British Steel

Chuka Umunna Excerpts

Wednesday 24th July 2019 Commons Chamber

[Greg Clark]

The hon. Lady makes a good point. We have published figures for each Department on their use of British steel. It is the case, and the House should be aware of this, that not all types of steel used are actually made in the UK. At least at the moment, it is not possible to supply all of our steel needs from domestic supplies; that is the reality. She mentioned the MOD, and my hon. Friend the Under-Secretary of State is working closely with the Ministry of Defence so that its support for the steel charter results in increasing levels of procurement of British steel.

[Chuka Umunna (Streatham) (LD)]

We can be incredibly proud of our steel industry. It is of course a primary example of where industrial activism generally, on the part of the Government, is absolutely vital. If we see any form of Brexit, which the Secretary of State knows I oppose, it will of course be even more important that we have industrial activism. I am in no way agitating for his removal, but will he assure this House that if he is replaced in post in the next 24 hours, he will urge any successor not to turn their back on implementing a proper industrial strategy? Now is certainly not the time for a return to the Thatcherite economics that, frankly, saw the destruction of so many great industries in this country.

[Greg Clark]

I am grateful to the hon. Gentleman for what he has said. He and other hon. Members will know that the approach we took to developing the industrial strategy was to seek, I think successfully, to engage all parts of the country, all parts of the economy, and different firms, business leaders, local leaders and trade unions, to have something that reflects, as far as possible, a shared view of what our priorities should be in the future—whether that is investing in infrastructure, investing in skills, increasing the research and development investments that we make in this country, and identifying opportunities, such as in the future of mobility or the analysis of data, that are great sources of global opportunity for Britain. We did it in that way because I think it is right for an industrial strategy to endure—a short-term strategy is a contradiction in terms. I hope the consensual way in which it has been put together and the content of it will commend the industrial strategy to the incoming Government. It is obvious from what the hon. Gentleman has said that he will play a role from his seat in ensuring that those in government do that.

Oral Answers to Questions

Chuka Umunna Excerpts

Tuesday 16th July 2019 Commons Chamber

[Greg Clark]

For precisely those reasons, the issue is already being looked at by the Competition and Markets Authority. It is important that people are not penalised and do not find it difficult to extract themselves from commitments that are easily entered into. There needs to be fairness and transparency, and that is precisely what the CMA is engaged in.

[Chuka Umunna (Streatham) (LD)]

4. What assessment he has made of the effect of two-factor payment authentication on (a) consumers and (b) businesses.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

The implementation of strong customer authentication, which mandates two-factor authentication for some online payments, will introduce more secure payments for individuals and businesses. That was introduced by the second payment services directive. The Treasury published an impact assessment on the implementation of that EU directive in 2017.

[Chuka Umunna]

I am staggered that the Government are not doing more about this ticking timebomb for online retail, which is on track to cause major disruption. The British Retail Consortium estimates that 75% of retailers are unaware that it is coming into effect in September. It is the same for consumers. The implementation is forecast to lead to the failure of nearly a third of e-commerce transactions from September, due to poor access to a proper phone signal or wi-fi. Will the Minister ensure that no enforcement action will be taken for at least 18 months, to give our retail sector breathing space to adapt to the new rules?

[Kelly Tolhurst]

I point out that there was £309 million-worth of fraud in e-commerce in 2016 versus £13.6 million in 1998. The hon. Gentleman will know that the European Banking Authority published an opinion on readiness for implementation and the Financial Conduct Authority published a statement in June. They are working on mitigations past the September implementation date. They are working with industry and providers to make sure that the essence of the changes prevail, which is to make it safer for merchants and consumers.

Businesses: Late Payments

Chuka Umunna Excerpts

Wednesday 19th June 2019 Commons Chamber

[Kelly Tolhurst]

I thank the right hon. Gentleman for raising that. I highlight his particular interest in this area and the fact that he was one of the Ministers responsible in Northern Ireland when project bank accounts were introduced there. He is right that there are absolutely some merits in such accounts; as he knows, I have taken a particular interest in the subject and I will continue to work on it. The Government are clear that where project bank accounts can be used with Government contracts, they will be, although they are not always a suitable measure in some large contracts.

Today, I have announced a suite of tools to tackle late payments. Am I going to stand here and say that in future we will not have to do anything more? Of course not. Part of government and what we need to do in a changing economy and business environment is to make sure that we keep looking at ways to make things easier for small businesses.

