Proceeds of Crime

John Hayes Excerpts

Wednesday 20th January 2016 Commons Chamber

[The Minister for Security (Mr John Hayes)]

I beg to move,

That the draft Proceeds of Crime Act 2002 (Investigative Powers of Prosecutors: Code of Practice) (England and Wales and Northern Ireland) Order 2016, which was laid before this House on 17 December 2015, be approved.

[Mr Speaker]

With this, we shall consider:

That the draft Proceeds of Crime Act 2002 (Cash Searches: Code of Practice) Order 2016, which was laid before this House on 16 December 2015, be approved.

That the draft Proceeds of Crime Act 2002 (Search, Seizure and Detention of Property: Code of Practice) (England and Wales) (No. 2) Order 2016, which was laid before this House on 16 December 2015, be approved.

That the draft Proceeds of Crime Act 2002 (Search, Seizure and Detention of Property: Code of Practice) (Northern Ireland) Order 2016, which was laid before this House on 16 December 2015, be approved.

That the draft Proceeds of Crime Act 2002 (Investigations: Code of Practice) (England and Wales and Northern Ireland) Order 2016, which was laid before this House on 16 December 2015, be approved.

[Mr Hayes]

I am grateful, as ever, Mr Speaker, for your stewardship and indulgence.

The important matters before us are technical and, I anticipate, relatively uncontroversial; they are certainly not partisan. Nevertheless, it is important that we scrutinise them with the diligence for which this House is rightly famed, and I will be happy to deal with any amount of detail with which the House wishes me to engage.

Isaiah Berlin once said:

“Freedom for the wolves has often meant death to the sheep.”

As someone who believes in standing fierce in defence of the gentle, I know exactly what he meant. It may be of some assurance and comfort to the House that the matters under debate relate to the Proceeds of Crime Act 2002 and were largely commenced in England and Wales on 1 June 2015. In order to extend that commencement, as is necessary, to Scotland and Northern Ireland, we are required to make codes of practice that encompass those jurisdictions and bodies using the powers there. So, the codes will largely replicate those that were considered and approved by this House, which is why I described them as technical and largely uncontroversial.

The codes are a safeguard to ensure effective and consistent use of the powers. Once commenced, the new powers will give officers important new tools for the recovery of criminally obtained assets. That is a key pledge of our serious and organised crime strategy and the Government’s commitment to tackling all levels of crime.

The codes build on previous codes. They closely follow those issued more widely to police officers under the Police and Criminal Evidence Act 1984. The codes provide an important safeguard and ensure that the powers are used in a targeted, consistent and effective way, thus providing vital reassurance to the public that the powers in the 2002 Act are being used appropriately and proportionately.

The orders bring into force a number of codes of practice that provide guidance on the use of various powers under the 2002 Act. Four current codes need updating and a new code is required as a consequence of amendments made to the 2002 Act by primary legislation already passed by this House. I draw Members’ attention to the Policing and Crime Act 2009, the Crime and Courts Act 2013 and the Serious Crime Act 2015.

We plan to commence those powers relating to the 2002 Act throughout the UK on 1 March, in so far as they are not already in force. To achieve that, we need to issue the codes of practice that will provide guidance on the use of the powers throughout the UK. The Scottish Parliament and the Northern Ireland Assembly will consider codes that fall within their competence due to devolution.

Some might think that it would be enough for me just to put those technical matters on the record, but knowing this House as you and I do, Mr Speaker, I know that it will want me to say a little more about the amendments to the 2002 Act, which require the codes of practice providing guidance—

[Mr Speaker]

Order. As the Minister of State has already prayed in aid Isaiah Berlin, I had supposed that it would be only a matter of time before he would refer, in an orderly way, of course, to “Four Essays on Liberty”, but perhaps I am being impatient and that will be reached in the course of the right hon. Gentleman’s peroration. We wait to see.

[Mr Hayes]

Mr Speaker, you are encouraging me to stray from the subject at hand, but I will just say this: in a frail and fallen world, liberty has to be handled with great caution, and I have neither the time nor the expertise to delve into those matters at sufficient depth to satisfy you, Sir, or the House as a whole.

I will therefore restrict my remarks to the matters before us and deal briefly with the areas to which the codes of practice relate, namely the power to allow search of vehicles for criminal cash; search and seizure powers to prevent the dissipation of property that may subsequently be used to satisfy a confiscation order; expanded confiscation investigation powers to allow the tracing and identification of assets following a confiscation order; expanded civil recovery investigation powers; and change of court jurisdiction so that the Crown Court rather than the High Court will make investigation orders in relation to cash forfeiture cases.

As you will understand, Mr Speaker, we are not debating the powers themselves, because they have already been approved by the House, as I have described. Importantly, however, we are considering the codes that provide guidance on the use of the powers. This is essentially about the consideration of appropriate safeguards. Such safeguards are required under the 2002 Act in investigations by law enforcement officers. There is a final further code that relates to the use of the investigation powers by prosecutors, and owing to amendments made to the powers new codes are needed to address the new provisions.

The orders will bring all the relevant codes of practice into effect, ensuring that effective safeguards and up-to-date guidance are in place, and enabling full commencement of the amendments to the 2002 Act, which I have described. For the powers that are not yet in force, we are working towards a common commencement date of 1 March. The use of the powers will be rightly guided by the revised codes of practice. I make no apology for repeating that the codes are an important safeguard to ensure the targeted, proportionate and effective use of the powers in the Act, balanced against the entitlements—my brief says “rights”, a word I always hesitate to use, but I mean the lawful entitlements that we often call rights—of individuals and communities. I therefore ask the House to approve the orders to give effect to the codes of practice.

