Cultural Property (Armed Conflicts) Bill [Lords]

Victoria Borwick Excerpts

3rd reading: House of Commons
Monday 20th February 2017 Commons Chamber

[Brendan O’Hara]

I will be very brief indeed, Mr Deputy Speaker.

We know that there has been systematic looting of priceless artefacts, and that a flood of artefacts are coming on to the market throughout Europe, America and the far east. We must do everything that we can to protect those artefacts, and I hope that the Government will take on board the amendments tabled by the hon. Member for Cardiff West. I think it incumbent on all of us to protect the cultural heritage, regardless of whose it is. I look forward to supporting the Government, and I am sure that they will accept the amendments.

[Victoria Borwick (Kensington) (Con)]

I declare that I am president of the British Antique Dealers’ Association and that I have also been advised by the British Art Market Federation, the Antiquities Dealers’ Association and LAPADA, all of which have made written representations on this Bill. I concur with the comments of my colleagues that the art and antiques industry is fully supportive of the principles and aims of this Bill.

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[Kevin Brennan]

Does the hon. Lady take any comfort from the Government’s impact assessment of the Bill, which envisages that there would be one prosecution every 30 years under the Act?

[Victoria Borwick]

Of course we all hope that is the case, but that is why we all in this House, jointly I believe, are seeking clarification: we do not want unsubstantiated allegations that something was illegally removed from an occupied territory, or a request for something that was legally exported. The allegation might be totally groundless when something is just about to be sold or exhibited, but the seller, genuinely believing that the item had not been illegally exported, would fear that the allegation could be deemed “a reason to suspect”, and that could lead to the item then being withdrawn from sale. The time-dependent opportunity to sell it would be lost and the very act of withdrawal could well then damage the artwork’s future saleability. The mere making of an unfounded allegation that an item was unlawfully exported from a potentially occupied territory after 1954 may place in the mind of a potential dealer or auctioneer a reason to suspect that it has been unlawfully exported, and although that might not later turn out to be the case, he will not go near it because it has been tainted.

I give as an example an old master picture that has changed hands on the legitimate open market in Europe in the past few years. It is sent to London for sale by auction. Due diligence is carried out and its known provenance is investigated, as is its sale history, and checks are made that the item has not been stolen. The picture is then included in an auction catalogue which is published several days before a sale. An allegation is then made that it was removed from an occupied eastern European country in the 1960s. Time is necessarily short to investigate whether that is true. Attempts to resolve the matter beyond doubt before the auction do not succeed, and even though it may well prove groundless, the allegation itself represents a reason for suspicion under the terms of the Bill as currently drafted. Not wishing to run the risk of prosecution, the auction house has no alternative but to withdraw the picture from the auction, to the disadvantage of its owner who, at best, will have to wait for another auction and, at worst, will face financial loss, as marketing it for a second time could adversely affect its value. The rarer and more valuable a picture or piece of art it is, the greater is the risk that a successful sale will be prejudiced by its withdrawal from an auction. In time, the allegation could well prove groundless, but the damage will have been done.

I recall the Secretary of State saying on the Floor of the House on 31 October that

“It is important that we are clear that the Bill will not hamper the way in which the art market operates.”—[Official Report, 31 October 2016; Vol. 616, c. 700.]

The closest existing legislation to the current Bill is the Dealing in Cultural Objects (Offences) Act 2003, to which my right hon. and learned Friend the Member for Harborough (Sir Edward Garnier) referred earlier. It is concerned with illegally removed archaeological material and objects that have been taken illegally from monuments or historical structures. However, unlike the Bill—in which the types of cultural property covered are extensive and could even include cultural property in people’s family collections—the 2003 Act does not cover works of purely artistic interest. The Act states:

“A person is guilty of an offence if he dishonestly deals in a cultural object that is tainted, knowing or believing that the object is tainted.”

