to the seven-hour limit that the Chair of the Select Committee, the hon. Member for Tonbridge and Malling (Tom Tugendhat), indicated. I congratulate him and his colleagues on the Committee on a couple of very thorough reports. I know that they are only two of a large number of detailed inquiries that they have undertaken, which have involved a lot of work from him, his colleagues and the Clerks and others who support the Committee—we should never forget how important their work is.
I will make a few general comments. When we are talking about sanctions, we should ask ourselves what they are for and why they are there. There are two kinds of sanctions: first, those that are imposed usually on countries or Governments because they are behaving in a way that we find unacceptable and secondly, those that we impose on individuals usually because they have been identified as a significant threat to the financial and economic stability of the United Kingdom or to the safety and security of our citizens.
It will come as no surprise to hear that I am not always happy about the decisions that the UK Government take about which countries are subject to sanctions and which are not, but that is a topic for a different debate. The principle should be that, if we know that a country is acting in breach of international law, we must use all the levers that we have. That certainly includes diplomatic influence, but we also have to be prepared to use financial and economic levers, if necessary, to bring even supposedly friendly countries into line. Sometimes we are too slow to exert financial pressure on countries that are designated as our friends, as opposed to those that are designated as neutral or potentially unfriendly.
When it comes to sanctions against individuals, the principle should always be that those who are involved in systematic human rights abuses or international crime, or those who are actively seeking to undermine democracy in their own country or anywhere else, will simply not be welcome, no matter how much money they are prepared to invest in our financial institutions or to pay the Government to buy their way in.
It is a sad irony, but a salutary lesson, that the first person to be stripped of substantial amounts of money about a year ago—a Russian lady or a partner of a known Russian individual—was here only because she had enough money to fast-track the UK immigration system. The rules allow people to come in with a substantial amount of money, because that is deemed to be of economic benefit, so she was able to come in more quickly than if she had not had billions of pounds with her. When it turned out that the source of those billions of pounds was extremely dodgy, enforcement action had to be taken.
That is a salutary lesson that when we look to make people welcome because of assets they bring with them, we have to be very careful—before we make them welcome—about where those assets have come from. And if there is a question about that, it is much better for to say, “I’m sorry. You wait outside until we are sure that it’s acceptable to let you come in.”
I will raise another issue that I know is not strictly covered within these reports and that is not strictly within the remit of the Foreign Affairs Committee. As the hon.
Gentleman pointed out, sometimes the demarcations between Government Departments do not work particularly well, because criminals and those who wish us harm do not stick to attacking the functions of one Government Department, and sometimes a cross-Government approach is needed.
I do not think that there is enough recognition yet that one of the features of global capitalism is that the financial markets can be very deliberately manipulated by people who have at their control assets bigger than those of most countries in the world. Those financial markets can sometimes be deliberately manipulated for no other purpose than to wreck the economy of one or more countries because people have hedged financial bets on those countries being damaged.
We have certainly seen that happen in the past; it is the reason why a number of countries in Latin America had severe economic crashes in the past. I think that we would be naive to think that somebody is not looking at the United Kingdom right now and preparing to hedge the financial markets, effectively betting on the UK economy crashing. And if those people are also in a position to wield influence that makes it more likely that the economy will go down, then we have a very serious problem. So, although it is not within the strict remit of the hon. Gentleman’s Committee, I think it is an indication that when we start to look at the malign influence of Russian money in the City of London, eventually we have to start looking at the malign influence of other people’s money in the City of London, too.
My final comment is about when we leave the European Union. I thought it was very interesting that the sanctions report pointed out that effectively the Foreign Office—along with, I think, the rest of the Government—catastrophically underestimated how much very detailed technical work had to be done. It was not simply a case of, “We leave tomorrow, and we have a customs deal the next day, and everything’s fine.” Work that the Foreign and Commonwealth Office should have been doing to protect us from malign influences was not able to be done as quickly as it should have been, because the FCO had so many other things going on. Okay, that is a case of being wise after the event, but this issue should still concern us.
When we leave the European Union, there will be a question as to whether it will ever be credible or effective to have an entirely independent sanctions policy, because although the United Kingdom is—what?—the sixth or seventh biggest economy in the world, depending on how it is measured, if it imposes sanctions and nobody else does, those sanctions will not work. And if the other big players—the USA and the European Union—impose sanctions and we do not, we would then be in serious danger of falling victim to secondary sanctions, because if we do not stop our trade with sanctioned countries, the European Union or the United States of America will sooner or later start considering whether they should continue to trade with us.
So, although we have been part of a framework and any sanctions were imposed on an EU-wide basis, in practice we will have to keep talking to our European colleagues, even if and when we leave the European Union. That is because sanctions, and probably international sanctions, can effectively protect the unique
institutions of the City of London, only if they are applied not only by the United Kingdom but by other major players as well.
I welcome the publication of these two reports. The timing of this debate is unfortunate, and in other circumstances we would have had a much greater attendance. I do not think there is a lack of interest in this subject; I think there is a great deal of interest. It is just that there are so many other demands on Members’ time just now. I hope that the Chair of the Committee will take back—on behalf of myself and indeed the whole House—our thanks, not only to his colleagues on the Committee but to all the Clerks and other staff who have helped to get these reports published.
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