HL Deb 02 November 2001 vol 627 cc1637-8

11.29 a.m.

Lord Carter rose to move, That the draft order laid before the House on 15th October be approved [5th Report from the Joint Committee].

The noble Lord said: My Lords, it may be for the convenience of your Lordships if I speak also to the three related orders: the European Communities (Immunities and Privileges of the North Atlantic Salmon Conservation Organization) Order 2001, the European Communities (Definition of Treaties) (European School) Order 2001 and the European Communities (Privileges of the European School) Order 2001.

The four draft orders relate entirely to privileges and immunities which we are obliged internationally to give to the European School and to NASCO. They do not concern the conservation of salmon, the workings of the European Union or the operation of the European School. They deal only with the refund of small amounts of taxation.

The four orders were laid before the House on 15th October. As I said, they are all extremely similar. Therefore, I propose to take them together. They provide for refunds of insurance premium tax (IPT) and air passenger duty (APD) to the European School at Culham in Oxfordshire and the North Atlantic Salmon Conservation Organization (NASCO), which is based in Edinburgh.

Under legislation already passed, 34 international organisations have relief from IPT and APD. The European School and NASCO will bring the total to 36. Unlike the other 34 international organisations, in their case there were legal complexities which had first to be resolved.

As noble Lords will note, two of the draft orders are entitled "Definition of Treaties". Exchanges of Notes have been concluded by the Government and by the governors of the European School and NASCO in order to amend their existing agreements, the wording of which did not allow for refunds of IPT and APD. In accordance with the European Communities Act 1972, the Exchanges of Notes must be declared to be Community treaties, as defined in Section 1(2) of the European Communities Act 1972, so that they provide for Community obligations. That means that implementing Orders in Council can be issued.

Refunds of IPT and APD are given to meet our international obligations. It is established international practice that a state should not tax other states through the intermediary of an international organisation and that the host state should not derive undue fiscal advantage from the presence on its soil of an international organisation.

I am satisfied that the orders are compatible with the rights contained in the European Convention on Human Rights. In conclusion, these orders confer only the privileges and immunities which we are obliged to confer internationally. They will allow us to treat the European School and NASCO on the same basis as 34 similar organisations. I very much hope that your Lordships will approve them. I commend the order to the House.

Moved, That the draft order laid before the House on 15th October be approved [5th Report from the Joint Committee].—(Lord Carter.)

Lord Roper

My Lords, I am most grateful to, on this occasion, the Captain of the Gentlemen-at-Arms for having explained so fairly to the House the reason for these four orders. Rather like the noble Baroness who spoke earlier, I have an expired interest in so far as I once worked for an international organisation outside this country and benefited from certain tax reliefs.

I believe that it is right that, when we grant tax reliefs in this way, these matters come before both Houses. It is important that tax concessions should be seen publicly rather than hidden away.

I shall not detain the House with a long discussion. However, I want, at least, to put on record that at some stage I believe that not only we but all member states of the European Union will need to consider whether the European organisations should be treated in the same way as international organisations at large. This is not a matter to be dealt with today, but it something to which we may need to return on a future occasion.

On Question, Motion agreed to.