Gangmasters Licensing Authority

Debate between Jack Dromey and James Paice

Wednesday 20th June 2012 Westminster Hall

[Mr Paice]

I am grateful to my hon. Friend for that clarification. I was trying to make the point that he rightly referred in his opening remarks to some of the social problems from which my constituency and his suffer as a result of migrant workers. Many of them, as I know full well from my own constituency, are not only here perfectly legally, but operating under licensed gangmasters and earning an income that allows them to buy cans of beer that they then consume outside somebody else’s house. They do not always fully understand British culture and ways of life.

I have announced a package of proposed changes to the GLA, including removing from its scope low-risk areas as far as worker abuse is concerned, streamlining the licensing process, and—this was my hon. Friend’s key point—looking at the scope to use civil penalties. He is right that, at present, the GLA board has very few enforcement weapons, other than its ultimate weapon, which is to withdraw the licence. He is right that we need a tier of measures for it to utilise. The proposed changes also include changes to the GLA board’s governance and structure.

During the earlier debate, the hon. Member for Ogmore referred to some of the issues that are being removed from the scope. I nearly responded to him then, but decided to leave it until now. On cultivated shellfish, let me be clear that we are removing the use of directly employed workers so, if anybody who cultivates shellfish lawfully on land for which they hold title directly employs workers, they will not be covered. If they use a gangmaster, they will still be covered. I just wanted to make that clear. Overall, the changes will ensure that the GLA is better able to concentrate on where it really matters.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Will the Minister give way?

--- Later in debate ---

[Jack Dromey]

I am speaking not on behalf of the Opposition, but as someone who chaired the coalition that established the Gangmasters Licensing Authority in the first place.

[Mr Paice]

I think that it is up to me, but I am happy to give way.

[Jack Dromey]

Thank you, Mr Dobbin. I am grateful to the Minister for giving way. I chaired the coalition that brought into being the Gangmasters Licensing Authority—from plough to plate, from the National Farmers Union to the supermarkets—and was one of those who appointed the first chairman of the GLA. Does the Minister accept that the GLA has been a great success, that it is efficient and effective in stamping out modern-day slavery and that it is now tackling the growing scandal of trafficking? Will he give an assurance that there is no question of the GLA’s vital work being compromised or undermined?

[Mr Paice]

There is a slight trap in what the hon. Gentleman asks me, because if I were to say yes to the first part of his question, he would immediately react by saying, “Well, why make any changes?” I cannot agree that everything the GLA has done has been perfect. We do not think that, which is precisely why we have reviewed it and are making changes. However, I can give him the assurance he referred to. That is why we have gone against recommendations, as the hon. Member for Ogmore pointed out in the earlier debate, to get rid of the GLA. We want to protect the most vulnerable workers, but we believe that it is time to refocus the GLA’s work precisely on that, rather than perhaps dissipating some of its efforts on much lower-risk sectors such as forestry, where there is no evidence of it being necessary whatsoever. I can give him that assurance.

Overall, the changes being made will ensure that the GLA is better able to target what we mean by suspected serious and organised crime, and that evidence of worker exploitation leads to successful investigation and prosecution of organised crime. As the hon. Member for Birmingham, Erdington (Jack Dromey) mentioned, that includes the increasing problem of trafficking.

I can assure my hon. Friend the Member for North East Cambridgeshire, who I know has had a meeting with the chairman of the GLA—I am conscious that she is observing these proceedings—that the intention to work across multi-agencies is to be enhanced. He talked about a number of illegal gangmasters. I do not know whether they are illegal. He might well be right, but I am not in a position to judge. However, the GLA needs that intelligence, which is why it needs to work with other enforcement bodies—whether in terms of immigration, the UK Border Agency, the police, the Serious Organised Crime Agency or whoever—to put all this together to ensure that they can combat trafficking and illegal activities across the piece.

We will remove an estimated 150 licence holders from the scope of the GLA, which will obviously save some money and bureaucracy. However, I certainly do not believe that that will in any way dampen the GLA’s effectiveness. The GLA will still regulate all licence holders and potential licence holders in the areas for which it is responsible. As I said, it can therefore concentrate on the worst abuses and examples of exploitation. On 1 June, the chief executive of the GLA, Ian Livsey, said on the “Farming Today” programme:

“This is all about risk and resources. People that apply for a licence will actually be checked. The checks that we will do though will be risk based so we’ll be using information that we have ourselves and information from other Government departments. It’s not true that people won’t be being checked when they make an application.”

It is very important to emphasise that.

The issue is not generally those who make an application. As my hon. Friend implied, the issue is often those who do not apply and have not got a licence. We need the criminal intelligence on that. The chair of the GLA, Margaret McKinlay, to whom I have referred, is also clear that there is room to improve the way in which the GLA operates, communicates and manages relations with those it regulates. In that, she has the benefit of positive working with the highly committed staff of the GLA.

It is fair to say that, after six years of the GLA’s existence, there is a much better understanding of the areas where the greatest risks to vulnerable workers lie. Conversely, given the unique features of the workers whom the GLA regulates in the sectors that it covers, we do not support any extension of the GLA’s scope or remit. The issue is not about extending the scope of the GLA either to construction or other sectors; it is about focusing the authority’s activities where its input is most needed to tackle worker abuse and exploitation. We also need to improve its processes, so that those who are compliant are not burdened and we can ensure that it is effectively positioned within the Government’s wider employment law framework.