Chuka Umunna
Main Page: Chuka Umunna (Liberal Democrat - Streatham)(11 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Chuka Umunna (Streatham) (Lab)
I beg to move,
That this House notes that in 2009 the Information Commissioner’s Office raided the Consultation Association which revealed a blacklist and files on more than 3,000 individuals which had been used by more than 40 construction companies to vet individuals and deny people employment for reasons including being a member of a trade union or having raised health and safety concerns and that extensive personal information on individuals and their families was held; recognises that the majority of individuals have still not been informed that they were on the blacklist nor given the opportunity to seek redress, despite recent confirmation that blacklisting checks took place on Olympic construction sites and allegations that the practice took place on public projects including Ministry of Defence sites, Portcullis House and Crossrail; further notes that at recent Scottish Affairs Select Committee hearings on blacklisting the Information Commissioner Investigations Manager raised concerns that there may have been collusion by police officers and security services in the compilation of blacklists; and in addition that it was also alleged at the hearings that a blacklist of environmental activists was compiled; and calls on the Government to immediately begin an investigation into the extent to which blacklisting took place and may be taking place, including on public sector projects, and to ensure that appropriate and effective sanctions are in place to tackle and prevent blacklisting.
The motion relates to a secretive, insidious and shady practice that has brought shame on our construction industry. Those who were responsible for it have yet to be properly held to account for their actions, which is why we have brought this matter to the House today. After seeing huge construction projects successfully delivered safely, on budget and on time by our construction sector—such projects include the Olympic park venues and Heathrow terminal 5—it gives me no pleasure to raise this matter, but debate this matter we must. It would be a dereliction of duty for us not to do so, given what has come to pass. I heard the comments that the Prime Minister made earlier in response to a question about blacklisting that was put to him in Prime Minister’s questions, and I should say that the manner in which he approached the issue is entirely inappropriate. That is because this is not a party political issue, which is why I provided the Secretary of State with an advance copy of my speech in an effort to build consensus; it is an issue of justice.
Our simple goal with this motion is to help right the wrongs done to people who, dating back to the British industrial revolution, have built and continue to build Britain. They build the airports, the roads and the railways we all use. They build the offices and factories we work in. They build the houses that we live in. Given the hazards of their trade, many of them have lost their lives in so doing over the years. They are our nation’s construction workers. Construction work may be hazardous and not terribly well paid relative to other occupations, but it provides an income to those who do it. It puts food on the plate; it provides a livelihood. But for a long time many of our construction workers have suspected that they were being systematically denied work—work that they were more than qualified to do. As a result, lives have been ruined, families have been torn apart and many have been forced out of the industry. Why? How? How on earth did this end up happening?
It is the usual practice for employers or employment agencies to seek references on potential employees or to otherwise vet them before hiring. Such vetting practices should be, and are on the whole, open, transparent, fair and carried out in compliance with the data protection regime. In the majority of cases such practices would not raise any eyebrows. However, carrying out a blacklist check is quite another matter, and that is what was happening on a grand scale in the construction sector.
Blacklisting involves checking to see whether a worker is on a blacklist and then discriminating against the individual if they appear on it. It involves systematically compiling information on workers which is then used by employers, or people making recruitment decisions, to discriminate against workers, not because of their ability to do the job, but for other, more sinister, reasons. In this case, the reason was simply that they raised health and safety issues and/or that they were an active trade union member.
The extent of blacklisting activity in the construction sector was exposed for all to see following a raid in 2009 by the Information Commissioner’s Office. The raid was carried out by the ICO on the offices of a shadowy and secretive organisation called the Consulting Association following a tip-off. Though the raid occurred in 2009, new details on the activities of the Consulting Association are only just coming to light, thanks to the excellent work of, and the ongoing inquiry into blacklisting by, the Select Committee on Scottish Affairs, which has been taking evidence from most of the key protagonists.
Trade unions, including the Union of Construction, Allied Trades and Technicians—UCATT—Unite and the GMB have also unearthed much evidence, as has the Blacklist Support Group. I am a proud member of the GMB and Unite unions, and I am proud to have UCATT headquartered in my constituency.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
I listened carefully to what my hon. Friend said, and I am a proud member of UCATT. Does he agree that the work it has done on behalf on its members—construction workers up and down the country—led to what we saw in 2009 and that if it had not been for the arduous work it has carried out for many decades, we would not be in the situation we are in now? However, we still have a long way to go.
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.
Bill Esterson (Sefton Central) (Lab)
I thank my hon. Friend on behalf of my constituents who have raised the issue with me. Some were on the blacklist held by the Consulting Association and others fear they might have been or are concerned for other people. Mick Chalmers raised the issue with me because of his concern for others, for example. Does my hon. Friend think that the investigation needs to go further than the 3,000 people named on the blacklist? Many other people have suggested that that is just the tip of the iceberg.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
My hon. Friend is right not to seek to apportion blame. I know that there were other distractions this morning, so I do not know whether he heard the interview with the Information Commissioner and the astonishing complacency with which he failed to address the fact that progress has been so slow in identifying even the 3,000, let alone others who might have been subject to blacklisting.
Mr Umunna
My hon. Friend makes a good point. Overall, although the Information Commissioner has done good work in this area his office needs to be far more proactive in its approach to the overall issue.
