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| Version 1 | Version 2 |
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| Government support for arms exports challenged by MPs | Government support for arms exports challenged by MPs |
| (about 1 month later) | |
| A cross-party inquiry has called for MPs to consider banning the use of taxpayer funds to support arms exports. | A cross-party inquiry has called for MPs to consider banning the use of taxpayer funds to support arms exports. |
| A report by the all-party parliamentary group (APPG) on international corporate responsibility said parliament should debate introducing a "prohibition list" to which the government should refuse to underwrite arms sales. | A report by the all-party parliamentary group (APPG) on international corporate responsibility said parliament should debate introducing a "prohibition list" to which the government should refuse to underwrite arms sales. |
| It comes after the inquiry examined 40 years of the government's support for arms exports, including helping Robert Mugabe to buy five Hawk fighter jets and 1,030 police Land Rovers which he later used to suppress dissent. | It comes after the inquiry examined 40 years of the government's support for arms exports, including helping Robert Mugabe to buy five Hawk fighter jets and 1,030 police Land Rovers which he later used to suppress dissent. |
| Defence companies are the biggest users of government underwriting from UK Export Finance (UKEF), a branch of the business department. UKEF, which has been dubbed the "department for dodgy deals" by the Jubilee Debt Campaign, is designed to help British companies obtain insurance and credit to help them export goods overseas when traditional lenders may be afraid to provide financing. | Defence companies are the biggest users of government underwriting from UK Export Finance (UKEF), a branch of the business department. UKEF, which has been dubbed the "department for dodgy deals" by the Jubilee Debt Campaign, is designed to help British companies obtain insurance and credit to help them export goods overseas when traditional lenders may be afraid to provide financing. |
| Lisa Nandy, the Labour MP for Wigan and chair of the inquiry, said: "Trade should never come at the expense of fundamental human rights and the department must take this more seriously than it has in the past." | Lisa Nandy, the Labour MP for Wigan and chair of the inquiry, said: "Trade should never come at the expense of fundamental human rights and the department must take this more seriously than it has in the past." |
| Martin Horwood, the Liberal Democrat MP for Cheltenham and a member of the APPG, said the inquiry had revealed that banks often had much stricter environmental and human rights standards than the government. He said that if UKEF did not raise its standards "the taxpayer could end up funding business even the private sector cannot on moral grounds". | Martin Horwood, the Liberal Democrat MP for Cheltenham and a member of the APPG, said the inquiry had revealed that banks often had much stricter environmental and human rights standards than the government. He said that if UKEF did not raise its standards "the taxpayer could end up funding business even the private sector cannot on moral grounds". |
| Among the catalogue of ethically questionable deals approved by UKEF, which was formerly known as the Export Credits Guarantee Department (ECGD), are £35m lent to Zimbabwe to buy five Hawk fighter jets from BAE Systems between 1989 and 1992. | Among the catalogue of ethically questionable deals approved by UKEF, which was formerly known as the Export Credits Guarantee Department (ECGD), are £35m lent to Zimbabwe to buy five Hawk fighter jets from BAE Systems between 1989 and 1992. |
| Zimbabwe, which was already heavily indebted at the time of the loans, spent £49m repaying the cost of the Hawks. Mugabe's government deployed the jets in the 1998-2002 war in the Democratic Republic of the Congo, Africa's most deadly conflict in modern history, which led to 5.4 million deaths. | Zimbabwe, which was already heavily indebted at the time of the loans, spent £49m repaying the cost of the Hawks. Mugabe's government deployed the jets in the 1998-2002 war in the Democratic Republic of the Congo, Africa's most deadly conflict in modern history, which led to 5.4 million deaths. |
| The ECGD also supported the notorious al-Yamamah "oil for arms" deal with Saudi Arabia, for which BAE Systems was investigated by the Serious Fraud Office amid allegations of bribery and corruption. The inquiry was eventually dropped following the intervention of the then prime minister, Tony Blair. | The ECGD also supported the notorious al-Yamamah "oil for arms" deal with Saudi Arabia, for which BAE Systems was investigated by the Serious Fraud Office amid allegations of bribery and corruption. The inquiry was eventually dropped following the intervention of the then prime minister, Tony Blair. |
| As well as arms, the department has provided funds for the world's largest and riskiest oil-drilling project, in the Atlantic Ocean, and a 1,090-mile (1,760km) BP joint venture oil pipeline through the Caucasus. | As well as arms, the department has provided funds for the world's largest and riskiest oil-drilling project, in the Atlantic Ocean, and a 1,090-mile (1,760km) BP joint venture oil pipeline through the Caucasus. |
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