Criminal Finances Bill

Baroness Butler-Sloss Excerpts

3rd reading (Hansard): House of Lords & Report stage (Hansard): House of Lords
Tuesday 25th April 2017 Lords Chamber

[Lord Luce (CB)]

My Lords, I support government Amendment 8. I apologise to the House for the fact that I have not been here for the earlier proceedings because, among other things, I have been visiting one of the overseas territories, Gibraltar, as I am chancellor of the new university there. As a former Governor of Gibraltar I am probably the only person in the Chamber who has been a governor of an overseas territory, so I thought I ought to say something in this very important debate.

The noble Baroness, Lady Stern, and all those who have added their names to the amendment have done a service to the House in ensuring that we debate the vital issue of standards of regulation in overseas territories. After all, at the end of the day it is our Government who are ultimately accountable to Parliament for the performance in our overseas territories. Therefore the Government must satisfy themselves that the standards both in this country and in the overseas territories meet those required by the OECD and elsewhere, so I congratulate my noble friend on the leadership that she has shown in ensuring that we debate this issue.

However, there is a delicate balance to be struck—from listening to the debate, I think the House understands that—because we are now in a non-colonial era. I remember that after I became Governor of Gibraltar, the late Robin Cook became Foreign Secretary two or three months later and one of the first things he did, very sensibly, was to drop the term “colonial” from our overseas territories so that we have the title we use at present, “British Overseas Territories”. We have to approach these issues in a very non-paternalistic and non-colonial fashion. To my mind, that is essential. The danger with the devolved powers that we have in these overseas territories—quite rightly, in my view—is that if we try to impose in a paternalistic fashion our views and policies upon them, we will be doing them a great disservice. Above all, we want to avoid having to impose direct rule, which could be the implication of taking some of these measures. At the same time, we have to ensure that there is a level playing field, which includes us as well, and that in making progress on this we do not do so at the expense of the overseas territories.

The Government have shown tremendous initiative in responding to the amendment from the noble Baroness, Lady Stern, with their Amendment 8 because it provides a framework with which we can move forward in negotiation and dialogue with the overseas territories over the next two or three years to try to move the whole issue forward. Many of the overseas territories, as we have already heard today, have made good progress. I congratulate the Government on this and strongly support their amendment.

[Baroness Butler-Sloss (CB)]

My Lords, I support very much what the noble Lord, Lord Luce, has just said and respectfully associate myself with it. I strongly support Amendment 8. If I may put it this way, I think the Government, and particularly the Minister, have been extremely shrewd in taking the sting out of the points made by the noble Baroness, Lady Stern, who has very wisely brought these issues to this House. The Government have picked them up and produced what seems to me to be the right approach to dealing with the overseas territories. The amendment provides a useful nudge to the overseas territories that the Government are looking at what they are doing, without imposing what is unacceptable upon these independent countries with their own constitutions and parliaments.

I do not agree with Amendment 14. I was at the meeting this morning where representatives from a number of overseas territories explained to us what they were doing. We have already heard about Bermuda and the Cayman Islands, the British Virgin Islands, which are doing very good work, and from Anguilla and Montserrat about the efforts they are making. We have heard from the Minister about the Turks and Caicos Islands, which with their new Government are now working to get this through. So the areas contained within Amendment 14 are already on the way, if not ahead of us in some cases, and it is not necessary that they should be referred to specifically in it. I do not want to hold everyone up. I support Amendment 8 and I do not think Amendment 14 is really necessary now.

[Lord Faulks]

My Lords, I shall speak to Amendment 24 in my name and that of my noble friend Lord Hodgson of Astley Abbotts in this group. It concerns the setting up of a public register of beneficial ownership of UK property by companies and other legal entities registered outside the UK. Those are more or less the words that are the subject of a call for evidence issued by the Department for Business, Energy and Industrial Strategy in April this year. I do not know but I assume that the Home Office did a great deal to bring forward the publication of that report in the light of the debates which took place in Committee about the concern that was generally expressed about corruption and the acquisition of property in central London by overseas companies hiding behind anonymity.

The establishment of a public register was indeed a commitment made by the Government. Why do we need a register of this sort? I can do no better than quote briefly from the call for evidence, which says,

“the government is concerned about the potential for illegal activity to take place through overseas companies investing in the property sector. Some properties are owned through off-shore companies in order to obscure their true owners. This can make it difficult for regulators, legitimate businesses and the general public to know who the true owners are and can make it very difficult for law enforcement agencies to carry out effective investigations … Greater transparency of property ownership will make the job … easier and will discourage criminals and the corrupt from choosing the UK to hide or launder their money”.

It is made quite clear that the Government intend to introduce a register of beneficial owners of overseas companies but, as it is a call for evidence, it does not seek to prescribe the nature of that register but calls for advice and information to assist it in formulating the register. It may well be influenced by what the noble Lord, Lord Eatwell, said about verification to make any such register particularly useful.

The amendment in my name and that of my noble friend Lord Hodgson simply asks the Government to do that and make it a part of the Bill. If we do not, there is real feeling that there will not be legislative time even in the Parliament that may start in June. I ask the Minister to reassure us that the register will be set up in short order.

