(6 years, 2 months ago)
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My hon. Friend makes an excellent point. NGOs are doing some excellent work but, fundamentally, I believe that such work should be done by the Home Office and by Government—because we are talking about something set out in statute—rather than relying on the benevolence of third-party organisations.
Despite the work of the organisation in my hon. Friend’s constituency, and even though the matter has been progressed, I know that the Minister is aware of concerns about how section 54 is being implemented. Back in April I asked a question in the Chamber of a Department for International Development Minister, who confirmed that a hub was being set up. Will the Minister present today confirm what progress has been made on that hub?
What is really worrying, however, is that an investigation by The Guardian demonstrated that of the companies that had made a modern slavery statement, more than two thirds had failed to refer specifically to the risk of modern slavery. They had made a declaration, but it did not comply with the requirements of the Act. More worryingly, only 19% of all agricultural businesses that should be making a statement have done so, and that is an area in which exploitation could be rife.
Unfortunately, because everything is being done by third-party NGOs, the ability to compel necessary information simply does not exist. Until the Government introduce something on a formal statutory basis, more and more organisations will seek to put aside their responsibilities. The Co-operative Group, which I shall talk about later, has estimated that it is cheaper and easier for organisations simply to ignore the requirements than it is for them to produce the statements and submit them. There is no validation and so no penalty for failing to make a declaration.
The section 54 requirement also applies only to commercial organisations. The public sector, however, is a huge spender of money—billions and billions of pounds are spent in procurement—yet no public authority is required to make declarations to demonstrate their actions to reduce modern slavery. Were we to extend section 54 to cover public bodies and authorities, that might not stop certain aspects of modern slavery happening, but we would be able to have oversight of where the billions of pounds in public procurement are ultimately being spent, and Members could look for the impact on modern slavery.
Does the hon. Gentleman agree that smaller businesses ought to be included in the overall remit of the Act? After all, they include nail bars and people working on tips. If we had a system whereby when a licence was granted by local authorities, businesses had to tick a box on their compliance with modern-day slavery rules, that would be a real step forward.
The hon. Lady is absolutely right. The current scope of section 54 is well meaning, and in some ways if it was implemented correctly it would have a huge impact on large organisations. But if we are being honest and up front, most of the places where modern slavery is perpetrated in the UK are small businesses that are not properly regulated. It is tied employment, with people living in a room above a shop and being told that their rent and board is all paid for as part of their salary but, “By the way, you can’t ever leave us.” Local authorities having a remit would be a way of tackling that. However, we must be clear that if we are to give local authorities new responsibilities, new funding must come with that, because simply asking local authorities to do more with their depleted amounts of money simply will not do.