Oral Answers to Questions

Alison Thewliss Excerpts

Monday 6th February 2023 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

[Alison Thewliss (Glasgow Central) (SNP)]

Home Office accommodation provider Mears has made significant profits providing substandard facilities for asylum seekers. Community InfoSource in Glasgow has found that Mears’ practices are retraumatising and causing unnecessary stress and suffering. Mears is now back to using hotels such as the Muthu in Erskine, which the Park Inn incident in Glasgow proved to be entirely unsuitable for vulnerable people. Why are the UK Government encouraging rapacious companies to profit from misery, rather than investing in community-based alternatives and more effective decision making?

[Robert Jenrick]

If the hon. Lady has specific allegations, will she please bring them to me and I will be happy to investigate them?

The answer to this issue, in Scotland as across the country, is for local authorities to step up and make more accommodation available. As I have said many times at the Dispatch Box, including to the hon. Lady, the Scottish Government are taking fewer asylum seekers and refugees than any other comparable part of the United Kingdom. The SNP’s record on this issue is frankly shameful. It was, after all, the Scottish Government whose failed Ukrainian scheme meant that they had to house Ukrainian refugees in cruise ships.

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[Mr Speaker]

I call the Scottish National party spokesperson.

[Alison Thewliss (Glasgow Central) (SNP)]

Delays even when decisions have been made are all too common. To give an example, a constituent had his appeal allowed but is still waiting for the tribunal’s decision to be implemented nine months later. He cannot get on with his life. In a written answer to me, the Minister for Immigration was unable to provide my constituent with a timescale, or to establish the longest time that people have been waiting, or even how many appeals are still in Home Office limbo. Can he tell me what is the longest time that people like my constituent will have to wait, or is Home Office bureaucracy now completely out of his control?

[Robert Jenrick]

The hon. Lady does not want us to tackle this issue because she believes in open borders. We want to take action to ensure that this country is not somewhere where economic migrants and asylum shoppers seek to come. That means suffusing deterrents throughout the system. She should support plans such as Rwanda and our efforts to bear down on illegal migrants. We will bear down on the backlog of cases. As I said in answer to an earlier question, we will clear it over the course of this year. We are ensuing that productivity rises every week.

Economic Crime and Corporate Transparency Bill

Alison Thewliss Excerpts

Report stage
Wednesday 25th January 2023 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

[Alison Thewliss (Glasgow Central) (SNP)]

It is a pleasure to follow the expertise of the right hon. and learned Member for South Swindon (Sir Robert Buckland), who outlined in great detail the significance and importance of the new clauses. Yet again, the House has the opportunity to get it right, and to get it right now, today, rather than at some point or when parliamentary time allows or after consultation or in due course. Why not do it today?

I have heard no arguments from Ministers in Committee, on Second Reading or here this afternoon to excuse why it cannot be done today, now, with the new clauses that have been so diligently and expertly proposed by right hon. and hon. Members. As I said yesterday, these are cross-party new clauses. They are the most widely supported new clauses I have seen, and there is no reason why the Government cannot accept not only the proposals from this side of the House but the diligent work of their own Back Benchers on the new clauses. It makes absolute sense.

I support the Government amendments before us, both the correcting ones and those that allow Scottish Ministers and their responsibilities to be added to the Bill. It is good that they have been brought forward now, although I am slightly wary that that happened at such a late stage and that the problem had been missed. Regardless, I am happy to see them today. I also support the amendments on information sharing between agencies, which make sense.

I am, however, concerned that the Government will not accept the “failure to prevent” amendment. As I said in Committee, when the hon. Member for Thirsk and Malton (Kevin Hollinrake) was a Back Bencher he was very supportive of the “failure to prevent” provisions, right up until 13 October 2022, when he said:

“Of all the measures we have talked about today, this would have the biggest effect in terms of cutting down on economic crime, because lots of our financial organisations are complicit when it suits their interests to be so.”—[Official Report, 13 October 2022; Vol. 720, c. 310.]

There is nothing in the Bill that would change that situation, but the new clause would. As I pointed out in Committee, now he is not just the hon. Member for Thirsk and Malton but the Under-Secretary of State for Business, Energy and Industrial Strategy. He has argued for a “failure to prevent” economic crime offence not just on 13 October last year, but on 7 July 2022, on 1, 22 and 28 February 2022, on 2 December 2021, on 9 November 2021, on 22 September 2021, on 18 May 2021, on 9 November 2020, on 25 February 2020, on 19 July 2019, on 23 April 2019, on 18 December 2018 and on 9 October 2018. Given that the hon. Gentleman has spent his parliamentary career arguing for this, it beggars belief that now he is a Minister with the power to implement it, he is not actually doing so.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

These are very important points. Given their importance, should the Minister not put down his phone and listen to what my hon. Friend is saying?

[Alison Thewliss]

One Minister is on his phone and the other—the hon. Member for Thirsk and Malton—is sitting at the back of the Chamber having a gab. This is not ideal, but perhaps the Minister has already heard what I have to say and does not want to hear it again.

“O, wad some Power the giftie gie us

To see oursels as others see us!”

[Tom Tugendhat]

It is not the first time I have heard this speech.

