Gangmasters Licensing Authority (Civil Fines)

Lord Jackson of Peterborough Excerpts

Tuesday 11th June 2013 Westminster Hall

[Stephen Barclay (North East Cambridgeshire) (Con)]

It is a pleasure to serve under your chairmanship, Mr Hollobone.

This time last year, on 20 June 2012, I held a debate on the Gangmasters Licensing Authority, and the then Minister, my right hon. Friend the Member for South East Cambridgeshire (Sir James Paice), who is my constituency neighbour, assured the House that he had

“a package of proposed changes to the GLA, including…looking at the scope to use civil penalties.”

Indeed, he very kindly went on to say that I was right in calling for the ability to fine gangmasters. He said that the GLA board had “very few enforcement weapons” and that we needed

“a tier of measures for it to utilise.”—[Official Report, 20 June 2012; Vol. 546, c. 276WH.]

It therefore may surprise the House and you, Mr Hollobone, to learn that despite the Minister’s saying that that analysis was right, the Department’s own consultation now specifically excludes the tier of measures to which my right hon. Friend was referring.

We should remind ourselves of what is at stake. I am very pleased to see my hon. Friend the Member for Morecambe and Lunesdale (David Morris) in his place. He will know that the GLA was set up in 2004 after the tragedy of the Morecambe bay cockle pickers disaster. He has spoken most effectively in bringing these issues to the attention of the House previously. We are talking about legislation that is directed at protecting the most vulnerable people in society and particularly those working in the agricultural sector. In many cases, they are a long way from home, have difficulties with the language and are fearful of authority. They are therefore vulnerable people who do need protecting.

It is remarkable that the consultation brought forward by the Department seems to be excluding the measure that the Minister, in response to my debate last year, said was an important tool that was lacking and needed to be included. It may be helpful if I set out why I think that the Department has got itself into this situation. I think that it is in large measure down to another ministerial statement. We all like cross-departmental working, and it is very good that the Department is taking note of ministerial statements elsewhere. The Minister of State, Department for Business, Innovation and Skills, my right hon. Friend the Member for Sevenoaks (Michael Fallon), quite rightly articulated concerns about red tape. That is a concern that many hon. Members share. My right hon. Friend therefore set out a new test: it was a general rule that new powers to fine should not apply to firms with fewer than 250 people. There was good logic to bringing in that measure, but it was a general rule; it was not absolute. This Minister may want to clarify the position with his officials. Obviously, the measure has been signed off by Ministers, but there almost seems to be a bit of gold-plating whereby what is a general rule has been applied in absolute terms.

Of course, most gangmasters do not employ more than 250 people. Indeed, if they did, the existing powers would be confined just to those above 250, but we do not do that for the criminal powers, so is it not illogical that for criminal powers we say that they apply to the gangmaster population as a whole, yet for civil powers, where one assumes a lower test, we raise the bar and say that they apply only to gangmasters with more than 250 people working for them? That is at odds not only with what the Minister said to me this time last year in response to my debate, but with the existing legislation under which the Department is acting. It is also—dare I say it?—at odds with common sense, because if we look at the use of criminal powers, we see that it is clearly not working.

Let us take, for example, two recent cases in Northern Ireland. In those cases, the fines imposed on the gangmasters acting illegally and making large sums of money—often, gangmasters are not paying tax, and quite often they are linked to other crime, such as prostitution and counterfeiting—were just £500 apiece. I think that most hon. Members would accept that the profits that those gangmasters had made far exceeded the fines that were imposed by the courts. We have a strange situation in which we have criminal powers, which the GLA rarely uses. If a gangmaster is unlucky enough to be caught, they know that the fine is likely to be less than the profits that they have made. They know that, on most occasions, witnesses are very fearful of coming forward and therefore the number of prosecutions is very low. Last year, for example, there were just 15 prosecutions against gangmasters.

Let us put that in context. We currently have under way—I am very grateful to my right hon. Friend the Home Secretary for the support that she has given—an operation in the fens, which my hon. Friend the Member for Peterborough (Mr Jackson) will be familiar with, Operation Pheasant. So far, it has raided 80 homes and it has a number of live inquiries, but it is finding the most horrendous issues. We had a case recently in Whittlesey in which migrant labour was living in a house and there was CCTV not just on the front and back doors but in the inside rooms in order that the gangmaster could control his labour force. We have had other cases of people living in a garage with an open sewer.

This is an issue not just for the vulnerable in communities such as mine and that of my hon. Friend the Member for Peterborough but for the local residents, because where there are high concentrations of houses in multiple occupation, there is antisocial behaviour. It is very difficult for people to stay in the house, so they tend to go out and street-drink. When they street-drink, we get urination on people’s front doors. I cited some particularly unpleasant and disturbing cases in the debate last year. I will not detain hon. Members by rerunning those, but it is very clear that there are issues of antisocial behaviour and legitimate concerns for the local population that flow back to our unwillingness to tackle gangmasters.

