Modern Slavery Bill

Baroness Kennedy of Cradley Excerpts

Monday 23rd February 2015 Lords Chamber

[Baroness Butler-Sloss (CB)]

My Lords, I have also put my name to this amendment—as with the two noble Baronesses who have spoken, for the purpose of further consideration, not for the purpose of being part of the Bill at the moment.

There are two points that I want to make. The first is that there is clearly a gap. The second is that this would give an opportunity to victims who cannot have the satisfaction of the trafficker prosecuted—or indeed if the trafficker or slave owner is actually acquitted—none the less to take civil proceedings under a different and less onerous standard of care. The criminal law, as I am sure everyone in this House knows, requires the jury or the magistrate to be satisfied so as to be sure, but in the civil courts—the High Court, the county courts or the small claims courts—it is sufficient to have the balance of probabilities. So it gives an added opportunity to those who have suffered to get some redress, even if it does not go through the criminal courts. It is for that reason that we seek the opportunity for the Government to have a look at this to see whether something can be done at a later stage.

[Baroness Kennedy of Cradley (Lab)]

My Lords, I add my voice in support of Amendment 16. I will be brief. There is no need for me to repeat the arguments for having a civil remedy in the Bill as this case has been eloquently and well made by the noble Baroness, Lady Young of Hornsey. I just want to emphasise three points. First, we have a duty to give victims of slavery every type of support to help them rebuild their lives. That is why I support this amendment. Effective civil remedies for modern slavery are another tool that we can agree that will help victims gain access to the justice they so rightly deserve. Through our debates in this House we have been increasing and developing the right provisions to support victims of slavery, which has rightly moved up the agenda. Amendment 16 is an essential element of the package of support. Survivors must have the right to pursue civil compensation claims and to recover damages from their abusers for offences carried out against them.

Secondly, like others, I worry that the current civil law is inadequate for the victims of modern slavery. The criteria for existing civil claims which can be brought against perpetrators seem too narrow for slavery victims. Not all victims of modern slavery have been subjected to physical or sexual assault or false imprisonment. The law is highly complex, and the circumstances of each enslavement situation are highly complex. Increasingly there is no physical violence but there is extreme emotional and psychological manipulation. We therefore need civil law to cover all the complexities of a modern-day slavery situation.

Thirdly, and finally, we need to learn the lessons from the US and not repeat its mistakes. As the noble Baroness, Lady Young of Hornsey, mentioned, the US Victims of Trafficking and Violence Protection Act of 2000 did not include a civil liability offence. That was soon recognised as a glaring omission, so in 2003 a federal right of action was introduced for survivors of trafficking. Let it not take us three years to recognise that more needs to be done. The amendment is before us here and now. I hope the Government will take the opportunity before them to respond favourably to this amendment now, or soon through discussions in future.

[Lord Rosser (Lab)]

My Lords, I will be brief. The noble Baroness, Lady Young of Hornsey, has once again made a powerful case in her amendment. We support the principle of a civil remedy for victims of modern slavery against a person who commits an offence against that victim or who benefits financially. As the noble and learned Baroness, Lady Butler-Sloss, said, civil proceedings are likely to be less of an ordeal for victims than the criminal courts and cases will be determined on the lower threshold of balance of probabilities rather than beyond reasonable doubt, which increases the prospect of a successful outcome for the victim.

In Committee, there was some discussion about whether there was already recourse to relevant and appropriate civil law remedies for all victims. There was clearly not unanimity of view on that point. The amendment would clear up any doubt by putting a clause in the Bill providing for civil action and remedies for victims of modern slavery, and if the Government are going to oppose this amendment all the way down the line, they will need to be rather more convincing than they were in Committee in persuading the House that adequate civil remedies are already available and that that view is not open to serious doubt. I hope that the Minister will be able to respond in a helpful way.

Modern Slavery Bill

Baroness Kennedy of Cradley Excerpts

Wednesday 10th December 2014 Lords Chamber

[Baroness Kennedy of Cradley (Lab)]

My Lords, I, too, add support for the amendment moved by the noble Baroness, Lady Cox. This is a very important issue, affecting a group of extremely vulnerable workers, so it is right and fundamental that it forms part of the Bill. The change to the overseas domestic workers visa back in 2012, tying domestic workers to their employer, was too heavy-handed a response when you look at the number of domestic workers involved and the vulnerability of those workers. In 2010, visas issued to domestic workers accounted for just 6% of all employment-related visas issued. At the time of the change, the Government argued that this visa was a route to settlement that was abused. However, very few overseas domestic workers were granted the right to settle; between 2006 and 2010, an average of just 700 domestic workers a year were given the right to settlement. That figure taken as a percentage of the 2013 settlement figures represents less than 0.5%.

I understand, as the Government will argue, that because of their isolated working conditions this group of workers was vulnerable to, and suffered, abuse before the change in visa rules. But the research by Kalayaan, as others have said, has shown that abuse and exploitation has increased as a result of the new visa rules, figures that the Minister in the other place made clear are not disputed by the Government. This visa change has created the perfect storm, with work carried out in isolated conditions, employers having excessive power afforded to them and a legal system that offers absolutely no protection. It is therefore unsurprising that the abuse has increased.

The Minister will no doubt talk about having stronger pre-entry checks, a stronger written contract with explicit terms and conditions and more information given to overseas workers on their rights but, as the noble Baroness, Lady Hanham, said, the effectiveness of those provisions has yet to be proven in practice. Also, these actions are not mutually exclusive to any other action; it is not a choice between stronger support mechanisms or a change in the visa rules—we should be doing both.

The amendment has a lot of support inside and outside this Chamber. Three parliamentary reviews have supported a change to the visa situation for overseas domestic workers. I hope that the Government can support it too, and include this amendment, or a version of it, in the Modern Slavery Bill.

[Baroness Hamwee]

My Lords, it happens here—it happens even in Scotland, as we have heard, that most civilised country.

A number of noble Lords have used words such as “unimaginable” but, like the noble Baroness, Lady Hanham, I can only too well imagine the card—and I share her concerns about the card itself—being slipped into the passport as it is handed over. Of course, the passport is then very often taken by the employer.

I do not want to repeat the very powerful speeches made by so many noble Lords. I was grateful to hear from a number of people, including, most strongly and emphatically, from the three workers themselves to whom the noble Baroness referred, and at the meeting that she organised with Virginia Mantouvalou, who has written a report. Clearly, it is far too long to read here, but one thing particularly struck me. She gives the history of the overseas domestic worker visa and the diplomatic visa. When the concession was originally introduced, it was from concern to enable workers who had been with a family overseas to come here. The comment was made that it was for “a humanitarian reason”—to look after the domestic workers—and look where we have got to.

At that meeting, Kate Roberts from Kalayaan explained how her organisation could no longer help workers who managed to find their way to it, which must be a tiny percentage, because the organisation has to explain the problem with the Immigration Rules. Indeed, it often cannot help because of threats from employers to workers about criminalisation.

A number of noble Lords have also said that we must remember the realities. Measures such as dealing more effectively at the port of entry are important, but they are not enough. One thing that occurs to me on that is that, at the border on exit, when there is suspicion that a girl is being taken abroad for a forced marriage—the border officials are trained to recognise this—there are arrangements whereby they can be taken aside to be interviewed. The noble Baroness is right to point to that. I do not see why it should not happen in the other direction. We need to think about the realities. What people seem to be able to do to get around formal systems is almost beyond our imagining, and it is the realities that we need to fix on.

--- Later in debate ---

[Baroness Butler-Sloss]

My Lords, this is another modest amendment to allow the Government to look at the Gangmasters Licensing Authority at an appropriate time to see whether the functions, powers and duties of the licensing authority should be extended to cover other areas, which are extremely obvious, where it is well known that there is quite a lot of slavery and trafficking.

Two particular areas that I have in mind are the construction industry and the hospitality industry. One area of the hospitality industry is the laundry. Almost every hotel uses outsourcing of its laundry. There are serious concerns as to what goes on in some of the laundries. There is no doubt at all that there are serious concerns about what goes on in the construction business, particularly with people working on sites.

A very obvious example of that was the Connors case in Bedfordshire, where a Gypsy family, the Connors, picked up out-of-work, homeless people from soup kitchens and homeless centres and took them, on the promise of £80 a day, to work on construction sites. These people were kept in appalling accommodation in caravans, first working on construction sites in England, and then a whole lot of them were taken across to Sweden where they were working in the northern part of the country. It was not until a young Swedish boy, who had also been caught like this, walked 500 miles to Stockholm and went to the police, who rushed to the area where these people were locked up—not being paid a single penny, in appalling conditions—that they were identified as slaves and victims, and they did not even know it. However, one of them gave evidence to the informal inquiry led by Frank Field MP, of which Sir John Randall MP and I were members at the request of the Home Secretary. This particular victim gave very clear evidence of what goes on in the construction industry.