[Chuka Umunna (Streatham) (LD)]

I thank the Minister for advance sight of her statement. She talked about the challenges facing small businesses. Brexit, of course, will cause huge disruption to small businesses’ supply chains, given the added bureaucracy and tariffs.

This statement on late payments is welcome, but may I ask the Minister again the specific question put by the Chair of the Business, Energy and Industrial Strategy Committee, the hon. Member for Leeds West (Rachel Reeves)? Why not make the prompt payment code mandatory—compulsory for large businesses? Why is there is further delay with consultations and what have you? She should make it mandatory, as we have been arguing for.

[Kelly Tolhurst]

I thank the hon. Gentleman for welcoming the statement and the moves that the Government have made today. He is absolutely right about the prompt payment code: it is voluntary. As it stands, there are more than 2,000 signatories to it; they sign up and commit to paying 90% of their invoices within 60 days. As he will know, the Government initiated the new duty on companies to report biannually on payment practices. To date, we have had more than 15,000 reports for over 7,000 companies. That data has enabled the Chartered Institute of Credit Management to scrutinise the voluntary code payment data.

We have seen action. Five businesses have been removed from the code and 12 have been suspended. As I have outlined today, when people are not complying with the legislation, we will take action. We are continuing to move forward to strengthen the prompt payment code and close any holes and weaknesses that there are.

Industrial Strategy

Chuka Umunna Excerpts

Monday 27th November 2017 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend for his welcome for the White Paper. He will see that one of its important features is the recognition that clusters—that is to say, businesses in the same sector all reinforcing each other—can lead to excellent performance.

On the basis of this strategy, substantial new investments have been committed in the life sciences sector, but these are the first in a pipeline of new investments that will follow all across the country and in every part of the United Kingdom, justifying the attention and the work that we have been engaged in—led by Sir John Bell, the eminent scientist—to make sure that we are the go-to place in the world for anyone with an interest in the future of the life sciences.

[Chuka Umunna (Streatham) (Lab)]

The publication of the strategy is welcome, but I have two asks of the Secretary of State. First, for this to succeed in the long term, it has to be able to survive changes of Government. Is it not about time that we set up a cross-party commission to build the political consensus needed to produce further iterations of the strategy? Secondly, let us be honest and recognise that the biggest institutional barrier to what he is proposing is the Treasury. Treasury orthodoxy has never properly got behind the concept of an industrial strategy. Is it not time to change his Department into a proper Ministry of economic reform that takes on all non-fiscal economic policy, across the Government, and which is equal to, not subordinated to, the Treasury?

[Greg Clark]

The hon. Gentleman makes an intriguing set of suggestions. Let me start by completely agreeing with him that it is right to establish and support a strong consensus on the long-term commitments that we need to make in this country. It seems to me that other countries around the world have benefited from having a shared commitment to policies and institutions that investors know are going to endure, and that is the approach we intend to take. That is precisely the reason why we have had such an extensive consultation, involving all parts of the country and all parts of the economy—and across parties. He is right that the best way for the strategy to endure is for it to have the commitment and involvement of people who have an interest in the future success of the United Kingdom.

This is true across Government, too. The hon. Gentleman is right to say that in times past—in decades past—the finance Ministry has regarded itself as precisely that, but I think the importance of accepting that our national prosperity requires business to succeed in all parts of the country is recognised. Anyone who looked at the Budget last week and saw the commitment made by the Chancellor to, for example, research and development, will recognise that this is a whole-Government commitment, but the hon. Gentleman is absolutely right that it also needs to embrace the whole country.

Blacklisting

Chuka Umunna Excerpts

Tuesday 5th September 2017 Westminster Hall

[Mr Charles Walker (in the Chair)]

This is a one-hour debate. As colleagues know, there will be five minutes for the two Opposition leads and 10 minutes for the Minister. If the contributions of Back Benchers were to end a little earlier, I would be inclined to allow six minutes to the hon. Members for Glasgow South West (Chris Stephens) and for Birmingham, Erdington (Jack Dromey), but it may be just five.

[Chuka Umunna (Streatham) (Lab)]

I beg to move,

That this House has considered blacklisting.

I should say at the outset that I am pleased that the Minister for corporate responsibility will respond to the debate, because, as she responded to the debate that I held in the previous Parliament earlier this year, she will be familiar with the issues.

For the benefit of the record in this Parliament, I want to recap what we are talking about. Imagine a person who has spent years acquiring the skills to work on construction sites around the country. No one ever complained about the quality of their work or their work ethic. They happen to be an active member of their trade union, keen to ensure that they and their colleagues have a safe and pleasant working environment—nothing out of the ordinary. Then, on one occasion, they raise a serious health and safety concern—no small matter, given that an average of 39 construction workers are killed at work every year in the UK—and ever since they have not been able to get work. That is what happened to thousands of construction workers for decades. They were blacklisted, and no one has ever been brought properly to book for it.

