Modern Slavery Bill

Baroness Young of Hornsey Excerpts

Monday 23rd February 2015 Lords Chamber

Having gone through some rather inquiring comments—I do not want to say that they are critical, because I very much support what the Government are doing in this area—I come back to my original points on circumstances and characteristics. I beg to move Amendment 1.

[Baroness Young of Hornsey (CB)]

My Lords, first, I thank the noble Baroness, Lady Hamwee, for her support on my Amendment 7. I raised this issue in Committee, but since then I have made a little refinement to this proposed new clause to make it clearer. I thank Klara Skrivankova again for her help in talking me through the importance of this provision. I should declare an interest as a trustee of the charity Aid by Trade, which supports the Cotton made in Africa project—the House will perhaps see the relevance of that later on—and as a patron of Anti-Slavery International.

I do not want to take up too much time because, like the noble Baroness, Lady Hamwee, I agree that we want to push on with the Bill and make sure that we get it into the best possible shape that we can in the limited time that we have. However, it is worth while just going through some of the background to this amendment. The amendment tries to draw attention to the fact that those who benefit financially from forced labour, which is now recognised to be something like a $150 billion-trade, are not only those who are directly involved in the exploitation of their victims. It goes wider than that. The individuals and companies that choose to disregard information about slavery in their supply chains so as to ensure continued revenue maximisation are also culpable.

The business model behind forced labour demonstrates that the two main reasons for using it, and for implicitly accepting exploitative practices in the supply chain, are of course cost reduction and revenue generation. The total cost of someone who is working in a coercive situation for an exploitative employer is clearly less than it would be if the arrangement were lawful. In a very competitive environment where there is constant pressure to cut costs, many agents promise to provide workers for an extremely low outlay. While the Bill provides for significant penalties for those who enslave or traffic others, it currently omits liability for those who benefit from the enslavement of others through the acts of third parties. This allows those who choose to do so to ignore a situation where there is exploitation and to escape justice, even though they derive profit from such unlawful activities.

The issue of liability for benefiting from modern slavery is addressed, as the noble Baroness, Lady Hamwee, has already mentioned, in the EU trafficking directive to which we are a party. I reiterate the question which the noble Baroness asked of the Minister: to explain why it seems that we are a little behind in endorsing that in an active way.

The directive requires member states to establish liability for benefiting from the exploitation of others committed by a third party and to make provision for criminal and non-criminal sanctions for those who benefit in this way. There is a similar provision in the United States under Code 1589, which makes it an offence punishable by a fine or imprisonment of up to 20 years to knowingly benefit financially or receive anything of value from forced labour or services.

When I raised the earlier version of this amendment in Committee, I shared the example of a Belgian motorway restaurant company that was held liable for the exploitation of the workers who were cleaning the toilets at its premises. Those cleaners were actually employed by a subcontractor, not directly by the restaurant company, but essentially that company was brought to justice for its role in ignoring the very clear evidence that this form of exploitation was taking place on its premises in its business.

I am concerned, though, that there are British businesses that benefit from forced labour. A number of noble Lords will be aware of the situation in Uzbekistan with regard to cotton harvesting, but unfortunately it looks as if a couple of British companies are continuing to trade in cotton from Uzbekistan, despite the fact that it is well known that the authorities there use forced labour from their own citizens to pick cotton, most of which is destined for international export. Children and adults are forced to pick cotton under threat of punishment or incarceration, and the only way out is to try to find the money to pay someone else to do that job for you. We know—there is masses of evidence—that trading in cotton from Uzbekistan means trading in a commodity that is effectively produced entirely by slave labour. If you are trading with Uzbekistan, you are profiting from that slave labour, and under the amendment you would be liable to be brought to justice for doing so. I understand that two UK companies currently buy and trade in cotton from Uzbekistan despite their knowledge of what is going on there.

If we are serious about stamping out enslavement and forced labour, particularly that involving children and young people, we have to make it unprofitable, and that is what this amendment seeks to do. It would also address instances where a person is exploited in domestic servitude in a private household and is lent to friends or relatives as free help in the knowledge that this worker has been treated like a slave by the employer. It would cover landlords who know that their property is being used to harbour those in a situation of slavery but who choose to ignore it because of the revenue from renting out the property. Clearly no one in the UK should be profiting from enslavement—that is the driving force behind the Bill—so I hope that the Minister will give careful consideration to this in the same manner as he has to all the previous arguments and debates on the Bill. Obviously we all want to achieve the same result, but we want to make it as hostile as possible for people to benefit from trafficking and enslavement, even if indirectly.

The obvious villains are the traffickers and enslavers—they are the big baddies who we can obviously go after—but, as I have tried to outline here, there are a number of companies and organisations, not just in Britain but around the world, which are profiting from that in a knowing way, and that is wrong. As I said, we have an obligation under EU law to do something about this, so perhaps the Minister can explain to us why the Government seem to be slightly reluctant to put the principles underlying the amendment in the Bill and to reinforce its message on forced labour and trafficking.

[Baroness Royall of Blaisdon (Lab)]

Bizarrely, my Lords, I support government Amendment 4 in the name of the noble Lord, Lord Bates; it has not yet been moved but I am sure that he will wish to respond to the debate as a whole. I am grateful to the Minister for the huge amount of work that he has done behind the scenes in Committee and on Report, bringing forward a number of changes to the Bill, including on offences. I do not think that the amendment goes far enough, as will be clear when I speak in the debate on the amendment tabled by the noble Baroness, Lady Doocey; we would have liked to have seen clearer and better defined offences, as was recommended by the draft Bill committee. However, we recognise that the government amendment before us today is a step in the right direction in bringing to justice those who have exploited others—adults or children—so we welcome it as far as it goes.

In a letter to me, the Minister spoke of the very good way in which the collaborative nature of this Bill has worked. It vindicates the enthusiasm that we all have for pre-legislative scrutiny, which not only improves a draft Bill but enables all those concerned to be properly engaged and makes the legislative process a lot better, so I look forward to more of it.