Modern Slavery Bill

Diana Johnson Excerpts

Tuesday 4th November 2014 Commons Chamber

[Karen Bradley]

The right hon. Gentleman is absolutely right. This is about getting transparency in supply chains. On the very first day I started as a Minister, the first thing I was lobbied on was transparency in supply chains, and it became clear that this is all about finding out what is going on—shining a light. As he says, there may well be slavery within these supply chains, and if so action can be taken to deal with that.

I would add that in my experience of meeting Governments overseas where there may be concerns about human rights abuses, one of the strongest and most powerful tools to convince those Governments that they need to take action is that their businesses will not be able to trade with businesses here in Britain because we expect to be sure that there is no slavery in the supply chain, that human rights are not being abused through the supply chain, and that when consumers buy goods in Britain they can be confident that all action that possibly can have been taken has been taken to eradicate these practices from the supply chain. That is what transparency does—it shines that light and gives that clarity to the consumer.

New clause 15, tabled by the hon. Member for Foyle, seeks to require the Secretary of State to lay regulations to ensure that individuals who have benefited from modern slavery that has been perpetrated by a third party are criminally liable where their lack of supervision made the modern slavery offence possible. We do of course want business to take action to eliminate modern slavery from supply chains, and, as we have discussed, the Government are bringing forward a legislative measure to achieve this. However, I am not persuaded that a potentially very broad criminal liability in this area is the best approach. I want these provisions to drive a change in behaviour. That is why I firmly believe that the Government’s amendment to introduce a bespoke provision into the Bill is the right one. As I said, it goes much wider than the provisions in the California Act by including all sectors, not just retail and manufacturing, and the provision of services, as well as goods, but it does so in a way that does not create undue burdens for business.

I fully acknowledge the good intentions behind right hon. and hon. Members’ amendments. However, in the light of discussions and the work that the Government have undertaken in this area, and the effective provision that we are proposing today, I hope that they will feel able to withdraw them.

[Diana Johnson (Kingston upon Hull North) (Lab)]

I rise to welcome the Government’s new clause 11 and to speak to new clause 5, which stands in my name and the names of other right hon. and hon. Members. It is very good news that the Government have finally moved on this matter in the final stages of the Bill. Not including supply chains was the single biggest omission from the draft Bill and the Bill introduced to this House, and it is good to see that this important concession has been secured from the Government.

I congratulate all those who have campaigned on this issue, including my hon. Friends the Members for Linlithgow and East Falkirk (Michael Connarty), for Slough (Fiona Mactaggart) and for Birkenhead (Mr Field), and, on the Government Benches, the right hon. Members for Uxbridge and South Ruislip (Sir John Randall) and for Meriden (Mrs Spelman). The hon. Member for Foyle (Mark Durkan) has tabled two new clauses that seek to extend the responsibilities of UK companies towards those who work in the supply chains, including compensation for victims and a ban on the importation of products produced using slavery.

Outside this House, a huge number of groups have also campaigned on the issue. I pay particular tribute to the Walk Free Foundation, the Ethical Trading Initiative, and the British Retail Consortium. I would like personally to thank all the groups and companies that I have met in order to inform Labour’s position, including Next, Primark, the Co-operative Group, Focus On Labour Exploitation, and Amnesty International.

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[Stephen Barclay]

The hon. Lady is making powerful points about what teeth the guidance will have. Does she think that there are lessons to be drawn from when this House debated the Financial Services and Markets Act 2000, when it was believed that the behaviour of the banks would be influenced by reputational damage, a belief that was found to be false in the light of their future conduct? There seems to be a reliance on the idea that guidance in itself will have a deterrent effect on major corporations, but that has to be backed up with some teeth.

[Diana Johnson]

I could not agree more. That is why it was important that I set out why new clause 5 deals in detail with the kind of issues that need to be clearly addressed in secondary legislation. I am grateful for the hon. Gentleman’s intervention.

