Identity Documents Bill

Earl of Erroll Excerpts

Wednesday 17th November 2010 Lords Chamber

[The Earl of Erroll]

I spoke on this matter in Committee. I agree with the noble Lord, Lord Brett, because I see that the card could still have some use. Although the national identity register, which is what we all objected to, has been removed, having a bit of plastic as a travel document to get around Europe would have been useful and still might be. Some of the 12,000 people concerned bought the card for that. Like the noble and gallant Lord, Lord Craig, I certainly think that those people who thought that they had bought a plastic passport should be allowed to offset it against the cost of getting the more expensive passport that they will now require to go to Europe. For them, it was effectively a cheap way of getting a passport if you needed to travel to Europe.

We penalise insurance salesmen for being more honest than this. The Government are guilty of misselling. They went out and sold the card hard as having lots of benefits, and so people took it up. If you expect a member of the public, seven months ahead of the general election, to be able to predict its outcome, there are a lot of geniuses among the public whom we ought immediately to recruit to become pollsters. They may be all the people who did not buy the card. To me, it looks vindictive and nothing else. This matter could be a PR negative for the Government—a little spark that could catch the newspapers’ imagination. They will find someone who feels really hard done-by. It will get blown up; it will be in the Daily Mail, which will say that something must be done about it, but it will be too late by then.

I know that civil servants will produce reasons for the refund being difficult to administer et cetera. I cannot see the problem in saying, “The only people who get refunded are those who turn up with a card. If you hand in a card, you get 30 quid”. It would be as simple as that. That would not be very expensive to administer. If the Government wished to give the contract to one of the large systems integrators, however, they would end up with a bill for about £5 million, because it is their job to make sure that partners in America are well satisfied with lots of dosh. They are the people whom the Government will have to pay at the end of all this. They will have had unbreakable contracts, so they will have to be paid several million pounds for breaking the contract. A large slice of that will end up in American partners’ pockets. The poor old citizens of this country will get absolutely—I will use unparliamentary language if I go on.

I agree with the noble Lord, Lord Pannick, and said so in Committee, that this is an expropriation of property, or certainly property rights. Even if the card belongs to the Government and is non-transferable, that card gave you rights—that is what they sold it on. I am quite sure that that is expropriation and that there could be a claim under the ECHR. It will go on top of the Digital Economy Act, which we were advising the Government against the other day. So they will have a nice time in the courts.

If I had been lucky enough to get a card, I would have kept it as a collector’s item, but I know that a lot of people would not like to do so and would like their 30 quid back. They are better Scotsmen than me.

[Baroness Butler-Sloss]

My Lords, I share the disquiet of many who have already spoken. I urge the Government to think again about this.

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[Baroness Neville-Jones]

My Lords, I recognise the strength of sentiment expressed on all sides of the House. If the House will permit, I shall explain why I cannot accept the amendment.

The Government set out at an early stage that they would not continue with this legislation and that they would repeal the Bill. That has been the long-standing position of the Government, well known in advance. It is fair to say that the Government made their position known on the fact that the ID cards would no longer have any validity.

[The Earl of Erroll]

Excuse me, but that was the opinion of the Opposition at the time, not of the Government.

[Baroness Neville-Jones]

The noble Earl is quite right. It has always been the intention, whether in opposition or in government, to scrap the ID cards scheme at the least possible extra cost to the taxpayer. Our primary purpose has been to prevent further expense being incurred when we can avoid it. We have no option but to pay compensation to some contractors because we are tied in by the contracts negotiated by our predecessors. That is a contractual agreement, and we are negotiating at the moment what that final sum should be. We do not agree that there is a contract between the Government and cardholders who received a service, nor do we believe that there is any expropriation of property or rights under it. The cardholders are not card-owners; the noble Lords who said that the card was government property were quite right to say so.

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[Baroness Neville-Jones]

If it is a valid document, it can be used validly for identity. If it is an invalid or cancelled document, obviously it no longer has any legal status.

[The Earl of Erroll]

Under Clause 6 about the possession of false identity documents, does the ID card once it has been revoked become a false identity document? That was the point that the noble Lord was making. It is government property and it is no longer an identity document, so in using it you are probably using a false identity document.

[Baroness Neville-Jones]

You are certainly no longer using a valid identity document. It is not any longer valid in law.

The Identity and Passport Service has estimated that the cost of cancelling the ID cards scheme and the national identity register will be up to £5 million. This includes an estimated figure for compensation to the contractors, which I have just mentioned, destruction costs, staffing and other administrative matters. They are all necessary costs that we cannot avoid in abolishing the scheme. A refund scheme would add 10 per cent to that cost, which we do not consider to be a trivial addition.

