Thursday 22nd March 2018

(6 years, 7 months ago)

Public Bill Committees
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None Portrait The Chair
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I call the Minister, whose birthday it is today.

Victoria Atkins Portrait The Parliamentary Under-Secretary of State for the Home Department (Victoria Atkins)
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Thank you, Mr Streeter, and what a wonderful birthday present it is to be serving on the Committee.

It is a joy, actually, to be able to agree with the Opposition on the principle that equality applies not only to decisions made by human beings or with human input, but to decisions made solely by computers and algorithms. On that, we are very much agreed. The reason that we do not support the new clauses is that we believe that the Equality Act already protects workers against direct or indirect discrimination by computer or algorithm-based decisions. As the right hon. Member for Birmingham, Hodge Hill rightly said, the Act was passed with cross-party consensus.

The Act is clear that in all cases, the employer is liable for the outcome of any of their actions, or those of their managers or supervisors, or those that are the result of a computer, algorithm or mechanical process. If, during a recruitment process, applications from people with names that suggest a particular ethnicity were rejected for that reason by an algorithm, the employer would be liable for race discrimination, whether or not they designed the algorithm with that intention in mind.

The right hon. Gentleman placed a great deal of emphasis on advertising and, again, we share his concerns that employers could seek to treat potential employees unfairly and unequally. The Equality and Human Rights Commission publishes guidance for employers to ensure that there is no discriminatory conduct and that fair and open access to employment opportunities is made clear in the way that employers advertise posts.

The same principle applies in the provision of services. An automated process that intentionally or unintentionally denies a service to someone because of a protected characteristic will lay the service provider open to a claim under the Act, subject to any exceptions.

Liam Byrne Portrait Liam Byrne
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I am grateful to the Minister for giving way, not least because it gives me the opportunity to wish her a happy birthday. Could she remind the Committee how many prosecutions there have been for discriminatory advertising because employers chose to target their adverts?

Victoria Atkins Portrait Victoria Atkins
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If I may, I will write to the right hon. Gentleman with that precise number, but I know that the Equality and Human Rights Commission is very clear in its guidance that employers must act within the law. The law is very clear that there are to be no direct or indirect forms of discrimination.

The hon. Member for Cambridge raised the GDPR, and talked about looking forwards not backwards. Article 5(1)(a) requires processing of any kind to be fair and transparent. Recital 71 draws a link between ensuring that processing is fair and minimising discriminatory effects. Article 35 of the GDPR requires controllers to undertake data protection impact assessments for all high-risk activities, and article 36 requires a subset of those impact assessments to be sent to the Information Commissioner for consultation prior to the processing taking place. The GDPR also gives data subjects the tools to understand the way in which their data has been processed. Processing must be transparent, details of that processing must be provided to every data subject, whether or not the data was collected directly from them, and data subjects are entitled to a copy of the data held about them.

When automated decision-making is engaged there are yet more safeguards. Controllers must tell the data subject, at the point of collecting the data, whether they intend to make such decisions and, if they do, provide meaningful information about the logic involved, as well as the significance and the envisaged consequences for the data subject of such processing. Once a significant decision has been made, that must be communicated to the data subject, and they must be given the opportunity to object to that decision so that it is re-taken by a human being.

We would say that the existing equality law and data protection law are remarkably technologically agnostic. Controllers cannot hide behind algorithms, but equally they should not be prevented from making use of them when they can do so in a sensible, fair and productive way.

Daniel Zeichner Portrait Daniel Zeichner
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Going back to the point raised by my right hon. Friend, I suspect that the number of cases will prove to be relatively low. The logic of what the Minister is saying would suggest that there is no algorithmic unfairness going on out there. I do not think that that is the case. What does she think?

Victoria Atkins Portrait Victoria Atkins
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I would be guided by the view of the Equality and Human Rights Commission, which oversees conduct in this area. I have no doubt that the Information Commissioner and the Equality and Human Rights Commission are in regular contact. If they are not, I very much hope that this will ensure that they are.