I understand entirely the scarcity of resources, so I am not asking the Government to extend the powers of the Gangmasters Licensing Authority. Indeed, Paul Broadbent would be horrified unless he had proper resources to manage what would have to be a larger enterprise if these two areas were taken into account. What I do not want is there to be inability on the part of the Government, when they have the money to extend the Gangmasters Licensing Authority, to find the proper legislative process to be able to do that. To put the matter in current usage, rather than faffing around looking for the right sort of place, if you have the power to do it, you do not have to do it until you can, but the power would be there so that you could do it in subsidiary legislation later. I hope that the Government will listen seriously to what I suggest. I beg to move.

[Baroness Kennedy of Cradley]

My Lords, I have Amendment 97A in this group, but I also support Amendment 97 in the name of the noble and learned Baroness, Lady Butler-Sloss, and Amendment 101A in the name of my noble friend Lord Rosser. Many people welcome the great job done by the GLA. In the sectors for which it is responsible, it has been extremely effective at raising standards and driving out poor performance. Ten years ago, given the context in which the GLA was established, limiting the sectors it covered made sense. But 10 years later the limit on the GLA remit now makes little sense.

Amendment 97A was recommended by the joint scrutiny committee, of which I was a member, to allow the remit of the GLA to be extended. As the noble and learned Baroness, Lady Butler-Sloss, said, many high-risk sectors fall outside the remit of the GLA, such as construction and hospitality—and I would add care and cleaning to that list. These sectors are high risk because they commonly use subcontractors, agencies and migrant labour. The work is seasonal and low paid, and workers often work on site and in isolated conditions. Therefore, these sectors need to be afforded greater attention and the workers need the extra protection given to them by the licensing regime of the GLA.

As I have said, the GLA is widely recognised as being effective and is often cited as an example of best practice. Many people have called for its remit to be extended to such high-risk sectors, which is why the Joint Committee looked at it in some detail and agreed. It would be a mistake not to consider it now or, as the noble and learned Baroness said, in the future, which is why I support Amendments 97 and 101A that allow for that. These amendments also would allow the GLA to be given greater powers. I agree. The GLA would have the power, for example, to enforce payment of unpaid wages and the ability to fine businesses which have deliberately evaded licensing.

The sentencing and penalties faced by unlicensed and exploitative gangmasters also need addressing. Some very ruthless people are getting away with comparatively small fines. In 2013, an unlicensed gangmaster was convicted of exploiting more than 60 Filipino workers on dairy farms in the UK. Despite having made more than £700,000 through exploiting his workers and housing them in appalling conditions, he was given a 12-month suspended sentence and was asked to pay £45,000 in compensation over three years. We must review the sentencing guidelines for GLA offences. We cannot have a situation where cruel gangmasters see fines, in the words of the GLA,

“as a hazard of the job”.

I hope that we can amend this Bill to address these significant issues, as when there is inadequate preventive action, abuse occurs.

[Baroness Royall of Blaisdon]

My Lords, I shall speak to Amendment 101A in my name and that of my noble friend Lord Rosser, and I support the other amendments in the group. Like others, we are seeking an enabling power by regulations to allow the Secretary of State to expand the remit of the Gangmasters Licensing Authority into other sectors when he or she wishes to do so. In Committee in the other place, the Minister, Karen Bradley, said:

“The case has not been made for extending the GLA’s remit at this stage beyond the core areas the Act sought to address”.—[Official Report, Commons, 14/10/14; col. 480.]

I contest that point of view because, like other Members across the Committee, we have a deal of evidence to prove that there is a strong case for extending the GLA’s remit. But we are not forcing the Government to do that now; we are saying, as and when appropriate, please let us do it.

The introduction of legislation on gangmasters in 2004 has worked very well in protecting workers in the agriculture, horticulture and shellfish collection sectors. Widespread research from trade unions, charities and academics suggests that hundreds of thousands of migrant workers are routinely underpaid and overworked in dirty and dangerous jobs across the UK on farms, in care homes, providing cleaning services on the London Underground, in hotels and offices, and on construction sites, as others have said. Often employed by labour providers or gangmasters, many of these workers presumably have little idea of UK employment rights such as the national minimum wage, let alone the leverage to be able to claim them.

--- Later in debate ---

[Baroness McDonagh (Lab)]

I shall speak to Amendment 98A and support Amendment 98. I start by declaring an interest as patron of the Lily foundation, an anti sex-trafficking charity operating in India and the UK. Is it not absolutely fantastic that we are here on all sides of the Chamber to support a Bill that we all want to see enacted? That is a very unusual occurrence. In that spirit of unity, I am pleased that this amendment is being supported by me and the noble Lord, Lord Hastings of Scarisbrick.

Our concern is that this clause on supply chains will turn out to be warm words and good intentions. Indeed, when assemblies all around the world have sought to phrase legislation in these terms, they have rarely been able to meet their objectives. If the Bill cannot meet its objectives, what then? That is what this small enabling amendment covers. It would allow the Home Secretary to intervene and require extremely large companies to risk assess, create an action plan and audit. We think this is a very simple thing to do and would welcome a meeting with the Minister to discuss it further.

Let me be clear about the companies to which this amendment would apply. I understand that the Government would be concerned if it were to apply to all companies. I understand that placing such a regulatory responsibility on SMEs would be extremely difficult. Indeed, our amendment would not even apply to large companies; it would apply to really large global entities, which are very specifically defined as companies with a turnover of £1 billion per annum. Not only that, there is a secondary locking qualifier, which is that they would be in the wholesale, retail, manufacturing and construction sectors, in which you find more people who are working in servitude in the supply chains.

I ask the Minister and the Government to accept this small enabling amendment. It is a safety net to ensure that all the hard work in tackling this terror will not have been in vain. If it is needed—and if the Bill does what is intended, it will not be needed—it will apply to a small number of companies. Behaviour change in the 124 companies which would qualify would have the biggest impact on the greatest number of people and would bring up the standards of all.

[Baroness Kennedy of Cradley]

My Lords, I support Amendment 98, which was moved by the noble Lord, Lord Alton of Liverpool.

The case for legislating for transparency in supply chains as part of the Bill has been well made and it is very welcome that it is being progressed by the Government through Clause 51. Now, as many noble Lords have said, the task is to get the detail of the legislation right and agree between us a well crafted clause that levels the playing field for business, informs investors, shareholders and consumers and drives change to end slavery in supply chains. I support Amendment 98 because it would do exactly that.

Amendment 98 would rewrite Clause 51 by adding, where necessary, elements of detail to ensure that it is more meaningful, effective and workable. As the noble Lord, Lord Alton, said, in line with the California Transparency in Supply Chains Act, which came into force in 2012, the amendment defines the threshold as not less than £60 million and, most importantly, includes the term “group undertaking” when determining the total turnover. That is important because it allows multinational companies that may have small operations in the UK to be covered by this legislation.

We all want the Bill to have global reach. Therefore, having a way to ensure the inclusion of all large foreign companies that provide services to the UK is vital. Clause 51 is ill defined in parts and Amendment 98 seeks to correct that in a number of ways. First, it suggests a simple change in the language to make the intent of the clause explicit. In the Modern Slavery Strategy the Government make it clear that they want this legislation to ensure that businesses investigate and report on modern-day slavery through the annual statements they are required to produce. It is therefore important that that aim is made explicit in the Bill. Subsection (4)(a) is consequently amended to confirm that the statement is specifically to “identify and address” the issue of slavery and human trafficking. It is its primary aim.

It is also important that the remit of this statement is more tightly defined. The clearer this legislation is, the better for business and consumers alike. Subsection (5) of Amendment 98 provides a framework for the statements. It makes sure that minimum disclosure measures are included in the Bill: the need for risk assessments; the need to set out who has been involved in identifying the risks; what actions have been taken to mitigate the risks; and what has been the impact of those actions. The “how” should be left to guidance. Without those minimum criteria, as other noble Lords have said, comparisons between companies will be impossible to make and the level playing field desired by good businesses will be difficult to achieve.

