§ 2. Mr. Tam Dalyell (Linlithgow)If she will make a statement about her plans to improve the system of confiscation of the profits accruing from drug-related crime. [124263]
§ The Minister of State, Cabinet Office (Mr. Ian McCartney)As my right hon. Friend the Prime Minister said this morning in response to a question for written answer from my hon. Friend the Member for West Lancashire (Mr. Pickthall), we have today published the performance and innovation unit report on "Recovering the Proceeds of Crime". Copies of the report have been placed in the Vote Office and Libraries of the House.
The report sets out the Government's rigorous new approach to attacking crime through its finances. The measures that we are announcing will improve the confiscation process for all crimes, including those related to drugs. We will draw up the first ever cross-cutting strategy with annual reporting on progress; we will set up a new national confiscation agency containing a centre of excellence in financial investigation to drive through the new strategy and deliver increased levels of training; 925 and we will work with our international partners to drive up standards of financial regulation and to bring pressure to bear on the non-co-operative jurisdictions.
§ Mr. DalyellCan that strategy deal with the problem of drug traffickers who have managed somehow to dissociate themselves directly from drug trafficking itself?
§ Mr. McCartneyYes, absolutely. First, in criminal law, those on indictment for serious crimes will, for the first time ever, be obliged to put details of their assets before the court, which will then determine the process for seizing or freezing those assets before any trial.
Secondly, the use of means other than the criminal law, such as taxation and other forms of confiscation, will improve the situation dramatically, as people will have to prove that their assets have been gained legally, and not through illegal activity. When illegal activity has occurred and has been proven by the courts, those assets will be liable to confiscation.
§ Mrs. Ann Winterton (Congleton)We welcome moves to improve the confiscation of the proceeds of crime. Surely, however, we are not talking just about the profits of crime. Is the Minister aware that substantial powers already exist under the Drug Trafficking Offences Act 1986, the Criminal Justice Act 1988 and the Proceeds of Crime Act 1995? As courts already have those powers, is the reason why more confiscations are not being made that there is insufficient funding for the extensive financial investigations required?
§ Mr. McCartneyIt is typical of the party of Michael Ashcroft that Conservative Members cannot give an absolute commitment to deal with the return of resources. Those powers are available to the courts at present. However, the problem is that the law is complex and is located in three separate legislative processes. We are bringing those processes together in a single process. In addition, we are giving the courts new powers and there will be a new organisation to seek out and to seize those assets, which is a major improvement. We are resolutely committed to disrupting, undermining and closing down criminal enterprises, unlike the previous Government.
§ Mr. David Taylor (North-West Leicestershire)Is it not the case that the Inland Revenue has powers to enforce the removal of assets? As long ago as 1996, the Office for National Statistics estimated that the income generated from drugs, prostitution, the sale of stolen goods and illegal gambling was in excess of £11 billion. Could we not do more to rationalise the tax legislation, to make those powers more effective and to encourage the Inland Revenue to work more closely with the law enforcement agencies?
§ Mr. McCartneyThe report makes recommendations, along the precise lines mentioned by my hon. Friend, which deal with money laundering and the role of the Inland Revenue in working with our criminal intelligence organisations and our law enforcement agencies. Nobody—but nobody—who has an income should fail to pay tax on it. The reality is that the Mr. Bigs of crime normally have assets involving huge sums of money and other resources gained from criminal activity, but they do not pay tax on them. The system will change radically. 926 Action in civil and criminal law will feature, as will action in the tax system. We should remember that Al Capone eventually came to his end through non-payment of tax.