[Gloria De Piero (Ashfield) (Lab)]

Does my hon. Friend agree that, far from being barred from employment, those people in construction who raised health and safety issues and have been blacklisted should be commended and saluted?

[Chuka Umunna]

Absolutely—I could not agree more. I will outline some of the things people have done and matters on which they have campaigned for justice. Blacklisting is the shady, underhand practice of sharing information on workers without their knowledge and then systematically denying them employment on the basis of that information. The practice first hit the headlines in 2009, when the Information Commissioner’s Office raided the premises of a disreputable organisation called the Consulting Association. When it raided that association, it found a blacklist of more than 3,000 construction workers. The association was funded and used for years by more than 40 of the country’s biggest construction firms to vet employees.

The association, set up in 1993, was the successor to another disreputable organisation called the Economic League, which I am sure my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) will mention later. The construction companies fed the association detailed information about workers without their knowledge. Whenever the companies made hiring decisions, they checked applicants’ names against the association’s list. If they were on it, they were usually refused work—they were denied the abilityto do their job and provide for their family.

Essentially, the system facilitated systematic victimisation and denial of work simply because workers had raised legitimate health and safety concerns in the past or because they were a member of a trade union or a political party. It was, and still is, an outrage. The nature of some of the information held about people on the list—their religion, national insurance number, car registrations and so on—strongly suggests that the data were collected with the collusion of the police and/or security services. That is why it is entirely fitting that the Blacklist Support Group members, many of whom are here, have been granted core participant status in the Pitchford inquiry into undercover policing.

Those who suffered and are victims now have three principle routes of redress. The Employment Relations Act 1999 (Blacklists) Regulations 2010 now outlaw blacklisting, but they came into force too late for those who suffered at the hands of the Consulting Association. The Trade Union and Labour Relations (Consolidation) Act 1992 stops people being discriminated against on the basis of being a member of a union, and the Data Protection Act 1998 can be used against those who abuse and misuse people’s personal data. The late Ian Kerr, who was chief officer of the Consulting Association, was fined a paltry £5,000 after the ICO’s raid because only later were fines levied under that Act substantially increased.

[John Grogan (Keighley) (Lab)]

My constituent Sandy Macpherson of Ilkley was one of the plaintiffs in the recent case. Does my hon. Friend agree that there is now a strong case for making blacklisting a criminal offence with strong sanctions, including big fines and possible imprisonment in the worst cases?

[Chuka Umunna]

I wholeheartedly agree. My hon. Friend talks about litigation, and in July 2014 Balfour Beatty, Carillion, Costain, Kier, Laing O’Rourke, Sir Robert McAlpine, Skanska UK and VINCI plc, which were all involved in blacklisting and in funding the Consulting Association, established a compensation scheme for individual workers affected by blacklisting and made an apology of sorts for what happened. However, their scheme was established unilaterally without agreement on the terms with the trade unions representing workers. Other firms that were part of the hall of shame involved with the association such as the Amec Group, Amey, BAM Construction, Morgan Sindall and Taylor Woodrow did not sign up to the scheme.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

As my hon. Friend knows, this is an important issue to me as I represented blacklisted members of the Union of Construction, Allied Trades and Technicians in the High Court. Does he agree that no firm involved in historical blacklisting should be given a public contract until it demonstrates regret for its actions by supporting a public inquiry, offering retraining to victims and demonstrating that its recruitment processes are transparent and fair?

[Chuka Umunna]

I completely agree, and I commend my hon. Friend and the huge team of people who have worked on all the litigation we have seen in the High Court brought by a number of unions including UCATT— now part of Unite—which I am proud to say is headquartered in my constituency, and the GMB. Those unions deserve huge credit for the efforts they put into uncovering exactly what went on and then getting redress, working with my hon. Friend and others in the courts. Those cases have been settled in the past two years and millions have been paid, but the fact remains that not one director of the firms who funded the Consulting Association has ever been properly brought to book, fined or subjected to any individual court sanction for the misery they visited on construction workers over the decades. No one has been brought to book properly for that.

In fact, we are behaving as if all has been forgiven. Tears were apparently shed last month over the fact that we will not hear Big Ben’s bongs for several years. We should be far more concerned about the fact that Sir Robert McAlpine, a firm implicated in all of this, appears to have bagged a multi-million pound contract for the work that is to be carried out on Big Ben tower to fix those bongs.

