§ 2. Mr. Michael Clapham (Barnsley, West and Penistone)What discussions she has had with United Kingdom-based multinationals about their business practices in relation to overseas projects. [42497]
§ The Secretary of State for International Development (Clare Short)I have had many discussions with multinational companies about their investment and trading practices. We have discussed the growing ethical consumer movements, and their focus on core labour and environmental standards.
I have also discussed the welcome support of the major pharmaceutical companies for the roll back malaria initiative. I have had many discussions on the interest of developing countries in attracting beneficial investments, and the interest of companies in supporting development. My Department is consulting widely with the private sector on how we can be best work together to promote those objectives.
§ Mr. ClaphamI thank my right hon. Friend for that answer, but may I tell her that on 13 May, the day on which Rio Tinto, the largest mining company in the world, held its annual general meeting, the International Union of Chemical, Energy and General Workers published a booklet entitled "Rio Tinto: Tainted Titan", and held a stakeholders' meeting to draw attention to the fact that the company had shown disregard for human rights and for the environment? I agree that it is now addressing those issues, but will my right hon. Friend continue to press to ensure that multinational companies exercise the best practices and have regard for human rights and for the environment?
§ Clare ShortI can certainly give my hon. Friend that undertaking, but there is definitely a new mood among multinational companies. They are seeking meetings with my Department and, one by one, they are making commitments to human rights and to monitoring their performance overseas. There is a real sea change, and if we encourage that, we could improve standards of protection of the environment and core labour standards across the world. It is an important opportunity.
Rio Tinto had a bad reputation, but it seems to be working to change. I recently gave out the World Aware awards, and the company won one. I was visited by missionaries who had been working in the Philippines and who were critical of the company's record. I arranged that they should meet, but, apparently, Rio Tinto is not in the Philippines any more. All of us, including my hon. Friend, should meet Rio Tinto and get behind those improvements in performance, because they are beneficial to everyone.
§ Mr. Andrew Rowe (Faversham and Mid-Kent)Can the Secretary of State confirm that her conversations also cover behaviour such as marketing vigorously in overseas 350 countries goods that have been banned or found to be dangerous in this country? Will she look at the record of the tobacco companies that flog cigarettes vigorously overseas as they are unable to flog them here, because we understand the dangers? Will she also consider countries that still promote tinned and powdered milk, when everyone believes that maternal milk is infinitely better for children?
§ Clare ShortI am happy to give the hon. Gentleman an undertaking to look at any issue, but I do not pretend to have invincible power to cause multinational capital suddenly to take on the standards that he advocates. We have all been campaigning to get rid of irresponsible baby milk advertising, which is so destructive. I confess that I have never looked into the tobacco issue in detail, but I am aware of it from press coverage. I will take a look at it.
§ Mr. Hugh Bayley (City of York)Is my right hon. Friend aware of the remarks of Adair Turner, from the Confederation of British Industry, in favour of international action to combat bribery in international trade? That is a change of position for the CBI. Given my right hon. Friend's support in the White Paper for action to implement the convention of the Organisation for Economic Co-operation and Development on combating international bribery, will she or her Government colleagues be introducing legislation to tackle the problem?
§ Clare ShortI pay tribute to my hon. Friend for his work in this area. We have a great opportunity, because the OECD has called for companies from industrialised countries to clean up their act, for Governments to cease the practice of allowing bribes in overseas countries to be tax-deductible—it is disgraceful that they ever were tax-deductible—and for it to be made a crime to offer a bribe to a public official overseas. I am keen for Britain and other countries to embrace this opportunity, especially when Governments of developing countries, particularly in Africa, are giving a lead and are taking steps at home. There is no doubt that corruption hurts the poor. We are considering legislation, and I am hopeful that Britain will take a lead.