Serious Crime Bill [Lords]

Stephen Hammond Excerpts

Monday 5th January 2015 Commons Chamber

[Stephen Hammond (Wimbledon) (Con)]

I am delighted to contribute to the discussion of this multifaceted Bill. I am probably not regarded as one of the normal Home Office specialists, but this multifaceted Bill covers several areas that extend beyond the usual Home Office remit, and I particularly want to speak about the world of economics and our international relations.

The serious and organised crime strategy rightly sets out how we should respond to an ever-present, ever-evolving and ever-developing threat, particularly in the area of cybercrime. The importance of the Bill is that it recognises the strategy and gives legislative effect to such points. In my short speech, I want to look at some of the economic and international concerns that arise from cybercrime and how the Bill will help. Others more expert than I am will talk about the recovery of the proceeds of crime, the abuse of chemical substances—that very important matter was not mentioned by either Front-Bench speaker—and obviously, domestic cruelty to children, FGM and the possession of weapons in prison.

Part 2 goes to the heart of what we should be looking at because it covers the area of crime that is expanding exponentially, as the shadow Home Secretary rightly said. The national security strategy has identified that hostile attacks on UK cyberspace by other states and those involved in organised crime now represent a tier 1 threat to national security. As has been recognised, it is of paramount concern that cybercrime is a threat to national security, and it is obviously welcome that the Government are putting £860 million into the national cyber-security programme. Given the expansion of cybercrime, there will of course be real concerns about ensuring that those resources go into assessing how such a crime is evolving and how we should tackle it.

[Stephen Barclay]

Does my hon. Friend share my concern about the fact that resource allocation is very opaque? The Treasury produced a report for the Cabinet Secretary in the last quarter of last year suggesting that 90% of spending on extremism happens domestically and only 10% internationally. On the very important threat that he is articulating, does he think that Parliament has sufficient transparency at the moment in relation to where the money is going, and to what extent is it being spent on adapting to new threats as opposed to dealing with traditional ones?

[Stephen Hammond]

My hon. Friend makes a very important point. We should recognise that the Government are spending that money and are committed to looking at the specific law enforcement challenges of cybercrime, but we must also consider the economic consequences of that crime.

Particularly through organised crime, but also by foreign state activity, there can be a breakdown of networks, such as those for electricity, telecoms, power, banking, and food and fuel distribution. Everything relies on those logistical systems. Only today, companies have announced that their online retailing is now stronger than their direct retailing, and only today, there have been comments about the amount of money lost in banking fraud. Online retail and on-time logistics are clearly areas of potential attack, and the paralysis of such networks as a result of cyber-attacks is not just a security risk, but probably the most significant and serious threat to our economy except for world economic factors.

If those networks come under criminal control, even for a relatively short period, there would be not only grand-scale theft, fraud and illegal drug dealing, but a cost that would dwarf the figure of £24 billion, which the Home Secretary rightly remarked last year was the cost of organised crime to this country. I say “dwarf”, because daily banking transactions in the UK alone probably total five or perhaps 10 times that amount.

The potential for crime is huge, so it is absolutely right for the national cyber-security programme to break down cybercrime into its two parts: cyber-dependent crimes, which can be committed only by using computers and computer networks; and the even more significant cyber-enabled crimes, which can be committed offline and online.

[Maria Miller]

My hon. Friend is making a powerful case. I am sure that he agrees that many provisions in the Bill will strengthen the law on cybercrime, but does he share my concern that, as some of the statistics perhaps show, business also needs to take cybercrime more seriously than it has in the past?

[Stephen Hammond]

My right hon. Friend is absolutely correct. Any number of reports in the past six months have found that major companies have not helped Governments either to assess the risks to their own networks, which creates a national risk, or to assess the threat from organised crime, which leads to serious risks not just to such companies, but to individuals. A number of companies should accept their responsibilities in that area.

The Bill is very important because of the sheer expansion in the potential for cybercrime. Sections 1 to 3 of the Computer Misuse Act 1990 clearly set out ways to deal with unauthorised access, but the provisions of that Act are now simply too limited. What was relevant in 1990 is no longer relevant, and the pace of change in equipment and software capability requires a significant updating of the response. Economically, part 2 is a singularly important part of the Bill. It accepts that the current law is hopelessly inadequate, and puts in place a new offence in relation to unauthorised acts

“causing, or creating risk of, serious damage”.

The Home Secretary set out that that applies not only to the area of economics, but in other areas, such as security and the environment.

Simply in the area of economics, such crimes are so serious that they could wreck—that is not too strong a word—the whole economy. It is therefore hugely important that the Bill covers unauthorised acts in relation to computers that result in serious damage. The definition of “serious damage” has rightly been left somewhat opaque, because some of the information inside banking systems would be difficult to assess, but the Bill rightly recognises how far the world has moved since the 1990 Act.

