Great British Energy Bill

Lord Alton of Liverpool Excerpts

Report stage
Tuesday 11th February 2025 Lords Chamber

Moved by

[Lord Alton of Liverpool]

18: Clause 4, page 3, line 5, at end insert—
“(6) Financial assistance under this section must not be provided if there exists credible evidence of modern slavery in the energy supply chain of any company designated Great British Energy.”

[Lord Alton of Liverpool (CB)]

My Lords, I thank all who have supported this amendment, both in Committee and tonight. It is an all-party amendment, so I particularly thank the noble Baroness, Lady Kennedy of The Shaws, the noble Lords, Lord Offord of Garvel and Lord Teverson, and the other signatories in Committee, including the right reverend Prelate the Bishop of St Albans and the noble Lord, Lord Blencathra, whom I see in his place. I am also grateful to the Inter-Parliamentary Alliance on China and its chief executive, Luke de Pulford, for its briefing note. I am always grateful to the Minister for the meetings we have had outside of the Chamber; I know that he cares as deeply about this issue, as I do. Whether or not there is a meeting of minds on the amendment this evening, I pay tribute to him for the work that he has done on this.

The Joint Committee on Human Rights is currently conducting a full-scale inquiry into supply chain transparency and modern slavery. We have heard powerful evidence from Rahima Mahmut of the World Uyghur Congress, which I commend to the House. I also urge noble Lords to look at the links not just to Xinjiang and the appalling treatment of Uighur Muslims there but to other parts of the supply chain that would be caught by this amendment. That would include, for instance, children who are sent down mines in the Democratic Republic of the Congo. There are 25,000 of them, and we know that many are linked to Chinese-owned companies. Those children are forced labour too, and this amendment seeks to address that.

The amendment is also informed by the July 2023 report of the Joint Committee on Intelligence and Security, which warned against increased and deepening UK dependence on the CCP regime, and it urged greater national resilience. It said that China had penetrated “every sector” of the UK’s economy, underlined by three decades of trade deficits with China, which currently stand at £32 billion. The amendment goes right to the heart of this dependency—which the noble Lord, Lord Blencathra, has regularly raised—exposing a fundamental incompatibility between a rules-based liberal democracy that respects human rights and one that does not. It builds on our obligations under the Human Rights Act 1998, the Modern Slavery Act 2015, the Proceeds of Crime Act 2002 and the 1948 convention on the crime of genocide, along with prohibitions from Victorian legislation, the Foreign Prison-Made Goods Act 1897, which I have mentioned to the Minister before. The amendment is modelled on, and consistent with, earlier all-party amendments, passed by substantial majorities in your Lordships’ House, to the Procurement Act 2023, the Health and Care Act 2022 and the Telecommunications (Security) Act 2021, as well as the genocide amendment to the Trade Act 2021.

--- Later in debate ---

[Lord Hunt of Kings Heath (Lab)]

My Lords, I am grateful to all noble Lords who spoke in this important debate, and particularly, of course, the noble Lord, Lord Alton. He and I have worked together on a number of these issues, particularly in relation to enforced organ donation in Xinjiang province, and I have always been tremendously grateful for the advice and support he has given.

On this debate in general, I agree with the noble Earl, Lord Russell, that behind it lies more fundamental changes that we need to see, including his point about the development, where we can, of a UK supply chain. He said that he is going to support the noble Lord, Lord Alton; I understand and accept that.

Let me say at once that the Government wholeheartedly agree on the importance of confronting human rights abuses, including modern slavery, in energy supply chains, and we are committed to tackling the issue. I am glad that the meeting with Jürgen Maier was helpful; he is providing some strong leadership in this area. I have had also had discussions with the noble Lord, Lord Alton, between Committee and Report, but we have not quite found a way through as yet.