We are clear in law that there cannot be such discrimination as has been discussed. We believe that the framework of the law is there, and that the Information Commissioner’s Office and the Equality and Human Rights Commission, with their respective responsibilities, can help, advise and cajole, and, at times, enforce the law accordingly. I suspect that we will have some interesting times ahead of us with the release of the gender pay gap information. I will do a plug now, and say that any company employing more than 250 employees should abide by the law by 4 April. I look forward to reviewing the evidence from that exercise next month.

We are concerned that new clauses 7 and 8 are already dealt with in law, and that new clauses 9 to 11 would create an entirely new regulatory structure just for computer-assisted decision-making in the workplace, layered on top of the existing requirements of both employment and data protection law. We want the message to be clear to employers that there is no distinction between the types of decision-making. They are responsible for it, whether a human being was involved or not, and they must ensure that their decisions comply with the law.

Having explained our belief that the existing law meets the concerns raised by the right hon. Member for Birmingham, Hodge Hill, I hope he will withdraw the new clause.

Liam Byrne Portrait Liam Byrne
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I think it was in “Candide” that Voltaire introduced us to the word “Panglossian”, and we have heard a rather elegant and Panglossian description of a perfect world in which all is fine in the labour market. I am much more sceptical than the Minister. I do not think the current law is sufficiently sharp, and I am concerned that the consequence of that will be injustice for our constituents.

The Minister raised a line of argument that it is important for us to consider. The ultimate test of whether the law is good enough must be what is actually happening out there in the labour market. I do not think it is good enough; she thinks it is fine. On the nub of the argument, a few more facts might be needed on both sides, so we reserve the right to come back to the issue on Report. This has been a useful debate. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 13

Review of Electronic Commerce (EC Directive) Regulations

“(1) The Secretary of State shall lay before both Houses of Parliament a review of the application and operation of the Electronic Commerce (EC Directive) Regulations 2002 in relation to the processing of personal data.

(2) A review under subsection (1) shall be laid before Parliament by 31 January 2019.”—(Liam Byrne.)

This new clause would order the Secretary of State to review the application and operation of the Electronic Commerce (EC Directive) Regulations 2002 in relation to the processing of data and lay that review before Parliament before 31 January 2019.

Brought up, and read the First time.

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The Secretary of State vividly and colourfully said in The Times, and in his podcast with Nick Robinson, which comes out tomorrow, that the wild west is over and a new order will descend. The new clause urges the Government to put some deeds behind those grand words.
Margot James Portrait The Minister of State, Department for Digital, Culture, Media and Sport (Margot James)
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I agree with everything the right hon. Gentleman has said, except that I do not think the Bill is the place for his proposals. The e-commerce directive and the Electronic Commerce (EC Directive) Regulations 2002, which transpose it into UK law, regulate services that are

“normally provided for remuneration, at a distance, by means of electronic equipment…and at the individual request of a recipient of a service”.

Those services are known as information society services.

However, questions relating to the processing of personal data by information society services are excluded from the scope of the e-commerce directive and hence excluded from the scope of the 2002 regulations. That is because the processing of personal data is regulated by other instruments, including, from May, the GDPR. The review of the application and operation of the 2002 regulations solely in relation to the processing of personal data, as proposed by new clause 13, would therefore be a speedy review to undertake.

However, that does not address the substance of the right hon. Gentleman’s concern, which we have already discussed in a delegated legislation Committee earlier this month. As I said then, the Government are aware of his concern that the e-commerce directive, finalised in 2000, is now outdated, in particular with regard to its liability provisions.

Those provisions limit, in specified circumstances, the liability that service providers have for the content on their sites. That includes social media platforms where they act as hosts. Social media companies have made limited progress on a voluntary basis, removing some particularly harmful content quickly and, in recent years, consistently. However, as we have seen in the case of National Action and its abhorrent YouTube videos, and many other lower-profile cases, there is a long way to go. We do not rule out legislation.

