UK Minister Denies UK Agenda Against IOFCs

Tax-news.com

10 April 2000

Speaking at a conference for Britain's overseas territories last week at Wilton Park, a Government meeting venue in south-east England, Foreign Office Minister Baroness Scotland said that the UK has “no agenda to force the offshore financial sectors out of business.”
Referring to the OECD's 'unfair tax competition' campaign, the Minister went on: “We recognize the difficult issues which such initiatives raise in many cases."

Introducing a White Paper entitled 'The Overseas Territories: Into the New Millennium' Baroness Scotland talked about the principles behind the White Paper, firmly scotching any ideas that the U.K. has a hidden agenda.

She said: “Since coming into power, this Government (U.K.) has redefined its
relationship with her overseas territories, and I am proud of the approach we are taking.

“We are positive about the future. In this world of global change it is very easy to be fearful of the future, and to shy away from it. In our relationship with the overseas territories we are tackling the future head on. How? By recognizing that the future of the overseas territories lies in the hands of those who live there.”

“What we want is partnership,” she said. “A partnership in which each side accepts its rights and responsibilities and works towards the success of the whole. This is the type of partnership Britain is building with the overseas territories.”

"In order to achieve this we need to take a look at the world around us, and realize that we live in a world of inter-dependency. To prosper, all of us need to work with the partners and friends we have. People, businesses and countries are all now working closer together than ever before."

“The United Kingdom has ties with the Commonwealth, the EU, NATO and the G7, to name a few."

"We recognize that our interests are best served by active positive participation in these fora. We, and the overseas territories cannot ignore the world. For the overseas territories, partnership with the U.K. will help all of us prosper.”

The Baroness also underscored the U.K.’s attitude towards independence. She said: “Our commitment to maintaining the right of self-determination is unshakeable. The people of the territories choose to remain British because they want to."

“Where independence is an option and if it were asked for, we would not stand in any territory’s way. Neither do we have any hidden agenda to force any territory to go down the independence route.”

She added: “We readily acknowledge that partnership creates obligations on Her Majesty’s Government. We spend considerable sums of money from the defence budget each year on the defence of the territories... In return we expect the territories to observe the highest standards of probity, law and order and good governance."

On the subject of offshore financial business, the Baroness said: “We firmly believe, and I think the governments of the territories accept this, that the benefits from having a financial sector carry with them the responsibility and obligation to ensure that the sector is properly regulated, adhering to all international standards of regulation and best practice.’’

“One signal of the change in our relationship is clear in this sector. Over the past year we and the governments of the five Caribbean overseas territories and Bermuda have together set up and jointly funded a major consultancy study to review the existing state of financial regulation and organization of the territories. It is now under way.”

She added: “We appreciate the burdens which the range of recent financial sector initiatives . . . . . . have imposed on the territories... But I want to make this point very clearly that we have no agenda to force the offshore financial sectors out of business... We will make our case in international fora where it is our voice that is heard. We will help and advise the governments of the territories to make the case themselves, when that is more appropriate.”

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