Serious Crime Bill [Lords]

Michael Ellis Excerpts

Monday 5th January 2015 Commons Chamber

[Mrs May]

Perhaps it would be helpful to the House if I went through the other measures in the Bill that will strengthen our ability to deal with how, under existing legislation, offenders can sometimes make efforts to hide their assets or to ensure that their assets are not available. There are a number of areas in which we need to ensure that those assets can be accessed so that somebody cannot do what my hon. Friend has said and avoid having their assets seized.

[Michael Ellis (Northampton North) (Con)]

As someone who has prosecuted these matters in the Crown court and dealt with the Proceeds of Crime Act 2002 on many occasions, I believe that reducing the test to one of suspicion will have a considerable and positive impact on the Crown’s ability to secure more funds. Lowering the standard to that extent will clearly allow the judges greater recourse to restraint orders.

[Mrs May]

I am grateful to my hon. Friend for sharing his experience with the House. As I said earlier, it is clear that there is concern from the courts about the operation of the existing legislation, which is why it is important for us to clarify the situation so that it is easier to issue restraint orders at an earlier stage. It will now be easier to secure a restraint order immediately before effecting an arrest, as the test for both will be aligned.

The third point about accessing assets is that the courts must have the necessary powers to ensure that a confiscation order is paid. The Bill will allow the courts to impose any restrictions or prohibitions they consider necessary as part of a supplementary “compliance order”. In particular, courts will be required to consider whether to impose an overseas travel ban on the defendant. That partly answers the point that my hon. Friend the Member for Dartford raised earlier.

Fourthly, we are extending the powers currently available to the National Crime Agency and other law enforcement agencies to investigate the amount and whereabouts of assets—for example to enter and search premises under warrant—so that they can also be used to trace assets once a confiscation order has been made.

Fifthly, we are increasing the time in prison facing those criminals who default on the payment of higher value confiscation orders, so as to deter offenders from choosing to serve time in custody rather than paying up. At the upper end of the scale, namely confiscation orders for more than £10 million, someone who defaults on payment will now face 14 years in prison compared with the current five years. That will act as a very real incentive to payment. We will review the impact of that change on offender behaviour and, if, as we expect, it leads to a greater proportion of higher-value orders being settled on time, we will consider using the order-making powers in the Bill to strengthen the default sentences for other lower-value confiscation orders.

Finally in relation to part 1, we are bringing forward the consideration of third-party claims from the enforcement stage to the confiscation hearing. Although there are undoubtedly third parties who have a legitimate interest in assets that may be used to satisfy a confiscation order, it is often the case that spouses and other third-party associates of the defendant will submit late claims with the deliberate intention of frustrating and delaying the confiscation process. The Bill will enable the court to make a binding determination of third-party claims at the point at which the confiscation order is made, allowing the enforcement of the order to proceed more efficiently.