The Government have made it clear through our digital charter that we are committed to making the UK the safest place to be online, as well as the best place to grow a digital business. As the Prime Minister has said, when we leave the EU we will be leaving the digital single market, including the e-commerce directive. That gives us an opportunity to make sure that we get matters corrected for the modern age: supporting innovation and growth, and the use of modern technology, but doing so in a way that commands the confidence of citizens, protects their rights and makes their rights as enforceable online as they currently are offline.

The UK will be leaving the digital single market, but we will continue to work closely with the EU on digital issues as we build up our existing strong relationship in the future economic partnership. We will work closely with a variety of partners in Europe and further afield. Alongside that, our internet safety strategy will tackle the removal of harmful but legal content. Through the introduction of a social media code of practice and annual transparency report, we will place companies under an obligation to respond quickly to user reports and to ensure that their moderation processes are fit for purpose, with statutory backing if required. We have demonstrated that in the example of the introduction of age verification for online pornography.

There is an important debate to be had on the e-commerce directive and on platform liability, and we are committed to working with others, including other countries, to understand how we can make the best of existing frameworks and definitions. Consideration of the Bill in Committee and on Report are not the right places for that wide debate to be had. For those reasons, I request that the right hon. Gentleman withdraw the clause.

Liam Byrne Portrait Liam Byrne
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I admire the Minister’s concern and ambition for administrative tidiness. She reminds me of an old quote by Bevin, who said once, “If you are a purist, the place for you is not a Parliament; it is a monastery.”

Margot James Portrait Margot James
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A nunnery.

Liam Byrne Portrait Liam Byrne
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In the case of the Minister, a nunnery, although Bevin was less enlightened than the hon. Lady. Here is a Bill; here is a new clause; the new clause is within scope. The object of the new clause is to deliver a Government objective, yet it is rejected. That is hard logic to follow. We have had the tremendous assurance, however, that there will be nothing less than a code of practice, so these huge data giants will be shaking in their boots in California, when they wake up. They will be genuinely concerned and no doubt already planning how they can reform their ways and stop the malpractice that we have grown all too used to. I am afraid that these amount to a collection of warm words, when what the country needs is action. With that in mind, I will push the new clause to a vote.

Question put, That the clause be read a Second time.

Division 15

Ayes: 7


Labour: 4
Scottish National Party: 2

Noes: 10


Conservative: 10

New Clause 16
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Liam Byrne Portrait Liam Byrne
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Yes. My hon. Friend has done an extraordinary job of exposing that minor scandal. I am surprised that it has not had more attention in the House, but hopefully once the Bill has passed it is exactly the kind of behaviour that we can begin to police rather more effectively.

I am sure that Ministers will recognise that there is a need for this. No doubt their colleagues in the Department for Education are absolutely all over it. I was talking to a headteacher in the Minister’s own constituency recently—an excellent headteacher, in an excellent school, who is a personal friend. The horror with which headteachers regard the arrival of the GDPR is something to behold. Heaven knows, our school leaders and our teachers have enough to do. I call on Ministers to make their task, their lives, and their mission that bit easier by accepting the new clause.

Victoria Atkins Portrait Victoria Atkins
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Our schools handle large volumes of sensitive data about the children they educate. Anyone who has any involvement with the education system, either personally through their families, on their mobile phone apps, or in a professional capacity as constituency MPs, is very conscious of the huge responsibilities that school leaders have in handling that data properly and well, and in accordance with the law. As data controllers in their own right, schools and other organisations in the education system will need to ensure that they have adequate data-handling policies in place to comply with their legal obligations under the new law.