We also need to look to and learn from the Californian Act and not repeat its mistakes. The learning from the application of the California legislation to date also shows us why it is necessary to be clear in the legislation about what you want to achieve and what you expect business to report. In California hundreds of organisations have issued statements in line with the Act, but there is a wide variation in the information provided in those statements. Some have disclosed meaningless information, some have disclosed misleading information, and a few—perhaps worst of all—have thwarted the legislation and disclosed that they do nothing and are indifferent to the issue of slavery in their supply chains. For example, Caterpillar Incorporated, a multinational company reported to hold $89 billion in assets, which manufactures its products and components in 110 factories worldwide in high-risk countries such as India and Indonesia, issued a woefully inadequate statement. Krispy Kreme Doughnuts issued a statement of just 182 words, using them to say that as regards slavery it does not verify product supply chains, conduct audits of suppliers or require direct suppliers to certify materials.

Getting businesses to produce statements of that kind is not what this part of the Bill is about, and I do not believe it is what the Government intended it to be about. Clause 51 is not a paper exercise for businesses to write down in 200 words or less that they do not do any of this kind of work and do not intend to start. It is a serious measure that we need businesses to engage in and which good businesses want to engage positively with, properly and on an equal footing with each other. It is not fair that the good businesses that do excellent work, actively searching for evidence of exploitation, are being undercut and undermined. That is why having minimum criteria in the Bill is vital. Setting out those minimum criteria would not make the task more burdensome for business; the task—the production of the statement—remains the same. Minimum measures just give a framework for the task so that a level playing field between businesses is achieved.

Proper monitoring is also vital and, as the noble and learned Baroness, Lady Butler-Sloss, said, it is not currently clear how this part of the Bill will be properly monitored and enforced. Amendment 98 seeks to address that, too. Again, if we look to learn from the experience of the Californian Act, here some companies have ignored the Act completely. Research in January of this year quoted 85 companies as ignoring the legislation. That level of disregard is unacceptable, and we should make sure it is not replicated in the UK. Amendment 98 also ensures that a named government department receives and makes sure that the statements are easily publically available. It ensures that there will be consequences for blatant flouting of the legislation—as we have seen in California—by companies that do not comply or refuse to comply. Most importantly, it makes sure that compliance with this clause is a corporate responsibility. You need leadership from the top to change attitudes and make things happen.

I also very much support the requirement for a review after three years, which is included in Amendment 98. This part of the Bill in particular, as it is a completely new area of work, would benefit from a re-evaluation over a specified time period. Formally being able to hear the views of businesses, NGOs, trade unions and consumers on how this legislation operates in practice, and committing to bring forward changes where needed, would be a positive step forward.

I hope that the Government can accept much—if not all—of what is included in Amendment 98 and that they will look seriously at Amendment 98A in the name of my noble friend Lady McDonagh. She has clearly set out the impact multinational corporations can have in the fight against slavery. The 124 companies to which she referred, which operate in high-risk sectors and which have a combined turnover of approximately $1 trillion, can clearly influence the working conditions in tens of thousands of workplaces and help many millions of workers across the world. The power of this small group of companies is huge. They have the power to reform their business models, insist on inspection regimes, support local efforts to empower workers and insist on decent wages and formal contracts for all workers here in the UK and across the world. Her amendment brings home to us that we cannot rid the world of slavery without the help of big business.

The provisions in my noble friend’s amendment would enable the economic strength of these companies to be a force for good—something they want to be and something we desperately need them to be. Many if not all those companies understand the reputational damage and loss of both consumer confidence and market share they will suffer if they are found to be sourcing from suppliers which use exploitative labour. Most companies want supply chains that reflect their brand, not brands that reflect their supply chains, so I am sure that, like Amendment 98, this amendment will not be seen as a burden but an advantage. I hope that both amendments and what they set out can be accepted by the Government.

[Baroness Mobarik (Con)]

My Lords, I support the amendment in the name of the noble Lord, Lord Alton, and I am grateful to him for tabling it.

I have put my name to this amendment because it would do two important things. First, it will give businesses more certainty and clarity when producing the slavery and human trafficking statements required of them. That clarity is vital in saving businesses time. Secondly, however, it would also provide consumers with the information they need to hold businesses to account. Without the clarity that the amendment would provide, I am concerned that stakeholders, investors and campaigners will not be able to play their part effectively in helping stamp out the abhorrent practices that exist in some of our supply chains.

The media have done an excellent job in highlighting just how far slavery and forced labour have penetrated the supply chains for many of the goods and services that we take for granted, from basic foodstuffs to electronic goods, clothing and fashion. But modern slavery exists across the globe, and whichever form it takes, business supply chains are involved in some way or another. Slavery in supply chains is closer than we often realise. A couple of weeks ago, the owner of a bed factory in West Yorkshire that supplied retail chains such as Next and John Lewis was charged with human trafficking and slavery offences.

Modern Slavery Bill

Baroness Kennedy of Cradley Excerpts

Monday 8th December 2014 Lords Chamber

[Baroness Hodgson of Abinger (Con)]

My Lords, we all recognise that the work and functions of the commissioner are of paramount importance to make the role effective. Because victims are often trafficked from other countries, I support the view that surely it is important that the commissioner is able to work and co-operate with people and bodies abroad, as suggested by the noble Baroness, Lady Cox, in her Amendment 67.

Amendment 68, tabled by the noble Lord, Lord Warner, talks about,

“engaging with international commissioners or equivalent persons”.

The sharing of best practice and the findings of similar bodies in other countries would be of mutual benefit in trying to stop this heinous practice. At Second Reading I spoke about the role of the commissioner in providing a central resource to gather data and information, to monitor trends, and the impact of policies and legislation. Working with people in other countries would greatly facilitate that work. Amendments 72 and 73, tabled by the noble Baroness, Lady Cox, would include the involvement of our embassies and high commissions. That would have the effect of ensuring that they are aware of what is going on in the countries they serve in and guarantee that modern slavery is on their radar.

Widening the remit of the annual report in Amendment 74 would mean that what is happening in the UK is set in a global context. That is because bringing trafficking and slavery to an end cannot be done by one country alone. We are thus going to have to work closely with other countries and we need to monitor and understand what is happening across the world so that abolition can really be tackled. I look forward to hearing from my noble friend the Minister about this.

One of the criticisms made of the Bill at Second Reading was that it is focused too much on targeting traffickers and not enough on helping victims. It is terribly important that victims who have suffered so much are supported in the best way possible, as has already been mentioned by the noble Lord, Lord Patel, and others. Victims of trafficking are surely special cases. By the fact that they are trafficked, these victims often have no home in this country and are in a foreign land, and perhaps they do not even speak the language. They probably have no money and only the clothes they stand up in. They need special support and assistance if we are to ensure that, having been freed, they have choices about how to move forward in their lives. If the anti-slavery commissioner is not focused on the support of victims, I believe that a strong and special mechanism must be put in place for that. I hope that my noble friend will give further consideration to this aspect so that we can ensure that those who have fallen victim to being enslaved have the best chance of putting their lives together again in the future.

[Baroness Kennedy of Cradley (Lab)]

My Lords, I rise to speak in support of Amendments 72, 73 and 74 in the name of the noble Baroness, Lady Cox. Her amendments rightly seek to ensure that the Bill has an international remit by providing that our diplomatic missions across the world have a duty to engage with foreign Governments and international NGOs on human trafficking and slavery, that the anti-slavery commissioner has a duty to receive those reports and learn from and act upon them, and that through the annual plan, Parliament can debate them. Having each embassy and high commission produce an annual report on government action to fight slavery and trafficking would mean that there will be more thorough research into slavery across the world. It will mean greater dialogue with a wide variety of world government officials, NGOs, journalists, academics and survivors. It will mean that the issue of slavery and trafficking will rise up the world’s political agenda.

Through these annual reports, the UK will be fulfilling an important global leadership role. Involving embassies and high commissions in preparing annual reports about trafficking and slavery in its areas of operation is not new. The US has been doing it for the past 14 years —since 2001 it has produced a Trafficking in Persons Report—and the UK should do the same. I ask the Minister why the UK cannot do the same. The more information we collate and share across the world, the better our national and international responses will be. Having official reports on an annual basis which set out the scale of the problem in each country, the forces that lead to the slavery, the conditions that need to change to fight the slavery and what works best to tackle the root causes of slavery, protect the victims and prevent it from happening in the first place, will lead to the global solutions we need to eradicate this global problem. There is much we can learn from around the world.