Let us be clear about the role that the company Sir Robert McAlpine played. Cullum McAlpine, a director of Sir Robert McAlpine, was chairman of the Consulting Association when it was formed in 1993. Later, David Cochrane, the head of HR at that firm, succeeded him as chair of the association. During a hearing of the Scottish Affairs Committee’s inquiry into all of this in 2012, the late Ian Kerr, who died that year, admitted that his £5,000 fine for breaches of the Data Protection Act was met by Sir Robert McAlpine

“on the basis that I had put myself at the front and took the flak, if you like, for it all, so that they wouldn’t be drawn into all of this. They would remain hidden.”

How, in the light of that, can we parliamentarians sit here and say to the victims—many of whom are watching the debate in the Public Gallery—“It is an outrage”, while we stand by as Sir Robert McAlpine is awarded the contract to do the work on the parliamentary estate? There must be consequences when those who bid for public contracts are found to be involved in such practices. Will the Minister explain why on earth, given its disgraceful role in blacklisting, we are giving Sir Robert McAlpine the contract to fix the bongs of Big Ben, which so many parliamentarians have shed tears over?

I took up the blacklisting issue originally as a constituency issue, having been alerted to the scandal by my good friends at Unite; I took an even stronger interest when I was shadow Business Secretary, and I instigated the first full debate on the topic on the Floor of the House in 2013. As I have said, I instigated another debate on it earlier this year, because we must have a proper public inquiry into blacklisting, and the victims are continually denied it.

[David Hanson (Delyn) (Lab)]

One of my constituents, Alan Wainwright, is a victim of blacklisting, and was party to exposing it—he was a whistleblower. He has submitted a file of evidence to the Minister’s office on the very point about the public inquiry. Does my hon. Friend agree that the Minister should examine it seriously and in detail as part of the inquiry?

[Chuka Umunna]

I completely agree; I have met my right hon. Friend’s constituent. In the end, we need the inquiry because we need to know who knew what was going on. It was happening not just in the private sector but in the public sector. There are allegations that it was going on at the Olympic sites, Portcullis House and Ministry of Defence sites. Who knew it was going on? Did the permanent secretaries or the Ministers at the time know? Were the Departments that commissioned construction projects complicit in it? We do not know. Does the law need to be changed or tightened? To what extent is it still going on?

Each time we have debated the issue here the coalition and subsequent Conservative Governments have specifically refused to set up a public inquiry, saying that there is little evidence that blacklisting still goes on. Today I will present compelling evidence showing that the practice is definitely still going on, and that it is happening on one of the biggest construction sites in Europe—Crossrail, a publicly funded project that I have visited. Let us not forget that a construction worker died after being crushed by falling wet concrete, in March 2014, and that two other men were seriously injured in separate incidents in January 2015, working on Crossrail tunnels around the Fisher Street area in central London. In July this year the contractors concerned, BAM, Ferrovial, Keir— the BFK consortium—pleaded guilty to three offences following an investigation by the Health and Safety Executive, and were fined more than £1 million. The HSE said that had simple measures such as properly implemented exclusion zones in high-hazard areas been taken, all three incidents could have been prevented. That shows why it is so important that construction workers should feel free to raise health and safety issues without fear of retribution.

[Christian Matheson (City of Chester) (Lab)]

My hon. Friend outlines the human cost to the blacklisted workers and their families, which is almost the point that I want to make; but is there not also a sinister reason—intimidation of those engaged in legitimate trade union activity, to boost profits, often at the cost of the lives of a company’s own workers?

[Chuka Umunna]

My hon. Friend makes a good point: to what extent is profit being put before safety? Why is there such paranoia when employees and workers raise such issues? I find that hard to fathom, given the fatalities that occur in the construction sector.

The first case that I want to mention concerns surveillance of workers that took place at a peaceful demonstration at a Crossrail site in 2016. I have seen and read emails that passed and were circulated between contractors and the employee relations department at Crossrail, which detail questionable surveillance practices. The surveillance operations involved named individuals who were implicated in and involved with the activities of the Consulting Association. The evidence that I will supply to the Minister after the debate shows that a number of construction workers were being closely watched there, and that sensitive personal information was being collected in relation to them. It is not clear where those data were subsequently posited or by precisely whom, but those collecting information on the workers had to fill in a form, which was definitely filed somewhere.