Just to recap: we support the Government’s new clause 11. Obviously, we want to wait and see what happens with the secondary legislation as it is introduced. It is surprising that the Government have gone against the Joint Committee’s recommendation and the evidence presented by several large companies arguing against stand-alone regulation, although the Government have now seen fit to pursue that. That poses particular problems for enforcement. I am sure the Minister has seen the briefing from the coalition of groups campaigning for change, which states:

“Monitoring of compliance with the provision needs to be taken seriously as this will be central to its success in driving change. We are concerned that the provision is currently weak on how monitoring and enforcement will be undertaken. The Government’s approach relies on a civil enforcement procedure by the Secretary of State, which means that in reality the measure would be unlikely to deter any businesses other than those who would in any case seek to comply on a voluntary basis.”

[Sir Andrew Stunell]

I thank the hon. Lady for giving way—I hope she will be able to wet her whistle while I speak. Does she agree that the monitoring process could make a start through the anti-slavery commissioner taking a more active role in observing and supervising company reports?

[Diana Johnson]

The right hon. Gentleman makes a very important point. Time is limited this afternoon, but I hope there will more discussion in the other place about extending the role of the independent anti-slavery commissioner to do exactly what the right hon. Gentleman has said.

In the Minister’s closing remarks, I want assurances that whatever is proposed will apply to all large companies; that the regulations will be detailed enough to allow comparability; and that there will be a clear enforcement mechanism so that consumers, investors and NGOs can see who has complied and know that they can trust the report they have read.

[Mr Burrowes]

It is a pleasure to contribute to this debate and, in particular, to support the principles in new clause 11. Some good points have also been made about new clause 5. As was evident on Second Reading, the House has coalesced around the principle of providing transparency of supply chains. It has taken a while to get there. I pay particular tribute to the Minister for the work she has done and the leadership she has shown in bringing together the Government in this way. That takes some doing.

The importance of the integrity of basic human rights in supply chains has not been recognised until now, unlike—shamefully, in some ways—the integrity of products in supply chains of hardwood, tobacco and pharma- ceuticals. Today represents a big and important step change in recognising the integrity of those human rights.

New clause 11 covers the principles of accountability and reporting, which are also addressed by new clause 5. We can deal with the qualms and queasiness surrounding burdens by saying that any responsible business will welcome new clause 11 as an empowering measure that can help them disclose any issues and root out slavery.

I accept the point made by the right hon. Member for Birkenhead (Mr Field). When I said that we should name and shame, I did not mean that this is about good guys and bad guys. This is about disclosure. We should take a rounded approach. There needs to be full, transparent disclosure all the way along the chain so that everyone can shine a light to see what is happening and then deal with it appropriately. By shining that light all the way down and up, the most responsible businesses will expose some things that they are not happy about. They will then be able to say, robustly and confidently, “We’ve done that.” We should ensure disclosure by naming those who are disclosing in a proper and full way, and shaming those who are not disclosing, which is an issue of concern.

Once this measure is on the statute book, compliance and enforcement must be effective. From a light-touch point of view, I agree that transparency and accountability can happen through individual company websites, but we need to go further and enable all concerned to access information centrally. That is why I suggested in an intervention that the independent anti-slavery commissioner should have a portal. The responsibility for maintaining it would not be the commissioner’s alone, but people would be able to look at that independent website and see the names of those companies that have complied with the manner, spirit and intention of the statutory guidance. That is important and I think it would help. Given the timing involved with this measure and the need to get the office of the anti-slavery commissioner up and running, it is important that we make progress, possibly through the Home Office website, ahead of any parliamentary processes, including secondary legislation, and give people the opportunity to show that they are very much on the side of full disclosure.

I must say that I have one or two concerns. I am concerned about whether new clause 11 may be unduly complex, particularly in relation to enforcement via civil enforcement injunctions. Are such injunctions to expose the fact that a company is not up to speed on disclosure, or are they to get to the root problem of exposing its supply chain? The provision may be unduly bureaucratic and costly, and it may well not serve the purpose that everyone wants.

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[Karen Bradley]

The shadow Minister makes the point that perhaps that needs to be by the end of March, if the right hon. Gentleman is asking whether it will happen before the general election. I cannot answer that question at the moment. Perhaps I could write to him on the specifics.