It is clearly right for the Home Secretary to include protections in the Bill. The need to establish a significant link to the UK is now clear—for example, one of the accused, the target computer system or the damage must be in the UK or, if the attack is from abroad, the accused must have been a UK national at the time of the attack and there must be a similar offence in the relevant country. That provides relative protection while putting in place the right measures to enable law enforcement agencies to tackle this crime. There has been some detailing of the need to upgrade sentencing, and the Bill also recognises that the 1990 Act fails to deal with the seriousness of such crimes. It therefore rightly imposes life imprisonment for serious injury or death, while a sentence of 14 years applies for serious economic damage.

The potential to commit cybercrime, and the manner in which is it committed, is constantly evolving, and it is right for the new offence to recognise that and the seriousness of its effects. It is also true that whatever we do in the UK—our attempts to extend protection extra-territoriality in the Bill are important—it simply will not be enough. Much of cybercrime is international, and although like many in the House I am hugely concerned about the onward march of certain areas of the EU into our lives, no sensible person would set their face against international co-operation.

[Keith Vaz]

The hon. Gentleman makes a powerful case about the need to focus on cybercrime. Will he endorse the work done by Europol in that area, which is essential to try to deal with countries and individuals—some of these crimes are committed by countries—that seek to engage in cyber-wars?

[Stephen Hammond]

I accept the validity of the right hon. Gentleman’s point, and in a moment he will see how much I support what he has just said. We have largely recognised the validity of the EU directive, although there are still two aspects to introduce. That will help the powers of this country by ensuring that we can attack UK nationals who are intending to attack the UK from other EU countries, by extending the legal basis to prosecute an EU national for offences under sections 1 to 3A of the 1990 Act, when the offence is committed outside the UK. The fact that the Bill contains that international dimension will help our ability to co-operate with Europol. As the Chair of the Home Affairs Committee pointed out, there is widespread acceptance of the internationality of such crimes, and that will only increase. It is, therefore, of ever-increasing importance to the whole world to note which states are not prepared to signify their willingness to co-operate, and it will be a test of resolve for a number of countries across the world as to whether they are prepared to accept that co-operation and the basic premise of the EU directive.

Part 6 of the Bill addresses a number of miscellaneous aspects, and the point about foreign fighters continues the theme of the Bill’s internationality and what it does to counter serious crime and terrorism internationally. No one in the United Kingdom can possibly have missed the reference to foreign fighters and UK individuals, and in many cases that seems to have concentrated exclusively on Syria because of the scale and length of that conflict. However, the case for us to counter foreign fighters and their threat to UK security must not be exclusively based on the conflict in that country, and like many I accept the premise that we must tackle the issue at its source. The Home Secretary’s actions on that are to be commended, as is the continuing commitment to the Prevent strategy. The need to continue thinking about how we use reformed foreign fighters—if there is that possibility—to deter others, and the pressure to dissuade people from travelling, remains as imperative as ever.

There is, however, a gap in our legislative position and protection, and this Bill is serious, strong and a big step forward because it implements powers that will allow us to fill that gap. The measures will ensure that law enforcement partners can prosecute individuals with links to the UK and those who seek to harm the UK, from wherever they are prepared to commit that act of terrorism. Such measures also affect those who have been trained abroad for terrorist purposes more generally, and we can now prosecute those crimes as if they had taken place in the UK. While everybody accepts that evidentially it is sometimes difficult to do that, the fact that the prosecution will be in the public interest and require the express consent of the Attorney-General puts in place the appropriate balance and gives law enforcement agencies that are tackling terrorism a huge new opportunity to use that extension of the law. That is right because making it a criminal act to prepare and train people for terrorism abroad will be widely welcomed, and we should commend such a measure.

One part of the Bill will make a huge difference to almost all of us across our constituencies. I represent one of the safest London constituencies in one of the safest London boroughs, and I cannot claim that gang crime is prevalent or widespread. Nevertheless, youth gangs have already made several attempts to set up organisations in my constituency, and drug dealing gangs come from other parts of London and have used an estate in my constituency to carry out their crimes. Measures in the Bill on gang-related crime will improve the quality of life for our constituents.

The increased flexibility of “what is a gang?” will help address some of the limitations of definition and locality currently in law by recognising that individuals do not necessarily need a gang emblem, name, colour or anything else to operate, but can work as a collection of individuals who join together to commit a crime. Gangs can move across boroughs and localities across the country, and strengthening the law in that area will be widely welcomed not only by the police but by us as Members of Parliament when we see our constituents enjoy a better quality of life. In many cases the Bill will reduce the threat of criminality on the street corner, and it will inevitably attack those people—often young men—who may be tempted to be inveigled into a life of criminality that blights lives for so many thereafter.

I am fortunate to have been called early in the debate and to make a brief contribution. The Bill is significant because it accepts that there is an evolving threat, particularly in online and cybercrime, and it contains measures to address that.