[Sir Edward Garnier]

My hon. Friend refers to the 2003 Act. She and I will recall that the genesis of the Act was the ministerial advisory panel’s report on illicit trade, which was published in 2000. The report suggested that the gap in the Theft Act 1968 should be filled by what became the 2003 Act and by the “knowing or believing” test for mens rea. Is it not a pity that the Government do not seem to remember that, and that they seem to be moving down a different route?

[Victoria Borwick]

I thank my right hon. and learned Friend for giving us the benefit of his experience, which I hope will prompt the Government to reconsider.

As the British Art Market Federation and others have stated, the existing statutes mean that a dealer acting with honest intent and conducting reasonable due diligence is highly unlikely to run the risk of prosecution, unless it can be shown that they have wilfully acted dishonestly. I understand that the Government have cited article 21 of the second protocol of the convention as justification for a lower level of mens rea, but I draw my hon. Friend the Minister’s attention to article 15 of the protocol, which indicates that an offence has occurred if a person intentionally commits an act of theft or misappropriation against cultural property protected under the convention. Surely that suggests that an element of dishonest criminal intent is required by the convention. I seek that assurance. If the Bill were to introduce a lower threshold of mens rea, that would amount to gold-plating, which appears to run counter to Baroness Neville-Rolfe’s assurances in the other place that

“the Government intend to do only what is necessary to meet our obligations under the convention and its protocols.”—[Official Report, House of Lords, 6 June 2016; Vol. 773, c. 586.]

For all those reasons, I am concerned that the words “having reason to suspect” are inappropriate. Terms such as “believing” or even “suspecting” carry greater certainty and clarity. I emphasise that this is a point of law; it does not weaken or water down the Bill. We all understand that the objective is squarely to target those with criminal intent. I ask the Minister to consider these views and those of the art and antiques industry when drawing up the detailed regulations that will ensue from this legislation.

[Mr Burrowes]

It is a pleasure to take part in the later proceedings of this important Bill. I am co-chair of the all-party parliamentary group on cultural heritage; it is excellent to see the Bill on its way and at long last to enable our ratification of The Hague convention, which will be very welcome. Having said that, I very much respect this level of scrutiny and the concerns outlined by my right hon. and learned Friend the Member for Harborough (Sir Edward Garnier) and my hon. Friend the Member for Kensington (Victoria Borwick). We also had exchanges on this issue in the Bill Committee. I welcome that because the concern among dealers has been outlined, not least to the all-party parliamentary group.

The British Antique Dealers Association, the British Art Market Federation, the Antiquities Dealers Association and LAPADA all made considered written representations, which need to be fully respected, and I join them in wanting to ensure confidence in the market. The last thing we want to happen is for the Bill in any way to provide uncertainty or ambiguity in the codes of practice and guidance, which are very welcome—they are welcomed not least by the all-party parliamentary group. We want London to be the centre of excellence for dealers’ associations, and we want there to be true confidence in the market.

The all-party parliamentary group has deliberated on some of the scaremongering stories out there. We recognise that the London dealers’ market has a very good record, and we want to ensure continuing confidence in that market. I have due respect for the concerns that have been expressed, and I look forward to further roundtable meetings and the publishing of guidance.

My right hon. and learned Friend the Member for Harborough, a former Law Officer, pleaded for guidance to be published at this stage. As he will know, some of us who scrutinised the Bill in Committee, including the shadow Justice team, are on his side in pleading for such guidance to be published before the end of our proceedings. Sadly, those pleas have been made in vain in some ways. I share his concern that there should be as much transparency as possible.

It is important to recognise that other stakeholders are concerned about amending clause 17. Although the antiquities and antiques dealers’ associations are important and must be listened to, we must also listen to the police. I understand that police representatives have said that they support the Bill as currently drafted. I have an interest as a criminal defence solicitor, and I am not necessarily surprised that the police support the current wording, but it is worth taking account of other interested parties, such as the British Red Cross and the British Museum.

