Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Cameron comes under pressure in parliament over HSBC tax scandal

Published 11/02/2015, 18:00
© Reuters. Britain's Prime Minister David Cameron speaks at the British Chambers of Commerce annual meeting in central London
HSBA
-

By Andrew Osborn

LONDON (Reuters) - Prime Minister David Cameron came under pressure in parliament on Wednesday over a tax scandal engulfing HSBC's Swiss arm when the opposition Labour Party accused Cameron's party of accepting donations from "dodgy" HSBC account holders.

Cameron did not dispute the donations -- from seven unnamed individuals -- and there is no suggestion the account holders did anything illegal. But the disclosure is awkward for Cameron three months before a close national election on May 7.

It allowed Labour, level with Cameron's Conservatives in many opinion polls, to press its portrayal of Cameron and his party as putting the interests of the wealthy before those of the less well-off. Cameron rejects that charge.

"How can the prime minister explain the revolving door between the Tory (Conservative) Party HQ and the Swiss branch of HSBC?" Labour leader Ed Miliband asked Cameron in parliament. "He's a dodgy prime minister, surrounded by dodgy donors."

Cameron laughed off the broadside.

"For 13 years they sat in the Treasury, they did nothing about tax transparency, nothing about tax dodging, nothing about tax avoidance," he said of Labour.

After the leak this month of its Swiss bank's customer list, HSBC admitted failings in compliance and controls at the unit.

Cameron is also under pressure from Labour over his 2010 appointment of Stephen Green, HSBC's former executive chairman, to be a peer and a trade minister, a role he no longer fulfils.

Cameron said on Wednesday that "every proper process" was followed when he appointed Green when pressed by Miliband if he knew about the HSBC allegations when he appointed him.

Miliband, who asserted HSBC had enabled tax avoidance on "an industrial scale", focused on the party funding issue however, accusing Cameron's party of accepting donations worth nearly 5 million pounds from seven unnamed holders of HSBC Swiss accounts.

Cameron said he had seen the same list of names and that it included the name of a British peer who had donated money to the election campaign of Miliband's predecessor as Labour leader.

© Reuters. Britain's Prime Minister David Cameron speaks at the British Chambers of Commerce annual meeting in central London

So far, Green, 66, has declined to comment. HSBC said it couldn't relay questions to Green, nobody at his office in the upper house of parliament answered the phone, and the Conservatives said they couldn't speak for ministers or peers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.