Proceeds of Crime Act 2002 (Investigations: Code of Practice) (England and Wales and Northern Ireland) Order 2016

Lord Ashton of Hyde Excerpts

Wednesday 10th February 2016 Grand Committee

Moved by

[Lord Ashton of Hyde]

That the Grand Committee do consider the Proceeds of Crime Act 2002 (Investigations: Code of Practice) (England and Wales and Northern Ireland) Order 2016.

Relevant documents: 14th Report from the Joint Committee on Statutory Instruments

[Lord Ashton of Hyde (Con)]

My Lords, with the Committee’s permission I intend to speak all the orders in my name en bloc. The Proceeds of Crime Act 2002 —or POCA—is a vital and effective tool in the fight against crime; criminals must not financially benefit from their criminality. The Government stated categorically in the Serious and Organised Crime Strategy that we would attack criminal finances by making it harder to move, hide and use the proceeds of crime. In delivering that commitment, we have provided strengthened powers in the recent Serious Crime Act. The matter before us today relates to commencing those and other powers to assist in the enforcement of court orders and recover the proceeds of crime. The powers referred to cannot be commenced until associated codes of practice are in place.

First, it is important to note that many of the powers have already been commenced in England and Wales as of 1 June last year. In order to extend this 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. The codes will largely replicate those that were considered and approved by your Lordships last year.

We plan to commence all the remaining powers in the Proceeds of Crime 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. Once commenced, the new powers will give officers important new tools for the recovery of criminally obtained assets. The codes before the Committee build on previous codes issued under the Proceeds of Crime Act. It is also of note that they closely follow those issued more widely to police officers under the Police and Criminal Evidence Act 1984. The codes set out established and agreed procedures and safeguards in the operation of powers, and they ensure that the powers are used in a targeted, consistent and effective way, thus providing vital reassurance to the public that the powers are being used appropriately and proportionately.

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

The codes were subject to a full public consultation late last year and have been amended in the light of representations. It is important to note that the Scottish Government and the Northern Ireland Assembly will be considering codes that fall within their competence due to the devolution position.

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[Lord Browne of Belmont (DUP)]

My Lords, I thank the Minister for his comprehensive explanation of the orders. I strongly support the measures contained in the five orders which he has presented to the Committee today. I certainly do not wish to prolong the Committee’s deliberations unnecessarily, so I will not discuss the technical complexities of the legislation in detail. Overall, it appears that the new powers granted to the prosecuting authorities will be effective in ensuring that the law is enforced by removing, as far as possible, any possibility of evasion. At the same time, provision is made for the supervision of the operation of the new rules by the appropriate authorities. In Northern Ireland, for example, I am thinking of the role played by the Northern Ireland Policing Board.

I particularly welcome the new rules concerning the search, seizure and detention of property in Northern Ireland, set out in the eighth item on the Order Paper. It is generally accepted that, unfortunately, the number of organised crime gangs operating in Northern Ireland has increased significantly in recent years. The law enforcement authorities must have the powers to ensure that activities such as money laundering, dealing in illicit fuel and smuggling cigarettes and drugs are no longer profitable enterprises. The new powers of search and seizure should go a long way to eliminate most of the ill-gotten gains from these activities.

I congratulate the National Crime Agency on its effectiveness in tackling serious and organised crime in Northern Ireland since it began operations with full powers on 20 May 2015. Between 1 April and 30 September 2015, the agency recorded 29 disruptions against organised crime groups and high-priority threats in Northern Ireland. It will be fully engaged in delivering the commitment outlined in A Fresh Start: The Stormont Agreement and Implementation Plan.

Does the Minister agree that, in the light of the recent appalling gang-related murders in Dublin, it is essential that the law enforcement authorities in the Republic of Ireland agree to co-operate fully with those in Northern Ireland in taking all necessary steps to bring to an end the cross-border operations of criminal gangs? I fully support these orders and I believe that they will go a long way to thwart the activities of criminal gangs throughout the United Kingdom.

[Lord Ashton of Hyde]

My Lords, I thank noble Lords who have contributed to the debate. I am grateful for the comments from the noble Lord, Lord Browne of Belmont, which reinforce the comments of Northern Ireland Members in the other place when these orders were scrutinised in Committee there. I agree with him that law enforcement agencies should co-ordinate cross-border; that applies not only to the Republic of Ireland and Northern Ireland but further abroad as well, in the rest of Europe. As with so many other things, the world is getting to be a small place, and that includes organised crime so it is essential that effective co-operation takes place.

I am grateful for the support from the noble Lord, Lord Rosser. He asks whether the orders are intended to increase revenue. We are talking about seizing the proceeds of crime, so obviously if the orders are more effective then we will increase revenue, though it is difficult to say exactly by how much.

The wider package of measures that we are commencing across the UK is mostly to do with ensuring that property is available to be recovered, and increasing the effectiveness of tools that are used to enforce the orders made by the courts. I will not go through all those orders and powers, but I think that there has been general support, not just today but previously when they were passed.

On numbers, I cannot predict what we anticipate because, after all, this is covering the proceeds of crime so it is difficult to estimate what crime is going to take place. However, I can say that in 2014-15 we recovered £199 million, which is the best ever total, and in addition denied criminals access to over £441 million in assets. Hopefully, these measures will improve that.

I think that covers most of the points, except for the noble Lord’s comments about the Attorney-General’s order. Obviously that was written by lawyers for lawyers, so perhaps I can leave it at that.

This has been a useful debate. As I say, I welcome the cross-party support. The effect of serious and organised crime can be felt in communities right across the country. The truth is that it can and does wreck the lives of ordinary people. The powers have been agreed and widely supported and these orders will bring all those codes of practice into effect, thus providing effective guidance safeguards as well as enabling the full commencement of the POCA amendments throughout the UK, as described in my opening speech. I ask noble Lords that these orders be agreed to, and I beg to move.

Motion agreed.