Proceeds of Crime

Debate between Jacob Rees-Mogg and James Brokenshire

Tuesday 12th June 2012 Commons Chamber

[James Brokenshire]

It is certainly true that bilateral arrangements can be structured. All that I am seeking to say is that negotiations on the directive provide the UK with an opportunity to have an influence. They do not affect our decision, reflected in the motion, not to opt in at this stage because of the serious risks and operational requirements that I have identified.

[Jacob Rees-Mogg (North East Somerset) (Con)]

I urge the Minister to be very cautious about mutual recognition, because it means that countries that do not have a legal system that is as robust as ours can have their orders enforced in this country. It therefore threatens the rights of British subjects.

[James Brokenshire]

I certainly hear my hon. Friend’s point, and we will monitor that carefully in relation to the directive. As I have indicated to the House, there is currently no proposal in the directive dealing with mutual recognition.

--- Later in debate ---

[Jacob Rees-Mogg (North East Somerset) (Con)]

I am grateful to have been called so early in the debate to represent the European Scrutiny Committee, replacing my hon. Friend the Member for Stone (Mr Cash), who is away. I apologise if, in comparison to him, I am more loquacious.

I want to start by raising a few points relating to scrutiny. The Minister was gracious in accepting that there had been problems with it. The document was first made available for an opt-in decision in the middle of March, with a three-month time scale for making a decision which ends on 15 June. It is a pity that Her Majesty’s Government could not have made up their mind on this matter slightly earlier in the process.

I also want to raise a point about the other place. The debate in this House was cancelled on the ground that we were unable to debate the matter until the Government had made up their mind, but in the same circumstances the other place was able to debate it. I am not entirely sure whether that is a discourtesy to the other place or to us, but it seems odd that such a rule should apply in one place and not the other.

[James Brokenshire]

Perhaps I can help my hon. Friend. There was a distinction, in that the debate in the other place was on an Opposition motion, rather than a Government motion.

[Jacob Rees-Mogg]

I am grateful for that clarification. I should also like to say, for future reference, that I have been given hope that the Government might occasionally listen to what the House says, and that having debates before a decision is finally made would not necessarily be a bad thing. It might be a pious hope that speeches made from these Benches might influence the wise thoughts of Her Majesty’s Government, but it is one that I hold to. I am grateful to the Minister for his explanation, but I hope that we can have better scheduled debates in future. From a personal point of view, I believe that the slot at the end of business on Wednesdays is extremely convenient for most people.

It is also a shame to be having this debate now, when half the members of the European Scrutiny Committee are away in, of all places, Europe. They are visiting Cyprus, in preparation for Cyprus taking over the European Union presidency. I was glad to have the opportunity of staying in the House. Like you, Mr Speaker, I prefer not to leave. I believe that you require specific permission to leave the country, and I would not mind being under the same constraint myself.

I shall move on to the substance of the opt-in decision, and to the Minister’s comments. It is tremendously important that, under our current law, any freezing order requires the order of a court, but that would not be the case under the proposed document from the European Union. It is unsatisfactory to allow the administrative freezing of assets without a court interfering. That is an important principle of justice, and on that basis alone it would be wise of the Government not to opt in to the directive.

As the Minister said, the directive would offer no direct benefit to our domestic asset recovery regime. That being the case, the only argument for opting in would be to have more Europe, and that is not the policy of Her Majesty’s Government, who are committed to keeping Europe closely under watch and limiting any extension of its powers. It is therefore difficult to see what changes to the draft directive the Government would find acceptable in order to make it better, or whether there is any prospect of their insisting that anything that happened under it should require a court order before being implemented. It would be interesting to know from the Minister what would be the consequences of our not opting in—by what would we be bound in our existing agreements and how would they develop, and what would be our ability to maintain bilateral arrangements with other member states in future? Might that not be a more suitable way of approaching the matter?

There are concerns about the standing of the directive under European constitutional law. As the Minister and other Members know, we have the ability to opt out of a great number of the crime and justice directives in 2014, but—and there is a but—if we signed this proposed directive, it would not be part of that block opt-out and it would remove our ability to opt out of three other directives that we have so far opted into. The block opt-out does not apply to EU policing and criminal justice legislation adopted following the Lisbon treaty’s entry and coming into force where the UK decides to become bound by it, and neither does it apply to pre-Lisbon treaty legislation that was amended once the Lisbon treaty came into effect. The three pieces of pre-Lisbon EU treaty legislation that we would lose are on money laundering, the identification, tracing, freezing, seizing and confiscation of instrumentalities and the proceeds of crime under the framework decision 2001/500/JHA on the same subject, and another framework decision on the confiscation of crime-related proceeds. We would thus be tightly binding ourselves into all our future confiscation and money laundering policies being determined at the European level.