Greens call for Vodafone to pay up

: Cllr Stuart Clay (Partick West)

At a Glasgow City Council meeting on 17th February, Green Councillors will put forward a motion (1) that supports the efforts of campaign group UK Uncut to tackle the tax dodging practices of large UK companies. The motion also urges the Council to investigate moves to end the Council's contract with Vodafone if the company cannot demonstrate that it pays UK corporation tax on all its profits. Vodafone have avoided almost £6bn in tax liabilities following negotiations with HMRC. (2)

Cllr Stuart Clay said:

"It's ironic that every mobile phone call made by Glasgow City Councillors and officials contributes to Vodafone's profits, yet they dodge tax on those profits, ripping off Glasgow residents and worsening the cuts faced by Glasgow and across the whole public sector. Why should the Council give Vodafone our business if they are quite happy to contribute to the loss of jobs and services Glasgow City Council delivers?"

"Glasgow City Council must put pressure on Vodafone to treat local authorities across the country with respect and to contribute to the society that they profit from. Paying the correct taxes should be the first part of their corporate social duties - their stores rely on public services from the police to planning. The excellent work by the UK Uncut campaign has raised the issue of tax avoidance in the national conscience, and it's now up to Councils and others to act. Hopefully others will join this move, and help us build a culture in which everyone pays their proper tax contribution to society."

1. Motion reads -

"Council fully supports the campaign UK Uncut, for their consistent peaceful campaigning against UK companies involved in tax avoidance, especially 22 UK companies which are estimated to owe HMRC over £14bn in unpaid tax."

"Council also believes that these tax avoidance practices directly impact on local services supplied by Glasgow City Council, and therefore also supports UK Uncut's campaign against HMRC's own involvement in writing off substantial sums in corporation tax at a time of a significant squeeze on public services."

"Council notes that its current mobile phone provider is Vodafone, further notes that this company has been the subject of significant controversy around allegations that it has avoided between £4.8bn and £6bn in UK taxes, and resolves to investigate the possibility of refusing to renew this contract unless Vodafone can demonstrate that they pay the equivalent of the full UK corporation tax rate on all profits."

2. See:
http://www.guardian.co.uk/commentisfree/2010/nov/14/vodafone-tax-evasion-revenue-customs?INTCMP=SRCH

3. See:

http://www.glasgow.gov.uk/councillorsandcommittees/agenda.asp?meetingid=11448