§ Mr. GardinerTo ask the Secretary of State for Trade and Industry how many arms licences have been revoked as a result of investigations into breaches of licences since the Export Control Act 2002 came into force; and how many such investigations have(a) opened and (b) been completed since the Act came into force. [106033]
§ Nigel GriffithsThe Export Control Act 2002 is not yet in force.
§ Mr. GardinerTo ask the Secretary of State for Trade and Industry what reasons underlie the provisions in the draft Orders under the Export Control Act 2002 which provide for an extraterritorial 165W element in certain circumstances, but not for the (a) sale and (b) brokering of sales in military or paramilitary equipment. [106078]
§ Nigel GriffithsThe draft secondary legislation does provide for controls on persons in the UK and UK persons, wherever they are located, who traffic or broker in military equipment to embargoed destinations, or in torture equipment or certain long-range missiles and their component parts to any destination.
§ Mr. GardinerTo ask the Secretary of State for Trade and Industry if she will replace the flat-rate penalties in the draft Order under the Export Control Act 2002, for the deliberate flouting of controls on(a) arms exports, (b) technology transfer and (c) technical assistance, with fines that use an equation that ensures fines are commensurate with a company"s market capitalisation. [106080]
§ Nigel GriffithsThe penalties for deliberate breach of the transfer of technology and technical assistance controls are set out in the Draft Export of Goods, Transfer of Technology and Provision of Technical Assistance (Control) Order, on which consultation is currently under way. The penalties for deliberate breach of export controls are set out in the Customs and Excise Act 1979 (CEMA).
Under the draft order, deliberately flouting the transfer of technology or technical assistance controls carries a penalty, upon conviction on indictment of an unlimited fine and/or a custodial sentence of up to ten years imprisonment. On summary conviction the offence carries a maximum of £5,000 fine and/or a custodial sentence of up to six months. Deliberate breach of export controls carries the same penalties under CEMA.
It is a matter for the courts to determine the level of the fine.
§ Mr. GardinerTo ask the Secretary of State for Trade and Industry what assessment she has made of the benefits of extending the Trade in Controlled Goods (Control) Order and the Embargoed Destination (Sanctions) Control Order to companies and individuals involved indirectly in the trading of arms, with particular reference to(a) transportation, (b) financial services and (c) promotion. [106086]
§ Nigel GriffithsThe draft Trade (Control) Order provides for controls on activities, such as transportation, financial services and general advertising and promotion services, which facilitate the supply of equipment used in torture and Long Range Missiles to any destination. Likewise, the draft [Embargoed Destination] (Sanctions) Order provides for control on these activities which facilitate the supply of military equipment to embargoed destinations.
The Department of Trade and Industry is presently consulting on the proposed secondary legislation to be made under the Export Control Act 2002.
§ Mr. GardinerTo ask the Secretary of State for Trade and Industry what assessment her Department has made of the end-use arms control system used by the US State Department; and what assessment she has made of the merits of adopting a similar system in the UK. [106097]
166W
§ Mr. Mike O'BrienI have been asked to reply.
The Government are aware of the US State Department's system of post-export checks on strategic goods. We believe that the current system of careful pre-licensing checks is the best suited for the UK. We are looking into the US system to help inform the Government's view of its merits, in comparison to the system which the Government already operate.