Work is going on already. The Department for Education has a programme of advice and education for school-leaders, which covers everything from blogs, a guidance video, speaking engagements, and work to encourage system suppliers to be proactive in helping schools to become GDPR-compliant. Research is also being undertaken with parents about model privacy notices that will help schools to make parents and pupils more aware of the data about children used in the sector. The Department for Education is also shaping a toolkit that will bring together various pieces of guidance and best practice to address the specific needs of those who process education data. In parallel, the Information Commissioner has consulted on guidance specifically addressing issues about the fair and lawful processing of children’s data. Everyone is very alive to the issue of protecting children and their data.

At this point, the Government want to support the work that is ongoing—already taking place—and the provisions on guidance that are already in the Bill. Our concern is that legislating for a code now could be seen as a reason for schools to wait and see, rather than continuing their preparations for the new law. But it may be that in due course the weight of argument swings in favour of a sector-specific code of practice. That can happen. It does not have to be in the Bill. It can happen because clause 128 provides that the Secretary of State may require the Information Commissioner to prepare additional codes of practice for the processing of personal data, and the commissioner can issue further guidance under her own steam, using her powers under article 57 of the GDPR, without needing any direction from the Secretary of State.

I hope that the ongoing work reassures the right hon. Gentleman and that he will withdraw the new clause at this stage.

Liam Byrne Portrait Liam Byrne
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I am reassured by that and I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 17

Personal data ethics advisory board and ethics code of practice

‘(1) The Secretary of State must appoint an independent Personal Data Ethics Advisory Board (“the board”).

(2) The board’s functions, in relation to the processing of personal data to which the GDPR and this Act applies, are—

(a) to monitor further technical advances in the use and management of personal data and their implications for the rights of data subjects;

(b) to monitor the protection of the individual and collective rights and interests of data subjects in relation to their personal data;

(c) to ensure that trade-offs between the rights of data subjects and the use of management of personal data are made transparently, inclusively, and with accountability;

(d) to seek out good practices and learn from successes and failures in the use and management of personal data;

(e) to enhance the skills of data subjects and controllers in the use and management of personal data.

(3) The board must work with the Commissioner to prepare a data ethics code of practice for data controllers, which must—

(a) include a duty of care on the data controller and the processor to the data subject;

(b) provide best practice for data controllers and processors on measures, which in relation to the processing of personal data—

(i) reduce vulnerabilities and inequalities;

(ii) protect human rights;

(iii) increase the security of personal data; and

(iv) ensure that the access, use and sharing personal data is transparent, and the purposes of personal data processing are communicated clearly and accessibly to data subjects.

(4) The code must also include guidance in relation to the processing of personal data in the public interest and the substantial public interest.

(5) Where a data controller or processor does not follow the code under this section, the data controller or processor is subject to a fine to be determined by the Commissioner.

(6) The board must report annually to the Secretary of State.

(7) The report in subsection (6) may contain recommendations to the Secretary of State and the Commissioner relating to how they can improve the processing of personal data and the protection of data subjects’ rights by improving methods of—

(a) monitoring and evaluating the use and management of personal data;

(b) sharing best practice and setting standards for data controllers; and

(c) clarifying and enforcing data protection rules.

(8) The Secretary of State must lay the report made under subsection (6) before both Houses of Parliament.

(9) The Secretary of State must, no later than one year after the day on which this Act receives Royal Assent, lay before both Houses of Parliament draft regulations in relation to the functions of the Personal Data Ethics Advisory Board as listed in subsections (2), (3), (4), (6) and (7) of this section.

(10) Regulations under this section are subject to the affirmative resolution procedure.’—(Darren Jones.)

This new clause would establish a statutory basis for a Data Ethics Advisory Board.

Brought up, and read the First time.

Darren Jones Portrait Darren Jones
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I beg to move, That the clause be read a Second time.

New clause 17 is in my name and that of my right hon. Friend the Member for Birmingham, Hodge Hill. I do not take it personally that my other hon. Friends have not signed up to it; that was probably my fault for not asking them to do so in advance.