The Economic League was wound up in 1993 and its construction company members wanted to continue its activities in their sector, so the Consulting Association was set up. It spun off out of the league in 1993 and a former regional organiser of the league, Mr Ian Kerr, became its chief officer until it was wound up in 2009. Mr Kerr, through the association, ran a large-scale secret operation on behalf of the construction companies, which were all leading companies in the sector. Many of the construction companies have since sought to distance themselves from the association’s activities by claiming, for example, that its services were used by subsidiaries they did not own at the time. Some have simply maintained that none of their managers knew the practice was going on, despite strong evidence to the contrary. Let me be clear: these well-known construction companies were involved in some way, shape or form with the association and therefore with its practices and no amount of carefully worded legal statements, denials or excuses can hide that fact.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
Blacklisting is by its nature a hidden and clandestine practice and the hon. Gentleman is making very important points about the construction sector. Does he think that there are other sectors in which the practices are as widespread?
Jack Dromey (Birmingham, Erdington) (Lab)
I was involved 22 years ago in the exposure of the activities of the Economic League, including working with The Guardian. When the Economic League was wound up, assurances were given by the construction employers that they would never again engage in blacklisting, yet we know that that scandalous practice continued. Thousands of building workers who wanted a job, were qualified for a job and who were desperate for a job could not get a job and spent years out of work. Is it not time that the construction companies were put in the dock for their shameful continuation of the shameful practice of blacklisting?
Mr Jim Cunningham (Coventry South) (Lab)
It is not just the construction industry. In the manufacturing industry, we used to come across such cases. When I was a shop steward, some years ago now, an organisation called Aims of Industry was very active. I am glad we are having this debate, because it was shameful that a lot of people were condemned not to work again. We talk about equality and everything that goes with that, so surely that should be utterly condemned.
Mr Umunna
I completely agree. Such practices are totally shameful.
Mr Kerr disclosed that after he was prosecuted and fined £5,000 for breach of the data protection regime in respect of the activities of the Consulting Association, Sir Robert McAlpine Ltd paid the fine. Why did it do this? Not because David Cochrane, its head of human resources, was the chairman of the Consulting Association when it was shut down, although he was. No, the fine was paid by Sir Robert McAlpine Ltd because, as Mr Kerr told the Select Committee in November,
“I had put myself at the front and took the flak…so that they wouldn’t be drawn into all of this. They would remain hidden”.
Those involved cannot hide from the House today.
Jim McGovern (Dundee West) (Lab)
I am a member of the Scottish Affairs Committee and we took evidence yesterday from Cullum McAlpine, of Sir Robert McAlpine Ltd. Mr Kerr’s widow put it to us that there was an instruction from David Cochrane that the money paid to Mr Kerr should be put into his daughter’s bank accounts so that it could be hidden.
Mr Umunna
I pay tribute to my hon. Friend and all the other members of the Committee for the fantastic work they have done on this issue. I was going to come to that exact point, as the fine that was paid was essentially, in some respects, hush money. That is how I would describe it. According to the Information Commissioner, 44 construction companies made up the hall of shame that was the membership of the Consulting Association at the time of the 2009 raid I mentioned, including: five companies in the AMEC group; Amey Construction Ltd; six Balfour Beatty companies; BAM Construction Ltd; Carillion plc; Kier Ltd; Laing O’Rourke Services Ltd; Morgan Est and Morgan Ashurst, which are now known as Morgan Sindall; Sir Robert McAlpine Ltd, which I have already mentioned; Skanska UK plc; Taylor Woodrow Construction; and Vinci plc. Those are just a few of the companies listed. In fact, half of the 20 largest construction companies today and/or their subsidiaries were involved with the Consulting Association in 2009. They were charged a £3,000 annual fee for membership and then had to pay £2.20 for each blacklist check on a construction worker, which would be a drop in the ocean for them but would have severe consequences for the workers affected.
Julie Elliott (Sunderland Central) (Lab)
The companies my hon. Friend named are some of the biggest in the workplace today. Is it not a disgrace that the people they were blacklisting were often those who were drawing attention to problems and health and safety issues in the workplace? That should have benefited those companies, but instead they wiped away the concerns and said that there was not a problem. The problem is not just blacklisting but what they were trying to hide in their places of employment.
Joan Walley (Stoke-on-Trent North) (Lab)
This is an absolutely appalling situation, and the cover-up has been going on for a long time. The companies concerned must know what has been happening. The 22 companies to which my hon. Friend referred operate in constituencies all around the UK. Is it not important that they come clean, and show how they have been covering up attempts by trade unionists to ensure health and safety at work, so as to avoid accidents? It is just appalling.
Charlie Elphicke (Dover) (Con)
I think that all of us would agree that blacklisting is entirely unacceptable. The previous Labour Government consulted on the issue back in 2003, but no action was taken until 2010. Why? Why was the practice not stopped?
Mr Umunna
I say this to the hon. Gentleman, with whom I have enjoyed debating since we both joined the House two and a half years ago: I have already stated that different Governments perhaps should have done more about the issue. I cannot say fairer than that. If people want to make political points about what the last Labour Government did, fine, but I am not sure where that will get us.
John McDonnell (Hayes and Harlington) (Lab)
I think I was the one who raised the question in 2003. Many of us who were extremely frustrated and angry spoke on the Floor of the House about the regulations not being enacted, though they were brought forward and consulted on. The problem was this: the TUC sent a circular to every union, and it circulated in branches, too, but it was almost as though there was a rule of omertà within the industry; there was absolute silence and cover-up, right the way across that period. It was extremely difficult to get the evidence. Only when the Information Commissioner carried out the raid was hard evidence available.