[Alison Thewliss]

It is not, and it certainly will not be the last. It could be if the Minister accepted the amendments, but he is not going to do that, and he will keep hearing this speech until he does: that is the truth of the matter.

As other Members have said, there is a precedent for a “failure to prevent” measure. It is in the Health and Safety at Work etc. Act 1974 and the Bribery Act 2010, so the concept already exists, and there is no reason why it cannot be applied today. Even if the Government are saying, “We want to extend it to other areas”, that should not limit us today, when the Bill gives us the opportunity.

I also support new clauses 4, 5 and 6. The right hon. and learned Member for South Swindon made an important point about what senior managers have to do, which is also relevant to the Online Safety Bill. I rather like the definition of an offence committed with

“the consent, connivance or neglect of a senior manager.”

All those things contribute to economic crime. This is, if you will, a sin of omission, and we should take the opportunity to tighten up these loopholes. It is one thing to know about something that is happening, it is another thing to look the other way, and it is another thing not to do your job properly and allow that something to happen. This would cover all those eventualities.

New clause 7, in the name of the hon. Member for Cheadle (Mary Robinson) deals with whistleblowing. It is an excellent new clause which would enhance the Bill and offer protection to the very people who flag up these economic crimes. Whenever I think about whistleblowing, I remember a little cartoon that I saw many years ago showing a man sitting at a computer terminal in an office with a sign above his head saying, “Congratulations Frank, whistleblower of the month.” I understand that the cartoonist was Bill Proud. Every time I think about that, I think about the lack of protection offered to whistleblowers, and how much more the Government could be doing to ensure that those who do speak up are protected.

The organisation Protect says that it has offered advice on whistleblowing to 2,500 people a year, and that of those who have contacted it about their experiences, 65% have suffered some kind of detriment as a result of their whistleblowing. There is no incentive for many people to speak out when they see something wrong. They feel that they will lose their job or their promotion and will have to work somewhere else, and also that this might follow them around if they are seeking references for a new job. There is a real problem here, and the Government could, if they wished, deal with it in the Bill: it would make sense for them to do so.

I also support the cost cap suggested in new clause 21. Bill Browder spoke about this issue very powerfully during the Public Bill Committee evidence sessions. The balance is completely skewed to the side of the criminals and away from the Government, and away from the prosecutors and the agencies who want to take on these crimes but simply cannot afford to do so. Bill Browder said:

“What I have learned is that the law enforcement agencies effectively refuse to open criminal cases unless they are 100% sure that they can win without any tough fight on the other side.”––[Official Report, Economic Crime and Corporate Transparency Public Bill Committee, 25 October 2022; c. 65.]

And what we have learned, even just this week, is that the other side can afford anything that allows them to support their case. Indeed, that was made clear in the exchanges on the urgent question on the Wagner Group earlier today. The other side are very well set up financially: they can afford the very best lawyers, while the prosecutors sit there with nothing in their armoury to take on these oligarchs and kleptocrats. That is not acceptable, and a cost cap such as the one suggested in new clause 21 would go some way to addressing it.

Bill Browder has also talked powerfully about the Magnitsky case. He produced a load of evidence about money that been stolen and laundered, being put through various accounts. He had traced all the money, some of which had ended up in the United Kingdom. When he presented the case to prosecutors, to the National Crime Agency and to various other agencies, they all refused to take it on. A crime has been committed, and we know who committed it and where the money ended up, but prosecutors here do nothing about it because it would cost them money that they might never see again. As a result, crimes go unprosecuted in the United Kingdom. It is unacceptable that, by failing to take on new clause 21 and other such measures that would cap costs, the Government are allowing this to continue.

I would support further measures on sanctions. Further to the urgent question, monitoring of sanctions and their effectiveness needs to be a lot tighter. Any sensible sanctions scheme would not have waivers for warlords.

I very much support the new clauses on the proceeds of crime and compensation for victims, for the people of Ukraine and indeed for the people of Iran, as has been suggested by the hon. Member for Oxford West and Abingdon (Layla Moran). Those measures are important. There are schemes such as the financial services compensation scheme, but in many cases that does not fully compensate, or compensate at all, those victims of economic crime. Appropriate compensation should be given, given the real and devastating effect that financial crime can have on our constituents. People who feel that they have been duped will carry that around for a long time, so compensation is important, and there is real need for finance both to fight the war in Ukraine and to rebuild that country thereafter.

--- Later in debate ---

[Alison Thewliss]

The hon. Lady is making some excellent points about the golden visas. Does she find the lack of curiosity from the Government about these golden visa holders and what they have been up to as remarkable as I do, when compared with some of the difficulties that our constituents have in asking for something as simple as a visitor visa to have their granny come over and visit from Iran?

[Layla Moran]

I thank the hon. Lady for her point, which is well made. The thing is that the Government were curious, and they did this review, which is sitting there. That is clear—the one thing that the written statement confirmed was that a review had been done and recommendations had come from it, but all we got was a summary of the recommendations. What I take from that is that they were curious and they found out, but now they do not want to tell us. What on earth happened? It is not a good look.