Noble Lords have talked about principle. One can look at that in several ways. One of the principles that seems to be on offer this afternoon is that one set of taxpayers should refund another set of taxpayers. This does not seem to be a sensible arrangement. Some say that the sum is only about £400,000—one of the noble Lords mentioned that sum—the inference being that in the grand scheme of things this is entirely insignificant. Certainly, compared with the cost of the ID card scheme that has already been paid out—over £290 million—another half a million pounds might not seem significant. That is not, I am afraid, the attitude that the coalition Government take to public spending. We have demonstrated that we have a commitment to ensuring that unnecessary and unjustifiable expenditure is stopped and that we focus on delivering more for less. We are not therefore in a position to offer this refund.

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[Baroness Neville-Jones]

My Lords, support for the Irish Government, the national interest, the economic prosperity of this country and the welfare of Ireland are quite different matters. I do not think that we can ignore the very low level of public interest in and reaction to the Government’s decision. The House should take note of that. I have tried to deal with compromises. They do not work; otherwise one might be able to do something in that respect.

I ought to deal with the points made by the noble Lord, Lord Brett. I apologise to him that he did not receive an answer earlier. We have not consulted the Government of Gibraltar, who issue their cards in a rather different way. The Identity and Passport Service is not able to answer that question directly. The UKBA is the agency which sees the documents of EU cardholders. We will have to get further information on that point, which I will endeavour to do for the noble Lord.

In light of the views that have been expressed in the House this afternoon, I propose to take this amendment away and consider it.

[The Earl of Erroll]

Before the noble Baroness sits down, will she guarantee to come back with an amendment along the lines of recompensing people? On two occasions the Government have promised to take a proposal of mine away—this Bill has only one more stage—but at Third Reading have weaselled out of it at the last minute. Under the rules governing Third Reading, we are not able to put down anything at that stage to ensure that the Government come back with something, so we need a binding commitment from the Government to come back with an amendment along the lines of this one. If the Government will not give such a commitment, we should not permit the amendment to be withdrawn.

[Lord Mackay of Clashfern]

I see the position in which my noble friend finds herself. I respectfully submit to the House that it would be perfectly reasonable for her to ask that this matter be postponed to Third Reading so that she has an opportunity of conveying to her colleagues—because the Government as a whole are involved here—the sentiments that have been very clearly expressed in your Lordships' House. She has explained the reasons for the Government's position. However, a great deal has been said here and I submit that the Government have an opportunity to reconsider. If the Opposition are anxious to achieve fairness and justice, I am sure that this is the correct course, rather than seeking to take the matter further at this juncture—if my noble friend is prepared to take this back, to have it considered by her colleagues in government and to return at Third Reading and tell us what the situation is.

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[Lord Maxton]

My Lords, at Second Reading of this Bill, I suggested that, while at the moment an identity card would not help to stop fraud on the internet, it will come. There will eventually come a point when, in view of the rising number of people purchasing goods and services online, the banks and the people selling goods will insist that there is some form of identity involved in the transaction. Whether it will be putting a card into your computer or a camera that will show that you actually are the person, I do not know, but I would think the banks in particular will insist on this in the longer run, both for their own hole-in-the-wall cash machines and for buying online. The ID card, as it was originally proposed, if it had been made compulsory from the word go, as I wanted it to be, would have been one of the answers to that and would have saved the private sector very considerable sums of money in the long run.

[The Earl of Erroll]

My Lords, I fully understand the sentiment behind this, but I am not sure this is the best way to go. I do not think it is really the Home Office’s forte to produce such a report. I entirely agree with the noble Baroness, Lady Hamwee; there are a lot of lessons to be learnt and a lot of people studying this sort of thing. As for the figures used by the noble Lord, Lord Rosser—and taking the point just made about the banks—that is the whole point. People confuse theft of credit card details with identity theft. Identity theft is when someone’s identity is taken over and used to do many other things, such as entering into contracts, travelling across borders and perpetrating crimes. Nicking a credit card and its details is something completely different. Those provide the huge figures, and the people who can stop that are the banks and the credit card companies by increasing their security. They are always looking at this, and they are trading off between the losses they make on transactions where cards are not present, and the cost of additional security. We are seeing new security measures coming through, but it is not a government job. There is no point at which you would take a national identity card that is not designed for online transactions, and a credit card that at the moment is not designed for them, and hope that one is going to help with the other. Actually, the entire problem about security for the credit card is contained there, and the people know what to do about it. They are getting on with it rather slowly to my mind, but when the fraud figures get big enough they will do something about it. I agree there are lessons to be learnt, but I do not think it is an identity card lesson. There are some other lessons to be learnt, but I think that there are other bodies better qualified to do the job than the Home Office writing expensive reports.

