Archived press release

Shells neighbours visit London to 'watch' MPs debate Companies Reform Bill

17 October 2006

Representatives of communities engaged in fierce battles with one of Britain's biggest companies will watch MPs debate possible amendments to the increasingly controversial Companies Bill today (Tuesday 17 October).

The Companies Bill (formerly the Company Law Reform Bill) is the longest bill ever to be considered by Parliament and represents the biggest shake up of company law for decades. Environment, human rights and development organisations have been campaigning to toughen up the bill with clauses that would make UK companies more accountable for their impacts on people and the environment, wherever they operate. This year, over 100,000 people have written to their MPs in support of these amendments.

Friends of the Earth has long cited Shell as an example of why such changes to company law are required and tomorrow's debate will be watched carefully from the Strangers' Gallery by representatives of two communities that have fought long running campaigns against Shell's operations.

Desmond D'Sa of the South Durban Community Environmental Alliance (SDCEA) has been campaigning for many years for Shell to clean up its antiquated SAPREF refinery in south Durban where pipeline leaks and oil discharges into the local environment have become almost routine.

Desmond D'Sa said:

"If MPs really care about people in Africa, whether in Durban or in the Niger Delta, they must take steps to ensure British corporations clean up their act. They should stop reading the glossy brochures put out by companies like Shell and start looking at the hard evidence on the ground. If they did that, they would surely vote to make corporate irresponsibility history".

Terry Clancy from the Shell to Sea campaign in County Mayo, Ireland, has been campaigning against Shell's plans to build an on-shore pipeline and gas refinery. The development threatens the unique habitat offered by Broadhaven Bay (an internationally important nature reserve) and will destroy peatlands and damage coastal grasslands.

Terry Clancy said:

"Right around the world, in rich and poor countries alike, there are communities having to fight campaigns against the socially and environmentally destructive practices of some British companies. How many more examples does the British Government need to hear about before it realises something needs to be done to make UK companies accountable?"

Craig Bennett, Head of Corporate Accountability Campaign at Friends of the Earth said:

"MPs must realise that the debate over the Companies Bill is not just an interesting academic exercise in company law. The way MPs vote tomorrow will impact on the lives of hundreds of the thousands of people worldwide -people who are directly affected by the operations of UK-based corporations.

They should vote in support of the amendments being promoted by Friends of the Earth and others, and make UK plc fit for the twenty first century."

Although the Government made some improvements to the Bill when it was in the House of Lords in May, there is a still a long way to go to ensure the Bill is not a missed opportunity to make UK plc fit for the twenty first century and support for changes is growing from MPs.

Amendments that would make all large and medium sized companies (public and private) report annually on their social and environmental impacts now have the support of over 40 Labour MPs and the Liberal Democrat front bench. Amendments have also been put down that, if adopted, would require company directors to minimise the negative impacts of their company's operations on communities and the environment.

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Published by Friends of the Earth Trust