My Lords, some of my colleagues will probably feel that further discussion on Part 3 is, in a sense, almost redundant. The clear sentiment of the House is that Part 3, as it exists, is unfit for purpose, and that we need to pause the Bill to consult more widely and, in the light of those consultations, revise very considerably. That being the case, I merely wish to flag in my probing amendment some of the sheer difficulties of defining “foreign control”, and what is controlled by a foreign entity, using indicators of how far or otherwise it is indeed influenced by a foreign power or owner.
Noble Lords who read the football pages, as I occasionally do, will have noted the current controversy as to who actually owns Everton Football Club. The question is whether the real owner, carefully disguised, is a sanctioned Russian oligarch. If you cannot tell who actually owns Everton Football Club—the idea that you can carefully discover the foreign company based in Panama, itself owned by a controlling company that is partly in the Bahamas and partly in the Cayman Islands—it is not entirely clear how we might define who owns what.
The UK contributes a great deal to the confusion over who owns what. Our overseas territories and, to a certain extent, our Crown dependencies, and the way in which Companies House operates, often make it very difficult to discover even that companies registered in this country may be owned by a chain of other owners; the ultimate owner therefore becomes extremely unclear.
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When dealing with authoritarian states, other complications come in. I hope the Minister will contribute a response on this. In dealing with authoritarian states, one is dealing with allegedly private companies that are almost unavoidably close to the power. Central Asian states are very similar to Russia and, previously, Ukraine, in this respect. You are very successful only if you are “in” with the current power centre. Dealing with Gulf states, south-east Asian states and others, you are often dealing with partly state-owned companies, sovereign wealth funds and others, many of which are now quite deeply invested in Battersea, in British ports and so on. These are real, existing contributors to this economy but with complicated political backgrounds.
The question is: how do we identify this, and how much are we putting on the—often small—businessman, whoever he may be, to try to discover who really owns the company with which he is dealing? Who is the source behind the people to whom he is talking? If the Government are putting that absolutely on the individual in Britain, whose political antennae for what is happening in Malaysia, Kazakhstan or Uzbekistan may not be as high as they might be, then this will be a very difficult Act to implement. I beg to move.