To move on from golden visas, we desperately need to see more action in a number of other areas to ensure that we properly tackle economic crime, particularly by kleptocrats. It is right that we focus on Russians, but it is worth saying that the Bill will apply to many other flavours of kleptocrats and bad people. As other hon. Members have said, this could be our last chance for many years to get this right, so we should consider how else it might apply. Last year, for example, Hong Kong Watch highlighted concerns about the dirty money that Hong Kong officials had gained through corruption and that has now been spent by the families of officials in the UK, including on property. I raised those concerns at the time and I will continue to press Ministers on them.

I tabled new clause 30, about Iran, to show how important it is to focus not on a single country, but anywhere there are human rights abuses. Anoosheh Ashoori made the point that

“there are a large number of children and relatives of the regime that, like the Russian oligarchs, like living the high life here and have assets here.”

Why are we not pursuing them? The new clause asks the Government to use existing legislation to do an audit and report back to Parliament. We should apply the Bill to as many places as it can be effective.

All that takes resourcing—a familiar refrain in the House—which is addressed by new clause 31. Frankly, resourcing is a lacuna in this Bill and its predecessor. I was encouraged by the number of amendments on establishing an economic crime fighting fund, which shows that it is clearly the shared will of hon. Members on both sides of the House that we put the resourcing and money behind this legislation to ensure that it is done properly. The Liberal Democrats wholeheartedly share that commitment. I say to the Minister that that money would not be frittered away; it would be an investment, because if we fund the agencies properly, they will start to bring the money back in. We know the exorbitant amount that we think we are losing to economic crime, so any investment in getting some of that money back would surely be good.

In conclusion, I urge Ministers to take note of the willingness of hon. Members on both sides of the House to act, and to take heart from it. There is much more to be done. I hope that the Bill is the next chapter, but not the last, in the House’s fight against economic crime in this country. I sincerely hope that Ministers will continue to work with us in our common aim of bringing about transparency and light to tackle this once and for all, so that we are never again left in this embarrassing position.

--- Later in debate ---

[Alison Thewliss]

I thank everybody who has contributed to the Bill. It has been a cross-party and worthwhile effort, and everybody who has been part of it has felt that. I hope the Government do their bit and take that cross-party effort in the spirit in which we meant it. We want to improve the Bill and for it to do everything it can do right now, rather than waiting for some distant point in the future when we come back and say, “We’ve still got these problems and this Bill, which could have addressed them, has not.” We have been there before. We had the Sanctions and Anti-Money Laundering Bill, and other Bills while I have been in this House could have addressed or fixed these problems, yet we are here again today still not fixing all the problems. Who knows when parliamentary time will allow us to pass this way again.

I thank the experts who have given so much evidence to us individually and as parliamentarians in Committee and other places. In particular I thank Helena Wood of the Royal United Services Institute, Duncan Hames of Transparency International, Bill Browder, Oliver Bullough and Graham Barrow, the expert on Companies House. He has had his own health issues but has continued to campaign on Companies House. We wish him well and a speedy recovery, and all the best with his treatment.

I also thank my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands). He came on board with this Bill and was very supportive and helpful throughout its passage, raising the issue of phoenixing, which is of concern to many of our constituents. I encourage the Government to look at how they can fix phoenixing, and ensure that our constituents and companies based in our constituencies do not fall victim to companies that seek to abuse the system in such a way. I give great thanks to the right hon. Member for Barking (Dame Margaret Hodge) who has been such a tremendous champion for all these issues over a long period. Her expertise, her contribution, and the way that she convenes people within this place has been incredibly important for this agenda, and I cannot thank her enough for that work.

I thank the Clerks and the Bill team for all they have done to help support us throughout the passage of the Bill. Putting together all the amendments is not easy, and under pressures of time they have been incredibly helpful in putting them together for us. I also thank Mhairi Love in my own office, and Sarah Callaghan in the SNP research office. Again, they have been incredibly helpful in putting together research on all these areas, and putting up with me when I go down a big rabbit hole of all the things about economic crime that live in my head most of the time. They have been very helpful indeed over the course of things.

I want to make an announcement, Mr Deputy Speaker, before everybody departs—[Interruption.] I am not going to the Government Benches; the Minister is welcome over here any time. I am not sure that his constituents would expect him to be an SNP Member, but any time he feels the need that is fine. As it is Burns Night, there is haggis in the canteen, and I encourage everybody to partake and get their honest, sonsie faces over to the canteen before it goes. I am looking forward to mine. Not related in any way to the Bill, the Ayrshire Fiddlers—not that kind of fiddlers—are in Strangers Bar, and Members should go and see them because they are very good indeed. Crucially for this Bill they are playing the fiddle and they are not on the fiddle, so please go and give them your support.

I finish with some lines from our national bard:

“O, wad some power the giftie gie us

To see oursels as others see us!

It wad frae monie a blunder free us,

An’ foolish notion.”

I ask Ministers to reflect on how others will see the Bill and make amendments to it in the other place to make it befitting of the commitment that we all have to seeing economic crime removed.

[Mr Deputy Speaker (Mr Nigel Evans)]

Happy Burns Night, everyone.

Question put and agreed to.

Bill accordingly read the Third time and passed.