Two of the workers who were subject to that surveillance have since sought to obtain further employment on Crossrail through employment agencies advertising positions. In each case they approached the job agency about the vacancy, and had the required skills to fill it. However, as soon as they relayed their names there was a delay; they were subsequently given an excuse as to why the positions had been filled. Unite does not believe that what happened to the two workers is coincidental, and it has already informed the Information Commissioner’s Office of its concerns about the case. Clearly, subcontractors were explicitly discouraged from employing certain known trade union members. One subcontractor has actually told Unite that the consequences of his employing a Unite member would be the refusal of future work. For obvious reasons, the subcontractor does not wish to disclose their identity.

The Information Commissioner’s Office, having been contacted about this, has stated that the evidence

“raises the possibility that surveillance is being undertaken without appropriate checks and balances being in place”

and that the

“collection of this type of data is potentially excessive”

under the law.

The second case that I want to highlight is that of an electrician who has been trying to obtain work in the construction industry since raising a grievance while working on Crossrail. He has since applied for hundreds of job vacancies, almost always being turned down. He never received any criticism about the quality of his work. He is an intelligent young guy, who is conscientious about his work and who takes his health and safety duties to himself and his colleagues particularly seriously. He is not particularly political: he is a construction worker and his focus is his work. He served Crossrail with a subject access request that compelled it to provide him with the information it held on him. I have been passed the documents and had a chance to read them. They reveal that Crossrail and three of its contractors exchanged personal data, and sensitive personal data, concerning the individual’s previous employment and the issues and grievances that he had raised there. On the face of it, the data appear to have been processed for the purpose of determining the individual’s suitability for employment related to his trade union activities. The very strong inference from the documents is that some kind of vetting operation was in operation between Crossrail, its contractors and the agencies involved. Again, I will pass the information and the documents to the Minister after the debate.

Those are just two examples, but clearly they show that blacklisting is still going on. I do not think that it is being carried out in the way that it was before, with a centralised system collectively funded by the construction companies, not least because for those caught under the data protection legislation there is a much bigger fine, and the blacklisting regulations are also in force, of course. However, clearly it is still being done, but in a more covert way, making it a lot harder to identify.

The ICO has said it will put out a call for evidence about ongoing blacklisting next year. It should really get on and put out the call for evidence now, without further delay; but it is no substitute for the public inquiry that we seek. The ultimate way to get to the bottom of what happened and is still happening is a proper investigation of that kind. The law clearly needs to be reviewed, even though the Minister told me earlier in the year that that was not necessary. I would like workers to be given a positive right not to be blacklisted. The suggestion of my hon. Friend the Member for Keighley (John Grogan) that it should be made a criminal offence was well made. I would also like protection against blacklisting to be extended to include trade union-related activities, as opposed to the current definition, “trade union activities”.

[Stephanie Peacock (Barnsley East) (Lab)]

Does my hon. Friend agree that we should commend the work of trade unions on the issue? The GMB, for example, has already secured £630,000 in my region of Yorkshire, but it is clear that there is more to do.

[Chuka Umunna]

That is absolutely right. All Members who have spoken or undertaken any activity on this issue would have found it much harder to do what we have done without the trade unions providing support and information and uncovering what happened.

I have to say to the Minister that I just do not understand why the Government and her Department are so resistant to having a public inquiry. What are they so afraid of? At the end of the 2010-15 Parliament, I made it very clear to her Department, which I was hoping to run after the 2015 general election, that, if Labour won that election, I would be giving instructions for the establishment of such a public inquiry. I was very clear on that to the permanent secretary. It can be done, it needs to be done and, above all, the thousands of people who have suffered need it to be done. At the same time that they need it to be done, those who were ultimately responsible for all of this have got off scot-free.

I have provided the evidence to the Minister orally—I will provide the documents so she can see them in detail —that this is still going on. To her and the Government, who claim to look out for the interests of workers, I say: put your money where your mouth is, deliver on the public inquiry and let us get justice for those who have suffered and those who are still suffering.

--- Later in debate ---

[Chuka Umunna]

I am very grateful to all hon. Members who have contributed to the debate, and for the powerful testimony that several have given. I will just say three things.

First, I welcome the Minister’s saying that she will press the Information Commissioner to do the call for evidence this year, not next year. I also welcome her saying—if I heard her correctly—that the Government will consider taking into account whether people were or are involved in blacklisting in relation to public procurement decisions going forward. That is most welcome.

Secondly, there are clearly good and bad sides to this industry. I have seen some of the good sides in my constituency during the past couple of weeks while visiting big construction sites, on Streatham High Road and the Clapham Park estate, that will make a positive difference to my community. However, this scandal exposes the ugly underbelly of the sector, which continues to go unaddressed.

