Modern Slavery Bill

Baroness Primarolo Excerpts

Tuesday 4th November 2014 Commons Chamber

[Diana Johnson]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Dawn Primarolo)]

With this it will be convenient to discuss the following:

New clause 4—Offence of exploitation—

‘(1) A person commits an offence if they exploit a person by means of the threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or abuse of a position of vulnerability, or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person.

(2) A person may be in a situation of exploitation whether or not—

(a) escape from the situation is practically possible for the person; or

(b) the person has attempted to escape from the situation.

(3) The consent or apparent consent of the person of the exploitation is irrelevant where any of the means set forth in section 9(1) has been used.’

New clause 24—Human trafficking—

‘(1) Any person who for the purpose of exploiting a person or persons—

(a) recruits, transports, transfers, harbours or receives a person including by exchange or transfer of control over that or those persons;

(b) by means of the threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or abuse of a position of vulnerability, or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person,

commits an offence of human trafficking.

(2) The consent or apparent consent of a person to the acts referred to in subsection 2(1)(a) or to the exploitation shall be irrelevant where any of the means set forth in subsection 2(1)(b) have been used.’

New clause 20—Control of assets related to modern slavery offences—

‘(1) In section 40 (Restraint orders) of the Proceeds of Crime Act 2002 after subsection (9) insert—

“(10) In the case of an investigation or prosecution under the Modern Slavery Act the court shall presume that the alleged offender will dissipate his assets unless restrained.”

(2) The Secretary of State shall within six months of this Act coming into force bring forward regulations to—

(a) presume a freezing order will be granted within 24 hours in respect of assets where the court is satisfied that—

(i) there are reasonable grounds to suspect that some of those assets have been obtained as a result of an offence under this Act, and

(ii) those assets are over and above those reasonably required for living and business expenses.

(b) confer on the police power to issue a notice on financial advisers and institutions placing a duty of care on those institutions in respect of movement of assets that might hinder an investigation into an offence under this Act.

(3) The Chancellor of the Exchequer shall within six months of this Act coming into force bring forward regulations to provide that assets recovered in respect of an offence under this Act shall be paid to one or more of—

(a) the police and/or,

(b) the Gangmasters Licensing Authority, and

(c) the victim or victims of the offence.

(4) The court will require an asset declaration from anyone subject to a restraint order within 24 hours in respect of any financial interests in assets held in whole or in part in the United Kingdom and in overseas territories. In the event of a false declaration, this will be treated as an aggregated factor in the setting of any future penalty.

(5) Regulations under this section shall be made by statutory instrument and shall not be made unless laid before in draft and approved by both Houses of Parliament.’

New clause 21—Civil remedy—

‘(1) An individual who is a victim of an offence under section 1, 2 or 4 may bring a civil action against the perpetrator in the County Court and may recover damages and reasonable legal costs.

(2) For the purposes of subsection (1) “damages” shall include the greater of the gross income or value to the defendant of the victim’s services or labour or the value of the victim’s labour as guaranteed under the national minimum wage guarantees of the National Minimum Wage Act 1998.”

This provision creates a civil remedy for victims of trafficking, to allow victims to pursue a civil claim for compensation directly from the trafficker in the absence of a criminal prosecution.

Amendment 132, in clause 1, page 1, line 12, at end insert—

‘(c) the person exploits another person within the meaning of section 3(4), (5) or (6) of this Act and the circumstances are such that the person knows or ought to know that the other person is being exploited.”

Amendment 135, page 1, line 12, at end insert—

‘(1A) For the purposes of this Act—

(a) it is irrelevant whether a child consents to being held in slavery or servitude; and

(b) a child may be in a condition of slavery, servitude or forced or compulsory labour whether or not—

(i) escape from the condition is practically possible; or

(ii) the child has attempted to escape from the condition.”

