Blacklisting

Caroline Dinenage Excerpts

Wednesday 23rd January 2013 Commons Chamber

[Mr Umunna]

I completely agree with my hon. Friend’s comments.

The Consulting Association was born out of the old Economic League, which had been established in 1919 to promote free enterprise and to fight what its supporters saw as collectivism, socialism and communism—left-wing thinking to which they objected. The league was notorious for blacklisting more than 10,000 people, including Members of this House, trade unionists and journalists. In 1991, it was heavily criticised by the old Select Committee on Employment for dishing out clandestine and inaccurate information suggesting that individuals were unsuitable, leading to many being denied employment.

[Caroline Dinenage (Gosport) (Con)]

I welcome the hon. Gentleman’s assertion that this should not become a party political point-scoring debate. However, Labour consulted in 2003 on introducing regulations against blacklisting but announced that they would not be doing so because evidence suggested that it had been eradicated in the early 1990s. Can he explain that to me?

[Mr Umunna]

It is fair to say that until 2009 hard evidence on the scale we saw unveiled by the Information Commissioner had not come to light. I accept that different Governments of different hues should perhaps have done more since the Consulting Association was set up in 1993, but I am not really interested in attributing blame. I am interested in ensuring that we right the wrongs and that should be our focus.

--- Later in debate ---

[Vince Cable]

I am coming to the Balfour Beatty point, which I think related to events four or five years ago; I am happy to be corrected, but that is my understanding. Let me say what I think happened in that case. We knew that Balfour Beatty wrote to the Olympic Delivery Authority admitting that one company in its group made checks on 12 potential employees prior to February 2009. That was in response to a letter from the ODA, one of a number sent to high-profile contractors. The firm insists that all 12 people were given jobs and that there was no wider or further use of pre-employment checks. The ODA has taken a very clear and unambiguous stand condemning blacklisting in the operation of the Olympics. There is no question but that the practice was taking place well back during the last Government.

I have already responded to allegations of collusion by the police and security services. There is then the question of remedies; people have clearly been damaged, and evidence has been advanced. Let us review the redress. Those excluded from employment can seek redress in the county courts or the Court of Session in Scotland and other rights under the regulations can be enforced in employment tribunals.

I repeat the point I made in response to an intervention: the last Government took the view that legislation should not apply retrospectively and prior to 2010. I suspect that a lot of the frustration and anger of people who have been hurt by what happened relates to the decision not to apply the measures retrospectively.

[Caroline Dinenage]

The Secretary of State is being generous in taking interventions. Does he think in retrospect that it was a mistake not to make the legislation retrospective, given the evidence that we have heard, particularly from the Opposition, about the real human impact? Thousands of families have potentially been impacted and prevented from claiming compensation retrospectively.

[Vince Cable]

From a human point of view, drawing a line at that point clearly caused damage. However, on a wide variety of measures the House has always taken the view that retrospective legislation is dangerous and creates all kinds of problems.

A number of individuals believe that they have been affected by the blacklisting and they have taken action through the courts. As I understand it at the moment, last year 86 workers who believed that they were blacklisted launched a High Court claim against Sir Robert McAlpine for conspiring with other firms to keep them out of work. Legal proceedings on that action are still under way, so I cannot usefully discuss the matter. However, a major legal action is taking place and it will, of course, affect the issue of redress.

In conclusion, I repeat the points I made a moment ago. My primary concern, in the job that I now have, is what is happening under the Government in respect of my responsibilities in this field. I am concerned to read that abuse is, or even may be, taking place. My door is open at any time to any Opposition or Government Member who has evidence of abuse, because we want to stop it and we will certainly investigate it if it is happening. I will look carefully at the report of the Scottish Affairs Committee to see whether fundamentally new questions have emerged from its inquiry.

We will deal with the other issues in the summary session. If Opposition Members or trade unions have evidence, I really want them to bring it forward. Innuendo is not helpful; we need evidence.