--- Later in debate ---

[Lord Hodgson of Astley Abbotts]

My Lords, in moving Amendment 20, I will speak also to Amendments 21 and 22. With these amendments we return to an issue we discussed in Committee in a somewhat different format, but the underlying purpose this evening is the same: to increase the effectiveness and value for money of the current money laundering regime. Let me make it clear again, as I did in Committee, that this is not an attack on the utility of money laundering regulation in the fight against financial crime. However, I argue strongly that the present regime encourages mindless compliance, whereas it should be encouraging principled behaviour. As a consequence of this, the money laundering regime enjoys a very low level of public support and is too often regarded as a form-filling joke. That is a bad place for a regulatory regime to find itself. Its efficacy would be greatly improved if it were able to win over the hearts and minds of people, as opposed to earning their solemn acceptance.

Why do I think the present regime is ineffective? It is based very largely on the SAR regime—the suspicious activity report regime. Last year, just under 400,000 SARs were delivered. In the years since the present regulations were introduced in 2007, probably over 2 million SARs have been recorded. Consider the cost of their preparation and analysis. According to a freedom of information request, the outcome was that there were no convictions at all under the regulations in the first five years, from 2007 to 2012, and only four convictions and five more proceedings in the five years since. The National Crime Agency managed to recover assets totalling only £25 million last year, but claims that there are billions passing through London illegally all the time. If that represents success, I find it hard to think what failure would look like.

There is a Faustian pact between, first, the regulators, who are pressed to gather even little scraps of information, no matter how irrelevant; secondly, the compliance departments of the regulated firms, which are enjoying the opportunity for untrammelled growth in their activities and personnel; and thirdly, the professional firms that enjoy the fees earned from checking these ever-increasing compliance activities. No one ever steps back to get perspective and to see how this undoubtedly important activity could be done more effectively.

In Committee, I argued that to break into the cycle the National Crime Agency should be required to follow the principles of best regulatory practice, as laid out in Amendment 21, which we are discussing tonight. My noble friend would not, I am afraid, accept this line of argument, saying that:

“The NCA can and will act where there is criminal activity relating to money laundering. However, it does not have a regulatory remit, and to require it to have one would deflect it from its purpose of tackling serious and organised crime”.—[Official Report, 28/3/17; col. 532.]


I am not sure that I follow exactly that line of argument, but never mind—we have moved on from there. Now, we have the new body: the office for professional body anti-money laundering supervision, or OPBAS. It clearly should follow the principles of best regulatory practice. Amendment 20 requires the Government to set this body up within six months. This is an important body with an important role and therefore we need to get on with it, and to give Parliament sight of its structure and remit by means of requiring its establishment through an affirmative statutory instrument.

Amendment 22 lays down the principles that the body must follow. It must be proportionate, accountable, consistent, transparent and, most importantly, targeted at cases in which action is needed. Amendment 22 also lays down a series of processes by which the new body will ensure that the bodies it is responsible for regulating follow these principles. There is a series of ways of doing that, including publishing advice and guidance, and carrying out investigations to ensure that the operation is working effectively.

Before I conclude, to underline the seriousness of the situation we now find ourselves in, let me give the House a couple of examples of the mindlessness and the consequent drawbacks of the present regime. My most recent money laundering inquiry included a couple of dozen questions. Among them was the following: “We see you have links with a company called NS&I. Please explain these”. Since the inquirer had access to my bank account, they could see that it was an entry of £25 alongside NS&I. NS&I is, of course, National Savings & Investments. It was a premium bond winning; sadly, not £1 million, but never mind—every little helps. Does the NCA really think that the Government’s own saving authority is involved in money laundering?

A second question was: “We see that you worked in North America in the 1960s. What were your earnings?”. That was half a century ago. It is hard to think that I started money laundering the year after I left university and have so far carried on for more than 50 years, undetected. I was sufficiently irritated to answer this second question with the words, “I haven’t a clue”. Patently, that was an inadequate response, but comeback there was none. Perhaps the form was not read and just filed and the box ticked, or it was read and it was concluded that this was not an important or relevant question. Either way, it was an awful waste of the bank’s and my time. This is going on thousands and thousands of times around the country.

One can laugh about my case, but for many people triggering a money laundering inquiry catapults them into a Kafkaesque world where no one can discover who is accusing them or what they are being accused of. Since we last met in Committee, I have been sent various examples but will give only one this evening. A 43 year-old ex-soldier with a 16-year good-service record built up a capital sum of about £69,000 from his Army redundancy and other sources. On 14 February it was paid into his account at the bank where he had banked for 20 years. On 27 March, when he tried to withdraw part of the money to make his annual ISA subscription and to buy a car, he was told that the account had been frozen. Now, a month later, it still is. He has missed the opportunity to make his ISA investment because the tax year has ended. The bank will not—perhaps cannot because of the regulations—tell him what the problem is, and the Financial Ombudsman appears unable to intervene. He is also concerned that this incident will damage his future credit rating and he will have no way of obtaining redress. So there are very serious cases where this money laundering regime is not working effectively to catch the individuals it should really be aiming at.

In Committee, I referred to the increasing prevalence of de-risking by regulated entities. Under pressure from the money laundering authorities, they close down whole categories of accounts irrespective of their behaviour and performance because they might be risky from a money laundering point of view. I referred to a long-standing friend of mine who lives in Pakistan—a British citizen—who has had his account unilaterally closed. Since Committee, I have heard more examples of smaller charities about how they are finding it difficult to operate overseas because of money laundering regulations. Most recently, the Gurkha Welfare Trust is having difficulty obtaining banking facilities to transmit money to ex-Gurkha soldiers living in Nepal who have fallen on hard times. They live in Nepal and that is a red flag.

