Online Safety Bill

Debate between John Penrose and Baroness Hodge of Barking

Report stage
Monday 5th December 2022 Commons Chamber

[Dame Margaret Hodge]

That is for an investigation by the appropriate enforcement agency—Ofcom et al.—and if there is evidence that culpability rests with the managing director, the owner or whoever, they should be prosecuted. It is as simple as that. A case would have to be established through evidence, and that should be carried out by the enforcement agency. I do not think that this is any different from any other form of financial or other crime. In fact, it is from my experience in that that I came to this conclusion.

[John Penrose (Weston-super-Mare) (Con)]

The right hon. Lady is making a powerful case, particularly on the effective enforcement of rules to ensure that they bite properly and that people genuinely pay attention to them. She gave the example of a senior executive talking about whether people should be stopped for getting it wrong—I think the case she mentioned was holocaust denial—by making factually inaccurate statements or allowing factually inaccurate statements to persist on their platform. May I suggest that her measures would be even stronger if she were to support new clause 34, which I have tabled? My new clause would require factual inaccuracy to become wrong, to be prevented and to be pursued by the kinds of regulators she is talking about. It would be a much stronger basis on which her measure could then abut.

[Dame Margaret Hodge]

Indeed. The way the hon. Gentleman describes his new clause, which I will look at, is absolutely right, but can I just make a more general point because it speaks to the point about legal but harmful? What I really fear with the legal but harmful rule is that we create more and more laws to make content illegal and that, ironically, locks up more and more people, rather than creates structures and systems that will prevent the harm occurring in the first place. So I am not always in favour of new laws simply criminalising individuals. I would love us to have kept to the legal but harmful route.

We can look to Elon Musk’s recent controversial takeover of Twitter. Decisions taken by Twitter’s newest owner—by Elon Musk himself—saw use of the N-word increase by nearly 500% within 12 hours of acquisition. And allowing Donald Trump back on Twitter gives a chilling permission to Trump and others to use the site yet again to incite violence.

The tech giants know that their business models are dangerous. Platforms can train their systems to recognise so-called borderline content and reduce engagement. However, it is for business reasons, and business reasons alone, that they actively choose not to do that. In fact, they do the opposite and promote content known to trigger extreme emotions. These platforms are like a “danger for profit” machine, and the decision to allow that exploitation is coming from the top. Do not take my word for it; just listen to the words of Ian Russell. He has said:

“The only person that I’ve ever come across in this whole world…that thought that content”—

the content that Molly viewed—

“was safe was…Meta.”

There is a huge disconnect between what silicon valley executives think is safe and what we expect, both for ourselves and for our children. By introducing liability for directors, the behaviour of these companies might finally change. Experience elsewhere has shown us that that would prove to be the most effective way of keeping online users safe. New clause 17 would hold directors of a regulated service personally liable on the grounds that they have failed, or are failing, to comply with any duties set in relation to their service, for instance failure that leads to the death of a child. The new clause further states that the decision on who was liable would be made by Ofcom, not the provider, meaning that responsibility could not be shirked.

I say to all Members that if we really want to reduce the amount of harmful abuse online, then making senior directors personally liable is a very good way of achieving it. Some 82% of UK adults agree with us, Labour Front Benchers agree and Back Benchers across the House agree. So I urge the Government to rethink their position on director liability and support new clause 17 as a cross-party amendment. I really think it will make a difference.

Economic Crime

Debate between John Penrose and Baroness Hodge of Barking

Thursday 2nd December 2021 Commons Chamber

[Dame Margaret Hodge]

One of the specific areas on which we make a recommendation in our motion before the House is the reform of Companies House. The situation of my hon. Friend’s constituent is just the sort of situation in which Companies House ought to be able at least to verify and possibly to pursue the wrongdoers.