Although I welcome the notes in the Modern Slavery Strategy that modern slavery will be included in the country’s annual plan, those embassies target only a small number of countries. If we can increase embassy engagement throughout a wider group of countries we can learn much more. For example, a pilot project conducted in the Netherlands offers specialised assistance and shelter to male trafficking victims. There is also a partnership with the Government of Norway whereby caseworkers in the field are using mobile technologies in Uganda to collect information about the protection needs of young trafficked children. In Austria, youth public awareness campaigns about local trafficking are taking place through school exhibitions and the provision of resources for teachers.

In this way, the annual reports would play a key role in shaping the debate and have a positive contribution to our ongoing dialogue here in the UK. As well as being a valuable source of information, these reports would also prove very useful for NGOs and civil society. They would serve as an additional tool for advocacy and a benchmark for evaluation. They would allow NGOs and others to build stronger relationships with high-level policymakers across the world. The reports would also, I hope, allow us to hear more clearly the international voices of survivors. There is much that we can learn from survivors. They know better than anyone what Governments need to do to identify and protect those who are enslaved and to bring to justice those who are responsible.

Finally, one particular feature of the US Trafficking in Persons Report which I think we should replicate here is the annual recognition that it gives to individuals around the world who have devoted their lives to fighting human trafficking. This year, among others, they honour a former orphan from the Democratic Republic of the Congo who has spent his life providing support for vulnerable children; a leader of 75 front-line anti-trafficking workers in northern India; a director of a centre for victims in South Korea; and the first trafficked victim in Peru to face her traffickers in court. These are inspirational people working day in, day out to fight slavery and trafficking, deserving of international recognition but not wanting it. For them, having British embassies and, through them, the British Government take an active interest in their work, listen to their survivor stories and learn from their work, are recognition enough. We should give it to them. I therefore hope that the Government will support the amendment in the name of the noble Baroness, Lady Cox.

[Lord Hylton (CB)]

My Lords, I have listened to the debate on this group of amendments, and I agree very much with the noble Lord, Lord Deben, and with a number of previous speakers. I do not know to what extent the Foreign and Commonwealth Office was consulted during the drafting of the Bill, but even at this stage I think it should be consulted.

I am glad that Clause 51 is in the Bill, but it must inevitably bring in an international dimension—and who else will deal with that dimension if not the commissioner?

It would be most helpful if the Minister could say that he will take away all these amendments and come back with appropriate government ones on Report. If such government amendments could be published at least a few days in advance of Report, that also would be very beneficial.

--- Later in debate ---

[Baroness Garden of Frognal]

My Lords, in moving government Amendment 78, I wish to speak also to government Amendments 79 to 84 in this group. I thank noble Lords for tabling Amendments 80A, 82A, 83A and 84A, which are also in this group, and which all relate to the statutory defence for victims.

Since Second Reading, we have reflected on the specific circumstances of child victims who commit offences as a direct consequence of their slavery or trafficking situation, and that is why I am moving these government amendments. They remove the test of compulsion for children who commit an offence as a direct consequence of their trafficking or slavery situation.

Clause 45 establishes a statutory defence for slavery or trafficking victims where they have been compelled to commit an offence as a direct consequence of their slavery or trafficking situation. It is vital that genuine victims, trapped by their circumstances in a world of crime, can feel confident to come forward and give evidence without the fear of being inappropriately prosecuted or convicted. We currently have measures in place to meet this objective through the use of prosecutorial discretion by the CPS, backed up by bespoke guidance. Ultimately, the courts can stop an inappropriate prosecution of a victim as an abuse of process. The Director of Public Prosecutions issued revised guidance earlier this year to prosecutors, setting out clearly the policy on non-prosecution of victims.

However, the pre-legislative scrutiny committee heard significant evidence that victims, including child victims, were still being prosecuted for crimes committed while being trafficked or enslaved. The committee looked at the arguments carefully and on balance recommended the creation of a statutory defence as an added protection for victims. The pre-legislative scrutiny committee also recognised that there are risks involved in the radical step of a new defence. There is a need for appropriate safeguards to ensure that a new defence is effectively applied and is not open to abuse—for example by organised criminals, even if they have once been trafficked themselves. There is a delicate balance to be struck here and we want to get that balance right.

To be effective, the defence must work effectively for both adults and children who may commit an offence while in a slavery or trafficking situation. We have listened carefully to parliamentarians and NGOs which have raised the particular situation of children. To that end, government Amendments 78 to 84 remove the requirement for a child victim to prove that they were compelled to commit an offence. This will ensure that, regardless of whether a child felt compelled to commit an offence, they will be able to invoke the statutory defence when the offence was committed as a direct consequence of their trafficking or relevant exploitation. The other aspects of the test for the defence will remain, notably that a reasonable person of the same age and in the same situation as the child would have no realistic alternative but to commit the offence.

We all want this defence to apply when vulnerable, abused and exploited individuals are forced into criminality. I am confident that the defence as drafted will protect those people, while at the same time ensuring that criminals acting on their own volition cannot use a protection for the most vulnerable to get away with their crimes.

I look forward to listening to the debate as noble Lords move their amendments and will respond to those in due course. However, I hope that the House will support these government amendments, which improve protection for child victims. I beg to move.

[Baroness Kennedy of Cradley]

My Lords, I shall speak to Amendments 80A and 82A.

I very much welcome the Government including a non-prosecution defence in the Bill. It is right to target the real criminals who wallow in the wealth that they have made from exploiting the vulnerable. They have to be stopped from getting clean away. A non-prosecution defence for victims is critical to achieving this. Not only will it protect the human rights of adults and children and stop them being punished for the crimes of their traffickers and slave masters, it will ensure from the outset that victims are seen as witnesses to enable the successful prosecution of traffickers and slavers, so that the real criminals are brought to justice.

I also welcome the government amendments to remove the element of compulsion before the non-prosecution defence can apply for children. Where my position differs from that of the noble Baroness is that my Amendments 80A and 82A seek to remove the inclusion of a “reasonable person” test before the non-prosecution defence applies to adults and children. I shall explain as simply as I can why I think it is necessary to remove this “reasonable person” test for adults, and particularly why it has to be removed for children.

First, the addition of a reasonable person test is an extra hurdle for a non-prosecution defence that does not exist in international law. Article 8 sets just two tests for a non-prosecution defence to apply: that a person’s involvement in criminal activities needs to be compelled and a direct consequence of their being trafficked. Clause 45 therefore goes beyond what we need to do to bring the UK into compliance with our international obligations. To quote Parosha Chandran, an expert barrister in the field of human trafficking, its inclusion is “a potentially unlawful tier” that does not exist in Article 8 of the EU directive on human trafficking.

Secondly, the UK has many joint investigations with police forces in other countries. This is necessary because the organised criminal networks we all seek to prosecute operate transnationally. For example, a gang may force trafficked victims to steal from museums in London, Florence, and Paris, and threaten to harm their families if they do not do so. In this situation, Article 8 would be correctly and swiftly applied in France and Italy. Therefore, the victims would be free from the risk of prosecution and would be able to stand as credible witnesses in the criminal prosecutions of the organised criminal network which trafficked them. However, if the authorities in France and Italy asked for the assistance of the UK in approaching trafficked victims who committed robberies in London in order for them to give evidence against the network, the reasonable person test would mean that the UK could not give any guarantees in this regard. The UK would be forced to say that the trafficked victims would be acquitted only if the jury accepted that the conditions of the test were satisfied. Have the Government considered how the inclusion of this test may impact on our cross-border operations to ensure that traffickers are prosecuted?

Amendment 82A seeks to remove the reasonable person test for children. The particular vulnerabilities of children have been discussed many times in this House throughout our discussions on the Bill. Children specifically should not have to satisfy a reasonable person test before a non-prosecution defence applies for three reasons. First, the addition of a reasonable person test goes further than our own existing law for children. In the landmark case of R v L and others the Lord Chief Justice and his colleagues pronounced that only two questions must be addressed for the non-prosecution principle to apply to child victims: age and the criminal offence need to be,

“consequent on or integral to the exploitation”.

This is mirrored in the current CPS legal guidelines on human trafficking as regards children, where it states:

“When considering whether to prosecute a child victim of trafficking, prosecutors will only need to consider whether or not the offence is committed as a direct consequence of, or in the course of trafficking”.

This guidance does not put a third legal reasonable person test into the guidelines after that landmark case. The CPS guidelines repeat the two tests necessary for a non-prosecution defence to apply, namely age and if the offence is directly due to the trafficking. So if Clause 45 is passed unamended, it will go further than our existing law and our obligations under international law. Therefore, when the CPS guidance is rewritten following the passage of this Bill, it will end up being tougher than it is now. The reasonable person test keeps the compulsion test in, but in a different form of words. It will lead to more prosecutions being sought, not fewer.