In the event that my noble friend cannot accept my amendments, although I am sure she is going to—

[Baroness Butler-Sloss]

I am extremely interested to hear—I fear that I did not hear it in Committee—about the proposal in Amendments 21 and 22. But how does the noble Lord see this office of professional body anti-money laundering supervision working, for instance in the case of the man whose money has been frozen? It is an interesting idea but I just wonder, as a former lawyer, how it would work in practice.

[Lord Hodgson of Astley Abbotts]

I am grateful to the noble and learned Baroness for that intervention, but I can glide this down to third man, if I may use a cricketing analogy, because this is a government proposal. The Government are proposing to set up this new body, so I am sure my noble friend, when she comes to wind up, will have all the detail of how this body will work. I merely wish to ensure that it is sent down the right channels. I know that my noble friend, with her usual aplomb and ability, will deal with that by stroking it effortlessly to the boundary, if I may continue the cricketing analogy.

It is important to do some serious re-engineering of the general approach to money laundering to increase its effectiveness and public confidence in it. That the National Crime Agency can, in its annual report, trumpet the fact that SARs went up by 7.82% over the last year as a badge of success without any reference to the impact it is having, shows that there is much to do. I beg to move.

Criminal Finances Bill

Baroness Butler-Sloss Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Monday 3rd April 2017 Lords Chamber

Of course one problem is that getting convictions against large companies is notoriously difficult but the point of principle, clearly brought out in a failure to prevent conviction, is: “What was the role of the directors in making sure that the appropriate procedures were in place?”. This goes to the heart of governance. There is no other public accountability mechanism and if it is right for competition, why not for bribery, tax avoidance or other serious criminality? Why should the specialist prosecutor not have the full toolkit?

[Baroness Butler-Sloss (CB)]

My Lords, I have some doubts about Amendment 165. I find a corporate probation order to be rather unusual and although I am not an expert on crime, it seems to me that there would be considerable difficulties with it. Also, if one looks at subsection (5) of the proposed new clause in Amendment 165, the liability is,

“on conviction on indictment, to a fine”,

but it does not say how much. There would be a fine,

“on summary conviction in England and Wales”,

but there are limits to fines in the magistrates’ court. Whatever that figure is, it is not included. This seems an inadequately drafted amendment.

[Lord Judge]

My Lords, I add my voice to that. I support the general idea behind Amendment 165 but it proposes rather a bureaucratic new clause. Why cannot the court simply have power to make orders in accordance with its subsections (2)(a) and (2)(b), where it thinks it appropriate? Why do we need subsections (3) and (4) at all, as company B has already been convicted? It is a matter for the court to decide what sentence should be imposed; it does not need permission or an application by the prosecution. If I may say so, it seems that this would make a complex process to deal with something very straightforward. The court needs to be vested with the powers which are understood to be included on the basis of this amendment. Its compliance procedure would require an external body and, if we are doing that, can we perhaps add that there should be a report to the court about whether the appointed verifier is satisfied that verification has taken place?

As to Amendment 170, I am just a little troubled about subsection (2ZB) in its proposed new clause. It says:

“The court must not make any order under this section unless it is satisfied that the person bears responsibility”.


Fine—I understand that—but this is a penal decision. Are we saying that the court must be satisfied to a criminal standard or to a civil standard?

--- Later in debate ---

Finally, in 2009, at the meeting at Lancaster House, the Cayman Islands entered into a new constitution. That is not very long ago. That constitution contained measures on the rule of law and human rights that meet the most stringent international and European standards, including a bill of rights which includes a right to privacy and laws on data protection. That was entered into after much discussion and is working and successful. I submit to your Lordships that the amendments before us are certainly extremely premature in terms of the world situation, and not needed in relation to the Bill. This Bill is a good Bill and needs to be supported.

[Baroness Butler-Sloss]

My Lords, as vice-chairman of the All-Party Parliamentary Group on Gibraltar I am grateful to the noble Baroness, Lady Stern, for having noticed that I was here and expressly excluded Gibraltar from Amendment 167. It is possible, however, that the omission of Gibraltar might be misunderstood; consequently I want to put on record Gibraltar’s position on its financial affairs. It is compliant with all the financial requirements. The OECD, in its phase 2 review of Gibraltar, ranks it equal with the United Kingdom and the United States on transparency, effectiveness and exchange of information.

Gibraltar, as we know from earlier discussions in this House, is the only overseas territory within the European Union at the moment. It continues to be bound by EU law for at least the next two years and is transposing the fourth anti-money laundering directive by June of this year. That includes the creation of a central register of beneficial ownership, which points out that Gibraltar is doing well as a financial centre and is compliant.

[Lord Hodgson of Astley Abbotts]

My Lords, the theme of corruption and the damage it does to society has been the thread running through all our debates this afternoon and, indeed, on our first day in Committee last week. When you have powerful speeches from the noble Baronesses, Lady Stern and Lady Meacher, the right reverend Prelate the Bishop of Peterborough and my noble friend Lord Kirkhope, you have to be influenced by what they are telling you. When they link it to the idea of a gold standard of a publicly available register—although after the noble Lord, Lord Eatwell, had finished with Companies House, gold was no longer the metal that I would associate with that institution—you feel that there may be an exceptionally strong case. Equally, as you reflect on it, you begin to wonder whether the best may not become the enemy of the good.