Mark Tami (Alyn and Deeside) (Lab)
Does my hon. Friend agree that we are talking about not just those whose names appeared on the blacklist, but the many tens of thousands of people to whom it was made clear that if they raised issues such as health and safety, they might well appear on these lists? That was used to make sure that a lot of people did not raise perfectly reasonable issues.
Mr Umunna
That is right. Certainly, the anecdotal evidence that I have received absolutely confirms what my hon. Friend says. One of the problems is that there is what happens on the site and what happens in the boardroom. I have not come across a board director of any of the construction companies who would publicly or privately condone these practices, but these practices have been going on. One either acknowledges that and seeks to deal with them, or puts one’s head in the sand. It is the head-in-the-sand attitude that has been so unhelpful thus far.
Charlie Elphicke
As I said, I think we all agree that blacklisting is unacceptable, and was wrong. He mentions that the Information Commissioner took action in 2009. The regulations came into effect in 2010. The question, to my mind, is what can we as lawmakers do further, practically, in terms of the legal structure, sanctions and penalties?
Mr Umunna
I will come to that exact point in a bit. I shall explain how the association worked, for the record.
Mr Kerr maintained a list and files on at least 3,200 construction workers. Association members would feed him the names of workers, and information relating to them, to keep on file. It would be remiss of me not to mention that, regrettably—my hon. Friend the Member for Hayes and Harlington (John McDonnell) may just have alluded to this—there are allegations that there were some cases of trade union officials assisting in this process. The material included personal information, including on workers’ private relationships, whether they had raised health and safety issues, and their trade union activities. The copies of the files that I have seen give details of people’s specific movements on particular times and dates.
Before they recruited workers, association members would check with Mr Kerr whether the said worker was on the list, and if they were, they would be taken against, and were, more often than not, denied employment. As my hon. Friend the Member for Dundee West (Jim McGovern) said at the Select Committee’s cross examination of Mr Kerr, for £2.20, the association could dictate whether a worker got a job and so whether they could
“put a meal on the table that week.”
Mr David Hamilton (Midlothian) (Lab)
I thank my hon. Friend for bringing this subject to the House, and congratulate the Scottish Affairs Committee on progressing a scheme relating to blacklisting. I hope that we take up the argument that it is not just individuals such as me who were blacklisted; it was also the families. My wife could not get a job until she took my mother’s address. I was unemployed for two and a half years. It is not just the individuals who were blacklisted, but their families.
Kris Hopkins (Keighley) (Con)
I am listening to the shock and horror being expressed by the Opposition, and some individual and personal cases have been described, so why did Labour not enact the regulations until March 2010? Given that all this intelligence was known, why did it leave it until the last 60 days of a 13-year Government to enact them?
Mr Umunna
The hon. Gentleman totally misjudges the tone of the debate. If he had listened to what I said, he would have heard that the Consulting Association started its work in 1993, so two Governments could have, and perhaps should have, done more on the issue; I have said that three or four times. He does not add much with his intervention.
Rosie Cooper (West Lancashire) (Lab)
I am listening to political points being scored. I have to remind everybody that there are people and families at the heart of this. Those families deserve justice. They have been caught up in a terrible injustice that they have not been able to deal with. A constituent of mine was involved in the construction industry in the 1970s and ’80s. He was heavily involved in the union, and did not work for four years. His family suffered. We need to know how far and deep this disgraceful practice went. It deprived people of their livelihoods, and deprived their families incredibly. They suffered; should we now just score political points and walk away? I do not think so.
Mr Umunna
I hope that the hon. Member for Keighley (Kris Hopkins) will reflect on those comments.
Let me give an example. An ex-scaffolder and father of four from Wigan on whom the association held information was, like my hon. Friend the Member for Midlothian (Mr Hamilton), unable to get work for several years. He said:
“this nearly ruined my marriage and it meant that my children were on free meals at school.”
Hon. Members who mentioned the impact on families were absolutely correct to do so.
Consulting Association invoices show that between 2006 and 2009, the construction companies involved paid just under £500,000 for blacklist checks and information. Given the amounts involved, it is inconceivable that the companies’ use and membership of the association would not have been known about and sanctioned at a senior level, yet so far, not one of the companies mentioned has apologised for its membership and use of the Consulting Association. That is an utter disgrace, given all that has come to light. The workers involved deserve an apology, and the companies involved should stop prevaricating and issue an apology now.
For the record, I should mention that when Mr Kerr gave evidence to the Committee, he confirmed the existence—this responds to the point made by the hon. Member for Banff and Buchan (Dr Whiteford)—of a separate blacklist containing records on as many as 200 environmental activists, raising the possibility that there existed further, as yet unknown, blacklists relating to other sectors or groups that were being monitored.
Jim McGovern
I thank my hon. Friend for giving way—he has been very generous in taking interventions. It was not only construction workers—in fact, not only workers—who found themselves on the blacklist. Mr Syd Scroggie from Dundee—a disabled war veteran who lost a leg and the sight in both eyes while serving this country—found himself on the blacklist. Why? Because he sent a letter to the local press commending them for awarding Nelson Mandela the freedom of the city.
Mr Umunna
That is deeply shocking, and quite extraordinary. I thank my hon. Friend for adding that to the debate.