The new clause would bring a statutory footing to the data and artificial intelligence ethics unit, which I am very pleased that the Government have now funded and established, through the spring statement, in the Minister’s Department. It comes off the back of conversations with the Information Commissioner in Select Committee about the differing roles of enforcing legislation and of having a public debate about what is right and wrong and what the boundaries are in this ever-changing space. The commissioner was very clear that we need to have that debate with the public, but that it is not for her to do it. The ICO is an enforcer of legislation. The commissioner has a lot on her plate and is challenged by her own resource as it is. She felt that the new unit in the Department would be a good place to have the debate about technology ethics, and I support that assertion.

With no disrespect to any colleagues, I do not think that the House of Commons, and perhaps even the Select Committees to a certain extent, necessarily has the time, energy or resource to get into the real detail of some of the technology ethics questions, nor to take them out to the public, who are the people we need to be having the debate with.

The new clause would therefore establish in law that monitoring, understanding and public debate obligation that I, the ICO and others agree ought to exist in the new data ethics unit, but make it clear that enforcement was reserved for the Information Commissioner. I tabled the new clause because, although I welcome the Government’s commitment to the data and AI ethics unit, I feel that there is potential for drift. The new clause would therefore put an anchor in the technology ethics requirement of the unit so that it understands and communicates the ethical issues and does not necessarily get sidetracked into other issues, although it may seek to do that on top of this anchor. However, I think this anchor needs to be placed.

Also, I recognise that the Minister and the Secretary of State supported the recommendation made previously under the Cameron Government and I welcome that, but of course, with an advisory group within the Department, it may be a future Minister’s whim that they no longer wish to be advised on these issues, or it may be the whim of the Treasury—with, potentially, budget cuts—that it no longer wishes to fund the people doing the work. I think that that is not good enough and that putting this provision in the Bill would give some security to the unit for the future.

I will refer to some of the comments made about the centre for data ethics and innovation, which I have been calling the data and AI ethics unit. When it was first discussed, in the autumn Budget of November 2017, the Chancellor of the Exchequer said that the unit would be established

“to enable and ensure safe, ethical and ground-breaking innovation in AI and data-driven technologies. This world-first advisory body will work with government, regulators and industry to lay the foundations for AI adoption”.

Although that is a positive message, it says to me that its job is to lay the foundations for AI adoption. I agree with that as an aim, but it does not mean that at its core is understanding and communicating the ethical challenges that we need to try to understand and legislate for.

I move on to some of the documents from the recruitment advertising for personnel to run the unit from January of this year, which said that the centre will be at the centre of plans to make the UK the best place in the world for AI businesses. Again, that is a positive statement, but one about AI business adoption in this country, not ethical requirements. It also said that the centre would advise on ethical and innovative uses of data-driven tech. Again, that is a positive statement, but I just do not think it is quite at the heart of understanding and communicating and having a debate about the ethics.

My concern is that while all this stuff is very positive, and I agree with the Government that we need to maintain our position as a world leader in artificial intelligence and that it is something we need to be very proud of—especially as we go through the regrettable process of leaving the European Union and the single market, we need to hold on to the strengths we have in the British economy—this week has shown that there is a need for an informed public debate on ethics. As no doubt all members of the Committee have read in my New Statesman article of today, one of the issues we have as the voice of our constituents in Parliament is that in order for our constituents to understand or take a view on what is right or wrong in this quickly developing space, we all need to understand it in the first place—to understand what is happening with our data and in the technology space, to understand what is being done with it and, having understood it, to then to take a view about it. The Cambridge Analytica scandal has been so newsworthy because the majority of people understandably had no idea that all this stuff was happening with their data. How we legislate for and set ethical frameworks must first come from a position of understanding.

That is why the new clause sets out that there should be an independent advisory board. The use of such boards is commonplace across Departments and I hope that would not be a contentious question. Subsection (2) talks about some of the things that that board should do. The Minister will note that the language I have used is quite careful in looking at how the board should monitor developments, monitor the protection of rights and look out for good practice. It does not seek to step on the toes of the Information Commissioner or the powers of the Government, but merely to understand, educate and inform.