I will wrap up by saying this to the Minister. She accepts that this practice is an outrage and has said that the Government take it seriously and are not complacent about it. I still fail to understand why she was not able to come here today and commit to a public inquiry. I do not understand what the Government are so afraid of. If it exposes embarrassing things for people politically that happened in the past, so what? Surely justice is the key here. That is how we prove that this Parliament is relevant. For all the bad press that this place gets, and given how disillusioned people are with the political process, at least with this we can illustrate that we deliver the goods and care about people, so I ask the Minister to please think again about doing a public inquiry. Do not be scared; just announce that you are going to do it.

Question put and agreed to.

Resolved,

That this House has considered blacklisting.

Construction Industry: Blacklisting

Chuka Umunna Excerpts

Wednesday 8th February 2017 Westminster Hall

[Mr Chuka Umunna (Streatham) (Lab)]

I beg to move,

That this House has considered blacklisting in the construction industry.

This debate relates to a secretive, insidious and shoddy practice that has brought shame on our construction industry. As shadow Secretary of State for Business, I initiated a lengthy debate in the main Chamber on the issue in January 2013. I return to it publicly today because it is my strong view that those who were responsible for it have yet to be properly held to account for their actions and the matter has fallen off the radar in this place. My intention is to put it firmly back on the national agenda.

[Chris Stephens (Glasgow South West) (SNP)]

Does the hon. Gentleman support early-day motion 47, which calls for a full public inquiry into the blacklisting practice in the construction industry?

[Mr Umunna]

The hon. Gentleman must be telepathic because he pre-empts what I will come on to. I will address that issue later.

First, it is important to state that although the issue has brought shame on the construction sector, there is still much to be proud of in the sector—look at the Olympic Park venues, Heathrow Terminal 5 and the new buildings that we see springing up around us on time and on budget in so many different communities. Let us also never forget why the sector is the success it is: primarily because of its construction workers. They build the offices and factories we work in. They build the homes in which we live. As a nation, we owe them a huge debt of gratitude, particularly when we consider those who have lost their lives working on construction sites in this country.

There is also a dark side to the sector—anyone who has worked in it knows this only too well—that leads to good people being subject to the most terrible injustices. As a result, lives have been ruined, families have been torn apart and many have been forced out of the industry.

What am I talking about? What is blacklisting? For the record, it involves systematically compiling information on workers, which is then used by employers or recruiters to discriminate against them, not because of their ability to do the job, but because they have raised health and safety issues or been active trade union members. It has meant that people cannot find work and therefore cannot support their families—they cannot put food on their children’s plates—and the result is all the stress and upheaval that come with that.

[Gloria De Piero (Ashfield) (Lab)]

My hon. Friend talks about many lives being ruined by the blacklisting of workers. Does he agree that it is time we put on record the work that the Union of Construction, Allied Trades and Technicians, Unite and the GMB have done in securing settlements for the workers who were treated so badly?

[Mr Umunna]

I completely agree with my hon. Friend. She, too, must be telepathic. Not only am I a member of Unite and the GMB, and proud to be so, but UCATT, which is now part of Unite, is headquartered in the centre of the universe: my constituency. The work that the unions have done is so important. I practised for almost a decade as an employment law solicitor before being elected by my constituents and I have seen injustice in the workplace, but I have never seen injustice on this scale.

The extent of the blacklisting activity in the construction sector was exposed for all to see following the raid in 2009 by the Information Commissioner’s Office on the shadowy and secretive organisation called the Consulting Association. Further details emerged in the last Parliament, during an excellent and extensive inquiry into blacklisting carried out by the Select Committee on Scottish Affairs. My hon. Friend the Member for Ashfield (Gloria De Piero) mentioned the work of the unions, and a lot of the evidence provided to that Select Committee was provided by those trade unions, which also worked with the ICO, as well as by the blacklisting support group.

The Consulting Association was born out of a right-wing organisation called the Economic League, which was set up in 1919 to promote free enterprise and to fight left-wing thinking, to which it objected. That included Members of this House. The former Prime Minister, Gordon Brown, had information collected on him. The league, which blacklisted more than 10,000 people, was wound up in 1993, but its construction sector member companies wanted to continue this unforgivable practice and its activities, so the Consulting Association was born.

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, 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, Skanska UK plc, Taylor Woodrow Construction, and VINCI plc —to name just a few of the companies listed. In 2009, half of the 20 biggest construction companies were all named as being involved in the association.