Economic crime is often the facilitator of other crimes—from people trafficking to drug smuggling, and from terrorism to corruption. It does not just enable other crimes; it impacts on our national security. Dirty Russian money laundered into the UK is spreading like a spider’s web through our society. It is used to buy influence and to control our football clubs, our vital infrastructure and, more recently, our politicians and our politics. Today, we want not just to lay out the problem, but to put forward three pragmatic reforms that the Government could adopt—not tomorrow, but today. These are three oven-ready policies that together could have a significant impact in both preventing economic crime and punishing its wicked perpetrators.

We have become the destination of choice for a number of reasons. First, we have a very weak regulatory regime after decades of deregulation. Introducing reforms to our corporate liability regime would start to address the inadequacies in the regulations we have inherited. Even where we do have clear laws—this is my second point—our enforcement agencies are both inadequately resourced and risk averse in their policing of our system. Lack of money and fear of failure drive their decisions, and unlike America, we let criminals get away with it. Reform of Companies House would constitute the start of creating a tougher enforcement regime. Thirdly, we still allow a lack of transparency to flourish, giving wonderful cover to ne’er-do-wells and making it difficult to follow the money. If we cannot follow the money, dirty money triumphs.

[John Penrose (Weston-super-Mare) (Con)]

I congratulate the right hon. Lady and my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) on arranging this very important and very timely debate. I am only sorry that I cannot stay for the whole thing because I am due to speak elsewhere.

I want to pick up on the point the right hon. Lady was just making, and ask whether she would agree that it is not enough to improve the three things she is talking about to come up to some sort of international standard. Because of the existence of the City of London—a huge economic asset in Britain’s economy—we actually have to be better than almost anybody else, given not just the benefits but the risks that that creates.

[Dame Margaret Hodge]

I completely agree with the important contribution that our anti-corruption tsar has made in the House today. I think it is a really short-term view to believe that our British economy can flourish on the back of dirty money. We will flourish if we clean up the act in the City of London and it again becomes a trusted institution.

I just wonder how many Panama papers, Paradise papers, Pandora papers, FinCEN—Financial Crimes Enforcement Network—leaks, laundromat leaks, Falciani leaks and Luxembourg leaks we need for our Government to wake up, stop mouthing warm words, which they do a lot, and start acting with tough measures to bear down on this dangerous crime and this terrible trend.

A proposal to toughen up the regulatory framework was included in the 2015 Conservative party manifesto. The party pledged—I hope I am quoting accurately—to create a criminal offence where companies

“fail to put in place measures”

to prevent economic crime. The Government launched a consultation that lasted four years, and then parked the issue in the long grass by referring it to the Law Commission. I understand that the Law Commission is about to report, but we need and want corporate liability reform, and we want it now.

Sanctions and Anti-Money Laundering Bill [Lords]

Debate between John Penrose and Baroness Hodge of Barking

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 1st May 2018 Commons Chamber

[John Penrose]

May I just follow up on that last point? It is not just trusts that are an essential and major omission here. It is also other kinds of assets, including real estate, mineral rights, debt and bonds. Unless we have complete and comprehensive registers in due course, my worry, and the worry of others, is that we may be over-claiming the benefits of transparency. It may be a necessary step, but it certainly does not cover all those other areas, which, arguably, are more important.

[Dame Margaret Hodge]

I welcome the contribution from our anti-corruption champion—the hon. Gentleman was appointed by the Government to fulfil that role. Indeed, he is right, but I hope that he will work with me and others in ensuring that we get better coverage for the public registers. However, that should in no way limit what we are attempting to achieve today, which will be a remarkable, important and really world-changing measure in the fight against corruption.

Our overseas territories are an integral part of Britain and they should be guided by the same values as us. Clamping down on corruption and toxic wealth is morally right. We will never be a truly global Britain on the back of stolen principles. Other Members have mentioned the White Paper that was published by the Government in 2012 on our relationship with our overseas territories. I simply refer Members to one phrase in that document:

“As a matter of constitutional law, the UK Parliament has unlimited power to legislate for the territories.”

The Government put that phrase pretty high up in that White Paper, so they are jealously guarding their powers in relation to the overseas territories. These are powers that we should always be reluctant to use, but they are also powers that Governments of both parties have employed in the past.