In trying to clarify my thinking on this very difficult issue, I ask my noble friend on the Front Bench to focus in her reply on three points that are important to me. They relate to the big three of the overseas territories mentioned in the amendment: Bermuda, the British Virgin Islands and the Cayman Islands. The others are much smaller; they may be important in the future but the major difficulties will arise with the first three.

First, can my noble friend confirm what the noble Lord, Lord Beith, said—that those three territories are going to have an up-to-date register of company ownership—and the date by which it is going to be in place? If it is going to be in place, are the Government satisfied that each register operates effectively and accurately?

Secondly, I come to the verification point raised by the noble Lords, Lord Eatwell and Lord Naseby. Since information is put into these registers by third parties, which have titles such as corporate service providers—CSPs—trust or company service providers, and so forth, are the UK Government satisfied that the regulatory regime in each of these territories ensures that the CSPs operate to timely and accurate standards? Are there adequate checks on their performance? For example, are there, as we have in the City of London, fit and proper person tests to make sure that those who are providing the information have decent standards of behaviour imposed on them?

Thirdly and finally, as my noble friend Lord Kirkhope said, are UK law enforcement agencies satisfied with the level of co-operation and assistance provided by these regulatory authorities? Do they get prompt and helpful responses or are the responses dilatory and evasive? If my noble friend was to say that she could give the Committee assurances on those points, my concerns about the best being the enemy of the good would rise in significance. Of course we are seeking a gold standard but surely in the short term what is vital is not that I or other Members of your Lordships’ House should be able to interrogate the register but that the relevant law enforcement agencies should be able to do so, and should be able to do so promptly and to get information promptly. Then, I hope, as enforcement standards rise and, as my noble friend Lord Naseby said, the United States begins to bring all parts of its dominion into proper behaviour, the gold standard of full public disclosure may well be appropriate.

I quite understand why the noble Baroness wishes to do this but my concern is that if we go too far, too fast now, the malfeasant—and it will be those who go first—will drift away to still murkier regimes. We may have only half a loaf and the noble Baroness would like the full loaf, but at least we have half a loaf. If we go to murkier regimes, there will be no way of getting any sort of collaboration, co-operation or help at all to tackle what I think everybody in your Lordships’ House agrees is a really important problem and is imposing terrific damage and harm on our fellow citizens, particularly in the developing world.

I hope my noble friend can answer my questions. Are there going to be prompt and accurate registers in the major territories—and, if so, by when—or are they there now? Are those who upload information into the registers properly checked, verified and regulated? Do our law enforcement agencies really get wholehearted collaboration and assistance from their opposite numbers in those three territories?

Male Abusive Behaviour

Baroness Butler-Sloss Excerpts

Wednesday 8th March 2017 Lords Chamber

[Baroness Williams of Trafford]

I pay tribute to Vera Baird because I know she does an awful lot of work in this area. The first thing I looked at when I was at DCLG was the whole area of domestic violence—the refuges and the prevention models. The noble Baroness is absolutely right: it is important to keep these refuges open so that no woman is turned away. In fact, there was a significant announcement in the Budget today about underpinning our VAWG strategy, but those interventions to stop domestic violence happening in the first place are also very important.

[Baroness Butler-Sloss (CB)]

My Lords, is it not important that violence against women that is shown on the net should be dealt with?

[Baroness Williams of Trafford]

The noble and learned Baroness makes a very good point. It is what children see—their experiences of what is normal—that will shape the behaviour of young boys and young girls. Young girls may lose the value in themselves and young boys may not value girls as they grow up. The noble and learned Baroness is absolutely right, and work has been done in this sphere over the course of this Government and the previous Government.

Policing and Crime Bill

Baroness Butler-Sloss Excerpts

Report: 3rd sitting (Hansard): House of Lords
Monday 12th December 2016 Lords Chamber

[Lord Judge (CB)]

My Lords, I have been quoted on both sides, so I want to say something for myself. The most shocking aspect, to me, of the issues we are discussing was the BBC helicopter flying overhead while Sir Cliff Richard’s home was searched. There are many different aspects. Many of your Lordships have spoken today of your concerns about individuals you have known or individuals about whom you have known, who have been, in effect, traduced and brought low by publicity in the way in which we have been discussing. I do not support any such publicity, but I respectfully wonder whether we are addressing the wrong remedy in the wrong Act. For example, what is there to prevent a simple Act of Parliament that makes it a criminal offence for a police officer to disclose the name of any individual who is suspected of a crime, before he has been arrested? It should not be too difficult.

I do not want to repeat what I said last time, but the problem I invite noble Lords to consider is this. An arrest has to be justified. An arrest that is not based on reasonable grounds for suspicion is unlawful. Notice that I pick the moment of arrest—I am not talking about the allegation or the police officer telephoning the local press to say, “We are about to arrest the local schoolmaster”, or whatever it may be; nor am I addressing the issue in the context of sexual offences. The same story should apply to all offences.

An arrest must be lawful. Please can we bear in mind what the consequences of a lawful arrest are? You are detained. You are removed from your home, if that is where you are on arrest, or the street, the town or the city, or your office, or even when you are out having a drink with your friends. You are removed and you are not a volunteer: you have to go. If you resist arrest, you are committing an offence, and down to the police station you go, if that is where they take you. But you are completely in the hands of the arresting officer, and you go through a process. You remain detained, either while further investigations are made or until such time as further evidence emerges or it is decided that, after all, you can be allowed to go, for now, on bail. This is a process that nobody goes into voluntarily. Please can we remember that it is the first stage in the operation of the criminal justice process—and often, of course, culminates in a trial, conviction and sentence.

