Bribery Act 'no threat' to hospitaility

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15th February 2011

The justice secretary has today sought to assure businesses that corporate hospitality will not be threatened under new anti-corruption laws.

Labour MPs have raised the concerns of business, who claim the delayed Bribery Act could see them unable to forge relationships with new clients.

Ken Clarke attempted to clarify a number of concerns surrounding the legislation and assured business organisations that hospitality would be able to continue.

During justice questions in the Commons, Brian Binley (Northampton South) asked what recent progress the government has made on the preparation of guidance on the implementation of the Bribery Act 2010.

He told MPs the offence in the Act should not prevent businesses form using "legitimate and proportionate expenditure or corporate hospitality".

Binley added that there was some fear and "lack of knowledge" that needed to be dealt with.

In response, Ken Clarke said some companies were "particularly frightened" about the impact of the bill, but they should not fear prosecution.

He told MPs: "Ordinary hospitality to meet customers, network with customers (and) improve relationships is an ordinary part of business and should not be a criminal offence.

"I'm hoping to put out very clear guidance to businesses of all sizes to make that clear and save them from fears which have been aroused."

Once published, the justice secretary said he believed it would address concerns raised during the consultation period.

And he confirmed the government commitment to the Bribery Act, passed under the previous Labour administration.

"We are one of the leading countries in pressing for a drive against corruption in the world, Clarke said.

"Corruption is bad for all business, including British business, when we are trying to export to other countries."

The justice secretary added: "It's very important we put ourselves where we should be, at the forefront of stamping out corruption not only in the developing world, but in international trade generally."

Shadow justice minister Robert Flello welcomed the announcement that the Bribery Act will be implemented at "some point".

He asked whether the act would be implemented rigorously, effectively and fairly.

Paul Goggins (Lab, Wythenshawe and Sale E) called on the justice secretary to implement the legislation "as soon as possible".

He urged the government for assurance that there will be no loopholes that would let British companies "turn a blind eye to corruption".

The justice secretary said he was not "watering down the rules" and instead is "trying to get on with it".

In other exchanges, Clarke told MPs ministers are working on "radical plans" to deliver "much overdue reform" of the criminal justice system.

He said: "The police, judiciary and others far too often find that the bureaucratic, inefficient system works against their best efforts rather than for them.

"It is immensely frustrating that, for example, the key people in the system, the police, prosecutors, probation staff, are often unable to email each other the crucial information they need in order to bring a prosecution."

The justice secretary added: "We can't afford to maintain the sort of system which wastes the time of the police, victims and witnesses.

"Therefore I am working on radical plans to modernise and reform the criminal justice system and reduce these bureaucratic failings with the home secretary, the attorney general, the judiciary, the criminal justice agencies and the policing minister who will take the leading role co-ordinating our efforts."

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