The new clause goes on to suggest that the new board would work with the commissioner to put together a code of practice for data controllers. A code of practice with a technology ethics basis is important because it says to every data controller, regardless of what they do or what type of work they do, that we require ethical boundaries to be set and understood in the culture of what we do with big data analytics in this country. In working with the commissioner, this board would add great value to the way that we work with people’s personal data, by setting out that code of practice.

I hope that the new clause adds value to the work that the Minister’s Department is already doing. My hope is that by adding it to the Bill—albeit that current Parliaments cannot of course bind their successors and it could be legislated away in the future—it gives a solid grounding to the concept that we take technology ethical issues seriously, that we seek to understand them properly, not as politicians or as busy civil servants, but as experts who can be out with our stakeholders understanding the public policy consequences, and that we seek to have a proper debate with the public, working with enforcers such as the ICO to set, in this wild west, the boundaries of what is and is not acceptable. I commend the new clause to the Committee and hope that the Government will support it.

Margot James Portrait Margot James
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I thank the hon. Gentleman for raising this very important subject. He is absolutely right. Data analytics have the potential to transform whole sectors of society and the economy—law enforcement and healthcare to name but some. I agree with him that a public debate around the issues is required, and that is one of the reasons why the Government are creating the centre for data ethics and innovation, which he mentioned. The centre will advise the Government and regulators on how they can strengthen and improve the way that data and AI are governed, as well as supporting the innovative and ethical use of that data.

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Liam Byrne Portrait Liam Byrne
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I beg to move, That the clause be read a Second time.

I will touch on this new clause only very briefly, because I hope the Minister will put my mind at rest with a simple answer. For some time, there has been concern that the way in which data collected by the police through automatic number plate recognition technology is not adequately ordered, organised or policed by a code of practice. A code of practice is probably required to put the police well and truly within the boundaries of the Police and Criminal Evidence Act 1984, the Data Protection Act 1998 and the Bill.

With this new clause, we are basically asking the Secretary of State to issue a code of practice in connection with the operation by the police of ANPR systems under subsection (1), and we ask that it conform to section 67 of the Police and Criminal Evidence Act 1984. I hope the Minister will just say that a code of practice is on the way so we can safely withdraw the new clause.

Victoria Atkins Portrait Victoria Atkins
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I hope Committee members have had the chance to see my response to the questions of the hon. Member for Sheffield, Heeley on Tuesday about ANPR, other aspects of surveillance and other types of law enforcement activity.

I assure the right hon. Member for Birmingham, Hodge Hill that ANPR data is personal data and is therefore caught by the provisions of the GDPR and the Bill. We recognise the need to ensure the use of ANPR is properly regulated. Indeed, ANPR systems are governed by not one but two existing codes of practice. The first is the code issued by the Information Commissioner, exercising her powers under section 51 of the Data Protection Act 1998. It is entitled “In the picture: A data protection code of practice for surveillance cameras and personal information”, and was published in June 2017. It is clear that it covers ANPR. It also refers to data protection impact assessments, which we debated last week. It clearly states that where the police and others use or intend to use an ANPR system, it is important that they

“undertake a privacy impact assessment to justify its use and show that its introduction is proportionate and necessary.”

The second code is brought under section 29 of the Protection of Freedoms Act 2012, which required the Secretary of State to issue a code of practice containing guidance about surveillance camera systems. The “Surveillance camera code of practice”, published in June 2013, already covers the use of ANPR systems by the police and others. It sets out 12 guiding principles for system operators. Privacy is very much a part of that. The Protection of Freedoms Act established the office of the Surveillance Camera Commissioner, who has a number of statutory functions in relation to the code, including keeping its operation under review.