My concern about both these amendments is that they fail to address the problem that arrest is part of the criminal justice process. If they are adopted or if either one is adopted, we end up not with a situation that is incommunicado, if I may say so to the noble Lord, Lord Paddick. We end up with a veil being drawn against any reporting of the fact that one of our fellow citizens has been arrested. I find that troublesome.

The idea of criminal justice being secret is abhorrent to all of us in this country; we do not want formal trials to be conducted in secret. This part of the process, I suggest, should not be seen as a private matter. The exercise of the power to arrest and the consequences of it are public matters. There are many hard cases we have heard about and there has been much abuse of the process, but these issues should be addressed in a different form of legislation.

[Baroness Butler-Sloss (CB)]

My Lords, I have been listening with a great deal of care to all that has been said. I have no doubt that Amendment 182 does not go quite far enough, in the sense that if there is to be the intervention of legal process before a court, it needs to be by a judge and not a magistrate. I am in the extremely unusual position of not knowing which way I am likely to vote. I find it very difficult. I am very attracted by what the noble and learned Lord, Lord Mackay of Clashfern, says: that prior to charge, no one who is being investigated should have the information disclosed. But I do think that one has to point out—as, indeed, the noble Lord, Lord Campbell-Savours, and other noble Lords pointed out—that sexual offences, particularly with celebrities, are a special case that sells newspapers. In one of the magistrates’ courts where I used to prosecute and defend as a very young barrister, the custody officer told me that it was £25 for the information to be provided. So one knows about it, and the police have, indeed, been criticised.

I happen to know someone prominent in a particular career—I will not say which—who is about to be charged with an offence committed at the age of 13 against a girl of seven. Everybody locally knows about it. For him, that is quite as awful as it would have been for Lord Bramall or Lord Brittan, save for the fact that this man is not likely to be dying. But this very personal thing—it may or may not be true—of someone in their forties or fifties accused of what he did at the age of 13, which has suddenly come out in relation to a girl of seven, is a shock.

The question that I pose to the Minister is this. If we do not do anything by way of legislation, what can we do to protect those who are innocent and have been vilified, and those who may be innocent, and the presumption of innocence, as the noble Lord, Lord Pannick, has rightly pointed out, is there but is totally ignored by the media, and consequently largely ignored by the public? The approach that “there is no smoke without fire” is attractive, and if the press say something—well, it may be true. If we do not do anything, how do we stop an injustice? With huge hesitation, therefore, I am likely to support the argument of the noble and learned Lord, Lord Mackay of Clashfern, rather than my very close friend, the noble and learned Lord, Lord Judge.

[Lord Blunkett (Lab)]

My Lords, I will not detain the House for long. I was the Home Secretary back in 2003 when, as has been referred to this afternoon, many of these issues were debated, and I was responsible for the justice system at that time. We struggled with it then and we struggle with it today. I commend the debate and the very substantial arguments that have been made on both sides. I am struggling to know which way to vote on Amendment 182. My instincts are to vote with the Government but to require an answer to the question that the noble Baroness has just put. It is made more difficult now, in 2016 and going into 2017, than it was 14 years ago. The reason for that is social media.

I take the point very strongly that the arrest is part of the process. Arrest prior to charge is extraordinarily difficult to deal with, if someone’s name is out on social media but they then cannot make statements that can be reported in the mainstream press, to actually indicate at least some side of the story that they are intent on putting. With the best intentions, we may take the wrong decision—as usual, for the right reasons—and end up with people who we seek to protect not being able, in the present era of social media, to protect themselves. I look forward to the Minister pulling together the very difficult arguments at the end of this debate.

Operation Midland

Baroness Butler-Sloss Excerpts

Wednesday 9th November 2016 Lords Chamber

[Baroness Williams of Trafford]

My Lords, I preface my comments by saying that the sale of a building is not, in itself, the most important aspect of those issues. However, what the noble Lord says about the quality of leaders and officers in the Metropolitan Police, and the police in general, is very important. We will have further debates on this. Certainly, the training and leadership of police forces that protect the public are of the utmost importance.

[Baroness Butler-Sloss (CB)]

My Lords, it is patently unsatisfactory that the full report is not produced for the public to read. Should not the Home Office urge the commissioner of police to make it public?

Calais Camp: Lone Children

Baroness Butler-Sloss Excerpts

Monday 10th October 2016 Lords Chamber

[Baroness Williams of Trafford]

I totally agree with the right reverend Prelate; children are at the top of our agenda. It is not just the Prime Minister who thinks that; I think that we all agree that children, especially vulnerable children, are our top priority. That is why we are working together, by putting additional funding into this, speeding up the process and engaging with officials in the French Government on a daily basis.

[Baroness Butler-Sloss (CB)]

My Lords, we are told that the French authorities are proposing to close the Calais Jungle camp some time in the next month or two, so the question of the children is extremely urgent. I fail to understand what is holding it up now. If there is a dedicated team and everybody else, who on earth is not pulling their finger out?