--- Later in debate ---

Moved by

[Baroness Kennedy of Cradley]

83A: Clause 45, page 35, line 10, leave out subsections (7) and (8)

[Baroness Kennedy of Cradley]

In Schedule 3 there are very serious, violent crimes listed and it is understandable why they have been included. However, there are over 130 different offences to which the non-prosecution defence will not apply and along with the very serious—murder and rape—there are offences relating to immigration, criminal damage and theft. Schedule 3 has ramifications for victims, so the offences listed, and the existence of such a schedule, should not become law without a debate in this House. We should probe a little deeper and consider five issues with the Schedule.

First, does such a list help the trafficker? Evil minds work in evil ways. To a trafficker, Schedule 3 could be an escape strategy. It has been described, by Parosha Chandran, an award-winning human rights barrister, as a traffickers’ charter. It is a list of crimes that traffickers know the state will prosecute for—they just need to find victims to do them—and traffickers will make sure that victims know that the state will prosecute for those crimes. Will the Schedule therefore have the unintentional effect of dangerously exacerbating the vulnerabilities of those who are already enslaved or trafficked and lead them to become involved in more serious crimes?

Secondly, does such a list lead police and prosecutors to stop looking for the signs of slavery and trafficking for these offences? Despite clearly listing the offences most frequently committed by enslaved and trafficked adults and children, the guidance we already have has not been effective in stopping victims being prosecuted and convicted for these offences. There are a number of examples where no police investigation into the victim’s situation, as a trafficked or enslaved person, has taken place and the victim has been wrongly imprisoned. Even when crimes are flagged as frequent crimes of trafficked victims in the CPS guidance, there is still little or no investigation. So a list of crimes specifically for non-prosecution may never lead to an investigation into the trafficked or exploited situation of the victim. This means that, once again, the traffickers get clean away.

Thirdly, does such a list contain the right offences? As pointed out in the other place, the impact assessment of this Bill states that Schedule 3 is drawn from Schedule 15 to the Criminal Justice Act. However, immigration offences are in Schedule 3 but not in Schedule 15. As Michael Connarty MP rightly asked, how can we deny a trafficked victim the right to a statutory defence because they resist arrest? We know that children especially—and adults too—are suspicious of authority, because the traffickers have made them that way; they are scared and do not understand the language. Should this offence be included?

Fourthly, the crime that a victim is typically forced to commit today is not what they may be forced to commit tomorrow. Even though there is provision in the Bill for Schedule 3 to be reviewed, this takes time. In this time, victims are being criminalised by our system and the traffickers are making their escape.

Finally, the facts are established for each individual case, no matter what the crime. If a crime is committed, whether or not it is listed in Schedule 3, the police will investigate and the CPS will still consider whether the evidential threshold has been met, whether it is in the public interest to prosecute and whether the non-prosecution defence applies. If the police and CPS can satisfy themselves that they can secure a conviction by being able to prove their case beyond reasonable doubt, they will proceed to prosecute—whether the offence is listed on Schedule 3 is immaterial, as the child or adult will be prosecuted. If the offence is serious it would, inevitably, be in the public interest to prosecute. Why is the list of exceptions necessary? In Committee in the other place, Peter Carter QC, said:

“I think legislating by list of exceptions is a recipe for disaster and confusion”.—[Official Report, Commons, Modern Slavery Bill Committee, 21/7/14; col. 36.]

I agree. I beg to move.

[Baroness Hamwee]

My Lords, I support the points made by the noble Baroness, who has pointed to unintended consequences, among other matters. This is a list of the most serious offences and there has not been much consideration of offences which may very often be committed in the context of trafficking. The noble Baroness rightly referred to the violation of immigration law. We heard this afternoon of an instance of false information relating to travel documents. To my mind—I am completely unbiased of course—this sort of thing is entirely understandable.

Looking at the list, I was interested in the inclusion of Sections 1 and 2 of the Bill, when we know that some victims of trafficking and slavery are forced into positions where they act on behalf of their own slave-masters in carrying out some of the acts which are comprised in those offences. But that is no different in substance from the concerns that the noble Baroness has raised about other matters. I share that concern. I do not think that by including the list we are doing anything other than creating difficulties for ourselves in applying the non-prosecution provision.

--- Later in debate ---

[Baroness Garden of Frognal]

My Lords, I think, perhaps, that we will need to discuss this further before Report, because, as I said, this list was drawn up in consultation with the DPP and the CPS. I presume there was a reason for putting those particular items there; it is subject to review and the discretion of the people concerned.

[Baroness Kennedy of Cradley]

I thank the noble Baroness for her reply and the way in which she has responded. I hope she will reflect on the points made by many noble Lords. We would welcome the opportunity for further discussion on this point. If the CPS has discretion—as it always does in all cases—on the threshold of evidence brought to it by the police, I do not see why a schedule of this detail is necessary. Though it is open to amendment, the time it would take for a statutory instrument to go through this House would be time spent by a victim in the criminal justice system; the trafficker would get clean away. The most serious might still need to be included on a list, but the unintended consequence that may arise by us producing something of such length and detail is that we end up with a traffickers’ charter—a recipe for disaster, as described by a barrister and QC. Obviously, I will withdraw the amendment today, but I welcome the further discussion that the noble Baroness has offered before Report. I beg leave to withdraw the amendment.

Amendment 83A withdrawn.

Modern Slavery Bill

Baroness Kennedy of Cradley Excerpts

Monday 1st December 2014 Lords Chamber

[Baroness Kennedy of Cradley (Lab)]

My Lords, I speak in support of Amendment 9 in the name of the noble Baroness, Lady Doocey. After sitting next to her for months in the work of the joint scrutiny committee, I feel that I can now describe her as my noble friend. Today I speak not only for myself but on behalf of my noble friend Lord Warner, who is unable to be in his place. I also support Amendments 24 and 26 in the name of my noble friend Lord Rosser.

Children who are victims of exploitation and trafficking need to be uppermost in our minds as we discuss the detail of the Bill. There is nothing more heartbreaking than seeing children—babies even—being abused for profit and personal gain: denied a childhood, denied an education and stripped of their life chances. Where better to start putting children at the heart of the Bill than Part 1, where we set out what we as a society find unacceptable?

As the noble Baroness, Lady Doocey, said, we should take the opportunity afforded to us by the Bill to give children the greatest protection we can and amend Part 1 to create a specific offence of child exploitation and a specific offence of child trafficking. This would make it explicit that this country will not tolerate such child abuse: that we have a national agenda to drive child exploitation off our streets and child trafficking out of our communities and country.

The amendments make clear and unequivocal our intent to prosecute those who traffic and exploit children. The noble and learned Lord, Lord Judge, said, when he gave evidence to the joint scrutiny committee:

“I think domestic legislation should say, ‘We mean this. It is defined as that’”.

I took this to mean that if we want our criminal justice system to drive up prosecution rates and convictions for child exploitation and trafficking, we need clarity of language. I believe that the amendments seek to give us that clarity. They are simple and direct and say exactly what we want to happen. If you exploit or traffic a child, you will be prosecuted.

The open-ended nature of Amendments 9 and 26 is also important. The evil ingenuity of the criminals who exploit children is truly shocking. As well as the prolific sexual exploitation we hear of, we have more babies being bought and sold; more children used to smuggle, produce and distribute drugs; and more child benefit fraud and street begging—to the extent where one child can make a gang around £100,000 a year.

The nature and types of exploitation that children are subjected to are continually evolving. We have recently seen increases in children being trafficked for the forced extraction of their blood and hair for rituals taking place here in the UK. Any definition of offences that we agree has to be as future-proof as possible so that, no matter how evil the mind of the criminal, the legislation will apply and protect.

Amendment 9 also makes it clear that, even if the exploiter has a lawful authority over the child, it is irrelevant. This is particularly important as children are sometimes exploited by their family members, and by members of their own community. The child may not even realise that they are being exploited. Some children may feel that their begging, for example, is contributing to the family finances and therefore are happy to do it and see it as part of their normal daily life. Making it clear that exploitation of a child is unacceptable, no matter who is asking them to do something, is absolutely essential.

Setting out a specific offence of child exploitation and child trafficking also makes it clear that an exploitative situation involving a child is distinct from one involving an adult, because a child can never consent to their own exploitation. Therefore, the evidential threshold for charging a person with child exploitation is lower, and proof should be easier as consent and compulsion need not be proved. Amendments that lead to a greater understanding of this lower evidential threshold among everyone involved in our criminal justice system, from judge to jury, will lead to more successful prosecutions.

