Newcastle University played a key role in getting a third world debt bill passed through Parliament earlier this month.
By approving the so called ‘Vultures Law’, a landmark bill which will protect the poorest countries in the world, the UK has become the first country to ban ‘Third World Debt’ profiteering.
The University was the only university in the country to back the campaign, persuading several key world figures such as Archbishop Desmond Tutu to add to their support. Both staff and students exerted pressure on the Government to get the bill through the Houses of Parliament.
The Debt Relief (Developing Countries) Bill, led by the Jubilee Debt Campaign, is the world’s first law to restrict the ability of ‘Vulture funds’ to sue some of the world’s poorest countries for full repayment of debts that they have bought up cheaply.
Last November, two Vulture Funds were given $20 million in the High Court from Liberia, the second poorest country in the world, for a debt dating back to the 1970s.
The law is expected to make that verdict unenforceable and will prevent future private investment companies from making such profits.
Dr David Golding, Professor of Marine Science and Technology, who led the campaign on behalf of the University told The Courier: “I was furious when I learnt unscrupulous corporate predators (‘Vulture Funds’) were hijacking the relief process.
“Buying up poor country debts at knock-down prices, these Funds sue for full repayment when debt relief is granted, siphoning off resources earmarked for health care and education and making astronomical profits in the process.
“With the passing of the new Bill, we have started to curb this outrageous behaviour. I am immensely gratified that Britain has once again taken a lead on this issue - gratified too that my university and region have taken such an active and prominent role, a role which is undoubtedly globally unique.”
International support for the bill also came from President Ellen Johnson Sirleaf of Liberia and President Bharrat Jagdeo of Guyana.
Andrew Gwynne, MP and sponsor of the Bill, said: “I am absolutely thrilled that my bill has been passed into law. It was completely unacceptable that a small number of companies were ever allowed in the UK courts to profiteer off the third world debt market.
“These “vulture funds” were completely unjust and it is to the credit of this parliament, and the efforts of the Jubilee Debt Campaign that we have finally managed to pass this law.”
Director of the Jubilee Debt Campaign, Nick Dearden said: “We hugely appreciate the contribution that the staff and students of Newcastle University have made towards this bill becoming law, from the Pro-Vice Chancellor Paul Younger, to the staff and students.”
Dearden thanked the University for its huge support over many years, claiming it has made a big difference towards debt relief in the third world.
(This story was first published on 26 April 2010 in The Courier, the Newcastle University student newspaper.)