[Baroness Williams of Trafford]

The noble and learned Baroness asks a very pertinent question. As we have heard, the camp closure will begin soon. We have put in place various processes—as I have just said, we are speeding up transfers. We are working with NGOs and others to make sure that the process is speeded up. No unaccompanied child—or any other child—should be in the Calais camp. That is why we are redoubling our efforts, together with the French, to get those children to safety.

Calais: Refugee Camp

Baroness Butler-Sloss Excerpts

Thursday 15th September 2016 Lords Chamber

[Baroness Butler-Sloss (CB)]

My Lords, I am glad to follow that impassioned speech by the noble Lord, and I share entirely what he had to say. I am co-chair of the parliamentary group against human trafficking and modern slavery, so my particular concern, as your Lordships might imagine, is of course the dangers to the children in Calais. I would add, along with everybody else, my admiration for the noble Lord, Lord Dubs, for his persistence and effectiveness in keeping this terribly important subject before the House and of course the Government.

There is not much to add, as it has already been said so powerfully by others today, but there is an urgency, as the camp is about to be demolished. There are two groups of children that we have been told about. I can understand that those who do not have family here will have to go through a procedure to find homes for them and local authorities prepared to take them, but that is not in fact a very difficult procedure, one would have thought. As for the 387 children who have a right to be here, we should all be very ashamed of the story told to us by the noble Baroness, Lady Jenkin, about the children who have a right to be in Birmingham but who spent nine months trying to get here. I fail to understand why children with a right to come to this country because they have family here are not being brought within weeks. I cannot see what the hold-up is, and in so far as there is a hold-up, for goodness’ sake, can everybody not get off their backsides and do something about it?

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

Baroness Butler-Sloss Excerpts

Friday 8th July 2016 Lords Chamber

[Baroness Butler-Sloss (CB)]

My Lords, I cannot resist commenting on the speech of the noble Lord, Lord Cormack. First, public Bills put forward by government nearly always need amendment; it is unfair to single out Private Members’ Bills. Secondly, I would support any action the noble Lord takes to abolish acronyms. I spend my life having to ask people what on earth various letters mean, so that would be brilliant. However, I do not agree with his comments about the Bill’s Title, because the noble Baroness, Lady Young, whom I congratulate very much on bringing this timely and necessary Private Member’s Bill forward, quite rightly followed the wording of the Modern Slavery Act in that respect. If I may respectfully say so to the noble Lord, it would be madness to go out on a limb when we have the wording that is already in the Modern Slavery Act, and this Bill is intended to be a very necessary improvement to that Act. The Modern Slavery Act is a very good Act and I share the noble Lord’s view that Theresa May is much to be congratulated on having courageously brought it forward. We are all very indebted to her for the Modern Slavery Act, on which I worked. Noble Lords know that I am much involved in modern slavery elements in both the parliamentary group and the Human Trafficking Foundation.

The Government are to be congratulated on the innovative supply chain requirement in the Modern Slavery Act. However, I wish to make two points. First, a good Act can always be improved. I cannot see why, in principle, the Modern Slavery Act applies to large private companies and not to government procurement, government agencies and local government. An example is procurement by the Ministry of Defence, which is absolutely enormous. There can be no good reason in principle why the Ministry of Defence should not have a similar, but not necessarily exactly the same, requirement as private companies. Why on earth should the Government not have a similar requirement to independent companies to have this transparency made absolutely clear?

The big companies gave evidence to the Modern Slavery Bill pre-legislative scrutiny committee. They were entirely happy to have transparency but they asked for—and I use the phrase that the noble Baroness, Lady Young, used—a level playing field. They did not ask for government procurement to be included but it must have been in their minds. I cannot see why the Government cannot lead and show the world that not only do they expect private companies to do this, but they themselves will get involved. That would be wonderful message not only for the United Kingdom but around the world. I spent some time at the Vatican quite recently, explaining to 22 other countries what the Modern Slavery Act was about but I was not able to say that the Government were intimately involved in this very important part of it, which many other countries are interested in.

I do not think the noble Baroness, Lady Young, would be at all embarrassed by my saying that it is quite clear that Clause 1(2) could be improved, in particular to include—regarding the second issue I want to deal with—what sort of statement should be provided. We could look in Committee at providing a way that would be acceptable to the Government. The fact that this may need to be changed does not mean that we should not have it; that it the really important point of this Bill.

My second point, therefore, is that at the moment there is absolutely no way that we can tell whether companies are obeying the law and making the appropriate return under the Modern Slavery Act. We do not know which companies are obliged to make the return; we have no idea. There is no one to report to. It is very unsatisfactory to have a law where one does not know to whom it applies and whether those to whom it applies are complying. It is an extraordinary situation in the state of law.

There are various ways in which this could be remedied. One could have a requirement to file with Companies House, or a government department could compile a list of companies to which the public have access. I understand that the Government are likely to say that this would be extremely difficult and that it would change all the time, but if the Government bring in legislation that requires companies to comply, they really also ought to be able to know to whom the law is applying. I therefore do not see that that is a very good argument. A government department—not necessarily the Home Office—could receive statements sent officially by a company. We could have a genuinely independent, properly managed website—if one could find it; I take the point of the noble Baroness, Lady Young, about the various organisations offering what look to be really spurious suggestions of how they would manage a website, which would be to their financial advantage. I would be very unhappy about that.

