SPEECH
MS SUSANNA HUOVINEN, SOC, FINLAND
REPORT ON PANAMA PAPERS
TUESDAY 11 OCTOBER 2016
Mr. President, dear colleagues,
I would like to thank the rapporteur for this important report. In my view we cannot emphasize this issue enough. I cannot help but ask myself if we always need a scandal before being able to discuss this important issue on a broad scale. Therefore, I want to ask the rapporteur how we can keep this debate on the agenda also when scandals and leaks are not in the center of everyday politics?
Many important aspects are mentioned in the report. I welcome that the report clearly states that the release of the Panama Papers has damaged people’s belief and trust in the functioning of the economic system but also trust in how companies’ social responsibility works. When Finland was industrialized in the beginning of the 1900’s the leadership of the factory in my hometown wanted to ensure the best possible living conditions for their workers. In Finland many factory owners have built churches and sports arenas. At the moment it feels like bonuses and dividends are the center of focus for directors and owners. Consequently, I ask myself what has happened to our level of social responsibility. Behind many successful companies is the society’s strong investment in education, welfare and financial support for business. That’s why openness and transparency in company taxation as well as reporting on assets are key components in dealing with this problem.
Today during the OECD debate we heard that less than 10 % of the world’s population control close to 90 % of the world’s wealth. Also, according to Oxfam, 62 persons own the same amount as half of the population on earth and their wealth is increasing. How is it possible that such people see it as their right to hide their money from the tax authorities in order not to participate in the very society that has created the conditions for them to acquire their wealth?
I also agree with the conclusion in the report that we must have skilled professionals working in the tax administration as well as in investigating economic crimes, prosecution and courts. It is indeed noteworthy that tax experts are very often headhunted to the private sector through offers of higher pay and better benefits. Luckily this movement goes in both directions as many professionals do not want to participate in finding loopholes for tax avoidance in the legislation. I believe that the majority of our citizens want to build a society, not based on cheating, but on the principle that everyone should participate according to their strengths and skills.
Thank you.