In addition, a published memorandum of understanding between the Surveillance Camera Commissioner and the Information Commissioner sets out how they will work together. We also have the general public law principles of the Human Rights Act 1998 and the European convention on human rights. I hope that the two codes I have outlined, the Protection of Freedoms Act and the Human Rights Act reassure the right hon. Gentleman, and that he will withdraw his new clause.

Liam Byrne Portrait Liam Byrne
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I am indeed mollified. I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

New Clause 21

Targeted dissemination disclosure notice for third parties and others (No. 2)

“In Schedule 19B of the Political Parties, Elections and Referendums Act 2000 (Power to require disclosure), after paragraph 10 (documents in electronic form) insert—

10A (1) This paragraph applies to the following organisations and individuals—

(a) a recognised third party (within the meaning of Part 6);

(b) a permitted participant (within the meaning of Part 7);

(c) a regulated donee (within the meaning of Schedule 7);

(d) a regulated participant (within the meaning of Schedule 7A);

(e) a candidate at an election (other than a local government election in Scotland);

(f) the election agent for such a candidate;

(g) an organisation or a person notified under subsection 2 of this section;

(h) an organisation or individual formerly falling within any of paragraphs (a) to (g); or

(i) the treasurer, director, or another officer of an organisation to which this paragraph applies, or has been at any time in the period of five years ending with the day on which the notice is given.

(2) The Commission may under this paragraph issue at any time a targeted dissemination disclosure notice, requiring disclosure of any settings used to disseminate material which it believes were intended to have the effect, or were likely to have the effect, of influencing public opinion in any part of the United Kingdom, ahead of a specific election or referendum, where the platform for dissemination allows for targeting based on demographic or other information about individuals, including information gathered by information society services.

(3) This power shall not be available in respect of registered parties or their officers, save where they separately and independently fall into one or more of categories (a) to (i) of sub-paragraph (1).

(4) A person or organisation to whom such a targeted dissemination disclosure notice is given shall comply with it within such time as is specified in the notice.”

This new clause would amend the Political Parties, Elections and Referendums Act 2000 to allow the Electoral Commission to require disclosure of settings used to disseminate material where the platform for dissemination allows for targeting based on demographic or other information about individuals.(Liam Byrne.)

Brought up, and read the First time.

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It is clear that the law is hopelessly outdated. I hope this is a subject on which we can agree. We are now at the receiving end of a new generation of active measures, which are one of the greatest threats to us since the emergence of al-Qaeda at the beginning of the century. We must redouble our defences, so the new clause would give the Electoral Commission the power to issue targeted disclosure notices that require those who seek to influence a political campaign to share with the world information about who is being targeted with what and—crucially—who is writing the cheques.
Margot James Portrait Margot James
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I will be brief in answering some of the serious matters raised by the right hon. Gentleman. The Information Commissioner, as the data regulator, is investigating alleged abuses as part of a broader investigation into the use of personal data during political campaigns. I have said many times that the Bill will add significantly to the commissioner’s powers to conduct investigations, and I have confirmed that we keep an open mind and are considering actively whether further powers are needed in addition to those set out in the Bill.

The Electoral Commission is the regulator of political funding and spending. The commission seeks to bring transparency to our electoral system by enforcing rules on who can fund and how money can be spent, but new clause 21 is about sending the commission into a whole new field: that of personal data regulation. That field is rightly occupied by the Information Commissioner. We can debate whether she needs more powers in the light of the current situation at Cambridge Analytica, and as I have said we are reviewing the Bill.

While the Electoral Commission already has the power to require the disclosure of documents in relation to investigations under its current remit, new clause 21 would provide the commission with new powers to require the disclosure of the settings used to disseminate material. However, understanding how personal data is processed is outside the commission’s remit.

The right hon. Gentleman suggested that his amendment would help with transparency on who is seeking to influence elections, which is very much needed in the current climate. The Government take the security and integrity of democratic processes very seriously. It is absolutely unacceptable for any third country to interfere in our democratic elections or referendums.