Therefore, I suggest to the House that the key way in which we should be tackling gangmasters is by hitting them in the area that they are most concerned about. That is in their pocket; it is through fines. That is the way in which we will change their behaviour, so I find it remarkable that the consultation from the GLA is excluding a tool that the Minister last year said was important, is gold-plating a legitimate concern of the Minister of State, Department for Business, Innovation and Skills, my right hon. Friend the Member for Sevenoaks, and applying that in a bizarre and arbitrary way and is failing to address the legitimate concerns about antisocial behaviour with enforcement, because the criminal tools that are used are not working. They are rarely applied. The fact that there were just 15 prosecutions clearly shows that they are not working. Then when there are prosecutions, the level of the fine is derisory.

I say to this Minister that I find the situation quite disappointing. I, as a Member of Parliament, articulate real concerns about things affecting my constituency. The Home Secretary acts on those concerns with Operation Pheasant. We have good support from Cambridgeshire police—in the debate last night, I paid tribute to Inspector Sissons and the work that he is doing. I am keen that my local council do more, and I have been in active discussions to ensure that it uses its powers. I am very sympathetic about the difficulties of resourcing that the GLA has. We all know that the last Government left us with a huge level of debt. Although I believe that the GLA should be far better resourced—I think that that would be a good use of the Department’s budget—I am very sympathetic about the difficulties that the Department faces because of what was inherited. But surely the answer, if we have a problem in trying to resource it more, is to make it easier to prosecute—to make it easier to impose fines, because it is the fines that will change the behaviour of the gangmasters.

We are not talking about all gangmasters; there are perfectly respectable gangmasters, but we know that there are illegal gangmasters and heartbreaking abuses taking place in my constituency and the constituencies of hon. Members across the fens. Unwarranted pressure is being placed on local residents, who often have to bear the consequences of the antisocial behaviour that flows from the concentration of houses in multiple occupation and the lack of enforcement against illegal gangmasters, who often misleadingly attract people from overseas. Illegal gangmasters will go to Lithuania for example and say, “Come to the fens. You have a guaranteed job and guaranteed accommodation.” When the workers arrive, there is often only one, two or three days’ work before they exhaust their savings, are in debt and the gangmasters have control.

There are real issues and they were raised last year. Other Departments have gripped the problem and acted. The Minister for Housing, my hon. Friend the Member for Hertford and Stortford (Mr Prisk) is organising a workshop in the fens, in Wisbech, for councils, so that we can share best practice. Other Departments are acting, but the Department of the Minister who is here today is not. Not only is it not acting, but it is ignoring the assurances that I felt were given to me last year, in my interpretation of what the then Minister, my right hon. Friend the Member for South East Cambridgeshire said. In bringing this debate before the House again, I hope that the Minister here today will look again at his consultation and at whether the powers it equips the GLA with are adequate. If he wants to take this opportunity to announce additional resource for the fens, I will be delighted, but if he is not going to do that, what exactly is he going to do?

[Mr Stewart Jackson (Peterborough) (Con)]

My hon. Friend is making a powerful and fluent case. I pay tribute to his great campaigning work on illegal gangmasters. Does he agree that time is of the essence? The imperative is to do something soon, due to the free movement directive and the likely immigration of Romanians and Bulgarians next year. The Home Secretary has said how important reducing pull factors is, and measures on gangmasters would be part of that portfolio of policies, so the urgency is very much apparent.

[Stephen Barclay]

My neighbour and hon. Friend is right; there is urgency. I am sure that he shares my frustration for that reason. A number of us have been raising concerns for some time. I secured a debate on gangmasters last year. I raised concerns in the main Chamber. I have been to see the Home Secretary on a number of occasions. The police inspector came to see Lin Homer, the top official of HMRC, with me last year. For cross-departmental government to work, DEFRA needs to come to the party and get involved and the purpose of today’s debate is to draw the consultation before the Minister more firmly to his attention. I think that the ministerial statement of the Minister of State, Department for Business, Innovation and Skills, my right hon. Friend the Member for Sevenoaks, has been misinterpreted.

I hope that the Minister here today can reassure us, but if not, ultimately I hope that he can address the concern of my hon. Friend the Member for Peterborough: what will the Minister’s Department do through the GLA to effect change on the ground? If we are to maintain community cohesion, the GLA matters. To address the antisocial behaviour that flows from the consequences and criminal actions of illegal gangmasters, the GLA must be part of the action taken. I therefore hope that the Minister can reassure the House that the comments of his predecessor, my right hon. Friend the Member for South East Cambridgeshire, will form part of the consultation and the response to tackle illegal gangmasters operating in the fens.