Modern Slavery Bill

Paul Blomfield Excerpts

Tuesday 8th July 2014 Commons Chamber

[Mrs May]

The hon. Gentleman mentions some figures. The difficulty in all this is that we do not know the figure. The work that was done by the right hon. Member for Birkenhead (Mr Field) and others suggested that it might be 10,000. Fewer than 2,000 have been referred to the national referral mechanism, which is the only firm statistical measure, but we are all pretty clear that the figure is larger than that. I am reviewing the national referral mechanism, and the work of that review will be taken into account when I publish the Government’s strategy later this year. As I have said, this is not just about legislation. Other actions that do not form part of a Bill need to be taken to help the victims and pursue the perpetrators.

[Paul Blomfield (Sheffield Central) (Lab)]

Will the Home Secretary assure the House that the review of the NRM will be published before the Committee stage of the Bill?

[Mrs May]

The current intention is that an interim report will be published, which should be available before the Committee stage is completed, but the final review will be published in the autumn alongside the Government’s strategy.

We have listened carefully to the findings of the pre-legislative Committee and, where practicable, we have addressed its key concerns. We can all play a part in tackling this scourge. As Bernard Hogan-Howe, the Commissioner of the Metropolitan Police, said at the modern slavery conference at the Vatican in April:

“We need to make combating human trafficking part of everyone’s consciousness. As with our fight against terrorism, prevention is better than cure. … Much misery and distress can be prevented if more of us pay attention to something that does not look or feel right, then care enough to do something about it.”

The Modern Slavery Bill will help ensure that we can tackle slavery in its modern form. With cross-party support, we have an opportunity to make a real difference to the lives of today’s victims.

--- Later in debate ---

[Paul Blomfield (Sheffield Central) (Lab)]

Like other Members, I commend both the Home Secretary on prioritising and championing this legislation, and the Government on providing the House with the opportunity to grapple with a problem that transcends any single Department. I share the comments made by the hon. Member for North East Cambridgeshire (Stephen Barclay) about the need for joined-up action across Government.

The question before us today is how best to legislate in order to achieve the outcome that we all want to see. We need to look honestly at the Bill and address its weaknesses. Without such action, we will fail to meet the challenge set by the hon. Member for Central Devon (Mel Stride) when he said that he wanted this legislation to put us in the vanguard of fighting modern slavery.

Many hon. Members have said that victims must be at the centre of our response to modern slavery, and that is clearly right because they are at the centre of the crime. But experts in the field are clear that any effective response must address what my hon. Friend the Member for Slough (Fiona Mactaggart) called the three Ps—to prevent such action being exacted against another human being, to protect victims and provide remedy and restitution to those who have been harmed, and to prosecute those who have committed such acts. We need to be clear that without all three, any attempt to solve the problem will fall short. The weakness of the legislation is that the Home Secretary has apparently thought long and hard about the third pillar, which is prosecution, but has given insufficient attention to the first and second pillars, prevention and protection, on which this Bill has too little to say.

A number of Members, including my hon. Friend the Member for Slough, have talked strongly and passionately about the protections and assistance that victims require, and that is right, but I want to focus my remarks on the first of the three fronts on which modern day slavery must be fought, and that is prevention.

Prevention is included in this Bill only where a crime has already been committed, or a person is suspected of having committed a crime of slavery or human trafficking. The proposed slavery and trafficking prevention orders and slavery and trafficking risk orders in clauses 15 and 23 will enable the courts to place restrictions on the activities of those who have been convicted, or those who have been involved in an offence, but not convicted. I acknowledge that those are positive measures, but surely they are too late to count as true prevention because, by definition, prevention stops an act from happening at all.

It is widely recognised that prevention requires a strong labour inspection system as a first line of defence against exploitation in the employment market. Experts in this area, including Focus on Labour Exploitation, of which I am a board member, are clear that effective monitoring and enforcement of labour standards is key to preventing acts of trafficking for labour exploitation. Indeed, many cases of labour exploitation have been uncovered in high-risk sectors such as agriculture and food processing by the Gangmasters Licensing Authority. For example, in the case of DJ Houghton Ltd, 29 Lithuanian men were found to have been treated like slaves. They were used to catch free range chickens for one of the UK’s largest processers of eggs and chickens. I am talking not about small players, but major companies.

Following its UK country visit in September 2012, the Council of Europe group of experts on Action against Trafficking in Human Beings advised the UK Government to

“step up their efforts to discourage demand for the services of trafficked persons...through strengthening the role of labour inspections.”