Unaccompanied Asylum-seeking Children

Alison Thewliss Excerpts

Tuesday 24th January 2023 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

[Alison Thewliss (Glasgow Central) (SNP)]

It is completely unacceptable that vulnerable young people who need care and support continue to vanish under the Home Office’s watch. The Children’s Commissioner for England made her concerns clear on the safeguarding of these young people. Has the Minister met the Children’s Commissioner for England? Has he considered an equivalent to the Scottish Guardianship Service, which provides personalised and sustained support to unaccompanied refugee children? Would that be a useful model to keep young people safe?

Sussex police say 76 children are unaccounted for in this case. The Minister said that 440 children had gone missing and that 200 remained unaccounted for across the UK. Is he certain of those figures, and will he provide regular updates to the House on the number of children missing and still unaccounted for? Will he end the practice of putting children in hotels, a practice that many stakeholders and whistleblowers have repeatedly flagged as dangerous and putting children at risk?

[Robert Jenrick]

I want to end the practice of putting children in hotels, but the key to that is stopping people crossing the channel in the first place. If we continue to have tens of thousands of people, including very significant numbers of minors, crossing the channel every year, I am afraid that there is no choice but to accommodate people for a short period of time in hotels before they can flow into better accommodation within local authorities.

The hon. Lady and others across the House should appreciate that this is a national emergency. It is part of a global migration crisis, and we need to take the most robust action we can to deter people from making the journey, or I am afraid that we will find this problem magnified in the years to come. That is why we have taken the steps that we have in the recent past; that is why the Prime Minister set out his plan at the end of last year; and that is why we will shortly be bringing forward legislation, which I hope the hon. Lady and her colleagues will support.

I will certainly look into the Scottish guardianship model that the hon. Lady raises, but as I have said many times, it remains true that as a proportion of its population Scotland takes far fewer unaccompanied asylum-seeking children than England. One practical step that she could take would be to encourage the SNP Government and local authorities in Scotland to play a fuller part in ensuring that these young people are given the care and attention they deserve.

Police Conduct and David Carrick

Alison Thewliss Excerpts

Tuesday 17th January 2023 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

[Alison Thewliss (Glasgow Central) (SNP)]

I thank the Home Secretary for her statement and I put on record the SNP’s tribute to the victims in this case for their bravery in the face of ongoing trauma.

The charges that have been brought against David Carrick are incredibly disturbing—49 charges, including 24 counts of rape against 12 women over two decades, with accounts of domestic violence and coercive control. Through that, the Met has sought to protect its own, which is also incredibly disturbing and has led the former Victims’ Commissioner Dame Vera Baird to question the commitment to culture change at Scotland Yard.

It has been reported that the Met is checking back through 1,633 cases of alleged sexual offences involving 1,071 officers in the past decade. What retrospective action does the Home Secretary expect from that review? It should be a worry to all of us that those officers are still out there in their jobs, and that we may face what David Carrick reportedly told women when he flashed his warrant card: “I’m a police officer, you’re safe with me”—a chilling prospect. How does she intend to ensure that the review is thoroughly carried out? What updates can the House expect?

Lady Elish Angiolini has worked with Police Scotland to improve standards on this, and work is ongoing in Scotland too. How can women and people with vulnerabilities have the confidence that, if something happens to them while they are in London, the Met will respond in a proper way that respects their dignity?

[Suella Braverman]

The hon. Lady asks a series of good questions. To give more detail about the Met Commissioner’s commitments to strengthen the procedures, there is already a strengthening of the vetting of officers; an active review of historical cases is ongoing, where there may be a flag on the system for domestic incidents; and a data washing process is ongoing to ensure that the Met’s data is being very extensively checked against rigorously managed national databases. That is all being led by a new anti-corruption and abuse command unit, which is instilling an institutionally higher standard of managing and overseeing the important issue of vetting.

Windrush Lessons Learned Review: Implementation of Recommendations

Alison Thewliss Excerpts

Tuesday 10th January 2023 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

[Alison Thewliss (Glasgow Central) (SNP)]

Whitehall sources have been quoted in The Guardian as saying:

“The Williams review is not set in stone”.

It would be a betrayal of that review and of those affected if there is to be no migrants commissioner, no reconciliation events and no extra powers for the independent chief inspector of borders and immigration. The Windrush compensation scheme has been painfully slow, with at least 23 people known to have died while their claims were being processed. So will the Minister confirm that none of the planned changes will affect the already ineffective compensation scheme and that the claims still outstanding will be concluded at the earliest opportunity? What confidence can those who do us the honour of coming to these islands for sanctuary, for work, for study and for love have in this Government when the UK Tory Government ignore the terrible injustices of Windrush, fail to learn the lessons and double down on attacking their fellow human beings?

[Miss Dines]

The hon. Lady should not believe everything she reads in the paper because there is no end date to Wendy Williams’ appointment, she continues to review and the Government take her views very seriously. I do not accept the premise of the “delay”. These issues are dealt with sensitively. It is important not to have a knee-jerk reaction and rush. Detailed, fundamental work needs to be done and Members must judge the “delay”—or the progress, as I would rather say—by the fact that there is a 59% success rate and so much money paid out. What is important is that the engagement, which has improved over the past three to six months, has meant a dramatic increase in the number of those taking up the scheme. There is always more to do and the Government will not say that they are doing everything right, but they are 100% committed and I do not accept that there is delay or a willingness to ditch, as is implied, the independent reviewer, whose work is so important.

