Whistleblowing Awareness Week

Debate between James Daly and Seema Malhotra

Thursday 23rd March 2023 Westminster Hall

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

It is a pleasure to serve under your chairship today, Ms McDonagh, and to speak on this important issue during the first Whistleblowing Awareness Week, which was launched in Parliament on Monday. I am pleased to add my voice to calls for organisations to change and for people to have the courage to come forward. There should be no fear or cover-up in organisations, and we need to look at how we change the law to enable and support that.

I congratulate the hon. Member for Cheadle (Mary Robinson) on securing the debate. There is no greater champion in Parliament for the protection of whistle- blowers. We now also have colleagues in the Lords, whom we have mentioned today, who are taking forward the call for stronger legislation. I support the hon. Lady’s argument that UK standards should also be global standards. I thank WhistleblowersUK for its relentless advocacy in this space. I encourage everyone to be involved as much as possible in any remaining programmes and activity this week. I am sure that Whistleblowing Awareness Week will be an annual event; it is vital to keep a focus on the issue and keep Parliament’s mind focused on not just legislation, but perhaps how well that new legislation could be working. It was a pleasure to speak alongside WhistleblowersUK chief executive Georgina Halford-Hall at the start of the week, with the Minister also present at the event.

Most importantly, as I am sure the whole House and all who are present will agree, those in most need of our thanks this week are the whistleblowers themselves, for the extraordinary risks they take and the great sacrifices they make to uphold justice, transparency and accountability, in this country and internationally. It is clear from the contributions today that that sentiment is felt across the House.

The hon. Member for Cheadle laid out some of the new insights that were shared at roundtables this week and spoke about the misuse of non-disclosure agreements. There were also important contributions from the hon. Members for Bury North (James Daly) and for Erewash (Maggie Throup) and the right hon. Member for Aldridge-Brownhills (Wendy Morton), who has her very own constituency connection to the passing of PIDA 25 years ago. The right hon. Lady called for clarity and, perhaps, more urgency on the Government’s next steps. I acknowledge and support the arguments made by colleagues and the connection with the harrowing Casey report that is out this week and is very much a part of all our lives, particularly those of us who are London Members of Parliament. I also thank the hon. Member for Erewash for chairing roundtables at some of the events this week. SNP colleagues have also been supportive, not just today but during the ongoing debates on the issue. 

The importance of whistleblowing in upholding transparency in opaque institutions and exposing law-breaking cannot be underestimated, whether that is regarding sexual abuse scandals, Grenfell, economic and financial crime, financial institutions, the police, Government Departments, sporting organisations, religious institutions or large multinational corporations—the list goes on. In every single one, at some point, whistleblowers have been responsible, sometimes solely, for drawing attention to wrongdoing and for bringing justice.

I reiterate the comments of the hon. Member for Cheadle on economic crime, an area in which I worked closely with the Minister, on the Economic Crime and Corporate Transparency Bill. The National Crime Agency estimates that fraud costs the UK economy £190 billion each year, including £40 billion to the public sector. Between 43% and 47% of serious economic crimes are exposed by whistleblowers. The numbers show the huge scale of the issue, the huge role that whistleblowers play in exposing economic crime, and the impact they could have on our economy, if they were granted more protection under legislation.

One example is the Danske Bank money laundering scheme, where criminals took advantage of UK limited liability partnerships. It was a whistleblower that exposed the $230 billion economic crime operation, halting a stream of Russian money laundering.

That is why better protection of whistleblowers is so important—because, in so many cases, they are the first line of defence. They deserve greater legal protections than they currently receive. Multiple Ministers have promised us that change is coming, but that is not a message currently commanding the greatest of confidence. The Minister is likely to say that he is reviewing the whistleblowing framework and moving forward as soon as possible. That is an area on which we have common ground.

[James Daly]

The hon. Member is making some valid points. As parliamentarians, we could come up with new legislation that could give new protections. The problem is that if certain organisations have toxic cultures, no matter what the legal protections are, people are intimidated and will not come forward. That is where the issue is, no matter the legislation. The Met is one example, but there are others. I wonder what she feels we can do on institutionalised attitudes.

[Seema Malhotra]

The hon. Member raises a significant point, which I alluded to in my comments on the speech by the hon. Member for Cheadle. This issue needs serious leadership, commitment and accountability for change. The debates we have had in Parliament on the Casey report are some examples. Transparency and accountability at the very top really do matter.

When the Government bring forward measures, this is an area on which we will have common ground. The Minister knows we will support the Government on those measures, but I hope he will also understand that we want to see measures brought forward more quickly than is apparent at the moment—perhaps he will speak to that that in his remarks—because whistleblowers are being let down by inaction.

The Public Interest Disclosure Act 1998, which was referred to in the debate, was initially celebrated as groundbreaking. Now, only 4% of people who bring claims under its provisions succeed. There are arguments that it effectively discourages whistleblowing, and there are questions now about its scope. Independent data shows an overall decline in whistleblower reports across the public and private sectors, and reports of harassment against those threatening to whistleblow are increasing. That is utterly unacceptable.

Last year the International Bar Association, as has been mentioned, conducted the first review of its kind to assess countries with whistleblower legislation against compliance with international best practice. The UK ranked only 12th out of 16 countries. As the APPG for whistleblowing, chaired by the hon. Member for Cheadle, highlights in its recent report,

“Whistleblowers in general remain the subject of suspicion and scepticism and while organisations and official bodies sing the merits of whistleblowing and parade policies and procedures the lived experience of whistleblowers remains poor.”

It is clear that much more needs to be done if we are to adequately protect whistleblowers and ensure greater transparency in our public and private institutions. That is why during the passage of the Economic Crime and Corporate Transparency Bill through the Commons, both in Committee and on Report, the Labour party supported the amendment tabled by the hon. Member for Cheadle, which would have established an office of the whistleblower. That happens in the United States, so why not here?

The office would protect whistleblowers from detriment, ensure that disclosures by whistleblowers are investigated, and escalate information and evidence of wrongdoing outside of its remit to another appropriate authority. The objectives of the office would be to encourage and support people to make whistleblowing reports, to provide an independent, confidential and safe environment for making and receiving whistleblowing information, to provide information and advice on whistleblowing, and to act on evidence of detriment. As the hon. Member for Cheadle raised on Report, there is evidence that an office of whistleblowers incentivises and increases disclosures.

In 2020 the International Bar Association tested countries with whistleblowing legislation against a list of 20 best practices. The UK met just five. Meanwhile, the United States, which has an Office of the Whistleblower, met 16, and that office received 12,300 disclosures in 2022, nearly double the number of 2020.

The Labour Front Bench will join cross-party calls in Parliament to increase protections for whistleblowers at a time when it could not be needed more. I hope the Government will say more today about the steps that they will take. I note that during the passage of the Economic Crime and Corporate Transparency Bill through the Commons the Security Minister said he agreed with the need for an office of the whistleblower. His exact words were:

“what the country needs is an office for whistleblowers, and what we need to do is ensure that we have the updates to the legislation that she”—

the hon. Member for Cheadle—

“so correctly highlighted.”—[Official Report, 25 January 2023; Vol. 726, c. 1094.]

So I ask the Minister: what progress have the Government made in carrying out that latest commitment?

I seek assurances from the Minister that action is on its way—not just a commitment to having a review, but genuine action. I look forward to his response and hope that the Government will get a grip of what is an important issue and make sure that there is support for whistleblowers and for the sacrifices that they make every day to uphold justice and transparency.