• [Feb 04]: ' . . INSTEAD of going on about British jobs for British workers, is it not time that he went on about British taxes for British companies?'
Mr. Nick Clegg (Sheffield, Hallam) (LD): I add my expressions of sympathy and condolence to the family and friends of Corporal Danny Nield, who tragically lost his life serving this country and the people of Afghanistan in Helmand province.
Week after week, I have been asking the Prime Minister why he is not getting tough on tax avoidance. Every time, he tells me that he is doing all that he can. This week, newspapers have confirmed that big companies are using loopholes to get out of paying £14 billion in corporation tax alone. Instead of going on about British jobs for British workers, is it not time that he went on about British taxes for British companies?
The Prime Minister: This needs not only the efforts that we are making to clamp down on tax avoidance and tax evasion, but an international agreement. The right hon. Gentleman may be aware that there is a case in America at the moment in relation to Swiss tax avoidance. Once it is resolved, I believe that it is possible to get an international agreement for the exchange of information about tax cases. That would be the way to move forward our proposals for the exchange of information on tax and clamping down on tax evaders.
Mr. Clegg: The Prime Minister is living in denial. He created a system that lets big companies run rings round the Treasury, lets peers in the other place not pay their full taxes in this country and allows City bosses to pay less in tax on their capital gains than their cleaners pay on their wages. He is losing this country billions of pounds, which could be used to give big permanent tax cuts to ordinary families. Why should anyone trust him when he makes one rule for the fat cats and another for everyone else?
The Prime Minister: I remember that the chief donor to the Liberal party got into real trouble because he was a tax evader, and the Liberals never returned the money. Perhaps it is the leader of the Liberal party who is in denial at the moment.
We do everything we can, and will continue to do so, Budget after Budget, to remove the possibility of tax avoidance and tax evasion. In the end, it will need what the right hon. Gentleman should support-an international agreement. In the light of the Swiss case in the United States of America, I hope that we can make big progress on that, and I hope that the hon. Gentleman will support it.
• . . Dr. John Pugh (Southport) (LD): Given yesterday's decision by Ocean Parcs and Pontin's to create 2,000 new jobs and invest £50 million in seaside resorts, including £10 million in Southport, does the Prime Minister agree that, especially in a recession, the time is right to promote British holidays for British and non-British people?
The Prime Minister: I agree with the hon. Gentleman about the importance of the announcement by Pontin's yesterday of a £50 million expansion plan. I know that Southport will benefit from that with extra jobs. I can also tell him that, in addition, Southport will receive a £4 million grant to help create a new cultural centre in the area under the Department for Culture, Media and Sport's sea change programme, which aims to regenerate coastal areas. We will continue to do our best to create jobs and to boost the British tourism industry, which, I believe, will do well this summer.
• . . Andrew George (St. Ives) (LD): The Competition Commission reported last year that the large supermarkets "transfer excessive risk and" - unexpected- "costs to suppliers", which is damaging consumer interests and detrimental to farmers and growers, both here and in the developing world. Does the Prime Minister agree that the commission's proposed remedies to tackle this problem should now be implemented without further delay?
The Prime Minister: The hon. Gentleman is absolutely right to highlight this problem-first, because of the failure to introduce early payment to many of the suppliers. We are asking the supermarkets to do that. Secondly, in relation to developing countries, we have been in talks with supermarkets such as Asda about how they can source their produce from those countries at a fair price. We will continue to push that as quickly as possible.
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