Unfortunately, in the past few months we have learned that blacklisting checks were carried out on workers who were to be engaged on publicly funded projects. In November, Mr Kerr submitted evidence to the Select Committee in which he stated that member companies used the association’s services to check potential employees applying to work on major public sector contracts. He said that the projects ranged from airport runways to buildings such as Portcullis House on the parliamentary estate, the Ministry of Defence in Whitehall, GCHQ, the Jubilee line, the millennium dome, private finance initiative projects, hospitals, schools, Olympic sites, roads, rail contracts and so on. That is corroborated by an admission last month by Balfour Beatty in a letter to the Olympic Delivery Authority. Without the knowledge of the ODA, Balfour Beatty admitted that it had used the services of the association in 2008 to check 12 prospective Olympic workers who, thankfully, went on to be employed. It was also corroborated yesterday by Cullum McAlpine, who is a director of Sir Robert McAlpine Enterprises Ltd, and was the chair of the association from 1993 to 1996, and confirmed to the Select Committee that Consulting Association services were used on a large number of public projects, again including the Olympics and the Jubilee line.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
Given the scale and scope of this disgraceful practice, does that not underline the urgent need to get to the bottom of this and take action to tackle it? We are going to invest in huge national infrastructure projects, whether in the energy sector or more widely, and we must never let this happen again.
Mr Umunna
I completely agree.
There has been concern that blacklisting may have taken place on Crossrail after it was revealed that a former senior human resources manager employed by a contractor on that project, Ron Barron, was a regular user and contributor to the association’s services in a previous job. An employment tribunal found that he introduced the use of the blacklist at his former employer, the construction firm, CB and I, and checked names with the association more than 900 times in 2007 alone. He was engaged as a consultant before the decision of the employment tribunal case against his previous employer was published, and the contractor says that it was not aware of the case.
In addition, the Select Committee has heard that there was information on association files regarding the monitoring of workers by the authorities because they were Irish nationals, and it has been suggested that they were barred from working on Ministry of Defence sites for that reason. I have tabled parliamentary questions to the Department for Business, Innovation and Skills, the Ministry of Defence, the Department for Transport, and the Department for Culture, Media and Sport on all those topics. The answers that I have received indicate that there has been no recent discussion, correspondence or investigation of blacklists being used by construction companies engaged on public sector projects. That may have changed since I received those answers. I do not believe any of the Ministers answering my questions were seeking to be unhelpful in providing those answers, but given what I have just set out and what we now know, there is sufficient evidence to justify the Government carrying out a full investigation into the extent of blacklisting that took place, and which may still be taking place, at the very least on public sector projects.
After carrying out an investigation, the Government should set out what practical steps may be needed to stop blacklisting, and to prevent blacklisting checks on public projects in future. No doubt, they will want to consider and reflect on whatever findings the Select Committee makes when it reports. We can have a discussion as to what form that investigation will take, but we need to learn the full truth of what went on. Beyond blacklist checks being made on workers on public sector projects, David Clancy, the Information Commissioner’s investigations manager, who carried out the raid in 2009 on the association, has made very, very serious allegations in relation to the police and security services. Giving evidence to the Select Committee, Mr Clancy, a former police officer, said he believed that some of the information held by the association would have come from the police or security services, based on the nature of the information held. For example, an in-depth analysis of an individual’s home circumstances and what his neighbours thought about him featured on one file.
Mr Kerr denied that the association had any involvement with the police or authorities. However, he confirmed that the Economic League, some of whose records formed the bank of information held by the association, had met and exchanged information with the police. At the very least, it is likely that some of the information given to the league by the police made its way on to the files held by the association. Having seen examples of some of the records myself, it is clear that they contained information based on the surveillance of individuals, including periods away from construction sites. It seems improbable that such information came exclusively from construction firms themselves. That further underlines the need for a full Government investigation into blacklisting, which should consider the role of the police and other such authorities.
Mr David Anderson (Blaydon) (Lab)
My hon. Friend is making a strong case. On his last point, even if the Government do not agree with anything else that has been said today, we have heard so much in the past few weeks about the role of the police over the past four decades—and the real worry is that faith in the police has been undermined by what took place two or three decades ago—that they must agree to investigate the cases raised today.
Mr Umunna
I absolutely agree. This is particularly serious and shocking, and if the police are to command the confidence of people in this country, the questions that hang over them in respect of their involvement with blacklisting must be properly investigated.
What about legal protections for construction workers and the system of redress for victims? Although it was and remains the case that it is unlawful to refuse employment on the grounds of trade union membership alone, at the time of the Information Commissioner’s raid on the Consultancy Association in 2009, there was no specific general prohibition on blacklisting. It was therefore left to the commissioner to prosecute Mr Kerr for failing to comply with the Data Protection Act 1998. As I said, he was fined just £5,000 as a result, which seems a shockingly small amount, given the devastation caused over the years. We have heard the evidence in the House this afternoon. Following the raid and the emergence of the blacklist, the Labour Government consulted on the issue of increasing the maximum monetary fine that could be imposed for serious breaches of data protection principles from £5,000 to £500,000. The increase came too late for the Kerr case.
Perhaps more shocking still is the fact that those firms that set up the association and became members—which supplied information to and accessed the blacklist—were neither charged with any offence like Mr Kerr nor ordered to pay compensation to the workers involved under that or any other law. To date, as I said, not one director of those companies has been brought to book for what happened. We also introduced the Employment Relations Act 1999 (Blacklists) Regulations 2010 a few months after the raid. They provide for victims of blacklists to seek redress from employment tribunals and civil courts only. They do not contain criminal sanctions, but they make it unlawful to compile, supply, sell or use a “prohibited list”'. To be prohibited, the list must contain details of current or former trade union members, or details of people who are taking part, or who have in the past taken part, in trade union activities. Non-trade union members on a list that includes trade union members qualify for protection too. The list must be compiled with a view to its being used by employers or employment agencies for the purpose of discriminating when recruiting or during employment.