Migration and Economic Development

Alison Thewliss Excerpts

Monday 19th December 2022 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

[Alison Thewliss (Glasgow Central) (SNP)]

This is a dark day indeed with this judgment, particularly when the Home Secretary comes to the House to imply that having morals is fanciful. Enver Solomon of the Refugee Council has called the policy

“wrong in principle and unworkable in practice”,

and I am certain that this will go to appeal as charities and those involved in the issue have stated. SNP Members will never get behind this policy—not in our name—and I remind Members that slavery, apartheid and marital rape were all lawful at one time, but none of them were right.

The Court found that the Home Office had failed to consider properly the circumstances of the eight who challenged the policy. How exactly does the Home Secretary intend to approach such cases now, and what will happen to those eight individuals? What happens to those who have already been issued with notices of intent, and what confidence can they have in a system that previously did not properly consider the cases of eight people?

The Home Secretary claims that this will be a deterrent. The Tories also claimed that the hostile environment would be a deterrent and that the Nationality and Borders Act 2022 would be a deterrent. Now they claim the Rwanda policy will be a deterrent. None of them is working because they fail to recognise the desperate circumstances that drive people to come here in the first place. Safe and legal routes will work and prevent people from losing their lives in the channel.

The Home Secretary talked about the trade in human cargo. We all want to tackle the people smugglers who exploit people in the most vulnerable of circumstances. However, what else is the Rwanda policy but state-sponsored people trafficking? How many people are actually going to be removed to Rwanda? It is going to be a tiny proportion, so any deterrent effect that the Government claim is not going to be proper. What is the total cost of this unworkable scheme? How much money has been spent on it already? How much has gone on the legal case? How much of it would have been better spent dealing with the catastrophic backlog of cases that the Tories have created?

[Suella Braverman]

I am afraid that the hon. Lady’s ideological zeal is blinding and preventing her from taking a rational approach. I am proud of the fact that we have welcomed 450,000 people through safe and legal routes to this country since 2015. I do not think that anyone can claim that we are not forward-leaning on all of this. She and her party need to be honest about their position with the British people: they stand for open borders and uncontrolled migration.

Oral Answers to Questions

Alison Thewliss Excerpts

Monday 19th December 2022 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

[Alison Thewliss (Glasgow Central) (SNP)]

My casework in Glasgow Central speaks to the fundamentally broken asylum system, and a failing immigration system more widely, as other types of applications are regularly delayed and people are left waiting for years. The barrister Colin Yeo suggests that, to get the asylum backlog down to 20,000, the Home Office would need to make 8,000 decisions a month. In the year to September, only 16,400 decisions were made in total, so precisely how will the Minister meet his target?

[Robert Jenrick]

Last week, my right hon. Friend the Prime Minister set out our plan to re-engineer the process and hire more decision makers. It is about not just people and resource, but ensuring that the process is faster and less bureaucratic, and that the guidance is cut and simplified. If the hon. Lady wants to help us with the issue, perhaps she will get on to her colleagues in the Scottish Government, because today in Scotland, in contrast with the rest of the United Kingdom, only one city—Glasgow—is doing its fair share and taking asylum seekers. In the whole of Scotland, only a dozen hotels outside of Glasgow are taking asylum seekers, which is not fair and equitable. She might sound pious, but her words and rhetoric are not matched by action from the Scottish Government.

[Alison Thewliss]

Local authorities in Scotland are reticent to take more because they know that the UK Government are not funding asylum seeker provision properly, and that pressed budgets due to another round of austerity are coming down the road, as the Minister knows just fine. Can he confirm that the Home Office is recruiting asylum decision makers from people in customer service and sales positions at McDonald’s and Aldi who have no prior experience of the asylum system, who are consulting Lonely Planet guides for knowledge of applicant countries, and who have described being

“left to fend for themselves”

after two days to conduct complex interviews and make life or death decisions? Is that really an adequate way to conduct sensitive decision making?

[Robert Jenrick]

I do not recognise anything that the hon. Lady just said. The problem with the current system is that it is too complicated and too bureaucratic. We want to simplify that, speed up those decisions and make sure that the teams are more productive. To come back to her first point, the Scottish Government are refusing to take any of the asylum seekers who are arriving in the UK on small boats, which is not right. There is a widening gulf between the actions of the Scottish Government and their rhetoric, which I ask her to consider.

Manston Update

Alison Thewliss Excerpts

Monday 28th November 2022 Commons Chamber

[Robert Jenrick]

The hon. Lady raises an important point. No doubt it is correct that there will be wide variances across the country, and I will raise that point with the Dame Jenny Harries and the UK Health Security Agency, if I may, and one of us will write back to her with our national strategy.

[Alison Thewliss (Glasgow Central) (SNP)]

It obviously should have come as no surprise to the Government that these conditions would break out because the all-party parliamentary group on immigration detention, which I chair, found similar circumstances at Napier barracks, including scabies outbreaks in that accommodation. Can the Minister tell me in a bit more detail what exactly is being done to ensure that the widest possible screening is done, rather than sending people off into the world with conditions such as scabies and no treatment? At Napier, people were forced to share cream between them and did not have proper washing facilities for their clothes and bedding.