Amendment 136, page 1, line 12, at end insert—

‘(1A) For the purposes of this Act—

(a) it is irrelevant whether a person consents to being held in slavery or servitude; and

(b) a person may be in a condition of slavery, servitude or forced or compulsory labour whether or not—

(i) escape from the condition is practically possible; or

(ii) the person has attempted to escape from the condition.”

Amendment 133, page 1, line 17, after “labour”, insert “or is being exploited”

Amendment 143, page 2, line 3, at end add—

‘(5) The consent or apparent consent of a person to the acts referred to in subsections 1(1)(a) or 1(1)(b) shall be irrelevant.”

Amendment 152, page 2, line 4, leave out clause 2.

Amendment 134, page 2, line 30, clause 3, at end insert—

‘(1A) For the purposes of section (1) a person is exploited only if one or more of subsections (4), (5) or (6) of this section apply in relation to the person.”

Amendment 151, in clause 7, page 4, line 30, at end insert—

00 “Proceeds of Crime Act 2002

In section 69, subsection (2) of the Proceeds of Crime Act 2002, after “debt owned by the Crown”, insert—

“(e) in the case of an investigation or prosecution under the Modern Slavery Act the court must presume that the alleged offender will dissipate his assets unless restrained.””

Amendment 138, in clause 41, page 29, line 29, at end add—

‘(9) A child is not guilty of an offence if—

(a) he or she was under the age of 18 when the act which constitutes the offence was done; and

(b) the offence was integral to or consequent on the trafficking, slavery or exploitation of which he or she was a victim.”

This amendment aims to ensure a child victim of trafficking is not obliged to prove they were compelled to commit an offence before being able to access the protection of the statutory defence in line with international standards.

[Diana Johnson]

New clause 3 and new clause 4 seek to introduce specific offences for child and adult exploitation, and I would like to test the opinion of the House at the appropriate time.

The Bill fails to cover cases of severe labour exploitation, and many recent high profile cases show we need specific laws to tackle it. New clause 3 would also help to stop workers being exploited and paid below the minimum wage, which is often a driving force behind local businesses being undercut by unscrupulous employers. The new clause would be a historic measure that would, for the first time, make the exploitation of workers, adults and children an offence. Importantly, it also addresses what has been described as “a lacuna” in the Bill, which fails to recognise the specific nature of exploitation of children in the UK and fails to address the issues that have led to so few successful prosecutions for child trafficking and slavery. This grouping incorporates a series of amendments from all parties with a common aim—to enable more prosecutions for trafficking, slavery or exploitation. This is exactly in line with what the Minister said repeatedly in Committee about getting more prosecutions.

At this stage, the Opposition are focusing specifically on the offences of exploitation, even though in Committee we tabled or supported many of the other amendments that have been tabled today. We support their aims and hope to return to them in the other place.

The Government claim that the Bill will enable more prosecutions. To do so, it transposes existing offences from three pieces of legislation into a single Bill. The Bill maintains the current offence of holding someone in slavery and merges two existing offences of human trafficking into a single offence of human trafficking. To secure a prosecution for human trafficking, it is necessary to show that X was trafficked and that this trafficking was done for the purposes of exploitation. It is important to stress that, because nothing in the Bill deals with the structures of these offences or the very high threshold needed to get convictions. In short, I do not think there is anything here that will enable more prosecutions.

--- Later in debate ---

[Several hon. Members]

rose—

[Madam Deputy Speaker (Dame Dawn Primarolo)]

Order. I remind Members that, as a result of the timetable set by the Government, the debate on this group of amendments and new clauses must end at 4 pm, and I must allow time for the Minister to respond. I should be grateful if Members would bear that in mind when making their speeches.