I welcome the fact that just last month, the UK Government voted in favour of a new protocol and recommendation to the Forced Labour Convention at the International Labour Congress that called for improved labour inspections. The Government themselves were acknowledging that that was an essential prerequisite. They also called for an enforcement of labour law as a key prevention measure. This is the elephant in the room with regard to the Government’s approach to modern slavery, because the same Government who are seeking to tackle this issue have launched a comprehensive attack on labour inspectorates; limited labour inspections; and, in their eagerness to slash red tape, removed vital protections for workers.

In a report published only today, the Government’s own Migration Advisory Committee has highlighted this issue as a major problem. It has said that, because of the resources that are available to pursue this essential work, employers can expect a minimum wage compliance visit once every 250 years, and, at the current rate, face prosecution once every million years. That is the Government’s own committee.

The Health and Safety Executive has had its funding reduced by 35% and has reduced its proactive inspections by one third since 2011. Cases opened by the national minimum wage inspectorate have fallen from a peak of 4,773 in 2007-08 to 1,615 in 2012-13 and, as we know, there are very few criminal prosecutions for failure to pay the minimum wage—only one in 2010-11 and one in 2012-13.

[Mr Frank Field]

Does what my hon. Friend said earlier about the actual prosecution rate not give a new meaning to “a millennium goal”?

[Paul Blomfield]

I could not have put it better myself, and I thank my right hon. Friend for his timely intervention and for all his work on this issue, for which he has won respect from those on both sides of the House.

It is all well and good for the Government to announce increases in fines for non-payment of the national wage, but without enforcement those increased fines exist only on paper. Instead of reforming the employment agency standards inspectorate, the Government effectively disbanded it in all but name in July 2013.

Modern-day slavery thrives in the UK, feeding off victims’ vulnerability, dependency and marginalisation. Victims are coerced through physical means, including violence, and more commonly through psychological means, including the abuse of power, deception and threats, as many Members have highlighted. Exploiters use vague employment relationships and arrangements as well as hidden costs, fees and debts owed by workers to trap people in precarious situations, preying on the vulnerability that pervades high-risk employment sectors.

Let me give another example. As we know, increasing numbers of construction workers in this country face the problem of false self-employment. Although the number of the construction work force has been falling, the Union of Construction, Allied Trades and Technicians reports that the number of self-employed workers in construction rose by 37,000 between 2009-10 and 2011-12. It estimates that about half of those are falsely self-employed. That precarious employment status leaves construction workers extremely vulnerable to abuse, as employers are absolved of responsibility for their employment rights and entitlements. Despite recognising that false self-employment is a problem, the Government have reduced safety protections for two thirds of all self-employed workers.

I urge the Home Secretary to consider extending the remit of the Gangmasters Licensing Authority into industries such as construction. Hospitality, care and cleaning are vital sectors, as they are industries where there is a high risk of forced labour and exploitation that particularly affects women.

As I said earlier, the Home Secretary deserves credit for pushing the issue of modern-day slavery to the front of the political agenda, but political decisions taken elsewhere in Government will determine whether she is successful. However well meaning her intentions, the good work in the Bill risks being undermined by the Government’s consistent attack on employee rights and protections. It is disingenuous of the Government to say that they are combating modern slavery with one hand while the other hand is actively promoting the conditions under which that slavery can take root.

Worker protections have been sacrificed through measures introduced by the Government such as reduced health and safety reporting requirements, limits on health and safety protections for self-employed workers and the introduction of fees for employment tribunals. The enforcement of GLA licence violations has been undermined by the light sentences awarded in many labour exploitation cases. Offenders receive only small fines, convictions without punishment or suspended sentences and too often victims receive no remedies.

The prevention of modern-day slavery means ensuring that the cracks in our labour protection framework that permit widespread abuse against global workers are closed. To do that, we need an effective labour inspectorate that engages with workers to gather vital intelligence about those who exploit their vulnerabilities. We need a strengthened and adequately resourced GLA, acting as an intelligence gathering and enforcement agency with a remit extended to high-risk sectors such as construction, hospitality, care and cleaning. We need a GLA that can enforce unpaid wages and other payments due to workers to ensure employment law is effective in practice. Finally, we need a GLA that sits within the Department for Business, Innovation and Skills, not the Home Office, with employment law enforcement rather than border control as its key priority.

I hope that the Home Secretary will work with Members on both sides of the House and organisations external to the House that want to strengthen the Bill in that regard. However, the debate in which the Home Secretary needs to engage most pertinently is not the one taking place in this Chamber but the one with her Cabinet colleagues whose agenda on labour market reform and red-tape cutting has directly undermined her attempts to address modern slavery with this Bill.