As cases have progressed through the courts it has become apparent that the regulations need to be strengthened. I am coming on to the point that the hon. Member for Gosport (Caroline Dinenage) made. First, the regulations are not retrospective in effect. While they act as a strong deterrent to those considering using blacklists, many of the victims of the blacklisting in the past, whom I have described—and some hon. Members have been victims—are unable to make use of them to secure compensation. Given that this is the case, what more can be done to ensure that those who have been wronged have some form of redress or compensation?
Secondly, it is unclear to what extent those who are not employed, in the strict sense of that word, but are self-employed, may bring claims under these regulations where they have been refused work. We know that false self-employment in the construction sector is rampant, so this is an important point that needs to be cleared up.
Thirdly, claims can be brought in the employment tribunal or the county court. Though the cap on compensation in the tribunal is £72,300 and there is no cap in the county court, people often prefer—I know this from my previous practice as an employment lawyer—to claim in the employment tribunal because it can be less laborious for claimants and the cost consequences of losing a case are less severe. However, claims brought in the tribunal must be brought within three months of the alleged unlawful act. Claims brought after that time can be allowed only at the discretion of the tribunal. Again, that needs to be looked at, because so many of the people affected are not even aware that these unlawful acts took place.
The upshot of all this is that often the only legal remedy for a significant number of victims of blacklisting is through a complaint to the European Court of Human Rights in respect of a breach of their convention rights—article 8 on privacy and article 11 on freedom of information. That, of course, can take a long time and a great deal of resource. There are a number of cases going through the courts at present, which I will not refer to now as I do not wish to prejudice those trials, but we must be realistic about asking individual workers, many of whom have lost their livelihoods and so do not have huge resources, to enforce their rights against those very well resourced companies.
For these reasons I ask the Secretary of State, who I am pleased is here today, to carry out a review of the law in this area to see how it might be tightened up and protections and sanctions strengthened, and for him to report back to the House on his findings. I have deliberately not set out detail in respect of legal changes that may be needed to address these technical issues. That is something on which we can work together to achieve consensus. However, just as we correctly argue for robust legislation to protect whistleblowers, we must ensure that a climate of fear is not allowed to continue around the issue of blacklisting.
No worker on any building site or at other workplaces throughout the land should hesitate before reporting an unsafe site or a dangerous working practice. That means that they must have confidence that the law is with them—is firmly on their side—and that there will be no question of that report being noted down somewhere in a file for troublemakers, allowing firms such as the construction companies to get away with what they have been doing.
Finally, I turn to the work of the Information Commissioner.
Mr Umunna
I shall make progress, as I am aware that many colleagues want to get in.
Although I welcome the fact that the Information Commissioner has taken steps to work alongside trade unions by sending a list of names and dates of birth of blacklisted workers to four trade unions to check the names against their membership lists and to help alert their members that they have been affected, it is crucial that the ICO puts in place a proactive process, as I said earlier, so that those who have been blacklisted can be informed and can seek redress. This is particularly the case in respect of those affected who are not members of any trade union.
The ICO still has questions to answer on its approach to blacklisting and the way in which the 2009 raid was conducted. Why, for example, were just 5% to 10% of documents on the site recovered? Why was the raid not followed up by searches, with the necessary warrants, of the construction firms that supplied the bulk of Mr Kerr’s information? For the sake of the victims of blacklisting, I hope the ICO will be able to resolve these concerns.
In conclusion, what happened is nothing short of a national scandal. The sadness is that we cannot say with confidence that these practices are not still continuing. That is why action is needed. This action may take some weeks or months, but the time for denials and hiding their heads in the sand by the construction companies involved is over, not least because unless they apologise and accept responsibility, the reputation of the entire industry will be tarnished. That is not at all fair to those companies in the sector who have not engaged in those practices.
With that in mind, I end by asking the construction companies involved to consider setting up a fund into which they could all pay and which could immediately begin to compensate those workers who were blacklisted for the immense loss they have suffered. That, in addition to a full apology, would be a good place to start in righting the wrongs which have been done to our construction workers over the years. I commend the motion to the House.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
In trying to reflect the spirit in which the hon. Member for Streatham (Mr Umunna) introduced the debate, let me begin by saying that we would all agree that blacklisting is a thoroughly objectionable and indefensible practice. He is right to focus attention in particular on the construction industry. We all know that that industry is not only important but dangerous, and the health and safety issues in that sector are extremely important.
The reason that the hon. Gentleman has brought the debate is to seek an investigation—an inquiry. I have been listening very carefully and I shall try to be constructive. What I am not clear about, even after listening to him for half an hour, is whether we are talking about the word “was” or the word “is”. He spoke about “may be”. That is rather an important distinction.
Are we being asked to reopen an investigation that has already been held and legislation that has already been passed under the previous Government? I am not trying to be partisan; it happened. Are we being asked to revisit history—frankly, I am sceptical about the value of that—or are we talking about something that is actually going on? If it is actually going on, it is a serious matter and it needs investigation. I, of course, will want to see it properly investigated, but we want some evidence.
The hon. Gentleman made a speech today and there has been a battery of articles in the newspapers—a big page in The Times this morning—alleging that these things are happening. Well, bring it here. I will investigate it if there is any evidence that we can investigate. Let us be clear. Are we talking about now, or are we talking about an investigation into history?