--- Later in debate ---

[Mr Frank Field]

I also wish to speak on that theme, Madam Deputy Speaker. I know you will be pleased to hear that we will not press the matter to a vote, but we hope that the Minister will pick up the idea and translate it into effect in the other place. The change involved would be quite simple. The whole House agrees that we want to get more money back from these evil people. At the moment, we can start the process of freezing assets on the day the investigation begins. However, we have to prove that the person with the assets is likely to dissipate them around the world. The proposed change would mean that any agency attempting to freeze assets under the provisions of this Bill—which I hope will soon become an Act—would not be required to meet any threshold of proof that the person would otherwise dissipate them. That would make a huge difference to the number of people we hope will be prosecuted, as they could then have their assets frozen. There would then be a ready source of moneys with which the Government could make good on their wish to compensate the victims of slavery. Also, as my hon. Friend the Member for North East Cambridgeshire (Stephen Barclay) —as I call him on many of these occasions—has pointed out, those moneys could be used to help to pay for the policing involved, which would make the provisions of the Proceeds of Crime Act 2002 more effective.

[Madam Deputy Speaker (Dame Dawn Primarolo)]

Before I call Mr David Burrowes, I must ask him to bear it in mind that we have one more speaker on this group of amendments. If he and Mr Durkan could each speak for about four minutes, that would give the Minister time to reply before 4 o’clock.

[Mr Burrowes]

I rise to commend my hon. Friend the Member for North East Cambridgeshire (Stephen Barclay), particularly for his new clause 20, which I support. Many have said that we need to follow the money, but we also need to recover it and ensure that it gets to the right places, not least law enforcement agencies. I am aware from previous discussions about proceeds of crime that it becomes a territorial issue, not least within the Government. It is important, and it is very much in the Minister’s and Department’s self-interest, to ensure that the money is recovered and that it goes where we want it to in law enforcement. So I very much commend the purpose of the new clause.

I will speak briefly to amendments 132, 133 and 134, continuing the debate we had in Committee about the importance of recognising and prosecuting exploitation, whether or not a person has been trafficked, and where the form of exploitation cannot be construed as slavery, servitude or forced labour. I will not go over old ground. I am grateful for the Minister’s letter following the debate, where she sought to reassure the Committee that such situations are covered by the definition of “forced labour” in European Court of Human Rights case law and the Court’s understanding of that as “all work or service.” My concern is that we should not just rely on European jurisprudence and we need to take the opportunity to have clarity in the Bill, not least for front-line officers, who are trying to use all the tools in the box. We will have the guidance that the Minister says is going to come, but we need greater clarity on the wider understanding of “exploitation”.

The Minister also provided reassurance by saying that situations of begging, benefit fraud and petty criminality can be covered by prosecution for other offences. I hear that, but I have concerns relating to those other offences, not least those involving assisting or encouraging another offence, for example, begging or theft. That would mean that to prosecute exploitation we would be relying on construing the victim not as a victim, but as an offender, aided or encouraged by their exploiter. We recognise that the victims are the victims, and we need to ensure that “exploitation” covers the entire range of modern day slavery. Further work can be done on that, perhaps in the other place. She also said that other penalties can be attracted, but I am not convinced that they are sufficient, given the nature of these offences. So I ask for further consideration of a wider construction of “exploitation”. We also need to ensure, as my proposal seeks to do, that that construction covers the nasty exploitation of children. We have the definition of exploitation in clauses 3(5) and 3(6) and this is about widening the construction in the way that the Minister and all of us want, particularly in relation to children.

Finally, I wish to flag up the issue of consent. That is a live issue, where work still needs to be done. We all agree on the law; the issue is whether it should be explicit in the Bill, avoiding the Minister’s concerns about it getting in the way of prosecution and about relying on evidence where consent is an issue, but making it clear that what we all say—

--- Later in debate ---

[Mr David Hanson (Delyn) (Lab)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Dawn Primarolo)]

With this it will be convenient to discuss the following:

New clause 16—Accommodation operated by gangmasters—

‘(1) The Secretary of State shall within one year of this Act being passed bring forward regulations to require gangmasters providing, or soliciting a third party to provide, accommodation to a worker to—

(a) agree and keep of a copy of a tenancy agreement with the worker;

(b) provide and keep copies of receipts for any rent paid by the worker to them; and

(c) keep a rent book recording rent due and paid.