Some have said that separate offences may complicate or confuse, but I have confidence that the professionals working in our criminal justice system will be able to cope with particular offences against children as well as the general offences. I think that separate offences would lead to less confusion, not more, and should not be either specific or general; they can and should be both. A specific child exploitation offence would also increase the focus on the non-sexual forms of child exploitation and help ensure that all forms of child exploitation are prosecuted. It will also raise awareness of non-sexual forms of child exploitation across the criminal justice system.

Child trafficking is on the rise and child exploitation is on the rise. The nature of both is constantly evolving. Specific offences in these areas are necessary. They will drive up prosecutions and help the system always see children as victims whom we need to protect. I hope that the noble Lord, Lord Bates, will reflect on the debate and the serious points made here today. If he is unable to agree anything regarding the amendments today, I hope that he will facilitate more discussion between now and Report for us to further discuss the points raised in the amendments.

[Lord Patel (CB)]

My Lords, I rise briefly to support the amendment of the noble Baroness, Lady Doocey, to which I have put my name. The reason why I strongly support it has been given by some of the noble Lords who have already spoken. We have evidence that the current levels of prosecution for trafficking children are woefully low. In fact, they are negligible. The Minister might correct me by giving me the exact number of prosecutions.

We also know that children face many different kinds of abuse and exploitation at the hands of traffickers, and that they represent a quarter of all known victims of modern slavery. The government amendment to Clause 2 is limited to consent to travel, which is not part of the international definition of trafficking. It is the exploitation itself to which the child cannot consent, not the level of travel. I am concerned that this will serve only to create further confusion over what ought to be a simple definition of child trafficking.

The noble Baroness, Lady Doocey, referred to the evidence in the Rotherham cases, among others, and demonstrated practitioners’ continued confusion over the consent of child victims of exploitation and society’s failure to prosecute those who abuse children. A child exploitation offence would contain a simple definition of child exploitation that includes the range of exploitation that children face. Some of it has already been mentioned by the noble Baroness, Lady Kennedy. A separate offence of child exploitation would help to bring abuses to prosecution and conviction. Therefore, I support the amendment. However, I intend to listen to the other arguments, particularly those of the noble and learned Baroness, Lady Butler-Sloss, who is about to speak, who may have a different opinion.

--- Later in debate ---

[Lord Bates]

My Lords, I thank my noble friends Lady Doocey and Lord James of Blackheath, and the noble Lord, Lord Rosser, for moving and speaking to their respective amendments. In this group of amendments, I will spend most of my time addressing the arguments made by my noble friend Lady Doocey, with which we are very familiar. I do not mean that in a sense that is in any way derogatory. I realise how passionately she feels about this, and she has been consistent from the period of pre-legislative scrutiny, when she served as a distinguished member of the committee on the draft Bill, which did so much good work. The noble Baroness consistently argued for this specific offence. I hope she might accept in return that, if there were a convincing case and the Government felt that there was a gap that needed to be filled, and given our track record of making changes in this area, we would move to support this without hesitation. At the moment, we are waiting for the evidence that this is the case.

I want to deal with some of the points that have been made and the case studies that have been given today. The offences provided for in the Bill have been changed three times already, especially those regarding children, who are particularly vulnerable in the circumstances of modern slavery, as was said by the right reverend Prelate the Bishop of Derby. We made changes after the Bill was published, following pre-legislative scrutiny. We made changes in Committee in another place after debate there, and today I moved amendments in the previous group to highlight this.

Our debate on this important issue effectively centres on whether this specific offence is needed, or whether it is already covered. There is then a second set of arguments about whether, given some of the practicalities surrounding securing a conviction in this area, we might end up in the perverse situation—which none of us wants—where it is more difficult to secure a conviction than would be the case using the general provisions in the Modern Slavery Bill or in other legislation.

It is important to remember that we have not just one but a number of relevant pieces of legislation for tackling this sort of child exploitation, as was alluded to by the noble Baroness, Lady Howarth. We have the Sexual Offences Act 2003, relating to sexual exploitation, and we have the Asylum and Immigration (Treatment of Claimants, etc.) Act 2004. We have Section 71 of the Coroners and Justice Act 2009, which was referred to by the noble Lord, Lord Rosser. Perhaps I may consider that particular Act, because we looked at it following our discussions in the interregnum between consideration of the Bill on Second Reading and the start of Committee stage. As to whether the slavery offence in Section 71 has been used, the Crown Prosecution Service has given us the example of a woman who was sentenced to seven years’ imprisonment for attempting to sell her baby for £35,000. She was convicted of conspiracy to commit child cruelty and of holding another person in slavery under Section 71 of the Coroners and Justice Act 2009. An agent who acted as a broker was sentenced to nine years’ imprisonment for the same offences, so this legislation is being used.

I return to a point that I make no apologies for repeating time and again: this is not a finished document. To use a phrase that was first used in another context by my noble friend Baroness Hamwee, we are lifting the stone to find the full scale of the horrors that lie beneath. We then need to try to work together to see how we can begin to tackle it. The noble Lord, Lord Patel, made the point that the number of prosecutions is woefully low. We absolutely agree: the number of prosecutions is woefully low compared to the number of victims we know or suspect to be out there.

That is why we are trying to come forward with measures that make this easier for children. We want to give them protection and advocates, and ensure that they have special circumstances. If they come forward in court, there are statutory defences. There are ways in which they can present their evidence in court, either by Skype or behind a screen, and there are ways in which their identity can be protected. We are all looking to find these ways. We are working with the Crown Prosecution Service and the Director of Public Prosecutions and finding out what they need to do the job that we are asking of them: to increase the number of prosecutions so that there are fewer victims of these cases.

I turn to a few of the examples that were raised. I want to underscore the simple argument that I made at the outset. My noble friend Lady Doocey asked about children who are exploited or forced to beg, and this point was also raised by the noble Baroness, Lady Kennedy. The amount of money that can be secured through this is extraordinary. One can see why that crime, heinous though it is, is being committed in such an evil way by organised criminals. If a child is used for begging, this could constitute child cruelty contrary to Section 1 of the Children and Young Persons Act 1933. This offence is committed when a person with responsibility for a child aged under 16 wilfully ill treats or neglects them, and it is punishable by up to 10 years’ imprisonment.

Another example that was given was the exploitation offence of a child being used for benefit fraud. If a child was trafficked for benefit fraud, that benefit fraud would be a relevant exploitation and this would constitute an offence under the Bill. It could form part of a slavery and servitude provision, to which we have already referred. If trafficking was not involved, someone who used a child to obtain benefits would be found guilty of an offence under the Fraud Act 2006 and would be liable to a maximum penalty of 10 years’ imprisonment.

Herein lies another point of which we are conscious, as the Director of Public Prosecutions and the Crown Prosecution Service certainly are too. This is that because we are now increasing the maximum sentence from 14 years to life imprisonment, there is clearly a variation between the types of appalling treatment of children we are seeing. We need to consider whether trying to prosecute somebody who has exploited a child for benefit fraud under that type of clause would lead to the conviction that we all want. I am not arguing that this is happening, but the Crown Prosecution Service tells us that it could potentially happen. My noble friend Lady Doocey mentioned children being brought into the UK from so-called baby farms, which is another heinous activity. However, this practice would involve illegal adoption, which is prohibited under the Adoption and Children Act 2002.

We have said all the way through this that there are many offences, and many avenues that are available for prosecutors to pursue. However, we all acknowledge that, at present, prosecutions are not happening to the level that we want to see. To return to the point made by several noble Lords, that is why we need to increase awareness of the problems that are happening. We are seeing that happen through television advertisements and, not least, through the publicity that has been given to the proceedings in your Lordships’ House. It is also happening through the excellent work of NGOs and charity groups outside your Lordships’ House. These groups are drawing attention to the fact that this crime actually happens here, which was the title of the Centre for Social Justice report that started people thinking about this term of “modern slavery”.

The argument is not that the law is deficient in remedies or provisions that can lead to prosecution but that we need to encourage the police and responsible authorities to bring such prosecutions. Page 13 of the report on the national referral mechanism highlighted where the referrals came from. I was shocked to see that the proportion of cases coming from local authorities, which are often the first to come into contact or suspect that there might be an issue, was very low—at 9%. Non-governmental organisations, the work of many of which has been referred to, were responsible for referring 21% of cases, with the police referring 25% of cases. An Independent Anti-Slavery Commissioner who would carry weight and gravitas and understand the issue, and who could make sure that all authorities were fully aware of their responsibility and of the warning signs to look for in child exploitation, would seem to me the right track to head down.