[Baroness Neville-Jones]

My Lords, the amendment in the name of the noble Lord, Lord Rosser, raises two issues. He spoke to the first issue as regards combating identity fraud and the effect of the repeal. He did not really mention the second, which would require us to write reports on the operation of the identity card scheme. I will deal with both those matters because, if the amendment were accepted, they would be obligations on the Government.

I very much support the notion that what we do in government should be evidence-based, but I do not think that trying to draw lessons from a scheme of such narrow scope and numbers, as well as short duration, will help us a great deal in what are, without doubt, serious issues. One can draw a number of lessons about the operation of the scheme itself, but I do not know that they would cast much light of a general kind on how to operate identity schemes in the future. Frankly, the Government’s view is that this is not a worthwhile thing for us to try to do.

We entirely agree that combating fraud is a major issue. There is no argument between us on that. That is precisely why the Home Office is taking it very seriously in conjunction with other departments. The National Fraud Authority and the National Fraud Intelligence Bureau have, as I mentioned in Committee, produced a strategic threat assessment of the harm and the impact of identity fraud. I entirely agree with the noble Earl, Lord Erroll, that identity is an issue and we certainly will have to do work on identity authentication. That would have been the case even with the NIR.

These assessments are now being taken as the base for an action plan, which I also mentioned in Committee. I hope that the House will accept that it would not be sensible for us to publish the details of the action plan, which is designed to try to get at the root of those who are engaged in criminal and fraudulent activity. But I can assure the House that we are taking this issue seriously.

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[Lord Maxton]

My Lords, the noble Lord who moved the amendment may be slightly surprised to know that I support it, but for reasons that are rather different from those that he put before the House. A friend of mine described the Bill as the King Canute Bill; in other words, it is doing away with something—identity cards—which, in a relatively short time, whatever Government are in power, will have to be reintroduced. That is almost inevitable. I would hope that an appointed independent person would give that recommendation to the Government of the day and say, “Sorry, we have got it wrong. It is time that we reintroduced ID cards”. I agree entirely with my friend’s view, except that poor old King Canute is the most maligned man in English history, because he never suggested that he could hold back the tide. What he said to his courtiers was, “I cannot hold back the tide”. I suppose that it is the first example of PR going badly wrong.

There will come a point where the need for smart card technology will become such that we will have to introduce an identity cards Bill. This amendment would at least allow an independent person to look at it and say, “Sorry, we’ve got it wrong. Let’s have another look. Let’s introduce ID cards”.

[The Earl of Erroll]

My Lords, if I had got my act together a bit more quickly, I would have added my name to the amendment, because it is very sensible. There are some residual powers in the Bill which we need to keep an eye on. Although an Information Commissioner exists, he does not have the power to march in and look at things unless there are complaints. He would also be overextended.

We need to look out for residual powers that could give rise to concern. They come in Clause 10. Subsections (8) and (9) sensibly state that certain information which is gathered to prove someone’s identity when a passport is being issued should be destroyed after 28 days. Given that the Government will destroy the information within 28 days, I am happy for them to consult other databases—I mentioned in Committee electricity bills, which is probably the quickest way of finding whether someone has changed address or where they really are. I have no problem with the Government doing that to verify a person’s identity for the purpose of producing a passport.

However, then we get to subsection (10), which is the good old catch-all. It says that the Government can retain the information beyond 28 days for the purpose of “preventing or detecting crime”—I remember this sort of wording in RIPA, which led to a lot of grief—and “apprehending and prosecuting offenders”. Well, that depends on how quickly they apprehend them again. We should have oversight by an outside commissioner who reports to Parliament and not by a Home Secretary, because this sort of thing can get out of hand and, later, suddenly rise up to bite a Government in the future. We have several commissioners doing this sort of job elsewhere in the security world. We either add it on to someone’s job or create another one, but it is sensible for protecting the public.

[Baroness Hamwee]

In Committee I raised the point on subsection (10) to which the noble Lord referred. Is it the noble Earl or the noble Lord?

[The Earl of Erroll]

My Lords, it is the noble Earl. It is very confusing. I am actually the Earl of Erroll, but we are in distinguished company as we have two Earls who have surnames as their titles—Earl Ferrers and Earl Attlee. However, I would still refer to them as the noble Earl, Lord Attlee, and the noble Earl, Lord Ferrers. Thank you very much for correcting the House on this.

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[Noble Lords]

Hear, hear!

[The Earl of Erroll]

If noble Lords will indulge me for two seconds, the only person who is the exception here is the noble Duke, the Duke of Montrose. Otherwise, we are all Lords and Ladies. We are Peers, so socially we refer to each other as Lord and Lady. Even a Baroness is a Lady, and we put the true title in front.

[Lord Hunt of Kings Heath]

With the greatest respect to the noble Lord, the Earl Ferrers—