I am particularly worried about not only the big companies that have to give this information but the extent to which they are able to manage and scrutinise the work of their subcontractors and the agents who have other subcontractors over whom the company that sells the product does not have proper control. This is an aspect we need to look at. We need to encourage companies to do due diligence, not just at their own level and that of their subsidiary companies, but at the level of their subcontractors who provide them with the goods that they sell.

There is of course an argument about the burden of regulation but it was, in my view, utterly destroyed in the Joint Select Committee on the Draft Modern Slavery Bill by the biggest of the companies that came to talk to us saying that it did not object to doing this. Interestingly, John Lewis, for instance, has a document that shows that it is complying with human rights, which is of course already a requirement for companies, and is putting a requirement to deal with modern slavery in that same document. That seems a perfectly sensible way of doing it but it may not suit other companies. So the burden of regulation is not a good argument. I do not think that it matters which way companies do it, so long as it is set out in a company document that is the responsibility of the main board and not of someone subsidiary. We need a consistent approach by industry, including government procurement. The wording of Clause 1(4) could be improved; it does not need to be in an annual report and accounts so long as it is in an appropriate document. Business could probably tell us what would be the more appropriate phraseology to use.

I end by saying that, next Wednesday afternoon, the Human Trafficking Foundation will hold a meeting to talk about transparency in the supply chain, at 5.30 pm in Committee Room 3. We will be discussing what large companies are expected to do and among the companies coming are John Lewis, Primark, Tesco and the British Retail Consortium. Am I really going to have to say to them that we held this debate, thanks to the noble Baroness, Lady Young, and that, at the end of it, the Government resolutely refused to have anything to do with it and were not prepared to involve government procurement as part of what big business is expected to do? That would not, I suspect, go down very well next Wednesday.

--- Later in debate ---

[Lord Keen of Elie]

I am obliged to the noble Lord.

The noble Baroness, Lady Hamwee, raised a number of issues. One of them was how we identify those corporate entities or partnerships that have an obligation under Section 54. The obligation was designed to coincide with the definition of large companies under the Companies Act in the context of registration. I am not saying that that takes us very much further forward, but there is at least a litmus test that one can have regard to in that context. I do not seek to ignore the other points that she raised, but I hope I have covered them in the course of this reply.

The noble Lord, Lord Kennedy, asked about public bodies. Again, if I may, I repeat that they are subject to a parallel provision—albeit not identical, for obvious reasons—and that is being developed under reference to the code that I mentioned before.

In conclusion, I thank the noble Baroness, Lady Young, for raising this important topic. The Government have listened and reflected carefully on the topics raised by her Bill. We are determined to lead by example on this issue and do everything that we can to prevent modern slavery in both the public and private sector supply chains in this country, and indeed overseas. While the Government are not persuaded that further legislation is the right approach at this stage, we welcome the ideas in the Bill. We will want to examine some of them in more detail and, as I have said before, I will be happy to meet with the noble Baroness again to do so.

[Baroness Butler-Sloss]

Before the Minister sits down, may I ask two questions? First, as I understand it, it is being suggested that in the public sector the human rights requirement meets what is needed for modern slavery. If that is correct, why on earth was it necessary to have a modern slavery requirement for the private sector? Secondly, it is all very well for the Secretary of State to have the power to go to the County Court, but what he needs to know is, first, who the companies are and, secondly, whether they have in fact not complied. From what the Minister has said, I do not understand at the moment how the Government are going to find either of those points.

[Lord Keen of Elie]

On the first point, the private sector is not subject to Section 6 of the Human Rights Act 1998, which is what I sought to explain earlier. On the second point—

[Baroness Butler-Sloss]

The independent private companies are also caught by the Human Rights Act under the current legislation because they have to do a human rights report every year. I do not quite understand why the Government think that that is good enough for the Government but not for private companies.

[Lord Keen of Elie]

As I say, the public sector is subject to Section 6 of the Human Rights Act; that was merely one aspect of my explanation as to why it was not considered appropriate to extend this legislation to the public sector. The other issues concern the Public Contracts Regulations 2015 and the codes and guidance that apply in that context.

As regards the Secretary of State having resort to the courts to bring a penalty, we will see consumers, NGOs and peer pressure bringing out the question of who is complying and who is not. I will give one simple example. If a retailer on the high street discovers that their competitor is retailing T-shirts at 50p each when they know perfectly well that they cannot be produced for anything like that sum, and they persist in doing so, they will detect that something is amiss. As the large corporate retailers observed in the consultation period, they want a level playing field and their one way of doing that is to ensure that their competitors comply with Section 54 and, if they do not, to bring that to the attention of the Secretary of State.

Immigration Officers

Baroness Butler-Sloss Excerpts

Monday 4th July 2016 Lords Chamber

[Lord Ahmad of Wimbledon]

We currently have 1,280 full-time equivalent staff who are undertaking this casework. The noble Baroness talks about retention; there is normal turnover of staff. We are also enhancing some of the requirements, particularly on English language, for such staff, which will come into play in this area, and across the public sector, from October 2016. It is important in any role undertaken within government and the public sector that career paths are pointed out to people—the mentoring scheme we deploy for such staff is a valuable asset in this regard.

[Baroness Butler-Sloss (CB)]

My Lords, I have several friends from different parts of the EU who have indefinite leave to remain and have lived in this country for many years. They are now asking me whether they are safe to stay here in the future. Will the Minister make it clear, through the Government, that those people will be able to remain, regardless of what the details regarding the EU are?

