Draft Proceeds of Crime Act 2002 (Investigative Powers of Prosecutors: Code of Practice) Order 2021
Draft Proceeds of Crime Act 2002 (Search, Seizure and Detention of Property: Code of Practice) (Northern Ireland) Order 2021
Draft Proceeds of Crime Act 2002 (Cash Searches: Code of Practice) Order 2021
Draft Proceeds of Crime Act 2002 (Investigations: Code of Practice) Order 2021
Draft Proceeds of Crime Act 2002 (Recovery of Listed Assets: Code of Practice) Order 2021
(Limited Text - Ministerial Extracts only)
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The Chair
Before we begin, I remind Members to observe social distancing and sit in places that are clearly marked. I also remind Members that Mr Speaker has stated that masks should be worn in Committee unless Members are speaking or they are medically exempt. Hansard colleagues would be most grateful if Members could send their speaking notes to hansardnotes@ parliament.uk.
The Parliamentary Under-Secretary of State for the Home Department (Kevin Foster)
I beg to move,
That the Committee has considered the draft Proceeds of Crime Act 2002 (Investigative Powers of Prosecutors: Code of Practice) Order 2021.
The Chair
With this it will be convenient to consider the draft Proceeds of Crime Act 2002 (Search, Seizure and Detention of Property: Code of Practice) (Northern Ireland) Order 2021, the draft Proceeds of Crime Act 2002 (Cash Searches: Code of Practice) Order 2021, the draft Proceeds of Crime Act 2002 (Investigations: Code of Practice) Order 2021 and the draft Proceeds of Crime Act 2002 (Recovery of Listed Assets: Code of Practice) Regulations 2021.
Kevin Foster
It is a pleasure, as always, to serve under your chairmanship, Mr Efford. Taking wide-ranging action to crack down on crime and make our communities safer is top of the Government’s agenda. One important part of that mission is our drive to stay one step ahead of criminals seeking to move, hide or use the proceeds of their illegal activities and to frustrate attempts by law enforcement agencies to recover them.
The Criminal Finances Act 2017 was introduced to amend the Proceeds of Crime Act 2002 and to improve significantly the UK’s ability to trace and recover the proceeds of crime effectively. The Criminal Finances Act has not been fully commenced, though, in Northern Ireland. Some aspects of it—the counter-terrorist financing and tax evasion provisions—were commenced, but provisions with devolved elements, primarily those pertaining to asset recovery, are still outstanding.
Members of the Committee may recall that the Northern Ireland Assembly was dissolved during the passage of the Criminal Finances Bill, meaning that it was not possible to secure a legislative consent motion in Northern Ireland. It was decided that the provisions that related to devolved matters should remain in the Bill, and at the time the Government indicated to Parliament that they would not commence provisions on matters devolved to Northern Ireland without the appropriate consent having been obtained first.
Following the reconstitution of the Assembly, I am pleased to advise the Committee that, even in the absence of a mechanism to seek legislative consent in retrospect, Northern Ireland’s Justice Minister agreed that the outstanding powers should be commenced on behalf of the all-party Executive. After engagement with the Northern Ireland Executive Committee and the Justice Committee, and advising all Northern Ireland Assembly Members, she asked the Home Secretary to commence the relevant provisions. We plan to commence the powers on 28 June 2021.
I am therefore pleased to introduce the draft instruments that we are debating today, which form part of the package of legislation required to complete commencement of the provisions in Northern Ireland. The draft instruments will each bring one of five distinct codes of practice into force. Each of the five codes of practice has been revised to reflect the extension of the Criminal Finances Act powers to Northern Ireland. Some further minor amendments, for clarity only, have also been made.
The measures before us do not alter the powers available; they only clarify the relevant codes of practice in the light of the extension of outstanding Criminal Finances Act 2017 powers to Northern Ireland, which must be done by affirmative statutory instruments in this instance. I hope that they will be uncontroversial, and commend them to the Committee.
Kevin Foster
As always in such debates, I begin by thanking the Official Opposition spokesperson, the hon. Member for St. Helens North, for his constructive approach to such matters. As he says, there is certainly no division between the Opposition and Government in the drive to tackle serious criminality and ensure that those who have made ill-gotten gains from their criminal activities, in some cases in the millions, are tracked down to recover that money. It is very welcome that the provisions of the orders are now extended to Northern Ireland.