(2) In section 7 of the Gangmaster (Licensing) Act 2004 after subsection (5) insert—

“(6) It shall be a condition of holding a license under this section that the gangmaster provide on request to the Authority or a local authority the documents required under regulations made under section (Accommodation operated by Gangmasters) of the Modern Slavery Act 2014.”

(3) The Authority and police shall have the right of inspection of tenancy agreements held by letting agencies where there are reasonable grounds to suspect a number of properties are let or sub-let by the same individual to multiple workers.”

New clause 17—Gangmasters: offences, financial transactions—

In the Gangmaster Licensing Act 2004 after section 13 (Offences: payments to or by gangmasters) insert—

“13A Offences: gangmasters, financial transactions

(1) This section applies to a person who is acting as a gangmaster in respect of a worker (“W”).

(2) The person commits an offence if whilst acting as set out in subsection (1) they make a payment to W that is not made either—

(a) by a cheque which under section 81A of the Bills of Exchange Act 1882 is not transferable, or

(b) by an electronic transfer of funds (authorised by credit or debit card or otherwise), or

(3) The person commits an offence if—

(a) whilst making a payment to W in respect of work they do not keep a record of the payment and the hours worked for which the payment is due, or

(b) if they do not produce such a record when required to by either the Gangmasters Licensing Authority or the police.

(4) The Secretary of State may by regulations amend subsection (2) to permit other methods of payment.

(5) In this section making a payment includes payment in kind (with goods or services).

(6) If a gangmaster pays a worker in breach of subsection (2), each of the following is guilty of an offence—

(a) the gangmaster;

(b) if the payment is made with the knowledge of the person to whom the gangmaster is supplying W, that person; and

(c) any person who makes the payment acting for the gangmaster.

(7) It is a defence for a person within subsection (4)(a) or (b) who is charged with an offence under this section to prove that the person—

(a) made arrangements to ensure that the payment was not made in breach of subsection (1), and

(b) took all reasonable steps to ensure that those arrangements were complied with.

(8) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 5 on the standard scale.”

New clause 18—Provision of fixed penalty notices for gangmasters—

‘(1) The Gangmasters (Licensing) Act 2004 is amended as follows.

(2) In section 12 (Offences: acting as a gangmaster, being in possession of false documents etc.) after subsection (4) insert—

“(4A) The Secretary of State may by regulations make provision for fixed monetary penalties to be applied for an offence under this Act where—

(a) the offence is of a lower level of severity, and

(b) slavery, servitude and forced or compulsory labour is not a contributory factor in the offence.

(4B) Regulations made under subsection (4A) shall be made by statutory instrument and may not be made unless laid before in draft and agreed by both Houses of Parliament.””

New clause 19—Investigation of modern slavery offences by Gangmasters Licensing Authority—

‘(1) In section 1 (The Gangmasters Licensing Authority) after “holding licences under this Act,” insert—

“(c) investigate offences under section 1 of the Modern Slavery Act 2014, and related offences of fraud, where those offences involve gangmasters,

(d) investigate offences under section 1 of the Modern Slavery Act 2014, and related offences of fraud, where those offences are alleged to have been committed by a person licensed under this Act, whether or not the offence was committed in their capacity as a gangmaster,”

(2) The Secretary of State may by regulations confer powers on the Gangmasters Licensing Authority in order to investigate offences under this Act.

(3) Regulations under subsection (2) shall include provision to require financial institutions to disclose details of financial holdings to the Gangmasters Licensing Authority or the police in pursuit of an investigation of an offence under this Act.

(4) Regulations under this section shall be made by statutory instrument and may not be made unless they have been laid before in draft, and approved by, both Houses of Parliament.”

