Online Safety Bill (Twelfth sitting)

Maria Miller Excerpts

Committee stage
Thursday 16th June 2022 Public Bill Committees

[Alex Davies-Jones]

I will be brief. Labour welcomes clause 110, which addresses the process of starting enforcement. We support the process, particularly the point that ensures that Ofcom must first issue a “provisional notice of contravention” to an entity before it reaches its final decision.

The clause ultimately ensures that the process for Ofcom issuing a provisional notice of contravention can take place only after a full explanation and deadline has been provided for those involved. Thankfully, this process means that Ofcom can reach a decision only after allowing the recipient a fair opportunity to make relevant representations too. The process must be fair for all involved and that is why we welcome the provisions outlined in the clause.

[Dame Maria Miller (Basingstoke) (Con)]

I hope that I am speaking at the right stage of the Bill, and I promise not to intervene at any further stages where this argument could be put forward.

Much of the meat of the Bill is within chapter 6. It establishes what many have called the “polluter pays” principle, where an organisation that contravenes can then be fined—a very important part of the Bill. We are talking about how Ofcom is going to be able to make the provisions that we have set out work in practice. A regulated organisation that fails to stop harm contravenes and will be fined, and fined heavily.

I speak at this point in the debate with slight trepidation, because these issues are also covered in clause 117 and schedule 12, but it is just as relevant to debate the point at this stage. It is difficult to understand where in the Bill the Government set out how the penalties that they can levy as a result of the powers under this clause will be used. Yes, they will be a huge deterrent, and that is good in its own right and important, but surely the real opportunity is to make the person who does the harm pay for righting the wrong that they have created.

That is not a new concept. Indeed, it is one of the objectives that the Government set out in the intentions behind their approach to the draft victims Bill. It is a concept used in the Investigatory Powers Act 2016. It is the concept behind the victims surcharge. So how does this Bill make those who cause harm take greater responsibility for the cost of supporting victims to recover from what they have suffered? That is exactly what the Justice Ministers set out as being so important in their approach to victims. In the Bill, that is not clear to me.

At clause 70, the Minister helpfully set out that there was absolutely no intention for Ofcom to have a role in supporting victims individually. In reply to the point that I made at that stage, he said that the victims Bill would address some of the issues—I am sure that he did not say all the issues, but some of them at least. I do not believe that it will. The victims Bill establishes a code and a duty to provide victim support, but it makes absolutely no reference to how financial penalties on those who cause harm—as set out so clearly in this Bill—will be used to support victims. How will they support victims’ organisations, which do so much to help in particular those who do not end up in court, before a judge, because what they have suffered does not warrant that sort of intervention?

I believe that there is a gap. We heard that in our evidence session, including from Ofcom itself, which identified the need for law enforcement, victim-support organisations and platforms themselves to find what the witnesses described as an effective way for the new “ecosystem” to work. Victim-support organisations went further and argued strongly for the need for victims’ voices to be heard independently. The NSPCC in particular made a very powerful argument for children’s voices needing to be heard and for having independent advocacy. There would be a significant issue with trust levels if we were to rely solely on the platforms themselves to provide such victim support.

There are a couple of other reasons why we need the Government to tease the issue out. We are talking about the most significant culture change imaginable for the online platforms to go through. There will be a lot of good will, I am sure, to achieve that culture change, but there will also be problems along the way. Again referring back to our evidence sessions, the charity Refuge said that reporting systems are “not up to scratch” currently. There is a lot of room for change. We know that Revenge Porn Helpline has seen a continual increase in demand for its services in support of victims, in particular following the pandemic. It also finds revenue and funding a little hand to mouth.

Victim support organisations will have a crucial role in assisting Ofcom with the elements outlined in chapter 6, of which clause 110 is the start, in terms of monitoring the reality for users of how the platforms are performing. The “polluter pays” principle is not working quite as the Government might want it to in the Bill. My solution is for the Minister to consider talking to his colleagues in the Treasury about whether this circle could be squared—whether we could complete the circle—by having some sort of hypothecation of the financial penalties, so that some of the huge amount that will be levied in penalties can be put into a fund that can be used directly to support victims’ organisations. I know that that requires the Department for Digital, Culture, Media and Sport and the Ministry of Justice to work together, but my hon. Friend is incredibly good at collaborative working, and I am sure he will be able to achieve that.

This is not an easy thing. I know that the Treasury would not welcome Committees such as this deciding how financial penalties are to be used, but this is not typical legislation. We are talking about enormous amounts of money and enormous numbers of victims, as the Minister himself has set out when we have tried to debate some of these issues. He could perhaps undertake to raise this issue directly with the Treasury, and perhaps get it to look at how much money is currently going to organisations to support victims of online abuse and online fraud—the list goes on—and to see whether we will have to take a different approach to ensure that the victims we are now recognising get the support he and his ministerial colleagues want to see.

[Chris Philp]

First, on the substance of the clause, as the shadow Minister said, the process of providing a provisional notice of contravention gives the subject company a fair chance to respond and put its case, before the full enforcement powers are brought down on its head, and that is of course only reasonable, given how strong and severe these powers are. I am glad there is once again agreement between the two parties.

I would like to turn now to the points raised by my right hon. Friend the Member for Basingstoke, who, as ever, has made a very thoughtful contribution to our proceedings. Let me start by answering her question as to what the Bill says about where fines that are levied will go. We can discover the answer to that question in paragraph 8 of schedule 12, which appears at the bottom of page 206 and the top of page 207—in the unlikely event that Members had not memorised that. If they look at that provision, they will see that the Bill as drafted provides that fines that are levied under the powers provided in it and that are paid to Ofcom get paid over to the Consolidated Fund, which is essentially general Treasury resources. That is where the money goes under the Bill as drafted.

My right hon. Friend asks whether some of the funds could be, essentially, hypothecated and diverted directly to pay victims. At the moment, the Government are dealing with victims, or pay for services supporting victims, not just via legislation—the victims Bill—but via expenditure that, I think, is managed by the Ministry of Justice to support victims and organisations working with victims in a number of ways. I believe that the amount earmarked for this financial year is in excess of £300 million, which is funded just via the general spending review. That is the situation as it is today.

I am happy to ask colleagues in Government the question that my right hon. Friend raises. It is really a matter for the Treasury, so I am happy to pass her idea on to it. But I anticipate a couple of responses coming from the Treasury in return. I would anticipate it first saying that allocating money to a particular purpose, including victims, is something that it likes to do via spending reviews, where it can balance all the demands on Government revenue, viewed in the round.

Secondly, it might say that the fine income is very uncertain; we do not know what it will be. One year it could be nothing; the next year it could be billions and billions of pounds. It depends on the behaviour of these social media firms. In fact, if the Bill does its job and they comply with the duties as we want and expect them to, the fines could be zero, because the firms do what they are supposed to. Conversely, if they misbehave, as they have been doing until now, the fines could be enormous. If we rely on hypothecation of these fines as a source for funding victim services, it might be that, in a particular year, we discover that there is no income, because no fines have been levied.