Bribery Bill [Lords]

I am very grateful to you for your indulgence, Mr. Speaker. As I said, Michael Foot was held in great affection in all sections of the House and in the country. Let me now turn to a Bill that our late and honoured friend would have supported: the Bribery Bill. Modernising and strengthening the law on bribery is one of the key strands of the Government's foreign bribery strategy, which I launched in January. I am known—rather pompously, I think it is fair to say—as the Government's anti-bribery champion, but I am very happy to champion that cause. Bribery, as we know, is an insidious offence. It undercuts honest companies and distorts the free market. It causes state institutions to lose their legitimacy and public confidence in the political system to wane. Where bribery is allowed to flourish, democracy struggles to take root. Its impact on development is equally damaging. Bribery discourages foreign aid, feeds inequality and injustice, and diverts valuable funds away from basic public services. The rich get richer, the poor get poorer, and the most vulnerable in society are hit the hardest. One of the consequences of bribery and the misuse of developments funds, whether they come from the state or from charitable causes, is the undermining of public support in wealthier countries, including this country, for continuing that assistance. The scale of bribery across the globe is immense. We have to rely on estimates, and although there is no precise estimate of fraud or bribery, the World Bank has estimated that some $1 trillion is paid annually in bribes, adding around 10 per cent. to the cost of doing business in some countries. There is both a moral and a practical imperative for tackling bribery. As a nation reliant on world trade for our prosperity, the United Kingdom is duty bound to set an international example in stamping out this scourge. Changing the law on its own, whether in the context of bribery or any other sphere, is necessary but, of itself, not sufficient. The Bill is therefore one part of our wider strategy to tackle bribery by supporting ethical business practices in British companies, enforcing the law effectively, and working with our international partners to promote good governance overseas. That the criminal law on bribery is in need of reform is not in dispute, and certainly not in this House. The current patchwork of offences derives from a mix of common law and rather old statutes, which together have not been substantially altered since the first world war, when Britain was one of the first countries to legislate against any form of corruption. The law has never previously been consolidated, and contains inconsistencies of both language and concept. The result is a body of law that is outdated, complex and, in some respects, uncertain in its effect. As a consequence, it is difficult—although, as we have recently seen, not impossible—for investigators and prosecutors to apply the law sensibly. Therefore, the case for reform is compelling; nor, I am pleased to say, is there now much dispute over how we should change the law.