The hon. Gentleman noted that the first request to extend those powers to Northern Ireland was made in June 2020. I hope that he accepts that the past year has been a rather unusual one in the parliamentary landscape, not least in our ability to introduce secondary legislation, as evidenced by this morning’s arrangements. The capacity to consider such legislation has not been available, and available legislative time has largely had to consider the pandemic. That explains partly why it was not possible to introduce the legislation at an earlier date, but we look to bring the powers into effect next month. This morning’s package of affirmative SIs will deliver that.
In terms of the legislation’s impact on the rest of the UK, it is worth noting that since 2014-15, more than £1.25 billion has been taken out of the hands of criminals using Criminal Finances Act powers, including its predecessor legislation, to be fair, which was passed under the Labour Government in 2002. Since 2006, £1.126 billion has been returned to law enforcement agencies under the asset recovery incentivisation scheme. Those figures are true up to the end of the financial year 2019-20, so another year’s figures will be published shortly. In 2019-20, just under £208 million pounds-worth of proceeds of crime were collected under POCA powers. That represents an 8% increase in comparison with 2014-15. We believe that those powers have a clear impact on denying criminals their ill-gotten gains, but we keep those powers under review because we recognise that patterns of crime are changing. We may need to change our approach, and if required we will bring the necessary legislation before the House, subject to available parliamentary time. If we identify such a need, I am sure that we would enjoy the broad support of the Opposition, given the comments of the hon. Member for St. Helens North.
Four unexplained wealth orders have been issued. Such is their impact that one recently related to the recovery of £10 million from one person linked to serious and organised crime. They sit alongside the suite of available powers and should not be considered in isolation; they are exercised in addition to those other powers. We will, however, monitor their use, and ensure that that power is used appropriately and effectively. If we identify a need to extend their use or to modify their application, we will of course make the necessary changes. I accept the Opposition’s constructive approach to the issue and I am sure that we would enjoy their support were such a change required.
On the publication of the Mackey report, I think it would be better to respond to the hon. Gentleman in writing. I took on board his comments, particularly the possibility of meeting under Privy Council terms, but I think it would be best to reflect on that further.
I completely agree with the shadow Minister that no one should use “claimed” political affiliations or affiliations of nationality and wrap themselves in a flag to excuse themselves committing serious criminality. As we know, all too often paramilitary activity in Northern Ireland has been based on criminality in Northern Ireland— extortion rackets, looking to smuggle items. Those are not the actions of those with particularly strong political views, but those of criminals who look for a cause with which to dress themselves up to avoid the liabilities they should face. I certainly reassure the hon. Gentleman that we will give whatever support we can to both the Northern Ireland Executive and the Police Service of Northern Ireland, as evidenced by the package of measures we are considering today, to tackle the scourge of criminality in Northern Ireland, thus ensuring that ill-gotten gains of criminality cannot be used to fund terrorist activity.
I commend the orders to the Committee.
Question put and agreed to.
Draft Proceeds of Crime Act 2002 (Search, Seizure and Detention of Property: Code of Practice) (Northern Ireland) Order 2021
Resolved,
That the Committee has considered the draft Proceeds of Crime Act 2002 (Search, Seizure and Detention of Property: Code of Practice) (Northern Ireland) Order 2021.—(Kevin Foster.)
Draft Proceeds of Crime Act 2002 (Cash Searches: Code of Practice) Order 2021
Resolved,
That the Committee has considered the draft Proceeds of Crime Act 2002 (Cash Searches: Code of Practice) Order 2021.—(Kevin Foster.)
Draft Proceeds of Crime Act 2002 (Investigations: Code of Practice) Order 2021
Resolved,
That the Committee has considered the draft Proceeds of Crime Act 2002 (Investigations: Code of Practice) Order 2021.—(Kevin Foster.)
Draft Proceeds of Crime Act 2002 (Recovery of Listed Assets: Code of Practice) Regulations 2021
Resolved,
That the Committee has considered the draft Proceeds of Crime Act 2002 (Recovery of Listed Assets: Code of Practice) Regulations 2021.—(Kevin Foster.)