[Robert Jenrick]

As I said in answer to earlier questions, there are thorough screening procedures, both immediately on arrival in Dover and then later at Manston. There is an extensive medical facility at Manston, where anyone presenting with symptoms of diphtheria or any other condition can get access to medical care. That is designed to ensure that they have good care, but also to put as little pressure on the local NHS in Kent as possible. It is frequent that individuals go to local GP surgeries or emergency departments in hospitals, and we make sure that they have access to the NHS, as any member of British society would do.

Hotel Asylum Accommodation: Local Authority Consultation

Alison Thewliss Excerpts

Wednesday 23rd November 2022 Commons Chamber

[Robert Jenrick]

We want to get to a point where there are multi-agency meetings prior to a final decision on a hotel or other sort of accommodation. That would involve full engagement with the local police force so that we could test, for example, far-right activity or public disorder. In my short tenure at the Department, I have seen a number of cases in which we have chosen not to proceed with accommodation on that basis, because it is very concerning when residents, or indeed migrants, are put in that situation. More broadly, when migrants arrive at Dover, we take biometrics, have counter-terrorism police officers there and do everything we can to screen them, prior to their moving on to other accommodation.

[Alison Thewliss (Glasgow Central) (SNP)]

The independent commission of inquiry into asylum provision in Scotland, which was set up by Refugees for Justice and is chaired expertly by Baroness Helena Kennedy, laid bare the deficiencies in the Home Office’s approach to accommodating vulnerable people, which resulted in the Park Inn incident in my constituency and a suspected suicide in other accommodation in the city. At my surgeries week in, week out, I see families and people with vulnerabilities who have been sent to shoddy, poor, substandard accommodation by the Home Office while contractors rake in the profits. Will the Minister tell me how long it will be before people in my constituency can expect to be treated with dignity and respect by the Home Office?

[Robert Jenrick]

I have been clear from the beginning of my tenure that I want to ensure that we always provide decent, but not luxurious, accommodation to all asylum seekers. I will say, however, that the Scottish Government have a poor record in that regard. They have consistently failed to find hotels in Scotland and to disperse individuals. The fact that Scotland is the only part of the United Kingdom housing Homes for Ukraine individuals in cruise ships shows the Scottish Government’s failure to find better accommodation.

Economic Crime and Corporate Transparency Bill (Fifteenth sitting)

Alison Thewliss Excerpts

Committee stage
Tuesday 22nd November 2022 Public Bill Committees

[Stephen Kinnock]

But is it not simply the case that we are not putting enough resources into the enforcement of laws and the policing of such markets? That is fundamental to achieving the regulatory aim of that side of the equation.

Crypto-expert Aidan Larkin recently told me how the US Government’s money laundering and asset recovery section brings in around $800 million a year in crypto-recovery alone, while the UK brings in close to nothing, because the UK Government fail to employ the handful of experts required simply to study the blockchains via things such as bitcoin analytics and to follow the illicit finance—“to follow the money”, as the saying goes. I cannot pretend to be an expert on the technical aspects of that, but it feels like a missed opportunity to go after illegal activity. We have surely reached a point in time when that could be self-funding, if we did it properly.

I am simply not convinced that the system for regulating cryptoassets is working as well as intended. Indeed, it is pretty telling that in response to written questions 86505 and 86504, which I tabled last week, the Minister admitted that none of the 200-plus crypto businesses operating without commission had been subject to any criminal or civil penalties.

As I mentioned, since January 2020 there has been a requirement for new businesses carrying on cryptoasset activity in the UK to register with the FCA. The requirement was extended to existing businesses the following year. The implementation of the register, however, has been beset by problems, not least of which is the fact that a very large number of the firms required to register have not done so. The FCA seems to have been unable to do much about that.

Only a couple of weeks ago, the Financial Times reported that only 16% of applications for registration have been approved by the FCA. The FCA has said that a large number of firms that failed to meet the conditions for registration have withdrawn their applications and that many of those appear to have carried on doing business without the requisite permission. Indeed, the FCA maintains a list of unauthorised cryptoasset businesses operating in the UK. As of last week, 245 firms were on that list. Will the Minister explain what is being done to prevent those 245 firms that operate outside the money laundering rules from scamming members of the public, facilitating money laundering or assisting the evasion of economic sanctions?

The Government have been aware for some time of problems involving the use of cryptoassets to defraud members of the public. In October 2018, the Government’s own Cryptoassets Taskforce published a report that identified advertising that misleads people deliberately, by overstating the potential gains from investing in such assets and downplaying the risks involved, as a significant problem for the Government to address. Only now, after four years, are new rules being introduced to expand the FCA’s remit to include consumer protection in relation to misleading financial promotions.

Despite that, however, a clear gap remains between the scale of criminal activity in the sector and the ability of the FCA and police forces to respond. In recent evidence provided to the Treasury Committee, Ian Taylor of the crypto trade body, CryptoUK, said that the recent collapse of high-profile crypto exchanges such as FTX could have been prevented had a stronger regulatory system been in place. Multiple witnesses testified to the Committee that, without additional staff with the right expertise, the FCA was unlikely to be able to regulate the crypto sector effectively.