Mr Umunna
I believe that what happened in the past needs to be investigated because we know and we have the evidence only now that it happened in the past. I have just explained and taken the Secretary of State in detail through the latest evidence, in particular that given to the Scottish Affairs Committee. Given that this practice happened in the past, it is right that we investigate how it came to happen. Why did Government Departments not know that it was going on? What questions were being asked? What do we need to learn from that?
In respect of the here and now, allegations have been made—I was very careful about the language that I used—to suggest that that is still ongoing. That also needs to be investigated.
Vince Cable
I hope the hon. Gentleman will agree that those are quite different things. If we are reopening the past, that is a different kind of inquiry conducted by different people in a different time frame. I need to be clear about what we are being asked to do.
Vince Cable
As I just said, if I can see any evidence that, under our Government—I have responsibility in this area—wrongdoing is taking place, or even evidence that suggests that it is taking place, I am very happy to investigate it. Nobody has yet come forward. As regards the past, one of the features that was not referred to earlier is the fact that the previous Government made it absolutely clear that the penalties and redress were not retrospective. That is what the previous Government determined. They could have applied fines retrospectively; they did not. They drew a line under history in 2010. That was their decision and that is what I inherited.
Mr Umunna
I am grateful to the Secretary of State for giving way again. In relation to what has happened and whether he should investigate matters that occurred in the past under previous Governments, his Government have announced the results of inquiries and set up inquiries across a range of Departments into what happened under previous Governments. That should not preclude an investigation now in respect of things that happened in the past.
On what is happening now, oral evidence has been given to the Scottish Affairs Select Committee outlining things that have happened. I am not talking about scurrilous press reports; I am talking about hard evidence—witness evidence—that has been given to the Select Committee.
Vince Cable
Let me just try to draw a line under this part of the argument. I am trying to be helpful; I do not see any particular value in having a party political barney over this. If there is evidence forthcoming about current practice, of course we want to have it investigated, and I will investigate it. For that reason, I am not going to recommend to my colleagues that they vote against the motion. It might well be true that there are issues here, and I do not want to close the door on the matter if there is evidence out there that needs investigating.
That is one set of issues, but there is a completely different perspective as far as the past is concerned. I will go over what happened in the past in a moment, but that is a different question. My responsibilities lie, as part of this Government, in dealing with things that might have happened over the past two and a half years. If things are happening, of course we must get to the bottom of it.
Vince Cable
Let me just answer this point.
I do not see the value of a fishing expedition. We need evidence that something is happening in order to investigate it.
Vince Cable
Let me just proceed a little more.
I should like to move on from that point and to ask, out of genuine curiosity, about the way in which this issue has surfaced in the form of an Opposition day debate. The Prime Minister was totally right to point out as a matter of fact that these things had happened before 2010, and I do not quite understand why that has caused such offence. Many of the issues that have been raised here relate to the conduct and behaviour of the Information Commissioner. As the hon. Member for Streatham and his colleagues know, those in the Information Commissioner’s Office are not Government officials responsible to Ministers; they are responsible to the House. The Information Commissioner is a different kind of animal from a Government Department. Many of the allegations relate to the courts, and to civil and criminal practice, for which we cannot take responsibility.
Vince Cable
I have read in the paper—and the hon. Member for Hayes and Harlington (John McDonnell) has now said—that there is an issue affecting the police force and the security services, but has he, or the Opposition spokesman or anyone else, referred the matter to the Independent Police Complaints Commission? Has it been referred to the security services Investigatory Powers Tribunal? It might be that such referrals did not lead anywhere and that we need to look at doing something else, but were they made in the first place?
Mr Umunna
I am genuinely flabbergasted by the Secretary of State’s response. He asks why we have raised these issues now, in an Opposition day debate. It is because of all the evidence that has come out of the Scottish Affairs Select Committee. I can tell him that we have seen other evidence as well, from outside the Select Committee, including the exchange of letters between the Olympic Delivery Authority and Balfour Beatty, not to mention some of the stuff relating to Crossrail. That is why we are having the debate now.
In respect of the right hon. Gentleman’s point about the courts and the tribunals, I am not asking him to impose his view of what the judgment should be in a particular case. We know, however, that one problem with the regulations is that employment tribunals have failed because, if someone was employed as a contractor on a project, without a direct employee-employer relationship, and they have been blacklisted, the regulations are no use to them. That is why I am saying that we need to review the law and to strengthen it.
Vince Cable
I should like to move on, but I shall just make the point that if those practices are continuing, it would be an extremely serious matter. It would need investigating and we might well need legislative change because the previous regulations were not strong enough. That might well be the case. I am just asking Opposition Members, particularly those on the Front Bench, to co-operate with me, because I am very happy to take this matter forward if there is an issue to investigate.
As far as the past is concerned, I will certainly look at all the evidence that has come out of the Scottish Affairs Select Committee, and we will see whether it needs to be dealt with in a different way, because it is a matter of history. I am primarily concerned, however, with the implication that this is still going on. Of course, if it is still going on, it needs to be investigated and stopped. That is the essence of the problem.
Chris Heaton-Harris (Daventry) (Con)
I congratulate the Opposition on bringing this motion before the House. I tried to intervene on the shadow Secretary of State, the hon. Member for Streatham (Mr Umunna), when he was about to deal with a part of the motion that needs a tiny bit of clarity—where it states that blacklisting “may be taking place” still.
Mr Umunna
I am happy to explain that. It goes back to a point made by the Secretary of State. I used the word “may” because there have been a lot of allegations about what may be happening right now, but we need people to come forward with the evidence. I believe that that evidence will be forthcoming to the Secretary of State fairly quickly after this debate.
