Having recently written a piece for this blog about how to Change the World This Election, I decided to follow my own advice and emailed my local candidate to show my support for the initiative. After signing up via the Action Aid UK website and emailing my local MP’s as a show of solidarity against tax dodging, I thought nothing of it until this morning when I was surprised to receive this email from Michael Ellis, the Conservative candidate for Northampton North. It read –
Dear Mr McDermott,
Thank you for getting in touch with me about your concerns on tax justice. I think you raise some worthy points. Let me set out for you the position on this that I and my fellow Conservatives hold.
Just as Conservatives believe that aid needs to be more effective and accountable in order for it to have the maximum possible impact on global poverty, so there is no doubt that more needs to be done to increase transparency in tax affairs.
The UK Government has a responsibility to work with other countries, including overseas territories, to ensure that information on the tax position of individuals and companies is exchanged between tax authorities. This is vital in addressing tax evasion and also money laundering.
Ultimately, an international accounting standard on country-by-country reporting may well address many of the problems currently created by a lack of transparency. We need to ensure that any such reporting regime provides the relevant information and does not deter multinationals investing in developing countries. In the shorter term, the UK Government must continue to press for further exchange of information agreements, greater monitoring of the use of transfer pricing and the use of complex structures and greater transparency.
I agree with the sentiment behind the ‘Robin Hood’ campaign and you may be interested to know that the Conservative Shadow Chancellor George Osborne has met with its representatives in order to discuss our common objectives.
That is why the Conservatives have said that we will introduce a levy on banks in the UK. At the same time we will push for international agreement, which could raise billions of pounds to fund domestic and international policies, including action to help the most vulnerable, and tackle climate change, at home and abroad. We will continue to pursue international agreement if possible on the exact design of a tax, and will consult widely.
The International Monetary Fund (IMF) is producing a report on what form such a tax might take. They are considering the practicality of a transaction tax, alongside other options like a levy, a form of which President Obama has proposed and the Swedish government has implemented.
I also agree that, in spite of other pressures on public spending caused by the recession, government spending on international development should continue to be a priority. We are therefore committed to increasing aid spending to 0.7% of GNI, because we believe that overseas aid can save lives, combat diseases such as malaria and HIV/AIDS, and help to create bring new jobs, universal education and other opportunities for people living in the poorest countries.
In addition, we recognise that climate change is already hitting some of the poorest people in the world, and urgent action is needed to cut emissions and help protect people from the impact of rising temperatures. David Cameron has made this a personal priority of his. We have signed up to the 10:10 campaign, and committed to cutting UK government emissions by 10% within 12 months of the general election. As we have repeatedly stated, we also support international negotiations on new mechanisms to provide additional funding for this important issue.
I do hope you find this answer to be satisfactory. If you have any further questions, on this or any other matter, then please do get in touch again.
Yours sincerely,
Michael Ellis
Conservative Parliamentary Candidate for Northampton North
So there you have it, straight from the horses mouth. It seems that Action Aid’s work to highlight the need for change has made a lot of prospective MP’s stand up and take notice. If you would like to email your local parliamentary candidates to make a stand against tax dodging that costs developing countries up to $160 billion a year, then simply click on the link below to join the cause.
