TACKLING GLOBAL POVERTY

Motion Text

That this House notes that international currency transactions total more than $1 trillion a day and that the vast majority of this is unrelated to the real economy of tangible trade goods and services; believes that such enormous speculative flows have contributed to serious economic damage to countries and regions such as Mexico (1994), Southeast Asia (1997), Russia (1998), Brazil (1999) and Argentina (2001); further believes that a small levy on such currency speculation, the Tobin tax, named after the Nobel Laureate who originated the concept, could both dampen down the scale and scope of speculation and raise substantial revenues, potentially in excess of $50 billion each year, for projects targeted towards ending global poverty; is pleased that this initiative now enjoys the backing of a number of governments and parliaments across the world, including France, whose Parliament recently passed a law authorising its implementation; is heartened by the words of the Chancellor that innovative ways need to be urgently found, including currency taxes, to finance development; wishes the Chancellor a successful mission to the UN 'Financing for development' conference in Monterrey, Mexico; urges him to take steps towards the introduction of an internationally co-ordinated currency transactions tax, with the proceeds ring-fenced for international substantial development objectives; and further urges the Chancellor to ensure that these proceeds do not replace either existing international aid disbursements or agreed commitments to increase international aid.