I am delighted that new clause 11 will amend the Bill to include the measure on transparency in supply chains that so many have worked so tirelessly for, for so long. I hope right hon. and hon. Members will not press their amendments to a Division. I look forward to this measure being part of the world-class Bill we all wish to create.

Question put and agreed to.

New clause 11 accordingly read a Second time, and added to the Bill.

New Clause 3

Offence of child exploitation

‘(1) A person commits an offence if they exploit a child.

(2) It shall be such an offence even if there was no threat or use of violence, other forms of coercion, deception or any abuse of a position of vulnerability.

(3) A child may be in a situation of exploitation whether or not—

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

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

(4) The consent or apparent consent of the child to the exploitation is irrelevant.

(5) “Child Exploitation” includes but is not limited to, the exploitation of the prostitution of others or other forms of sexual exploitation; the exploitation of labour or services including begging or practices similar to slavery, servitude or forced or compulsory labour; the exploitation of or for criminal activities including benefit fraud; the removal of organs; forced or servile marriage or enforced surrogacy; exploitation for unlawful adoption; and exploitation by enforced drugs smuggling, manufacture, production or distribution.”—(Diana Johnson.)

Brought up, and read the First time.

[Diana Johnson]

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

[Madam Deputy Speaker (Dame Dawn Primarolo)]

With this it will be convenient to discuss the following:

New clause 4—Offence of exploitation—

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

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

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

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

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

New clause 24—Human trafficking—

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

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

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

commits an offence of human trafficking.

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

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

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

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

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

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

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

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

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

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

(a) the police and/or,

(b) the Gangmasters Licensing Authority, and

(c) the victim or victims of the offence.

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

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

New clause 21—Civil remedy—

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

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

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

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

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

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

‘(1A) For the purposes of this Act—

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

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

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

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

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

‘(1A) For the purposes of this Act—

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

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

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

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

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

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

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

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

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

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

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

00 “Proceeds of Crime Act 2002

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

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

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

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

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

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

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

[Diana Johnson]

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

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

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

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

[Stephen Barclay]

Is the hon. Lady as surprised as I am that, as far as I am aware, only one person has ever gone to jail for breach of a Gangmasters Licensing Authority offence? Does that speak to the high hurdles to which she alludes?

[Diana Johnson]

The hon. Gentleman makes a very important point. We shall discuss the GLA later, but the hon. Gentleman’s point shows why we need to think again about the offences in the Bill and how we can make them stronger to ensure that we get more prosecutions.

[Sir Greg Knight (East Yorkshire) (Con)]

Does the hon. Lady agree that the offence of exploitation ought to be committed even when the threat of force is against someone other than the person being exploited—against a relative of the person who is being exploited, for example?

[Diana Johnson]

The right hon. Gentleman makes an important point, which should perhaps be debated more fully in the other place. I absolutely agree that this is a strong point that needs to be considered.

Returning to the low number of prosecutions, in 2011-12 there were 15 prosecutions for slavery offences, but no convictions. Since the introduction of the offence, there has shockingly never been a prosecution where the victim was a child. In 2011, there were 150 prosecutions for trafficking offences, but only eight convictions. To put those figures in context, in 2013 the national referral mechanism received 1,746 separate referrals of cases of human trafficking, 432 of them involving minors. The UK Human Trafficking Centre identified 2,744 victims of human trafficking last year, 600 of whom were deemed to be children.

[Sir John Randall]

One problem—not necessarily about the offences per se—is getting the victims to bear witness and testify against those who trafficked them. Victims’ fear is one reason we are not getting successful convictions, and we need to do more for them.

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[Diana Johnson]

I absolutely agree with the right hon. Gentleman about the need to ensure that victims feel able to come forward and give evidence against those who have trafficked them, but I still think that we need to get the offences right and ensure that the offences are fit for purpose—an argument that I shall develop.

The new clause in the name of my hon. Friend the Member for Sheffield Central (Paul Blomfield) is designed to address some of the structural problems with the drafting of the trafficking offence, and I want to put it on record that we fully support it. The amendments tabled by the hon. Member for Enfield, Southgate (Mr Burrowes) are designed to clarify the law on slavery to enable more prosecutions. I am sure that he will speak eloquently to those amendments. Again, we support what he is trying to achieve in principle.