Chris Heaton-Harris
I thank the hon. Gentleman for clarifying that.
I have no great knowledge of blacklisting, so when I decided to look into it for the purposes of this debate I read through the papers from the Scottish Affairs Committee, and it became fairly obvious that something pretty horrible had been happening over a long period. The right hon. Member for Dulwich and West Norwood (Dame Tessa Jowell) detailed her achievements in the delivery of the Olympic park. It is fascinating that even with such detailed negotiations involving the Olympic Delivery Authority, Government and trade unions, this practice could still take place. I would therefore ask her how, even with such detailed negotiations beforehand and probably a very beady eye being cast over all the proceedings, we can stop this practice happening. There is a lesson to be learned in relation to contracts and how we procure in future.
Gordon Birtwistle (Burnley) (LD)
I will not delay the House long, because the Secretary of State has commented on most of the things that I was going to say. However, I agree with the rest of the House: we should obviously outlaw blacklisting in this country.
In January 2010 the Labour Government passed the Employment Relations Act 1999 (Blacklists) Regulations 2010, which made it unlawful to compile, sell or use a “prohibited list”, or blacklist. Those regulations also include information on what a prohibited list would include. Therefore, as I understand it, the law is in place and does not allow retrospective claims. I would be pleased to be corrected, but I understand that that law has been in place since January 2010, and the Secretary of State is right to say that if blacklisting is continuing, we need to know and amend the law already in place.
Mr Umunna
On that point and the existing legal redress, as I said in my speech, false self-employment is totally rampant in the construction sector, and part of the problem with the existing law is that it does not cover a situation where someone is working as a contractor, because for them to get redress from those responsible for engaging in such activities is currently very difficult.
Gordon Birtwistle
I am happy with that intervention, which basically confirms what I have just said. If the law at the moment is not suitable, it needs to be changed. If there is proof of blacklisting from 2010 onwards when the law was introduced, an investigation should be initiated. If we find that the law is still being contravened and is not suitable to resolve the problem, that law needs to be looked at. I think the Secretary of State implied that in his contribution.
I come from the engineering industry, which is equally as dangerous as the construction industry, although I think engineering receives far more visits from the Health and Safety Executive than the construction and mining industries. Perhaps we could get some information from the Health and Safety Executive on why it feels that blacklisting is creating a lot of health and safety issues.
Gordon Birtwistle
It could perhaps confirm that, in the construction industry, health and safety issues are not being taken seriously—perhaps I can put it like that—and then report back to the Secretary of State as part of his investigation.
In September 2012 the Under-Secretary of State for Business, Innovation and Skills, the hon. Member for East Dunbartonshire (Jo Swinson) stated:
“Employees in the UK are protected against blacklisting by the Employment Relations Act 1999 (Blacklists) Regulations 2010. The Regulations allow them to bring a case to a civil court or an employment tribunal if they suspect that they have been denied employment, suffered detriment or been unfairly dismissed as a result of the use of an illegal blacklist.
As there is no evidence that the practice of blacklisting of trade union members is a widespread problem—”
since 2010—
“the Government do not believe that there is a need for further steps at this time.”—[Official Report, 10 September 2010; Vol. 550, c. 109W.]
The shadow Secretary of State says that there is new evidence, and if he is able to show the Secretary of State evidence that the law since 2010 has not been working, perhaps it would be a good idea for him to do that and for the Business Secretary to accept it and instigate what is asked for in the motion.
Gordon Birtwistle
No, because a lot of other Members want to speak. The Secretary of State has already indicated that he does not intend to press this to a vote and that is he prepared to listen to new evidence and hold cross-party talks with Members and with trade unions. If there is evidence that the law is not strong enough or that it has been broken, and that people who claim to have been blacklisted are not being listened to, he has said he is prepared to take that forward and look at a possible change in the law. I agree: I do not think we should have a vote tonight, as most sensible people would agree that we need to look at the issue again, and if it is proven that things have changed since 2010, we need to change the law. I support what the Secretary of State said earlier.
Kris Hopkins (Keighley) (Con)
It is a pleasure to follow the hon. Member for Bassetlaw (John Mann), who made a passionate speech. I have been contacted by several constituents regarding the practice of blacklisting and welcome the opportunity to contribute to the debate. I condemn those companies and individuals who have carried out such practices and note that the law now protects employees from blacklisting. Individuals can bring civil cases and take their case to employment tribunals if they suspect that they have been denied employment or that they have been unfairly dismissed as a result of illegal blacklisting.
I also note that, since the Information Commissioner’s investigation and the introduction of the blacklisting regulations in 2010, no evidence has been brought forward. Hon. Members have commented on cases today, and I look forward to hearing the evidence—the Secretary of State has said that he, too, looks forward to receiving it. I must therefore ask myself why we are having this debate. As a working-class bloke who has worked on building sites, I look to my bourgeois new Labour friends in the Opposition and conclude that the debate must be some form of guilt trip, because in 13 years of government, they introduced a regulation only 60 days before they left—it was in place for longer than the 50p tax hike that Labour introduced and claimed was a saving for the nation. The Labour Government let down a lot of people. As the hon. Member for Bassetlaw said, that is not an excuse for this Parliament not to address the problem, but the Labour Government failed.
