Constitutional crisis averted as MPs fume
CAMPAIGNING MPs have vowed to continue their battle to impose controversial laws on the Crown Dependencies – despite potentially causing ‘irreparable damage’ to the constitutional relationship with the UK.
Labour’s Dame Margaret Hodge insisted that introducing public registers of beneficial ownership in Guernsey, Jersey and the Isle of Man was the ‘will of Parliament’ despite warnings that MPs legislating for the islands without their consent would break constitutional conventions.
Her comments came after the UK government yesterday pulled the Financial Services (Implementation of Legislation) Bill from debate in parliament after a group of MPs – including former cabinet ministers – sought to force through amendments requiring the Crown Dependencies to introduce public registers of beneficial ownership by 2020.
‘The shocking move by the Government to pull the Financial Services Bill from Parliamentary business is another blatant attempt to avoid a damaging defeat and kick the can down the road,’ said Dame Margaret. ‘Public registers of beneficial ownership in Britain’s tax havens are the will of Parliament. They must be implemented sooner rather than later.’
Fellow campaign leader Andrew Mitchell, a Conservative MP, said: ‘It is almost certain that the House of Commons would have passed today’s amendment. The government has therefore decided to defer consideration to a later date. However, the bill will return and – given the level of support from parliamentary colleagues across the House – the amendment is extremely likely to become law.’
Deputy Lyndon Trott, speaking in his capacity as chairman of Guernsey Finance, warned that if the UK passed the amendments without the islands’ consent ‘the constitutional relationship between the Crown Dependencies and the UK will be severely damaged. Possibly in an irreparable manner’.
Amid the fallout, Commons speaker John Bercow suggested it was a constitutional disgrace that the bill had been pulled as MPs lined up to criticise the UK government. It was a most unusual state of affairs and a rum business, said Mr Bercow who declared that he would allow the amendments to be debated if the bill came before MPs again.
HM Treasury yesterday confirmed that the Brexit-related financial services bill had been delayed as a result of the public register amendments - but gave no date for when it would return to parliament. ‘The Government will not move the bill today but will reschedule it to ensure that there is sufficient time for proper debate,’ said a spokesperson.
The Treasury stressed that the Financial Services (Implementation of Legislation) Bill was a ‘no deal’ only bill needed to prepare the country for possible future changes in financial services regulation.
In a joint statement, the three Crown Dependency governments welcomed the deferral of the bill and associated amendments as it provided the opportunity for ‘meaningful engagement’ with UK ministers and parliamentarians.
‘We want to move forward in a way that does not breach the rule that the UK does not legislate for the Crown Dependencies on domestic matters without our consent,’ said the statement.
‘We are committed to exchanging adequate, accurate and current information on beneficial ownership to combat tax evasion, money laundering and corruption. Our track records on this matter, including the exchange of notes agreement we entered into with the UK in 2016, demonstrates that commitment.’
The Crown Dependencies were determined to work with the UK government and international organisations to develop an effective global standard that addressed the global problems of financial crime and tax evasion. All of the islands observed the highest standards of financial services regulation and transparency, said the statement.
