Progress for the Vulture Funds Bill

The vulture bill passed through its committee stage today, where MPs discuss a bill in some detail and add amendments. Several of the amendments put in by David Gauke for the Conservatives were ‘probing amendments' - that is to say, put in there to spark debate rather than to actually change the bill.

Gauke asked many questions as to how the bill would operate, including seeking assurances to ensure this was a ‘one off' bill and would not be the start of much wider reform. JDC actually supports further action against vultures - including the inclusion of all developing countries and the inclusion of new, rather than simply historical debts, in legislation. We were delighted that Michael Connarty MP (Labour, Linlithgow & East Falkirk) supported that position in the debate.

We were also pleased that John Hemming MP (Liberal Democrat, Birmingham, Yardley) said he saw this bill as an attempt to accord bankruptcy proceedings to poor countries - something JDC has been trying to do for many years and which lies behind our proposal for a Debt Tribunal which would prevent countries having to put the needs of their lenders ahead of the needs of their own people.

The only amendment passed was a sunset clause - a clause which means the bill could be repealed after a year if it seems the bill has not worked or has had negative side effects. Although we accept the need to make sure law is achieving what it's intended (indeed there's an argument to be made for having a sunset clause attached to all legislation) we think it will be very difficult to assess the impact of the act effectively (it's really trying to prove a negative) and we are worried that this could be used to drop the law once interest in this issue is less intense. At least, we want to make sure a proper debate would have to ensue before repeal could take place.

Next we're off to the third reading in the Commons on Friday. If it passes that (and it is low on the agenda), it's off to the Lords for first reading on 15 March and second reading on 29 March.

Jubilee Debt Camapaign

http://www.jubileedebtcampaign.org.uk/

Jubilee Debt Campaign, 10/03/2010