My understanding is that Great British Energy will already have a range of tools in place to support its efforts to identify and tackle human rights abuses in its supply chain. Indeed, as a state-owned company, it will be expected not only to abide by but to be a first-in-class example of adherence to the UK’s existing legislation and guidance. We support voluntary due diligence approaches taken by UK businesses to respect human rights across their operations and supplier relationships, in line with the UN’s Guiding Principles on Business and Human Rights and the OECD guidelines for multinational enterprises.

The noble Lord, Lord Offord, referred to legislation passed by his Government, which I readily acknowledge. Under Section 54 of the Modern Slavery Act 2015, Great British Energy will be required to prepare a slavery and human trafficking statement for the financial year, in relation to its turnover of £36 million or more, outlining the steps it has taken in the financial year to ensure that slavery and human trafficking is not taking place in any of its supply chains nor any part of its business. Once the Procurement Act 2023 comes into force—on which the noble Lord, Lord Alton, and I shared a common endeavour—it can reject bids and terminate contracts with suppliers which are known to use forced labour themselves or anywhere in their supply chain.

We will also use the modern slavery assessment tool known as MSAT to assess the supply base for modern slavery risks. With these tools, I am assured and am confident that Great British Energy will not ignore credible evidence of modern slavery and human rights abuses. I believe that its exemplary adherence to this legislation, which the Government rightfully expect, will not only ensure that the company is doing all in its power to combat modern slavery but also pull up the standards expected of the UK’s wider energy industry under the existing legislative landscape. I think the chair of GBE has reinforced that point.

It is our belief that any action that has to be taken must not only be robust but—to take the point of the noble Earl, Lord Russell—take a whole-of-government and society approach. We expect UK businesses, including GBE, to do everything in their power to remove any instances of forced labour from their supply chain. Our guidance and international principles encourage business to remediate or mitigate when instances are uncovered, such as industry collaboration or improved internal purchasing practices. Amendments 18 and 19 would not allow GBE the opportunity for mediation; they would only penalise it.

There is a practical question around how these amendments might work in practice and what their impacts on GBE and its operations would be. They do not define what is meant by “credible evidence”, and this could be left open to interpretation. I am not trying to be pedantic here because, clearly, the noble Lord, Lord Alton, suggested in his opening remarks that he wanted to give the Commons the opportunity to debate this matter. I agree that we should not be too pedantic about the wording of the amendment, but I wanted to mention that as one of the practical consequences of enacting the amendments as they are currently drafted.

Combating human rights abuses, such as modern slavery, across the whole energy industry is a much more effective way to make progress than applying measures on a company-by-company basis, as these amendments would do. We recognise that the landscape has changed since the Modern Slavery Act was introduced; that is why we are committed to improving our response to modern slavery and will set out next steps more broadly in due course.

I should inform the House that we are partnering with an expert institution to provide detailed and relevant information on what modern slavery statements should cover, including practical advice for businesses to go beyond compliance with their legal requirements and actively identify and remedy instances of modern slavery in their supply chains. GBE will follow that, of course.

The noble Lord, Lord Alton, expressed some scepticism about the Solar Taskforce. Having been relaunched by my department, it will focus on identifying and taking forward the actions needed to develop resilient, sustainable and innovative supply chains that are free from forced labour. The aim is to support the significant increases needed in the deployment of solar panels to meet our ambition of seeing a large increase by 2030.

More widely, the Government are taking action to ensure that our clean energy supply chains are resilient as a key priority in the transition to net zero, in both de-risking the delivery of our carbon budgets and maximising the economic benefits from the transition. This will involve domestic action, such as investment in manufacturing, and international action, such as removing trade barriers and collaborating with our allies.

With respect to the speech from the noble Lord, Lord Alton, I know that the House wants to see action from the Government. I can assure noble Lords that my department is working collaboratively across Whitehall on this important issue, including with the Department for Business and Trade and the Home Office, to assess and monitor the effectiveness of the UK’s existing measures, alongside the impacts of new policy tools that are emerging to tackle forced labour in global supply chains, including in the energy sector. We are not ignoring the points made by the noble Lord. We take this seriously and, as I said, we are strongly looking at this across Whitehall at the moment.