In order not to disappoint you of all people, Mr Speaker, I conclude by quoting my favourite poet—not T. S. Eliot, but W. B. Yeats:

“Do not wait to strike till the iron is hot; but make it hot by striking.”

The Government, with appropriate alacrity and determination, and with the moderation associated with putting in place such safeguards, are indeed striking to make the iron hot. In that spirit, I hope the whole House will agree that the orders are an appropriate way forward, with appropriate checks and balances in the exercise of these vital powers.

--- Later in debate ---

[Mr Hayes]

I shall answer one or two points on the first of the codes, then, with your permission and indulgence, Mr Speaker, I shall move the subsequent ones formally.

The points that have been made are all in the spirit of wanting the measure to work. I am grateful to the House for that. The shadow Minister, the hon. Member for Birmingham, Erdington (Jack Dromey), made the telling point that this has long been a consideration of this House and of successive Governments. He referenced in particular the 2002 Act and he will know that subsequent legislation to which I referred earlier builds on that Act and brings it up to date, because as crime changes, the proceeds of crime and our ability to recover them change too. Very much in that spirit, I welcome what he said.

I note the hon. Gentleman’s point about the way the measure is explained. Although with typical courtesy he did not draw the attention of hon. Members to the fact, I am aware that the Secondary Legislation Scrutiny Committee felt that the explanatory memorandum that accompanied these orders was not sufficient. I agree that the policy background in the memorandum was insufficient and did not set out that the powers will operate in the way I want them to, as he said. To that end, I am delighted to be able to tell him that this very morning I asked my officials to redraw the explanatory memorandum in exactly the form that he requested, with worked examples of how these things might work in practice. These are complex matters, but none the less it seems to me that they need to be articulated in a way that makes it absolutely clear how the codes will introduce the kind of safeguards that we all favour.

To that end, I can assure the House that my officials are well aware that the explanatory memorandum must do just that. I am delighted to be able to tell the House that the Secondary Legislation Scrutiny Committee has said that were that to be done with the speed and in the fashion that I have described, it would be satisfied. The hon. Gentleman has done a service to this House and it is not his fault that I have anticipated his point by doing what I have described this morning. Indeed, it shows that we are on the same page.

My hon. Friend the Member for North West Hampshire (Kit Malthouse), who has moved—he is in his place, but his place has changed—made the interesting suggestion that the police might be incentivised, if I might put it in those terms, to go still further if they were to recover some of the costs of their inquiries. That is an interesting suggestion. It would be above my pay grade and outside my remit to agree it on the Floor of the House at this very moment, but I shall certainly take it back to the Department to discuss with the policing Minister and others.

[Lucy Frazer (South East Cambridgeshire) (Con)]

My right hon. Friend rightly mentioned that the explanatory memorandum could go into a little more detail, and I welcome that suggestion. Paragraph 4.9 of the explanatory memorandum suggests not only that there have been new additions but that:

“The code has been slightly restructured to make it easier to read and understand.”

Would it be possible to set out what is a clarification and what is a new provision, so that when that is considered in due course it will be clear that some points are just clarifications rather than new provisions?

[Mr Hayes]

With the eye for detail that my hon. Friend’s scrutiny increasingly shows, and for which she is building a substantial reputation, she draws attention to precisely one of the matters that I discussed with my officials in the conversation I had with them this morning, to which I referred in relation to the comments made by the shadow Minister. It is right that we should clarify that point. She is also right that we need to consider the whole of the explanatory memorandum in a similar spirit, and that is precisely what we intend to do. I am grateful to her for allowing me to illustrate that not only she has an eye for detail, but the Minister has too.

The points made by the hon. Member for Foyle (Mark Durkan) seemed to me to be absolutely on the button. It is important that these things are dealt with consistently and that we take them seriously. I make no comments on his remarks about the previous history in the Province, but I can assure him that we are determined that the powers shall apply across our kingdom and that they will be pursued with appropriate vehemence. There can be no greater mission than to ensure that criminals do not profit from what they do. That is precisely what we intend to achieve. I am grateful for his support and for the comments he made about that.

The hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) spoke about immigration officers’ powers. I take his point; they have been generally expanded so that they are now mainstream law enforcement officers, like the police, the NCA and others. There is appropriate training—he is right that it is very important that that takes place—and appropriate safeguards and oversight, as there always should be in such matters. This is in relation to the 2002 Act, as I said, and I will pass concerns on to the Minister for Immigration so that the people for whom he is responsible are equipped with the information and skills they need. As I said in response to the hon. Member for Foyle (Mark Durkan), it is important that we behave consistently, and I am grateful for his contribution to the debate.

The hon. Member for Strangford (Jim Shannon) spoke about effective enforcement, and not only is it important that these codes are clear, established, transparent and comprehensible, but the powers that they effect or give appropriate safeguards to must be used. As he said, it is right that there has been a determination in this House, but we must ensure that that is seen through to the point of impact. It is all very well having intent, a legislative vehicle and safeguards, but there must also be a determination that this is seen as an important priority in the Province and across the United Kingdom.

This has been a useful debate, and I am grateful for the spirit in which the House has considered these matters. It is perhaps best to end not with Yeats—although I could, and I am tempted to—but with C. S. Lewis, who said in “The Weight of Glory” that

“the art of life consists in tackling each immediate evil as well as we can”.

The proceeds of crime are an evil that this Government are entirely determined to tackle, and these codes will help us to do so. In that spirit, I commend the motion to the House.

[Mr Speaker]

With the indulgence of both the Chair and the House, the Minister has served up both a starter and a pudding, for which I am sure the House is deeply grateful. The main course has, of course, been provided by other hon. Members who have contributed to the debate and whom the Minister has graciously accommodated.

Question put and agreed to.