On new clause 22, the rules on imprints in the Political Parties, Elections and Referendums Act 2000 are clear. The current rules apply to printed election material no matter how it is targeted. However, the Secretary of State has the power under section 143 to make regulations covering imprints on other types of material, including online material. New clause 22 would therefore not extend the type of online material covered by such regulations. We therefore believe the new clause is unnecessary. The law already includes printed election material disseminated through the use of personal data gathered by whatever means, and the Government will provide further clarity on extending those rules to online material in due course by consulting on making regulations under the power in section 143(6).

On that basis, I ask the right hon. Gentleman to withdraw his new clause.

Liam Byrne Portrait Liam Byrne
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That is a deeply disappointing answer. I was under the impression that the Secretary of State said in interviews today that he is open-minded about the UK version of the Honest Ads Act that we propose. That appears to be in some contrast to the answer that the Minister offered.

What this country has today is an Advertising Standards Authority that does not regulate political advertising; Ofcom, which does not regulate video when it is online; an Electoral Commission without the power to investigate digital campaigning; and an Information Commissioner who cannot get a search warrant. Worse, we have a Financial Conduct Authority that, because it does not have a data sharing gateway with the Electoral Commission, cannot share information about the financial background of companies that might have been laundering money going into political and referendum campaigns. The law is hopelessly inadequate. Through that great hole, our enemies are driving a coach and horses, which is having a huge impact on the health and wellbeing of our democracy.

That is not a day-to-day concern in Labour constituencies, but it is for the Conservative party. Voter Consultancy Ltd took out targeted dark social ads aimed at Conservative Members, accusing some of them of being Brexit mutineers when they had the temerity to vote for common sense in a vote on Brexit in this House. Voter Consultancy Ltd, for those who have not studied its financial records at Companies House, as I have, is a dormant company. It has no accounts filed. There is no cash flowing through the books. The question that provokes is: where does the money come from for the dark social ads attacking Conservative Members? We do not know. It is a matter of public concern that we should.

The law is out of date and needs to be updated. I will not press the matter to a vote this afternoon because I hope to return to it on Report, but I hope that between now and then the Minister and the Secretary of State reflect on the argument and talk to Mark Sedwill, the National Security Adviser, about why the national security strategy does not include an explicit objective to defend the integrity of our democracy. I hope that that change is made and that, as a consequence, further amendments will be tabled to ensure that our democracy is protected against the threats we know are out there.

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Question proposed, That the Chair do report the Bill, as amended, to the House.

Margot James Portrait Margot James
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On a point of order, Mr Streeter. I wanted to thank you, and Mr Hanson in his absence, as well as, in the House of Lords, my noble Friends Lord Ashton, Baroness Williams, Lord Keen, Baroness Chisholm and Lord Young, and the Opposition and Cross-Bench peers. I also thank the Under-Secretary of State for the Home Department, my hon. Friend the Member for Louth and Horncastle, and the Opposition Front Bench Members—the right hon. Member for Birmingham, Hodge Hill, with whom it has been a pleasure debating in the past two weeks, and the hon. Member for Sheffield, Heeley, who was not able to be in her place this afternoon.

I offer great thanks to both Whips. It was the first Bill Committee for my hon. Friend the Member for Selby and Ainsty in his capacity as Whip, and my first as Minister, and it has been a pleasure to work with him. I also thank the hon. Member for Ogmore. My hon. Friend the Under-Secretary and I are grateful to our Parliamentary Private Secretary, my hon. Friend the Member for Mid Worcestershire, who has worked terribly hard throughout the proceedings, as indeed have the Clerks, the Hansard writers, the Doorkeepers and the police. Without the officials of my Department and, indeed, the Home Office, we would all have been bereft, and I am most grateful to all the officials.

Question put and agreed to.

Bill, as amended, accordingly to be reported.