Why are we having this debate today? I believe the trade unions have put an enormous amount of pressure on the Labour party—they are the Labour party’s paymasters. The Opposition have been obliged to introduce the debate. It is not so much a “Cash for debate” debate as a “Repent for Cash” debate. As we have heard, Labour Members are appalled, shocked and ashamed, but—I am sorry—they need to look in the mirror, because that is where a lot of the drama is as far as the blacklisting problem is concerned.
Mr Umunna
For the record, I think the comments the hon. Gentleman has just made are totally and utterly disgraceful, and not in keeping with the tone of this debate. I invite him to reflect on what his constituents are thinking as they watch him make this speech. The suggestion that somehow some undue influence has been put on us to secure this debate, or that somehow there has been any money involved whatsoever, is disgraceful and should be withdrawn.
Kris Hopkins
I absolutely stick with those words. For 13 years the Labour Government failed to address this issue, and then 60 days before the election they pop up and introduce a piece of legislation that somehow justifies their failure to look after working-class people. It is important that we have confidence in the Information Commissioner’s Office, that it has the laws available to pursue individuals and companies who are breaking the law, that there is a constant appraisal of the intelligence offered by different parties and that it acts on any relevant information, and that any victims of such acts have a clear route to redress. I am also pleased that we have a maximum penalty of £500,000, which is an important deterrent to individuals who may carry out such practices.
All through my time in employment I have been a great supporter of sensible trade unions, and all through my political career I have continued to build a strong relationship with them. It is extremely important that they have that responsibility. They have an important role to play in the workplace. If this was a Government debate on an issue promoted by a Tory donor, the Opposition would be outraged. While 81% of the Labour party’s funding comes from trade unions, including an £11,000 bung for the shadow Business Secretary, then although I think this issue is extremely serious—
Jo Swinson
The hon. Gentleman makes a very good point. It is fair to say that Members have also expressed concern about the level of the fine, however, and it is right that the legislation now in place allows for a fine of up to £500,000. That is far more appropriate for such a serious offence.
I appreciate that there has been a generally good tone to the debate today, and that it has not been overly partisan, but it is simply factual to point out that if the 2003 regulations had been implemented in 2003, the victims uncovered by the investigation in 2009 could have received compensation of £5,000 or more each, and a fine of up to £500,000 could have been levied—£5,000 might not seem very much to a big construction company, but £500,000 certainly does.
It is also worth looking at the list of 3,213 people who the Information Commission uncovered were on the Consulting Association’s blacklist. One point that has not been made today—I want to put it clearly on the record because there are people who are interested in this issue and will be following proceedings—is that anyone concerned that they might have been on the blacklist can either go to the ICO’s website, at ico.gov.uk, or call the fast-track helpline on 0303 123 1113, to find out whether they were on it.
Mr Umunna
I have two points. First, this is not just an issue of data protection; it is an issue of human rights and employment law. Secondly, since we brought in the anti-blacklisting regulations a number of claimants have sought to bring claims but have been unable to do so successfully because they do not have employee-employer relationship. Will the Minister address my earlier point on the need to look at the law and how it applies to the self-employed, given the sheer scale of false self-employment in the construction industry?
Jo Swinson
I thank the hon. Gentleman for his intervention and will come to the points he raised. With regard to the people on the blacklist, 2,633 have got in touch with the ICO and 218 matches have been found so far. I hope that the publicity surrounding this debate will mean that the number will rise as more people get in touch and find out.
Concerns have been raised about how proactive the Information Commissioner has been. I think that it is fair to say that, of all the people who will be concerned about data protection when sending out sensitive personal details, the Information Commissioner is likely to be the most careful in doing so. Sending out letters willy-nilly when people might have moved and when using an old card file is not easy. However, I understand that positive and constructive work is going on with the unions, including GMB and others, to try to ensure that people can get some firm identification and that there is some proactive contact of the people on the list. That is important and I very much encourage it to continue, but I know that it is something that is already happening.
I was pleased to hear the contribution from the right hon. Member for Dulwich and West Norwood (Dame Tessa Jowell), particularly on the Olympics, which of course were such a source of national pride. She outlined the positive impact the construction projects have had, and indeed the excellent record on safety. She was absolutely right to highlight that it was totally and utterly morally wrong for the construction companies to think that it would be in any way acceptable to check whether employees were on a blacklist. Balfour Beatty has admitted that behaviour, which I think speaks for itself. It might not have been a crime at the time, but there is no moral justification for it whatever. It is absolutely aware that such behaviour is unacceptable and now illegal. The hon. Member for North East Derbyshire (Natascha Engel) eloquently set out why blacklisting is also counter-productive and dangerous, particularly with regard to health and safety issues, especially in the construction industry.
Time is short, so I will move on to the key issues about the evidence we need to look at. The Scottish Affairs Committee is taking evidence on that at the moment, and we will look carefully at the report it produces. Other elements have been mentioned, such as the Balfour Beatty and ODA issue, but the letters relate to pre-2009, so I do not think that they constitute evidence of current breaches of the blacklisting regulations. Indeed, the same is true for Crossrail, because the first contracts for tunnelling and stations were not let until December 2010. However, the hon. Member for Rotherham (Sarah Champion) mentioned in an intervention that she might have anecdotal evidence of that, so I would encourage her to come forward with it.
I welcome the shadow Secretary of State’s earlier comment that he thinks that evidence will flow pretty quickly after this debate. I repeat that the Government are keen to see any evidence that comes forward and encourage any individuals who have evidence to bring it to us and to the ICO. I give a personal commitment that when the Select Committee reaches its conclusions I will give them my attention and ensure that any evidence that illegal blacklisting is continuing is properly investigated.