Modern Slavery (Transparency in Supply Chains) Bill [HL]

Debate between Lord Cormack and Lord Smith of Hindhead

Friday 8th July 2016 Lords Chamber

[Lord Smith of Hindhead (Con)]

My Lords, in today’s debate I shall make one point and ask three questions. I trust that noble Lords will forgive me if I repeat any points that have been made or if I make a point that is to be made by other noble Lords who will speak after me.

In 2014, the Home Office estimated that the number of potential victims of modern slavery in the UK alone was in the region of 13,000 individuals. I think we can all agree that the prospect of 13,000 individuals not having a life but effectively having some form of existence is a truly horrific thought. Because of the hidden nature of this appalling trade in human misery, this figure is almost certainly an underestimate. I know that all noble Lords would instinctively wish to support the legislation which brought about the Modern Slavery Act 2015—and, as such, I recognise and respect the efforts made by the noble Baroness, Lady Young of Hornsey, in introducing an important opportunity to consider the extension and clarification of the Act under her Bill, which would increase supply chain transparency by extending Part 6 of the Act to include public bodies. Public bodies—those organisations which receive taxpayers’ money—already have so many obligations which we almost take for granted, such as the public sector equality duty under the Equality Act 2010, that the Bill appears in most respects to be a simple and natural progression of an established practice.

Your Lordships will be aware that the equality duty ensures that all public bodies play their part in making society fairer by tackling discrimination and providing equality of opportunity for all. The equality duty has three aims. It requires public bodies to: have due regard to the need to eliminate unlawful discrimination, advance equality of opportunity and foster good relations between people. As a nation, we are conscious of discrimination and equality. Furthermore, we are concerned about the protection of the vulnerable, the poor and those in need. Surely people unfortunate enough to be trapped in modern slavery encompass all three of those descriptions. What taxpayer in the UK would feel comfortable knowing that any part of their hard-earned money was finding its way into the pockets of people who exploit others? Most of the comments so far today have touched on the commercial area of the Act, which is already covered, whereas the Bill before us is specifically about extending the obligation to public bodies.

I am therefore pleased to note that under Clause 1(3) and (4) public bodies which are “governed by public law”—in other words, a “contracting authority” or a “central government authority” under the Public Contracts Regulations 2015—must include a slavery and human trafficking statement in their annual report and accounts. I hope that I have interpreted the meaning of this proposal correctly, which is that public bodies cannot make use of Section 54(4)(b) of the Modern Slavery Act 2015 and simply issue a statement that they have “taken no … steps” to ensure that slavery has not occurred in their supply chain.

I see that Section 54(4)(b) can still apply to qualifying commercial organisations, but should the clause extend it to public bodies? Will my noble and learned friend the Minister touch on this point in his summing up? In addition, and on a similar theme, is he able to shed any light on the number of qualifying companies and organisations which are already subject to the Modern Slavery Act 2015 and which have not completed their slavery and human trafficking statement? Thirdly and finally, what is the number of such qualifying companies and organisations that have used Section 54(4)(b) to declare that they have not taken steps to investigate their supply chain in this way?

[Lord Cormack]

Before my noble friend Lord Smith sits down, I profoundly apologise to him for getting my Smiths confused and not realising that he was to speak in this debate.