I am not saying that we are at this point ruling out a new offence in perpetuity or even in the very short term. We have said that we will go back to the Crown Prosecution Service, the DPP and the National Crime Agency, which is taking an increasing lead in this area, and say, “Listen, what is your experience? Does this need to be tightened? Does it need to be strengthened? Can you bring forward the prosecutions?”. We will try to get that review undertaken before Report, so that, should my noble friend wish to come to your Lordships’ House at that point, we might have more information available.

The new clause proposed by my noble friend Lord James in his Amendment 29 seeks to address behaviour related to the movement of children where there is no parental or guardian consent for doing so. I recognise that there are a number of scenarios where a child could be removed and placed in residence away from their parent or guardian without their consent, and not always with the apparently beneficial effect that my noble friend referred to in his father’s case. The Bill focuses on the high-harm crime of human trafficking, where a person is moved with a view to exploiting them. In cases where a child has been moved without the consent of parents or guardian, but where there was no intent to exploit the child, the individual who has moved the child may be charged with illegal adoption, immigration offences or kidnapping, depending on the facts of the case.

We want to keep these matters very much under review. We have questions based on the availability of evidence and still have some time between now and Report to review that. We will continue to be open to that and will look forward to looking at it again at that point. In the mean time, I ask my noble friend to consider withdrawing her amendment at this stage.

[Baroness Kennedy of Cradley]

My Lords, before the Minister sits down, perhaps I may seek clarification on one point. One of the reasons for introducing the Modern Slavery Bill was a desire to have in one place all the offences that relate to slavery and servitude. In his response to the gaps identified by the noble Baroness, Lady Doocey, he referred to other Acts—which are therefore not in the same place. If the objective of the Bill was to get clarity and to put all the legislation in one place, is that not a strong argument for the review and for separate offences? From the Minister’s answer, it sounded like the gaps identified are not covered by the Bill.

Modern Slavery Bill

Baroness Kennedy of Cradley Excerpts

Monday 17th November 2014 Lords Chamber

[Baroness Kennedy of Cradley (Lab)]

My Lords, I was very pleased to be appointed to the Joint Committee on this Bill. I care passionately about this issue, so the opportunity to play a part in shaping the legislation was extremely welcome.

Tragically, as others have said, slavery is all around us. It is hidden in our communities, yet is taking place openly on our streets, in our farms and in our factories. Daily we hear stories of more adults and children being denied their freedom by another in pursuit of profit and personal gain. As many have said, modern-day slavery is an evil trade and that is why there is strong support on all sides of the House for this Bill. It is a much needed piece of legislation that will rightly get the support of many in this House

There is, however, strong support for this Bill to go further in some areas, to make this the world-leading legislation that everyone wants to see. Given the time today, I will focus on four items. There are two areas that I want to see developed further. These are ensuring that this Bill gives the best protection it can to children, and the best support to businesses in their supply chains in the fight against slavery. The other two areas that I think need to be included are clauses to develop the Gangmasters Licensing Authority, and a change in the Immigration Rules for migrant domestic workers.

First, we must give children the best protection we can. From home and abroad, children are exploited in Britain by criminals every day. The Refugee Children’s Consortium has made it very clear to us all what it thinks needs to be made clearer in the Bill to protect children, and I hope that the Government will listen carefully to the arguments it puts forward. I want to focus on one of the specific areas it has highlighted: that the Bill should include a statutory principle of non-prosecution for children. Of the main children’s issues covered in the Bill, a strengthened non-prosecution principle for children who are detained and prosecuted for crimes they are forced to commit has received the least attention. Despite CPS guidance on the non-prosecution of trafficking victims, children are still being punished for offences that are a direct result of their slavery and exploitation. It cannot be right to prosecute a child who has been forced to commit a crime by their slave master. Enslaved children are victims of abuse: they need guardians, support and protection from repeat exploitation. Clause 45 sets out three elements to that defence. One of them is that a person needs to prove they were compelled to act. As UNICEF has stated, this clause is not in line with international law, which states that trafficked children do not have to prove they were compelled to commit a crime. These are the most vulnerable children. They invariably have little or no English, they are scared, have no family to protect them and are completely reliant on their trafficker. The burden of proof should not rest with the child.

The second area which needs further development is the very welcome new Clause 51 on transparency in supply chains. As other noble Lords have said, publishing the Bill without such a clause was a glaring omission and I am delighted to see it included now. We need businesses to help in the fight against slavery. Multinational organisations have the power to make a real difference to the working lives of millions and improve the working conditions of those enslaved by exploitative suppliers. They have the power to shorten their supply chains and to reform their business models so they are less reliant on outsourcing and suppliers who need to subcontract. They have the power to support good suppliers, encourage trade unions, and insist on proper inspection regimes. Fighting slavery and forced labour at home and across the world cannot happen without businesses playing their part. It is not their fight alone: the Government, the voluntary sector and, most importantly, the consumer—through the purchasing choices they make—have the real power to help eradicate slavery. Thanks to this clause, consumers will now have the information to make more informed choices about where they shop.

However, despite this clause being a huge step forward, there are five areas that need further consideration. First, it is essential that the Bill specifies a set of minimum criteria for disclosure in the organisation’s annual slavery and human trafficking statement. This is vital because we need this supply chain clause to act as a catalyst for change, creating public pressure and competition between businesses so more are encouraged to act. The minimum criteria in any organisation’s statement include the need to conduct risk assessments by product, industry and geography; the need to set out who has identified the risks; what action has been taken to mitigate the risks; and what has been the impact of those actions. Without these criteria, comparisons between companies will be impossible to make, the level playing field desired by good businesses will be difficult to achieve, and the Government will not get the transparency or the world-leading legislation they say they want.

Secondly, the statement needs to be a corporate—and therefore a CEO— responsibility. In his evidence to the Joint Committee, Andrew Forrest, founder of the Walk Free Foundation and chairman of Fortescue Metals Group, which has a supply chain of 3,000 suppliers, summed up perfectly why leadership from the top of the company is necessary. He said:

“The only reason that we found slavery in our supply chain was that it was mandated to be searched for by the chairman … without that leadership from the top, it just would not have happened”.

Thirdly, the Government also need to take leadership from the top and set out actions that allow for the monitoring, enforcement and review of this new clause. There should be a central government portal where all the annual statements are aggregated online, along with a commentary on or analysis of them, especially highlighting who is not complying with the new legislation. Will national and local government be expected to take responsibility for auditing their own procurement practices and supply chains?

Fourthly, the size of the business that will have to comply with this clause will be set out in regulations after a consultation. Given the importance of this issue, will the Government set out the timescale for this consultation and when we will see the proposed regulations?

I also want to discuss support for business in this clause. We all recognise that it will take a few years for businesses to successfully map, audit and evaluate every tier of their supply chains. As we discuss this legislation, it is important that the Government set out how they intend to help business to comply with this clause.

When considering how the Government can help businesses fight slavery we also have to look at the Gangmasters Licensing Authority—the GLA. I completely agree with my noble friend Lord Tunnicliffe that its work is vital in the UK’s fight against modern slavery. It can also play an increased role in supporting businesses in their efforts to eradicate slavery. Since 2006, it has done a great job in raising standards, controlling exploitation and driving out poor performance in the sectors for which it is currently responsible.

Ten years ago when the GLA was set up, limiting its sector focus made sense but now it makes little sense. Many high-risk sectors fall outside remit of the GLA—hospitality, construction, clothing, cleaning and social care. The Bill cannot ignore the exploitation faced by workers who fall outside its remit. There is huge support for a review of the GLA with a view to extending its role and remit, and I urge the Government to look again at this.

The Bill needs to be amended to reverse the 2012 changes to the Immigration Rules for migrant domestic workers—changes which prohibit this vulnerable group of workers from leaving their employers, effectively putting them in an enslaved situation. No matter how they are treated, they have no right to leave. They have no right to withdraw their labour without being rendered illegal.

We are all aware that migrant domestic workers are vulnerable enough without the added burden of being unable to escape their employers. Research by Kalayaan has shown that migrant domestic workers tied to their employers are more likely to be victims of trafficking, more likely to have their passports withheld and twice as likely to report having being physically abused as those who were not tied to their employers.

