Modern Slavery Bill

Baroness Goudie Excerpts

Wednesday 10th December 2014 Lords Chamber

[Lord Rosser]

My Lords, the movement the Government have made on this issue during the last stages of the Bill’s progress through the other place is welcome. We cannot accept products made using slave labour being sold here if we are determined to tackle modern slavery in this country. Over four out of five members of the public in this country want legislation on this issue, as do the overwhelming majority of companies themselves. The public will want to be satisfied that progress is being made to eliminate modern slavery in businesses and in supply chains, since awareness has arisen in the light of some high-profile cases that slavery or forced labour can be and is associated with the production of goods for major UK companies.

The public will want to be satisfied that the provisions of this Bill will lead to the end of products made using slave labour being sold on our streets. Although most commercial organisations are tackling this issue, it can be hard to see and measure tangible progress. There needs to be a way for consumers in particular to be able to judge the relative performance in this area of companies whose products or services they may wish to purchase. To achieve this, there is a need to introduce mandatory reporting requirements to ensure that companies adopt similar processes and approaches in reporting, which is what this amendment seeks to do. This will also help create the level playing field that responsible companies want to see and is the reason why so many companies are seeking effective legislation on this matter.

The Bill refers to a commercial organisation being required to prepare a slavery and human trafficking statement, which is defined as,

“a statement of the steps the organisation has taken during the financial year to ensure that slavery and human trafficking is not taking place … in any of its supply chains, and … in any part of its own business, or … a statement that the organisation has taken no such steps”.

The relevant clause, Clause 51, goes on to say that the Secretary of State,

“may issue guidance about the duties imposed on commercial organisations by this section”,

and that the guidance,

“may … include guidance about the kind of information which may be included in a slavery and human trafficking statement”.

Indeed, the Home Secretary’s title appears all over Clause 51.

While that clause goes on to say that,

“The duties imposed on commercial organisations by this section are enforceable by the Secretary of State bringing civil proceedings”,

it appears that the duty in the Bill in respect of preparing a slavery and human trafficking statement extends no further than producing a statement of the steps that the organisation has, or has not, taken. There is no duty imposed on what kind of information should be provided to substantiate or provide some specifics on the steps taken, since that requirement will be in the form of guidance which “may” be issued by the Secretary of State and which “may” be included in a slavery and human trafficking statement.

Thus, guidance, in effect, may not be issued at all. If it is—and the guidance may be specific or generalised—it is optional whether the kind of information that it suggests should be included in a slavery and human trafficking statement is actually included. Frankly, that is all pretty vague and woolly. It certainly does not ensure that companies provide sufficient information to be able to judge whether they are effectively addressing the issue of modern slavery in their own organisations and in supply chains and taking effective steps to ensure that, if modern slavery or exploitation exists, it is being eliminated.

If the Government believe that the prospects of civil proceedings will be rather more potent than I have suggested, perhaps the Minister could spell out the situations in which they could be initiated under the terms of the Bill, beyond a commercial organisation failing to produce a statement of the steps that it has, or has not, taken during the financial year to ensure that slavery and human trafficking is not taking place. Are the Government saying that, under the terms of Clause 51(9), civil proceedings can be brought on other grounds and, if so, in respect of which other duties imposed on commercial organisations by the clause?

Our amendment seeks to set out the specific information that must be provided in a slavery and human trafficking statement by a commercial organisation in relation to the steps that they have taken to ensure that modern slavery is not taking place. The requirement is information that must be provided, so if it is not provided that could be the subject of the civil proceedings. If the information is provided but suggests that very little is being done, that fact will be exposed in a way that would not happen under Clause 51 as it stands.

Our amendment would also better enable meaningful comparisons of the performance of different commercial organisations, in addressing and eradicating modern slavery in their own organisations and supply chains, to be made by consumers and other interested parties, including shareholders, relevant voluntary organisations and the media, in a way that Clause 51 does not provide. It would also better enable interested parties to examine whether what is said in slavery and human trafficking statements in fact represents an accurate assessment of the situation, or whether they are statements whose relationship to the facts is not immediately obvious.

The ability for interested parties to compare the performance in this field of different companies, and the knowledge that the content of statements which have to address specific points could be checked for their fairness and accuracy, will act as an incentive for commercial organisations to address properly the issue of modern slavery in their businesses and supply chains, because of the reputational damage likely to be caused if it is shown that their performance on this issue is poor, or that the slavery and human trafficking statements they produce—which, under our amendment, would have to contain the specific information laid down—are not as accurate as they might have been. That situation, and the pressure that it will place on commercial organisations to act, will not be there under the requirements of Clause 51. I simply ask the Government: how do they believe that the wording in Clause 51 provides a means of checking effectively on what some commercial organisations are doing in comparison with others, and of being able to check on the accuracy of the content of a slavery and human trafficking statement?

While Clause 51 is most welcome as movement on this issue by the Government, with its vagueness, its repeated use of “may” and its guidance rather than requirements, the clause is based too much on the “It’ll be alright on the night” approach. That is, frankly, not adequate on a matter as serious as this, involving the exploitation of and contempt for other human beings. This is something impacting on our own doorsteps, since it involves the goods and services that we buy. We need to get Clause 51 right first time. We need to place prominent emphasis on the position of those who are being exploited and to ensure that the terms and requirements in the Bill are strong enough to address and eliminate, over not too long a time, the evil that is modern slavery where it exists in businesses and in their supply chains. I beg to move.

[Baroness Goudie (Lab)]

My Lords, I support my noble friend Lord Rosser on this amendment. I feel extremely strongly about this as, throughout this evening, we have heard about not having enough money but we have to remember that we are talking about people. They are not robots or goods; they are human beings. It is really important to remember that when we talked earlier about the cost of implementing this, we are talking about saving people’s lives and ensuring that they have a life as good as we have, or even better.

The way I see this operating is that accountability in companies should be handled by their procurement department. Every large and small company has a procurement department or somebody who goes to the middle companies that they order from. We should not say that the middle people should be responsible. The companies should be able to tell us and, if necessary, go and inspect where and how the goods are made, and how the people are paid. They spend enough time on decorating, branding and PR, but instead of spending so much time and money on those things, they should spend it in their new procurement department. Some of them have these procurement departments; I see them as being as important as health and safety has become, thanks to the way that Governments have pushed that forward.

It is so that the companies can say, when the audit is done every year and in their annual report, that they have visited the factories and the building sites. It may be something that the construction industry here is responsible for in Bahrain, Beijing or Qatar. This should apply not just to companies but to government departments, when we are assisting as museums or parts of new universities are built abroad. What we are trying to say is that every company and organisation involved in labour or goods, abroad or here, should be audited and that the procurement department should be responsible. “May” is not strong enough; we have to say that this is to be done annually in the audit and that it can be inspected and questioned.

[Baroness Hamwee]

My Lords, at the end of Second Reading the Minister, referring to one noble Lord—but I think it might have applied to many of us—commented that he spent a minute welcoming the Bill and then several minutes asking for more. Clearly, this clause falls into that category.

I have tabled Amendments 97B to 97E, which come from a meeting that a number of us had with the Minister, after which we were looking for a peg on which he could hang the very helpful assurances given in that meeting. I appreciate that this is a developing area of work for the Government. As has been said, Clause 51 has not been in the Bill for very long. It is also clear that many colleagues feel that it needs to be strengthened. My amendments would provide a power for the Secretary of State to make regulations about the form of the statement and how it is to be reported—something that particularly concerned those who have spoken and features in briefings that we have had. They would also allow the Secretary of State to issue regulations about the duties imposed on commercial organisations, not just guidance.