Open up the books: Keep up the pressure for robust transparency laws

February 23 2012. Last updated June 19 2012

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Over 900 of you emailed Chancellor George Osborne and the Minister for Business, Innovation and Skills Norman Lamb, telling them why you think it’s important that they make sure businesses open up their books.

Action so far and campaign background >>

On 13 February, CAFOD Campaigners joined Tearfund and ONE to send an early Valentine’s Day message to Norman Lamb - carrying a giant love heart with the message “love truth” to the Department for Business, Innovation and Skills.

It was a crucial time to act. UK representatives, including Norman Lamb, met with other EU ministers to discuss the proposed legislation on 20 February.

What happened at the meeting?

There was good news and bad news.

The good news: The UK’s representative Minister, Norman Lamb, recognised reporting has to be meaningful to local groups and communities in resource-rich countries. But the UK is still deciding its final position on what kind of project level information should be published.

The Danish government wants promises about transparency turned into action. As the current EU Presidency holder, Denmark can push for the EU members states and MEPs to agree final changes to the law by the summer.

The bad news: Member states all supported a change to the law, but did not decide on crucial questions about what companies will have to report on. For example, the size of payments that would need to be disclosed is still up for debate.

CAFOD’s Private Sector analyst Anne Lindsay said, “We are so close to seeing a change in company reporting which could benefit millions of the world’s poorest people. It is vital that their voices aren’t drowned out by industry lobbyists.”

“We want the EU to lead by example by introducing robust transparency laws now. The role of the UK is key here because many member states will be looking to our Government’s position.”

what we're calling for: foo

Rules which cover every country that companies work in. No exemptions.

A clear definition of 'project' based on the legal contract, licence or concession, so that every project is covered by the law.

All payments over €15,000 to be disclosed. This is similar to the £10,000 figure used by the London Stock Exchange – and a significant amount of money in the developing world. Corporate lobbyists are arguing that it should only be payments of €1million or above.

Companies’ accounts to be fully audited to make sure the figures they are using are accurate.

What next?

We're not there yet. MEPs will be looking in depth at the proposals over the next few weeks, while EU member states, including the UK, are hammering out the details ready for the next Competitiveness Council meeting from 30-31 May. We know that big oil, gas and mining companies are stepping up their lobbying too.

Alongside other members of Publish What You Pay, and our partners in resource-rich developing countries, CAFOD will continue to keep up the pressure on the government, the European Parliament and oil, gas and mining companies to ensure that the final legislation is fit for purpose.