Amending the Bill to go back to the pre-2012 visa arrangements introduced by Labour in 1998, which allowed migrant domestic workers the right to change employers, is the right thing to do. That has been recommended by both the Joint Committee on the draft Modern Slavery Bill and the Joint Committee on Human Rights. It is incongruous to seek to pass world-leading anti-slavery legislation on the one hand and on the other continue with an immigration rule that allows a vulnerable group of workers to be effectively enslaved by their employers. I urge the Government to look again at the domestic worker visa and the increased risks faced by these workers who are unable to escape.

With this Bill we have the chance to be bold and brave. It is an opportunity to walk in the footsteps of Wilberforce and make him proud. There is much to be welcomed in the Bill. There is strong support, but there are areas for further development and I look forward to debating the issues in the House as we move forward on this legislation.

Slavery

Baroness Kennedy of Cradley Excerpts

Thursday 30th October 2014 Lords Chamber

Asked by

[Baroness Kennedy of Cradley]

To ask Her Majesty’s Government what steps they are taking to combat slavery in supply chains nationally and internationally.

[Baroness Kennedy of Cradley (Lab)]

Slavery is hidden here in our communities and exists in every country in the world. It is a growing part of our national and international economy. Walk Free’s global slavery index estimates that there were 29.8 million people enslaved worldwide with 4,500 people in modern slavery in the UK. Thanks to campaigners, NGOs, businesses, trade unions and journalists, the issue of slavery and supply chains is once again under the spotlight—and rightly so. Together they have uncovered some of the worst examples of slavery in supply chains.

Over the years, cheaper transport and communication costs have dramatically changed the way consumer goods are produced. Multinational corporations now have production plants around the world, allowing them to take advantage of cheaper labour and local markets. They outsource more and more stages of their production to different suppliers in different countries, which in turn employ subcontractors to manage demand and beat the competition. In this way, supply chains get very long and very complex. One multinational business can be interconnected to thousands of workplaces and millions of workers. The sad fact is that these complex supply chains can allow slavery to thrive.

Research commissioned by the Chartered Institute of Purchasing and Supply showed that more than one in 10 business leaders admitted that it is likely that modern slavery is playing a role in their supply chains. Research by Verité found that forced labour affected one in three workers in the production of electronic goods in Malaysia. Malaysia is a major global manufacturing hub for the electronics industry, supplying the world’s most recognisable brands. This means that nearly every device that we buy has a root in Malaysia and therefore a root in slavery—roots that the ILO estimates lead to worldwide profits of $150 billion every year.

Allowing a person’s human rights to be abused in the pursuit of profit should never happen. As multinational businesses enjoy the profits afforded to them from increased global production, so too must they accept responsibility for the working conditions of their global workforce. This has to be the deal. Consumers expect it to be the deal. Through this deal, multinational corporations have the power to make a real difference to the working lives of millions. They have the power to reform their business models so that they are less reliant on outsourcing and suppliers who subcontract. Many businesses now shorten their supply chains and build partnerships with suppliers they trust.

We know, thanks to the exposé by the Guardian into the Thai fishing industry, how dark things can be for workers at the bottom of a supply chain—involving kidnap, torture, and execution—and all to provide fish feed for the prawns on our supermarket shelves. Multinational corporations have the power stop this and improve the working conditions of those enslaved by exploitative suppliers. They have the power to insist on inspection regimes and can support local efforts to empower workers through collective bargaining and trade unions.

The horror stories that we hear are truly shocking: workers getting little or no wages; passports seized so that there is no escape; locked in flea-infested shelters, seven to a room; scared into compliance by beatings and vicious dogs; and then squashed into vans to spend days travelling from farm to farm. This is not a horror story from a far-flung country on the other side of the world, but the story of slavery from Kent. Thirty migrant workers held in debt bondage here in the UK—working on a farm supplying eggs to our supermarkets and fast-food restaurants.

Sadly, examples like this are not isolated incidents. Recent figures from the Salvation Army reported that, over the past year, victims of labour exploitation have overtaken the victims of sexual exploitation for the first time. Multinational corporations have the power to insist on decent wages and formal contracts for all workers here in the UK and across the world.

Of course, the exploitation of workers producing goods for major brands is not new. Since the 1990s, charities, the media and trade unions have been shouting loudly about the abuse suffered by workers. In response, many businesses have adopted voluntary codes and developed programmes to help deliver decent working conditions in their supply chains. Many have been members of the Ethical Trading Initiative since it began in 1998. When giving evidence to the pre-legislative scrutiny committee, of which I was a member, the British Retail Consortium said:

“Companies don’t want this in their supply chains. .... and retailers have been working really hard to try and root it out”.

Good businesses want to do the right thing. They understand that an enhanced reputation for fair working practices can attract investment and consumers. These voluntary initiatives are welcome and have had success. But they are not enough. Good businesses want the Government to legislate on supply chain transparency to level the playing field. Legislation would make sure that the good companies are not undercut by the bad.

Since I tabled this debate, the Government have made a welcome announcement. They have changed their mind and decided to table an amendment on transparency in supply chains to the Modern Slavery Bill. Publishing the Bill without such a clause was a glaring omission, so this is a major step forward. As I said earlier, we need businesses to help in the fight against slavery.

Looking at the detail of the amendment published yesterday, I think that there are five areas that need further consideration. First, it is essential that minimum measures of disclosure are specified in the Bill. This is vital, because we need this clause to act as a catalyst for change, creating public pressure and competition between businesses so more are encouraged to act. Minimum measures that should be included are: the need to conduct risk assessments by product, industry and geography; the need to set out who has been involved in identifying the risks; the need to set out what actions have been taken to mitigate the risks; and the need to set out what has been the impact of those actions.

Without minimum measures in the Bill, comparisons between companies will be impossible for consumers to make. The level playing field desired by good businesses will be difficult to achieve, and the Government will not get the transparency or the world-leading legislation that they say they want. The statutory guidance would then underpin these minimum requirements. Can the Government say why they have chosen to take a minimalist approach to the detail in the amendment?

Secondly, many agree that the eradication of slavery in supply chains needs to be a corporate, and therefore a CEO, responsibility. The scrutiny committee also heard from Andrew Forrest, founder of the Walk Free Foundation and chairman of the Fortescue Metals Group. Throughout his company he has established a zero-tolerance attitude towards slavery in his supply chain of 3,000 suppliers. He said:

“The only reason that we found slavery in our supply chains was that it was mandated to be searched for by the chairman. … without that leadership from the top, it just would not have happened”.

Can the Government say why this critical level of accountability has not been included in the amendment?

Thirdly, the size of the business that will have to comply with the amendment is subject to a consultation. Can the Government say more about that? When will it start, how long will it last and who will it involve? Will it be completed in time to fully debate the threshold as the Bill passes through this House? Will national and local government be expected to take responsibility for auditing their own procurement practices and supply chains?

Fourthly, can the Government say how they expect this legislation to be monitored and enforced? Once the duty to disclose is agreed, businesses will expect scrutiny of their reports. Again, to level the playing field among businesses, should the Secretary of State or the new Anti-Slavery Commissioner not produce their own objective annual analysis?

Finally, on support for businesses, we all recognise that it will take a few years for businesses to successfully map, audit and evaluate every tier of their supply chain. Can the Government say how they intend to help businesses comply with this new clause? For example, the demand for quality training for those working in procurement and auditing will increase. Businesses should, and will want to, work together to collect and share information about the suppliers they use. As suggested by Anti-Slavery International, corporations and suppliers should form genuine partnerships so that slavery is not pushed deeper underground.

When considering how the Government can help businesses to fight slavery, you have to look at the Gangmasters Licensing Authority, the GLA. Many welcome the great job done by the GLA. In the sectors for which it is responsible, it has been effective at raising standards and driving out poor performance. Given the context in which the GLA was established 10 years ago, limiting the sectors made sense, but 10 years later the limit on the GLA’s remit makes little sense. High-risk sectors—construction, cleaning, care, clothing, catering and hospitality—all fall outside the remit of the GLA.

There is a huge level of support for a full GLA review to extend its role and remit, and also to look at the fines and civil sanctions available to it. Do the Government agree that the GLA needs such a review? Will the Government look at ways to help the GLA develop alternative sources of funding? With new supply chain legislation, there must be scope for the possibility of a partnership between business and the GLA in terms of additional training, advice, and briefing.

In closing, I thank all noble Lords who have put their name down to speak in this debate today, in particular my noble friend Lord Rosser for speaking on behalf of the Opposition and, of course, the noble Lord, Lord Bates, for responding on behalf of the Government. We need businesses to help us eradicate slavery. By working together, business by business, supplier by supplier, country by country, we can drive slavery out of our future.