New clause 2—Protection from slavery from overseas domestic workers—

‘(1) All overseas and domestic workers, including those working for staff of diplomatic missions, shall be entitled to—

(a) change their employer (but not work sector) while in the United Kingdom;

(b) renew their domestic worker or diplomatic domestic worker visa for a period up to 12 months as long as they remain in employment and are able to support themselves adequately without recourse to public funds; and

(c) a three month temporary visa permitting them to live in the United Kingdom for the purposes of seeking alternative employment as an overseas domestic worker where there is evidence that the worker has been a victim of modern slavery.”

New clause 6—Procuring sex for payment—

‘(1) A person commits an offence under this section if he or she procures sexual intercourse or any other sexual act, whether for himself or for another person, in return for payment.

(2) A “payment” includes—

(a) payment that is promised or is given or promised by another person; and

(b) provision of non-financial benefits, including, but not limited to, drugs or alcohol.”

New clause 7—Strategy on assistance and support for exiting prostitution—

The Secretary of State shall, at least once in every year, publish a strategy to ensure that a programmes of assistance and support is made available to a person who wishes to leave prostitution.”

New clause 22—Prostitution and sexual exploitation—

‘(1) The Secretary of State must undertake a review of the links between prostitution and human trafficking and sexual exploitation in England and Wales.

(2) The review under subsection (1) must consider—

(a) the extent to which the current legislation governing prostitution in England and Wales acts as an effective deterrent to demand for sexual services from exploited persons;

(b) the extent to which the current legislation governing prostitution in England and Wales enables effective enforcement action against those trafficking people for sexual exploitation; and

(c) the extent to which alternative legal frameworks for governing prostitution adopted by other countries within the European Union, including Northern Ireland, have been effective at reducing sexual exploitation and the number of people trafficked for the purpose of sexual exploitation.

(3) The review under subsection (1) must be completed and a copy must be laid before Parliament within six months of Royal Assent.”

New clause 23—Consultation on prostitution, sexual exploitation and trafficking—

‘(1) The Secretary of State must initiate a statutory consultation on the introduction of legislation prohibiting the procurement of sex for payment.

(2) The consultation in subsection (1) must seek to ascertain the degree to which the prohibition of sex for payment would—

(a) reduce the number of people sexually exploited in England and Wales;

(b) reduce demand for sexual services from sexually exploited persons in England and Wales;

(c) reduce the number of people trafficked into England and Wales for the purposes of sexual exploitation.

(3) In undertaking the consultation in subsection (1) the Secretary of State must—

(a) seek the views of those who work with trafficked and exploited persons in England and Wales;

(b) seek the views of the Director of Public Prosecutions and the Association of Chief Police Officers; and

(c) allow submissions from members of the public.

(4) The consultation must be completed and a summary of the results laid before Parliament within six months of the date of Royal Assent.”

Amendment 1, page 45, line 21, at end insert—

“Street Offences Act 1959

‘(10) Omit section 1”

[Mr Hanson]

New clause 1 and the other amendments in this group address a wide range of issues that are linked by the terminology of exploitation but cover different aspects of concern. They include my suggestions on gangmasters; comments and suggestions on the same topic by the hon. Member for North East Cambridgeshire (Stephen Barclay); how we deal with overseas domestic workers; and a wide ranging group of amendments on how we deal with the sensitive, difficult and challenging issue of prostitution. I will cover a number of issues, and I hope I do justice to them and set out the official Opposition’s position.

New clause 1 revisits an issue that we discussed intensely in Committee: the role of the Gangmasters Licensing Authority. We considered a number of things to do with extending the role of that authority, and in the light of those discussions the new clause simply establishes that

“The Secretary of State may by order amend section 3 of the Gangmasters (Licensing) Act 2004”

to include other areas of work should a future Secretary of State determine that exploitation, modern slavery or trafficking was taking place. It gives the Secretary of State power to do that by order, rather than having to introduce new legislation.