[Lord Ahmad of Wimbledon]

As we have previously heard from this Dispatch Box, the Leader of the House, the Prime Minister as well as others, the position of EU nationals within the United Kingdom who have indefinite leave to remain does not change. In any future discussions we have with our European partners, the important thing is the need to reflect that fact and also—as my noble friend raised in an earlier question—the needs and requirements of those UK citizens who have made their home in the member states of the European Union.

Historical Child Sex Abuse

Baroness Butler-Sloss Excerpts

Thursday 30th June 2016 Lords Chamber

[Baroness Butler-Sloss (CB)]

My Lords, I am relieved that this debate is taking place and I am grateful to the noble Lord, Lord Lexden, for managing to bring it before this House. We should look calmly and frankly at the very difficult problems which are emerging with increasing regularity. I agree with what was said by the previous speakers.

We live in troubled times—and I do not refer only to the referendum. Ever since the shocking case of Jimmy Savile and others we have become accustomed to serious allegations of sexual abuse being made against well-known figures. We must recognise that many people, male and female, who were sexually abused as children have only recently been able to disclose that abuse, many years after the shocking events took place. It is brave of them to do so, and they have to relive the dreadful behaviour by adults they trusted, who abused that trust. Such allegations must of course be very carefully and rigorously investigated, and many of the allegations of historic abuse which are now being made have resulted in prosecutions and convictions. We need to remember that among those convicted was a diocesan bishop.

However, the question arises of how to deal with allegations made against those who have died, some of them many years ago. I suggest that a distinction should be made between the management of allegations against a living person and those against one who is deceased.

As noble Lords will know, there are two standards of proof—the criminal, which is of course a higher standard, and the civil standard of proof, which is on the balance of probabilities. As has already been said several times today, there is a firm commitment in English criminal law to the principle that a person is innocent until proved guilty in a criminal court. In cases where the balance of probabilities is applied, we must recognise the importance of looking carefully at the inherent probability or improbability of the allegations, as was said in the Judicial Committee of the House of Lords, the predecessor of the Supreme Court, in a case called Re H in 1996. It happens to be a case in which I was in the Court of Appeal and it was appealed to the House of Lords. In that case, the noble and learned Lord, Lord Nicholls, said:

“The more improbable the event, the stronger must be the evidence that it did occur before, on the balance of probability, its occurrence will be established”.

Of course there will be cases where there is a strong body of evidence against a deceased person, but the words of the noble and learned Lord should be carefully considered.

The issue that causes me considerable concern is where the balance of probabilities is applied to historic cases of child abuse in which the alleged perpetrator is dead. I was taught as a young barrister “audi alteram partem”—that is, one has to hear both sides. Jimmy Savile may have been an exception because the volume of evidence of many, many victims built up to a horrifying degree, and there are other cases, but in general, with a few or particularly only one person making the allegation, however convincing, the authority or organisation dealing with the allegation has a duty to recognise that it may be able to get the story only from one side.

Consequently the authority, organisation or agency with the unenviable and difficult task of dealing with allegations against a person who may have died many years ago needs to have a policy and indeed a formula. In particular, it needs wording which makes it clear that it should listen to and recognise the seriousness of the allegations and give appropriate support to the person making those allegations, but generally—I should perhaps say always—it should resist the temptation to say that the account is convincing and is to be believed. Even on the balance of probabilities, if one side cannot be heard, that in my view is a step too far.

The authority also has to be absolutely aware of the media’s ability to elaborate and distort the statements. Great, great care must be taken not to allow the media to convict the deceased alleged abuser based on the loose language used in the authority’s statement. I understand that the Church of England did not actually say that Bishop Bell was a sex abuser but it appears not to have taken steps to correct the media impression.

I have no views on whether, if the evidence of sexual abuse is strong, the victim should be compensated. In some cases it is clearly the right thing to do. I know from my report on sexual abuse in Chichester that the evidence against one priest who died was very strong, and compensation in that case was, in my view, entirely appropriate. It is not necessary for me to refer any more to Bishop Bell. I am more concerned about a better way of dealing with historic allegations against a deceased person in future and to correct the balance.

I am relieved to learn that the Church of England is now holding an internal inquiry on how the Bishop Bell case was dealt with. I hope that it will include how the Church will deal with similar issues in the future, and that it will ask the right questions. I hope that it will also look at the language that the Church and its representatives will use, and remind them of the importance of caution in everything that is being said.

This is a problem that will not go away, and it is quite clear that the method of dealing with it somehow or other has to be improved. I am not sure how easy a code of conduct would be to achieve but it is, undoubtedly, a sensible suggestion that requires careful consideration. However, I am not convinced that statutory guidelines would be the right way forward.

I wonder whether your Lordships will allow me to tell the House a personal story. When I was a Court of Appeal judge, I was cautioned by the police in relation to an accident that occurred in Cardiff. They cautioned me in the Royal Courts of Justice in London in respect of a silver Honda Civic, with my number plate, which had turned right without giving any warning and knocked over and injured a cyclist. I said that I was in London on the day in question, sitting in court, and told them to ask the registrar. “We have done so”, they said. Then I told them where I was in the evening and that there was no way I could have got from trying a case in London to Cardiff. They said, “We know that, and we also know that the woman who did it had long hair”—I have always had short hair—“and was at least 20 years younger than you”. The reason for telling you this is that I then received a letter from the police saying that there was insufficient evidence to prosecute me.