HC Deb 05 March 1998 vol 307 cc1188-9
9. Mr. Gordon Prentice

What guidance she gives to United Kingdom companies concerning the payment of commissions to third parties to secure export contracts. [31135]

Mrs. Roche

It is often advisable and sometimes legally necessary for exporters to enlist the services of paid intermediaries when seeking to win business overseas. The Department gives appropriate advice to any British business person who requests it.

Mr. Prentice

Does my hon. Friend the Minister share my astonishment that the former Conservative Cabinet Minister, Jonathan Aitken, is back selling arms to the middle east? Does she furthermore share my concern that in some of these arms contracts, commissions of 15 per cent. are commonplace and that on multi-million pound contracts, commissions of 25 per cent. are not unheard of? Much of the money washes back into the United Kingdom, lining the pockets of the intermediaries. Does she agree that there is a persuasive case for giving auditors the responsibility for assessing the reasonableness, scale and destination of commissions, and that the Government should act swiftly on the Law Commission report on corruption published last week?

Mrs. Roche

I know that the Home Office will look at the Law Commission report and take it into consideration in its work. My hon. Friend can be assured that the Government are determined to combat bribery, wherever and whenever it may occur. The United Kingdom's anti-corruption legislation is among the most comprehensive in the world and we are working within the Organisation for Economic Co-operation and Development and the European Union to ensure that our major overseas competitors enact similar legislation. On the other matter raised by my hon. Friend, it is for the company concerned to decide whom it wishes to employ.

Mr. Sayeed

Has the Minister made any assessment of the number of British jobs that would be lost if commission payments were not made? Where does she think those jobs would go—would it be France?

Mrs. Roche

Nothing in my remarks attacks commission payments. As I said to my hon. Friend the Member for Pendle (Mr. Prentice), we realise that there are some circumstances where third parties are needed—for example, in the case of small firms that cannot employ their own staff overseas. That is perfectly legitimate and is part of the process.