Modern Slavery Bill

Lindsay Hoyle Excerpts

Tuesday 4th November 2014 Commons Chamber

[The Parliamentary Under-Secretary of State for the Home Department (Karen Bradley)]

I beg to move, That the clause be read a Second time.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

With this it will be convenient to discuss the following:

New clause 5—Duty on large UK companies to report efforts to eradicate modern slavery and forced labour—

‘(1) The Secretary of State must, not later than 5 October 2015,—

(a) make regulations under section 416(4) of the Companies Act 2006 (c. 46) requiring the directors’ report of a company to contain such information as may be specified in the regulations about modern slavery and forced labour in the supply chain for which the company is responsible, or

(b) lay before Parliament a report explaining why no such regulations have been made.

(2) Regulations made under section (1)(a) must be in force in relation to quoted companies by 6 January 2016 and in relation to large private companies as the Secretary of State believes to be appropriate by 2 January 2018.

(3) Subsection (1)(a) is complied with if regulations are made containing provision in relation to the company’s reporting of work in the following areas—

(a) accountability for tackling modern slavery and forced labour, including policy commitments, resourcing and actions to exercise due diligence;

(b) investigation, monitoring and auditing of modern slavery and forced labour risks in the UK and throughout their global supply chains;

(c) support and access to remedy for victims of forced labour and modern slavery; and

(d) training of staff and suppliers, access to expertise and advice.

(4) No regulations made under this section shall apply to small companies as defined by section 381 of the Companies Act 2006 (c. 46).”

New clause 15—Legal liability for the beneficiaries of slavery—

‘(1) The Secretary of State shall within six months of this Act coming into force bring forward regulations to ensure that a person benefiting from an offence under section 1 or 2 of this Act committed by a third party shall have committed an offence where—

(a) the third party acted for that person’s benefit; and

(b) their lack of supervision or control made possible for committing of the offence by the third party.

(2) Regulations under subsection (1) shall not be made unless a draft has been laid before and approved by both Houses of Parliament.”

This new Clause requires the Secretary of State to bring forward measures along the lines set out in EU Directive 2011/36/EU on preventing trafficking in human beings.

New clause 14—Ban on importation of goods produced by slavery or forced labour—

‘(1) The Secretary of State shall have the power to prohibit the import at any point of entry to the United Kingdom of any good, ware, article, or product mined, produced, or manufactured wholly or in part in any foreign country that can be demonstrably shown to have been produced by slavery, forced labour, child labour or with the involvement of human trafficking.

(2) The Secretary of State shall—

(a) prescribe such regulations as may be necessary for the enforcement of this provision;

(b) co-ordinate with and issue guidance to the Treasury, HMRC, devolved authorities and any other relevant public authority in relation to the exercise by them of their powers and responsibilities under this Clause; and

(c) have a duty to publish and maintain information on banned goods including a publicly available list of products which there is a reasonable basis to believe might have been mined, produced, or manufactured in the circumstances described in section (1).

(3) The Secretary of State shall establish a process whereby a petition can be made by any person, public authority or organisation who has reason to believe that goods produced in the circumstances in section (1) are being or are likely to be imported into the UK to communicate theses concerns to the relevant authority. Every such communication shall contain—

(a) a full statement of reasons for the claim;

(b) a detailed description or example of the product; and

(c) all relevant information regarding the production of the good.”

This would allow for the banning of the import of any product produced by slavery, convict, forced or indentured labour, including child labour.

Government amendment 62.

[Karen Bradley]

It is a pleasure to open this important debate. Modern slavery in supply chains is an issue that this Government take extremely seriously and have been considering very closely for some time. Tackling modern slavery is not only about catching the perpetrators; it is about making sure that we as consumers and businesses do not inadvertently fuel the demand for slave labour. We do not want businesses in the UK to have any connection to these abhorrent crimes, and UK consumers should not be put in the position where they inadvertently buy goods that could have been produced by individuals who are abused and enslaved.

The Government have been listening carefully to the views of NGOs, businesses and parliamentarians on this issue. I know that many right hon. and hon. Members here today have been campaigning on it for a long time, and their contributions and insight have been invaluable in developing our thinking. I would particularly like to thank the pre-legislative scrutiny Committee on the draft Modern Slavery Bill, who collected such valuable evidence, and the chair of the Committee, the right hon. Member for Birkenhead (Mr Field), for his leadership. I would also like to thank the hon. Members for Slough (Fiona Mactaggart) and for Linlithgow and East Falkirk (Michael Connarty), who have both tabled private Members’ Bills on this topic and have campaigned so tirelessly.

The Government have always been committed to encouraging businesses to take action on modern slavery, but I and the Home Secretary wanted to make sure that any further legislative changes were of real value and would not confuse existing arrangements. Having considered carefully the evidence and calls for change, I believe that we can improve the legislative framework further to encourage business to take action. That is why I am extremely pleased that we have brought forward new clause 11, which will require organisations carrying on a business in the UK above a certain size threshold to disclose each year what they have done to ensure that there is no modern slavery in their supply chains or their organisation. Once businesses are required to disclose what they are doing to tackle modern slavery, consumers, shareholders and campaigners will have a better understanding of what action each business is taking, and can call for more action if they think more is needed.