[Chris Elmore (Ogmore) (Lab/Co-op)]

Skanska has a base in Pencoed in my constituency. It blacklisted more than 111 workers or families. Will my hon. Friend join me in condemning that company for its actions? I echo any statement that he makes calling for a public inquiry, which I fully support.

[Mr Umunna]

I completely endorse my hon. Friend’s comments. Let us put what the Consulting Association was doing into context. It did not just maintain lists and files on thousands of construction workers; the material that it collected included personal information, such as information on workers’ private relationships, in addition to whether they had raised health and safety issues, their trade union activities and so on.

It is worth reflecting on this: member companies were charged a £3,000 annual fee to be part of the Consulting Association and then had to pay £2.20 on top of that for each blacklist check on a construction worker. For the cost of £2.20, the association would be able to dictate whether a worker got a job and whether they could put food on the table that week. Worse still, taxpayers’ money was being used to inflict that misery on people. Blacklisting checks were carried out on workers on publicly funded projects, ranging from airport runways, the Jubilee line, the millennium dome, hospitals, schools, roads and Portcullis House on the parliamentary estate—I could go on.

In addition to the blacklist checks, David Clancy, the Information Commissioner’s investigations manager, who carried out the raid in 2009 and is himself a former police officer, gave evidence to the Scottish Affairs Committee that he believed that some of the information held by the association would have come from the police or security services, because of the nature of that information. I mentioned the private information that was collected—for example, one file features an in-depth analysis of an individual’s home circumstances and what his neighbours thought about him. I have seen some of those records, and it is clear that they contained information based on the surveillance of individuals away from construction sites. It is improbable that such information came exclusively from the construction firms themselves.

What about the legal protections for construction workers and the system of redress for victims? Although it was and remains unlawful to refuse employment on the grounds of trade union membership alone, at the time of the 2009 raid on the Consultancy Association there was not a specific prohibition on blacklisting. Following the raid and the emergence of the blacklist, the Labour Government acted to outlaw blacklisting and introduced the Employment Relations Act 1999 (Blacklists) Regulations 2010, which allow individuals to bring civil claims against those found guilty of blacklisting in employment tribunals. If successful, that can lead to compensation of between £5,000 and £65,300. However, the regulations were not retrospective, and there is no criminal sanction. In truth, I believe the Labour Government should have acted much earlier, because that was too late for many victims.

Perhaps more shocking still is the fact that the firms that set up the association and supplied the information to and accessed the blacklist were neither charged with any offence nor ordered to pay compensation to the workers. To date, not one director of any of those companies has been brought to book for what happened. That is an outrage.

In October 2013—shortly after we had the debate on this issue in the main Chamber—a number of construction firms announced that they intended to establish a compensation scheme for workers who had been blacklisted. On the surface, such a move should be welcome, but there are many problems with the Construction Workers Compensation Scheme. It was brought together without reaching prior agreement with the trade unions—which, as I said, have been absolutely critical in all this—and it provides inadequate compensation. Applicants to the scheme are required to waive any future legal claims, and the companies involved do not have to admit liability or give an apology as part of the process. In fact, the workers were able to get a public apology only by dragging the construction firms kicking and screaming through the courts. I again pay tribute to the Blacklist Support Group, some of whose members are here today, which secured an apology from the firms involved in the Consulting Association in the High Court, although many victims feel that the apology was half-hearted and insincere.

Serious questions remain about the role of the police services in the collection and passing of information to the Economic League and the Consulting Association. I know that the undercover policing inquiry chaired by Sir Christopher Pitchford has said that blacklisting is potentially a matter within its scope. That is welcome, but not enough. It should be within the scope of that inquiry. There are many unanswered questions, and we cannot let this matter go.

What am I asking for from the Minister? Let me deal with the law first. As cases have progressed through the courts, it has become apparent that the blacklisting regulations need to be strengthened. For example, the extent to which it is possible for those who are not employed in the strict sense of the word but are self-employed to bring claims under the regulations if they have been refused work is unclear. That is important, because we know that full self-employment is an endemic problem and is rampant in the construction sector. Claims can be brought in employment tribunals or county courts, but the cap on compensation in a tribunal is £65,300. There is no cap in a county court, but to bring a claim in a county court there are added risks for a potential claimant because of the costs involved, and they need more resources. It is easier to do it in an employment tribunal, as there are not the costs consequences, but the claim has to be brought within three months of the alleged unlawful conduct, and sometimes people who have been blacklisted do not realise it for some time.