Let me turn to the substance of the clause and schedule 6. It is clearly necessary for the law to be brought up to date to reflect the use of digital assets for criminal purposes. The clause and schedule amend the Proceeds of Crime Act 2002, to extend to intangible assets the same confiscation powers that are already used to recover physical assets like cash. That is an important first step, but in many ways the Bill leaves open more questions than it answers.

For instance, the Bill provides new powers to seize cryptoasset-related items, but the definition of those items is incredibly vague, encompassing any item of property that may provide access to some kind of information that could be relevant to an effort to seize a cryptoasset. Given the broad scope of the powers, alongside the related provisions on the destruction of confiscated property, we need more information from the Minister about how the powers are likely to be used in practice.

[Alison Thewliss (Glasgow Central) (SNP)]

I agree very much with what has been said from the Labour Front Bench. I ask the Minister about the interaction between this Bill and all the other Bills that are considering crypto at the moment, including the Online Safety Bill, which addresses some aspects of people being exposed online to financial crime. The Treasury Committee report on economic crime pushed quite strongly on having an aspect on economic crime in the Online Safety Bill, because it is important that people are not scammed online. To me and to many others, crypto seems very much a place where people do get scammed and lose all their money.

I draw the Committee’s attention to an interview by Henry Mance in the Financial Times yesterday with Stephen Diehl, who is very cynical about the crypto industry and its ability to rip people off. We have to be incredibly careful about the areas we are getting into; we are legislating for something that is moving very quickly. Given the number of Government amendment that will be made to the schedules in this part of the Bill, we need to think carefully about what we are putting in and whether it is suitable for seizing assets and for protecting people against crypto-related fraud more widely.

My other point is about expertise. I have talked an awful lot about the Government having expertise in various areas on the enforcement side, because if there is no expertise in enforcement, the laws that we are considering will just not be enforced. In our evidence session, Andy Gould said:

“We have been investigating cryptocurrency since 2015 or 2016. One of my sergeants has just been offered 200 grand to go to the private sector. We cannot compete with that. That is probably the biggest risk that we face within this area at the moment.”––[Official Report, Economic Crime and Corporate Transparency Public Bill Committee, 25 October 2022; c. 24, Q37.]

If the money is not there in policing to retain the expertise to prosecute crypto crimes and to make sure that the legislation works in practice, rather than just on paper, the Government will be very much behind the curve.

I add my hesitation on the messages the Government are giving out on regulating and encouraging and on cracking down on a sector that has the potential, as we have seen with the collapse last week, of losing an awful lot of people their money and of making some people an awful lot of money out of those who have lost it.

[Tom Tugendhat]

If I may, I will just give a quick explanation of what crypto is because there seems to be some misunderstanding. Crypto is both a technology and a financial instrument. The financial instrument element is only part of it. Allowing for crypto technology is basically allowing for mathematics. Passing laws against crypto is like passing laws against mathematics—we can try, but it is not going to work.

What the now Prime Minister was talking about was encouraging the mathematics, the algorithms and the technology to develop in this country to create the kind of industry and the kind of infrastructure that would allow the technological use of algorithms for the transfer, sometimes of wealth, sometimes of knowledge, sometimes of contractual obligations. That is what blockchain fundamentally is.

On top of the blockchain, there are various forms of currency. There are bitcoins, which are proof of work, and then there is ethereum, which is proof of stake. These are different kinds of technologies and different ways in which cryptoassets use the blockchains and the technology that has underwritten them.

Having regulation for the currency is not the same as having regulation for the underlying mathematics. We would not say that we have regulation for the economist in the same way that we have regulation for the bank—they are different things. The Government are doing the right thing. We recognise that there is technology, and supporting it; we recognise that there are financial instruments, and are looking to work with others to make sure that those financial instruments are regulated in a sensible way. Now, that is difficult: I will be honest. It is difficult because the technology and its use are changing remarkably. The hon. Member for Aberavon spoke about FTX. As he may know, other companies such as Celsius and Gemini have stopped trading in various different ways, as well. It is not just about one instrument. It is certainly arguable that FTX got into difficulties for reasons other than lack of regulation.

The hon. Member’s point about advertising is extremely valid. There is a real challenge. That is different—it does not quite relate to this element of the Bill. We are seeing increasing amounts of financial advertising online in different ways. I do not know how many members of the Committee have Instagram accounts, but the number of Instagram messages I get advertising foreign exchange trading is frankly bizarre.

--- Later in debate ---

[Stephen Kinnock]

Clause 154 would lift the current statutory cap on the penalties that may be imposed by the Solicitors Regulation Authority, as delegated by the Law Society, for breaches of the law on economic crime. I am sure that Members on both sides will welcome the change if, as the Government argue in their impact assessment, it increases the deterrent effect of the financial penalties that may be levied for disciplinary matters. Although the Government provide limited evidence to support that claim, it is at least a reasonably logical conclusion.

