Committee: 1st sitting (Hansard - continued): House of Lords
Monday 10th September 2018

(5 years, 7 months ago)

Lords Chamber
Read Full debate Ivory Act 2018 View all Ivory Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 119-II Second marshalled list for Committee (PDF) - (10 Sep 2018)
Moved by
30: Clause 10, page 6, line 40, at end insert “, such fee not to exceed £5”
Lord De Mauley Portrait Lord De Mauley (Con)
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My Lords, many of the objects that will require registration under the Clause 10 requirements will be low in value. This will include old pianos offered for sale privately for £50 or small domestic objects such as mirrors with surrounds in mahogany inlaid with thin ivory strips selling for perhaps £30. As I previously indicated, there is no compelling reason for us to discourage the reuse of such antiques. If the registration fee is set too high, only the more valuable ivory items would be worth registering, and lower-value ones would end up being thrown away. Whether or not it is intended to charge the fee as a fixed percentage of the value of the item or a flat fee, I believe it is sensible to impose a cap. If nothing else, it will encourage efficiency in those who operate the database system. I beg to move.

Earl of Kinnoull Portrait The Earl of Kinnoull (CB)
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My Lords, I shall be brief. I will speak to Amendment 31, which is purely a probing amendment. Following Second Reading, it struck me that the success of this Bill would very much depend on the take-up rate of the use of the register, so my amendment is aimed at trying to probe a bit of that. I noted that in the Bill, while plenty of powers are given to the Secretary of State to charge fees for registration, there is no duty alongside that, telling the authorities what they should be trying to do. My amendment is aimed at trying to put a bit of duty alongside the powers.

I notice that the success of curbing drink-driving in the UK has been very much driven by the fact that people in the country now expect people not to drink-drive. We need to ensure that nothing stands in the way of people developing a feeling that ivory has a special and difficult thing associated with it. Therefore, they should comply with this law enthusiastically, because it will help the problem that we have all been talking about. I do not think I can add any more.

Baroness Vere of Norbiton Portrait Baroness Vere of Norbiton (Con)
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My Lords, both amendments relate to the fees that can be set by the Secretary of State when registering an item containing ivory. When owners register their items under the exemptions for items of low ivory content, musical instruments, sales to museums and portrait miniatures, it is only right that they pay a fee for the service provided. This fee will contribute to the cost of building and administering the registration system.

On my noble friend Lord De Mauley’s amendment, we need to be careful about setting a fee on the face of the Bill—that is, in primary legislation—as, over time, circumstances which will need to be taken into account may change and mean that it is necessary to revise the fee—in either direction.

To reiterate, the Government intend that the fee will be small and proportionate, but I cannot agree with my noble friend that a fee of £5, set out in primary legislation, is appropriate. The fee will be dependent on the cost of the IT system and its administration and will be determined in accordance with Her Majesty’s Treasury’s guidelines with regard to cost recovery. I hope that alarm bells are not now ringing. We aim for the system to be as simple to use as possible.

On Amendment 31, in the name of the noble Earl, Lord Kinnoull, I recognise his interest in ensuring that fees are not set at a rate that would discourage registration and entirely share his view. The Government are finalising the specifications for the registration system. Further details will be available in due course, but I do not have a time for them as yet. If I get one, I will write to noble Lords and advise them. Work to date has included input from a range of stakeholders, including those most likely and most frequently to use the system; for example, representatives from the Association of Art & Antiques Dealers and the Music Industries Association. We want to ensure that we understand their needs. Our aim will be to develop a system that is simple to use and cost effective.

We recognise that many items registered under these exemptions are likely to be of a lower value than those that qualify as exempt under Clause 2, so I can assure noble Lords that the registration fee will reflect that. As I have said, the Government are taking into account a wide range of opinions. I reassure noble Lords that we recognise the intent behind the amendments and acknowledge that it is in no one’s interest to have fees that are unacceptably high. I hope that my noble friend will feel sufficiently reassured to withdraw his amendment.

Lord De Mauley Portrait Lord De Mauley
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My Lords, I suppose that I shall have to be happy, at least for this eventing, with my noble friend’s assurance that the fee will be small. For this evening, I beg leave to withdraw the amendment.

Amendment 30 withdrawn.
--- Later in debate ---
Baroness Jones of Whitchurch Portrait Baroness Jones of Whitchurch
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My Lords, this proposed new clause would allow the Secretary of State to create a verification system to enable a person intending to purchase an item containing ivory to check that it has been registered as exempt or has an exemption certificate. That is imperative to ensure that the exemption process is robust and deliverable. Defra has stated that:

“The compliance processes will enable sellers to demonstrate that their items meet the relevant exemption, and thus that their use in commercial dealing is permitted under the Bill. The processes will also enable potential purchasers to assure themselves that they are acting in accordance with the ban”.


The term “assure themselves” is interesting and seems to indicate that a buyer has less responsibility to ensure compliance with the ban than a seller. Given that the definition of dealing in Clause 1 specifically includes buying ivory, we believe that a trustworthy system needs to be available so that buyers can ensure that they are complying with the law.

There are many reasons why a buyer may need to verify that an item is exempt; for example, when purchasing an item online. A buyer may not even be aware of what a legitimate exemption certificate should look like and may seek the reassurance of an independent confirmation. We are also aware of cases involving legal CITES Article 10 certificates and fraudulent copies being used to conceal illegal ivory. Sadly, unscrupulous dealers may well attempt to contravene the ban though such tactics. At the same time, an added advantage would be that a failed verification check could bring an individual to the notice of the authorities and be used to support a prosecution.

I hope that noble Lords will see the sense of the proposals we are making today, and that the Minister will feel able to take this proposal away and come back with suggestions as to how a robust verification process could be implemented. Of course, key to that will be the infamous IT system, when it is in force, and the issue of data, data protection and access. I realise that there are more complications to this than I am suggesting, but we feel nevertheless that buyers should have the right to make those checks and I therefore beg to move.

Lord De Mauley Portrait Lord De Mauley
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My Lords, I think that this is a most sensible suggestion. The definition of “dealing” includes buying ivory objects, so how else is a buyer to avoid breaking the law, unless they have a means of verifying either that a de minimis object has been registered, or that an exemption certificate has been issued for an outstanding one?

Baroness Vere of Norbiton Portrait Baroness Vere of Norbiton
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My Lords, the intention of this amendment has been set out by the noble Baroness, Lady Jones, so I will not repeat it. The Government agree that a potential buyer must be able to verify that it is legal to purchase the item before finalising the sale. If the purchase is in person, the buyer will need to examine the exemption certificate issued for a rare and most important item, as this will need to accompany the item at the point of sale. The buyer will also be able to confirm that it is genuine via the online system. For online sales, the seller should confirm that an exemption certificate has been issued and will be transferred with the item. As with offline sales, the buyer will be able to confirm that it is genuine.

A buyer wishing to check the legality of selling or hiring an item registered as being exempt under Clause 10 will be able to look it up on the database, through the item’s reference number. This number should be provided by the seller. It is in the seller’s interest to ensure that the information is available to provide the buyer with confidence. The potential buyer will then be able to compare the photos and the description on the registration system with the object that they intend to purchase. The registration system is currently being developed, in consultation with many of those who are likely to use it, as we have just discussed. We are able to do this without making regulations and, as I have set out, we intend to include this functionality in the new system. Guidance will set out the best way for a seller to assure a buyer that they are able to legally purchase an item, and enable a buyer to satisfy themselves that they are able to legally purchase that item. With this explanation, I hope that the noble Baroness will withdraw her amendment.