The upshot of all that is that the only legal remedy for some is a complaint to the European Court of Human Rights, based on the right to privacy in article 8 and the freedom of association in article 11. For all those reasons—I could go on, but I will not go back to being a lawyer and bore people—the Secretary of State needs to carry out a review of the law in this area to look at how it might be tightened up.

The second issue is public procurement. I want the Government to adopt the Scottish Affairs Committee’s recommendation that all UK Government agencies and devolved Governments must require firms that have been involved in blacklisting to demonstrate how they have “self-cleaned”, as the Committee put it, before being allowed to tender for future public contracts. Those that have not done so should not be allowed to tender. The Welsh Government have introduced that measure, and I think it should be introduced across the whole of the UK.

There are lots of unanswered questions. Pitchford does not pick up on all of them, and nor do the cases we have seen. Were the intelligence services involved? We need a full public inquiry into this issue because people have not seen justice and we do not know exactly what happened. We cannot allow a climate of fear to hang over our construction sites. No worker on any building or in any other workplace up and down this land should hesitate before reporting an unsafe site or a dangerous working situation. The bottom line is this: if people do not report their concerns and do not highlight dangers, people could lose their lives, so this issue is very serious indeed. I look forward to hearing what the Minister has to say.

--- Later in debate ---

[Margot James]

There is no further update. The Information Commissioner’s Office is undertaking such inquiries and when it reports to me I will consider the contents of what has been found.

The Information Commissioner’s Office is an independent regulatory body that was set up to investigate breaches of the Data Protection Act 1998. It has the power to take enforcement action, including searching premises and issuing enforcement notices and fines. Since April 2010, it has also had the power to issue a civil monetary penalty of up to £500,000 for serious breaches of the Act. That is a significant deterrent and a vast improvement on the previous rules, which allowed a maximum penalty of only £5,000. Data protection law is undergoing reform as a result of the general data protection regulation, which is to take effect on 25 May 2018. The powers of the Information Commissioner’s Office to impose fines will substantially increase as a result.

In 2009, the Information Commissioner’s Office established a fast-track helpline for those who thought that they might have been affected by the Consulting Association case. I congratulate the trade unions mentioned by the hon. Member for Ashfield (Gloria De Piero), which campaigned for and won compensation, and the Blacklist Support Group, members of whom are in the Public Gallery today, on their work on this matter.

When the Information Commissioner’s Office considered that a person might appear on the Consulting Association list, they were asked to provide further documentation. It has continued to run that service and to respond to written requests for information. To date, the helpline has received and responded to about 5,700 calls and 3,000 written requests. The nature of blacklisting is that it is secretive and discriminatory, however, and it can be difficult for individuals to know whether they have been affected by the practice. If people suspect that they have been blacklisted, they can report their concerns to the Information Commissioner’s Office, which will provide advice on how an individual may choose to take the matter further. The Information Commissioner has also attempted proactively to contact individuals who might have been affected, although that is only possible where up-to-date contact details are available.

[Mr Umunna]

The Minister is coughing so I will intervene to allow her to take a swig of water. While she is doing so, I will ask three questions. First, on a public inquiry, I understand what she says about the history, but the fact that events happened in the past has not stopped other big public inquiries, such as those into Bloody Sunday and Hillsborough. Will she explain why that should stand in the way of a public inquiry into blacklisting? Secondly, does she accept that it is difficult for the self-employed to use the legislative framework?

Finally, will she answer this point that has been made to me by people in the sector: there is a feeling that the Leveson inquiry into media behaviour came about in part because powerful, important people were subject to an abuse of media power and that, because we are talking about construction workers, the Government and the establishment are not taking the blacklisting matter as seriously. What does she say to people with that view?

[Margot James]

I will come back to the hon. Gentleman’s third question in a minute. On the second question, the self-employed are covered by the legislation. I accept that it may be more difficult for them to exercise any powers, but they are covered by the Data Protection Act. A self-employed individual may make a complaint to the Information Commissioner’s Office.

On the more vexed question asked by the hon. Gentleman, there have been public inquiries in the past to do with people without power who have been affected by dreadful instances. That we are talking about a group of workers who are traditionally not very powerful and perhaps do not earn huge amounts of money has nothing to do with the matter. Personally, I think that such individuals are more entitled to protection and safeguarding than the wealthy and powerful.

The compensation on offer is, absolutely, for serious amounts of money. The Information Commissioner’s Office has taken action, and approximately £100 million has been extracted from the industry for a compensation scheme and to satisfy the results of court actions. The matters we are discussing are being taken very seriously.