I turn to the amendment in the name of the noble Baroness, Lady Bennett, to which she spoke so eloquently. Let me be clear: the UK’s existing sustainability criteria put limits on the greenhouse gas emissions of the supply chain and already include environmental protections. Where biomass is sourced from forests, the land criteria include requirements around sustainable harvesting and maintaining productivity. This ensures that forests are managed well and in a sustainable manner, as carbon dioxide emissions released during combustion are absorbed continuously by new forest growth. The statement that we made on Monday in relation to biomass reflects how the Government are moving. They might not be moving as fast as the noble Baroness wants, but we are, I think, moving in the direction that she wishes to see.

I remind the noble Baroness, Lady Bennett, that, as a public body, Great British Energy already has a duty to conserve and enhance biodiversity. The noble Earl, Lord Russell, was right to remind me of my own Amendment 38, which we will come on to at some point this evening. I do not want to repeat what I am going to say later, but it is a very important amendment and I hope it will provide considerable reassurance to the House.

[Lord Alton of Liverpool (CB)]

My Lords, I am grateful to the Minister. I have taken my own remarks at something of a gallop this evening, but this has been a very worthwhile debate. It was good to hear from the noble Baroness, Lady Bennett, the noble Earl, Lord Russell, and the noble Lords, Lord Wigley, Lord Teverson and Lord Offord. The fact that there was so much agreement across the House about the scourge of modern-day slavery and the failure, 10 years later, of the 2015 legislation to deal with this problem effectively demonstrates the truth of what has been—

[Lord Hunt of Kings Heath (Lab)]

My Lords, in my remarks, I accepted that life has moved on since 2015. The Government know that we need to look at this further, which is why we are working across Whitehall at the moment. I wanted to assure the noble Lord that we do not ignore the fact that we need to move on from the 2015 legislation.

[Lord Alton of Liverpool (CB)]

I accept that it is not the Minister who is at fault here. However, whether there is the same enthusiasm elsewhere across government is something that we can all speculate on. He will remember that, in Committee, I drew to his attention the report on 26 December 2024 in the Financial Times linking 14 companies to events in Xinjiang involving $1.4 billion of exposure.

[Lord Hunt of Kings Heath (Lab)]

I am sorry to challenge again the noble Lord but, seeing my noble friend Lord Collins on the Bench, I assure the noble Lord that I speak for the Government in saying that we are very concerned about this. We are not at all being complacent.

[Lord Alton of Liverpool (CB)]

I know that the Minister and his noble friend Lord Collins are concerned. The issues are not a problem here, but, as I suggested earlier, they may be elsewhere within government. Maybe we have to concentrate people’s minds, as the Minister and I have done previously on other legislation. He referred to the Procurement Act, when we were successful, together with other noble Lords, in concentrating the mind of the Government at that time. That is all I am seeking to do this evening.

The Minister referred to our duties. The Modern Slavery Act and its Section 54 are 10 years old. The author of that legislation was the noble Baroness, Lady May, then Home Secretary and who became Prime Minister. It was, at the time—everybody said it—landmark legislation. She recognises that the voluntary nature of Section 54, which is a tick-box exercise, does not do the job, but no one has brought forward changes to that. That is why the Joint Committee on Human Rights is currently conducting an inquiry into modern-day slavery and supply chain transparency.

The Minister will know that, on previous occasions, Ministers have said from that Dispatch Box that it cannot be done in this or that Bill at this time and that there will be other legislation and that will be the time to do it. It never is the right time. There never is the right legislation. The issue ultimately is whether we entrench dependency on a country run by a regime like that of the CCP or whether we have resilience in the United Kingdom and create supply chains between democracies that have similar values; otherwise, British taxpayers’ money, to the tune of billions of pounds, is going to pour into the coffers of a regime that is inimitably opposed to the values that we espouse. For all those reasons, I would like to test the opinion of the House.