Immigration Bill

Lord Alton of Liverpool Excerpts

Monday 18th January 2016 Lords Chamber

[Lord Alton of Liverpool (CB)]

My Lords, earlier today a number of noble Lords referred to their misgivings about the changes being made to the Gangmasters Licensing Authority. During the passage of the modern-day slavery and human trafficking legislation, I moved amendments on the GLA and queried its ability to meet its obligations because of the resources made available to it—a point referred to earlier by my noble and learned friend and by other Members of your Lordships’ House during our earlier debates. During the passage of that legislation, I moved amendments to enable the GLA to utilise assets from the proceeds of the crimes that it had investigated. In doing so, I reminded the House of the events which led to the genesis of the GLA, notably the 23 Chinese men and women who drowned in Morecambe bay after their Liverpool gangmasters took them to undertake cockle picking. At the time, a local fisherman, Harold Benson, described the tragedy as not only awful beyond words but absolutely avoidable.

In December 2014, during the passage of the legislation on modern-day slavery, I told the House that the lessons of Morecambe bay had not been fully learned. I described a similar incident in the Ribble estuary in which 17 cockle pickers of eastern European origin had been snatched to safety. In those debates, I cited the small number of personnel employed by the GLA, the cut, which I referred to earlier, of around 17% in the GLA’s budget between 2011 and 2014, the small number of convictions—just seven—and the research by the University of Durham calling for the mandate of the GLA to be extended. Instead of seeing an expansion of the GLA’s remit in order to prevent labour exploitation, there are genuine fears that the Government’s amendments that we are considering represent a severe threat to the GLA, with changes to its role, remit and name resulting in a greatly weakened licensing labour inspection regime. If this comes to pass, it would inevitably allow new labour abuses, such as those I have just described, to abound.

The main issue revolves around the creation of what has been described as flexible licensing standards without a requirement for affirmative procedures. Government Amendment 77 to omit the requirement for the GLA to make rules by statutory instrument in effect means that the GLA has power to amend licensing standards and must—this is changed from “may” in the original GLA Act—seek approval of the Secretary of State, but not Parliament. The Secretary of State still retains the power she always has had under Section 6(2) of the Gangmasters (Licensing) Act to remove by negative procedure certain circumstances in which labour providers do not require a licence.

In summary, these amendments, taken with existing powers, mean that the Secretary of State could greatly reduce by negative procedure the number of labour providers licensed in a GLA sector, as suggested by the recent consultation response, and could greatly reduce the licence standards to be applied to those who are licensed with no requirement for any statutory instrument. This appears to be what the Government mean when they talk about flexible licensing, which was put forward in the consultation and supported by just 19%—less than one in five—of the respondents.

The Delegated Powers and Regulatory Reform Committee published a report on the new government amendments only last Friday and found that these new powers to change rules without parliamentary approval are inappropriate and therefore should be removed from the Bill. Focus on Labour Exploitation states that,

“the GLA is a first line of defence against the labour abuses that develop into severe exploitation and modern slavery. We are extremely concerned that a new ‘flexible’ licensing regime as proposed in these amendments will leave the GLA powerless to prevent widespread abuses and therefore exploitation and instead caught up in police style investigations that absorb a huge amount of time and resources”.

In our debate on the Modern Slavery Act, the noble Baroness, Lady Garden of Frognal, answering for the Government said:

“We need to consider this carefully and ensure that in seeking to broaden the GLA’s remit, we do not undermine the good work that is being done already”.—[Official Report, 10/12/14; col. 1879.]

I entirely concur with that sentiment. We must be very careful indeed not to do precisely that.

The noble Baroness also said:

“The GLA is working with the University of Derby to devise training and to develop an anti-slavery training academy for use by supply chain businesses. This will build on the GLA’s excellent existing collaboration with business in its regulated sectors. The GLA is well placed to tackle the serious worker exploitation that lies between the more technical compliance offences that fall to be investigated by HMRC and the serious and organised crimes that are addressed by the National Crime Agency”.—[Official Report, 10/12/14; cols. 1880-81.]

Presuming that this is the aim of today’s amendments, what are the resource implications? This point was made earlier by my noble and learned friend and other Members of your Lordships’ House. Without the necessary resources, how on earth will this agency be able to do these things? Clearly the Government envisage an expanded role. This will include police-style investigations and powers for offences across the labour market. Alongside this is the proposal to have a more flexible approach to licensing.

The Minister needs to be clear about whether the aim of the amendments published on the very day that the consultation concluded—which hardly demonstrates that there was a long period of reflection—is to remove strict compliance obligations from those businesses which have been compliant hitherto or whether it is to give the GLA more teeth. I wonder what the Minister makes of the minimal support which the flexibility proposal received from the respondents—just 19% out of a total of, I think, 93 respondents to the consultation, who came from academia, charities, trades unions and industry.

Existing GLA licence standards are crafted to give strong protection against exploitation. That includes issues such as working hours, pay, accommodation and safe transport. Clearly, flexible licensing should not mean a reduction in licensing. This must not become a sort of trade-off between licensing as a means of raising labour standards and preventing exploitation and a more flexible approach that could divert time and resources to tackling extreme cases instead. That in turn would create a climate in which rogue gangmasters could flourish and undermine the excellent intentions of the legislation we passed on human trafficking and exploitation of people as modern-day slaves.

Furthermore, the amendment removes a requirement for the GLA to make rules by negative procedure—a point made by the noble Lord, Lord Kennedy, when we were dealing with the earlier amendments. In effect this will mean that the GLA would have the power to amend licensing standards and must seek the approval only of the Secretary of State and not of this House or the other place. The Secretary of State still retains, and always has had, the power to remove certain categories of labour providers requiring a licence by negative procedure. These amendments mean that the licence standards to be applied to labour providers in a given sector could be significantly reduced or expanded without parliamentary scrutiny. Unless Parliament is engaged in the shaping of licence standards, changes could be made without a clear evidential basis and without proper and full consultation with all stakeholders with expertise in labour sector licensing requirements. GLA licensing rules should not be changed without detailed impact assessments, including worker consultation, which might assure Parliament that any changes would not negatively impact upon the vulnerable workers whom they are designed to protect.

In conclusion, when the modern-day anti-slavery legislation was enacted, it had the benefit of pre-legislative scrutiny and of the forensic examination by both Houses. That is not the case with what is before us today. We would be wrong to treat this avalanche of amendments lightly or to be pushed pell-mell into approving them in haste.

[Lord Lea of Crondall (Lab)]

I, too, want more clarity on the same issue that we have been discussing for the past half hour or so. I refer to the new Schedule, on page 32 of the Marshalled List. Why is some of this necessary? At the bottom of that page, the proposed new subsection states:

“The body known as the Gangmasters Licensing Authority is to continue to exist”—

that is very nice—

“and is to be known as the Gangmasters and Labour Abuse Authority”.

Given that the word “Licensing” is disappearing, does that arise in respect of the present functions of the Gangmasters Licensing Authority simply because those are being subsumed in the wider exercise that is mentioned at the bottom of the page, where it says,

“the Authority and its officers must carry out those functions in accordance with the strategy”,

which is the wider strategy? The more I think about it, the more I cannot quite believe that this will do anything other than restrict some of the present functions of the Gangmasters Licensing Authority. Therefore, at the foot of page 32 instead of just saying “continue to exist”, which, as I say, is very nice—a pat on the head, so jolly good—why could we not say “and its functions continue to exist”? Could the Minister clarify why that is not the case?