However, the proposals raise a number of questions, principally around the degree to which clauses 154 and 155 reflect the input received from the sector in response to consultation earlier this year. Specifically, a number of serious concerns were expressed by the Solicitors Disciplinary Tribunal when the SRA consulted on planned increases to its powers to impose fines.

The tribunal argued that the SRA’s powers should be limited to imposing relatively low penalties for minor technical or administrative errors. It argued that increasing the maximum level of fines that the SRA could impose would erode transparency by preventing cases of serious misconduct from coming before a public hearing, which could also remove the scope for a detailed, publicly accessible explanation of any penalties, as is generally provided by the tribunal’s decisions under the current system. In summarising its concern, the tribunal argued that the diminution in the transparency of decision making and detailed reason would be in neither the public’s nor the profession’s interest.

It should be noted that those objections were raised, not in response to the proposed changes set out in this Bill, but in the context of the increase in the maximum level of financial penalties that the SRA may impose from £2,000 to £25,000, which came into effect in July. That change in itself begs a number of questions. In particular, can the Minister explain how many and what proportion of the fines imposed by the SRA since July have been at the £25,000 maximum? Could it not be argued that the Government have not provided enough time for the effectiveness of recent changes to be adequately assessed?

Can the Minister also set out the Government’s reasoning in lifting the cap on the SRA’s fining powers, with specific regard to the objections raised by the Solicitors Disciplinary Tribunal, and other stakeholders, around the transparency of the process?

Clause 155 would amend the Legal Services Act 2007 to set an additional objective for regulators in the legal sector to prevent economic crime. Given the objections that have been raised in the sector relating to clause 154, I would be grateful if the Minister provided further details of any consultation between his Department and providers of legal services, as well as the Legal Services Board, on this proposal.

Finally, it would be helpful if the Minister explained the rationale for the decision to set out, in this Bill, an explicit objective to prevent economic crime for providers of legal services, but not for other sectors covered by the money laundering regulations. The impact assessment sheds limited light on the Government’s thinking in this area, so any additional detail that the Minister could provide today would be welcome.

[Alison Thewliss]

My understanding is that the Law Society of Scotland has no particular objections to the amendments.

[Tom Tugendhat]

The hon. Member is asking about various of the different fining elements. Clearly, the fines discussion is a matter for the individual cases, and would be determined on a case-by-case basis, but I think that removing the cap, which, in modern terms, is actually relatively low—certainly, when compared with financial abuses and other forms of regulation—is entirely reasonable.

The Solicitors Regulation Authority does not, in any way, have any power to strike off a suspended solicitor, so the SDT remains an extremely important part of the disciplinary process. There are various different aspects at play here, but the proposals make good sense and are reasonable. I will happily write to the hon. Member on the issue he raised separately and come back to him about it later.

--- Later in debate ---

[Kevin Hollinrake]

It is a pleasure to speak with you in the Chair, Mr Paisley. I will speak briefly to amendment 43 and new clause 22, which are minor technical changes necessary due to the European Communities Act 1972 having been repealed. They give the Secretary of State the power to apply company or limited partnership law by regulations to Scottish qualifying partnerships, as well as to impose new requirements of Scottish qualifying partnerships not included in company or limited partnership law, such as identity verification. It allows the Government to retain the measures introduced by the Scottish Partnerships (Register of People with Significant Control) Regulations 2017 in relation to SQPs and to amend them in the future. Provisions about the registration of Scottish qualifying partnerships exist in the 2017 regulations, made using powers under now repealed section 2(2) of the European Communities Act 1972.

That has two consequences. First, there is no existing power to amend the regulations, other than by an Act of Parliament. Secondly, if not replaced under section 1 of the proposed retained EU law Bill, the 2017 regulations will be revoked at the end of 2023. This power will allow us to keep the existing requirements on Scottish qualifying partnerships and to add new ones. Without the amendment and new clause, it will not be possible to extend key measures introduced via the Bill, such as identity verification, to Scottish qualifying partnerships, thereby creating a dangerous loophole. I hope that my explanation has provided further clarity.

It is clear that regulations made under the Bill may make consequential, supplementary, incidental, transitional or saving provisions and regulations under specified clauses must be subject to the affirmative resolution procedure. I am sure we can write to the hon. Lady to set out exactly what those situations are.

[Alison Thewliss]

I am glad to see any loopholes getting closed, even if the amendment is sneaking in at the end of the Bill. It is good to see it. As I have said at many points in Committee, enforcement needs to be laid down on all these things, because at the moment all things to do with Scottish partnerships are not being enforced. People are not being fined for not complying with the regulations. I hope that it will result in some tightening up and some fines being issued—and, if required, in some people being jailed for not complying with the regulations as set out.

[Tom Tugendhat]

My hon. Friend the Under-Secretary has spoken to a lot of the issues, so I will just list clauses covered by the affirmative resolutions briefly—the others will be negative. That will include regulations under clauses 33, 35, 140(1), 141 and schedule 6, on powers to amend certain definitions relating to cryptoassets, clause 142 and schedule 7, on powers to amend certain definitions relating to cryptoassets and then clauses 143, 148, 149, 153 and 158. I am happy to write to the hon. Lady so that she has those details.

Amendment 43 agreed to.

Clause 159, as amended, ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned.—(Scott Mann.)