Released by the office of UK MP Paul Uppal, chair of the UK parliamentary meeting on revenue transparency
The All-Party Parliamentary Groups on International Corporate Responsibility, and Great Lakes Region of Africa, held a panel event on transparency in the extractive industries on 24 January 2012 in Westminster, chaired by Paul Uppal, MP. Paul Uppal was joined by Gavin Hayman, Director of Campaigns at Global Witness, Vanessa Herringshaw, Director of the London Office of the Revenue Watch Institute, and Elodie Grant Goodey, Head of Societal Issues and Relationship at BP and Member of the EITI (Extractive Industries Transparency Initiative) Board.
The meeting discussed upcoming EU legislation on transparency in extractive industries as well as the existing Dodd-Frank Wall Street Reform and Consumer Protection Act, which was passed in the U.S. in July 2010, and which represents a groundbreaking move towards such transparency by requiring all extractive companies to report on their payments to governments. The meeting was well attended with members of development organizations, charities and representatives of major extractive companies.
Paul Uppal speaking after the event said, "Research has proved that a lack of transparency in extractive industries is often associated with mismanagement and corruption, especially in countries heavily dependent on income from those industries. This has been come to be termed as the 'resource curse.' The result is poor governance and economic failure which can lead to violent conflict.
"Corruption along with the concealment of payments to governments has contributed to human rights abuses and a reduction in economic growth and living standards, in some of the world's poorest countries. In order to reverse the resource paradox we need greater accountability and transparency from host governments and the extractive industries."
The Prime Minister and Chancellor have made clear the UK's support for EU level action to improve reporting requirements in the extractives sector (oil, gas and mining industries) to help address corruption in resource rich developing countries. The UK will press for requirements to be placed on EU extractives companies to disclose the payments they make to foreign governments.
Notes to Editors
The Dodd-Frank Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act, which was passed in the US in July 2010, represented a ground-breaking move towards such transparency by requiring all extractive companies to report on their payments to governments.
The Act includes a landmark provision – Section 1504 – which requires energy and mining companies registered with the US Securities and Exchange Commission (SEC) to disclose in an annual public report filed with the SEC all payments made to foreign governments and to the US federal government on a country-by-country and project–by-project basis.
Any further information please contact Matthew Harley on 01902 712 134 or matthew.harley@parliamernt.uk
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