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[Mr Burrowes]

What I do know either way is that no antiquities dealer has come forward about being unjustly convicted and there has not been a campaign about such. None seems to have been unjustly convicted under this order—or there has been no evidence that there has been an iniquity in relation to an arrest, prosecution or seizure under the order or, indeed, under the other relevant provision, the European Union Council regulation on Syrian cultural property. That refers to

“Syrian cultural property goods and other goods of archaeological…importance…where there are reasonable grounds to suspect that the goods have been removed from Syria without the consent of their legitimate owner”.

Again, I am not aware of any antiquities dealer having fallen foul of those provisions, with the complaint being that the net is cast too widely.

I concede that, in terms of mens rea, there is a difference between normal dishonesty offences and this particular offence, but in respect of the actual impact of the Bill, I am not aware of a serious problem. Rather, the answer is that, with the appropriate legal advice and the due diligence that one would expect of any decent, law-abiding antiquities dealer, they will be able to chart their way through the legislation.

Another relevant aspect is international practice. We are in the process of ratifying The Hague convention and putting ourselves into line internationally. It is important to refer to paragraph 7 of UN Security Council resolution 1483, which came into being on 22 May 2003 and is obviously binding on all UN member states. It was made in direct response to the looting of cultural institutions in the immediate wake of the invasion of Iraq. All member states signed up to taking

“appropriate steps to facilitate the safe return to Iraqi institutions of Iraqi cultural property and other items of archaeological, historical, cultural, rare scientific, and religious importance illegally removed from the Iraq National Museum, the National Library, and other locations”.

Paragraph 7 says specifically that that should be done

“by establishing a prohibition on trade in or transfer of such items and items with respect to which reasonable suspicion exists that they have been illegally removed”.

Similar wording is used in United Nations resolutions.

That similarity continued in paragraph 17 of UN Security Council resolution 2199, from 12 February 2015. Again, it is binding on UN member states. It was adopted in direct response to the looting of Iraqi and Syrian cultural property in the course of the ongoing armed conflicts in those states. The Security Council reaffirmed its decision and recognised that there was a corresponding obligation for cultural property illegally removed from Syria since 15 March 2011. On the standard of knowledge considered sufficient by the Security Council, of which the UK is of course a permanent member—we want to ensure we are right up there in terms of signing up to ratifying the two protocols—there was the same equivalence in relation to reasonable suspicion.

[Victoria Borwick]

On the point about the uncertainties, perhaps the Minister will clarify whether the legislation is going to be retrospective. Is it going to apply to items that are imported in future, or to items that are currently in the country? Alternatively, will it apply only to what happens after the Bill is passed? We are talking about items that move from country to country, particularly those in areas of potential conflict, so it would be helpful if there was clarity in the Bill about the date on which an item was imported.

[Mr Burrowes]

I am happy to facilitate the Minister’s being able to respond to that question.

On 18 January 2012, before the adoption of paragraph 17 of Security Council resolution 2199, an EU Council regulation emphasised the same points made in the Security Council resolutions. It referred to situations in which

“there are reasonable grounds to suspect that the goods have been removed from Syria without the consent of their legitimate owner or have been removed in breach of Syrian law or international law”.

The amendments have been tabled in good faith and are well intentioned, and in ordinary circumstances I would think they were well merited and had substance. In this particular case, however, given the context, I do not think they are necessary or, indeed, desirable, especially when one takes into account the international best practice or hears from stakeholders such as the Red Cross and the British Museum. I shall conclude with the words of the latter:

“We feel it is particularly important that there is no watering down of responsibilities or requirements in the Bill. Specifically, we feel that in regard to the Clause 17…it is imperative that the working should remain ‘knowing or having reason to suspect that it has been unlawfully exported’”.

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[Victoria Borwick]

As president of the British Antique Dealers’ Association, I know, as I have said previously, that the arts and antiques industry fully supports the aims of the Bill. There are still areas of concern, however, which have been mentioned. In particular, it is important that honest and well intentioned dealers and auction houses do not risk criminal prosecution when conducting reasonable due diligence. We have discussed the aspects of the Bill concerning the trade that relate to avoiding uncertainty in the art market and ensuring clarity in the practical operation of the law. There is no doubt that uncertainty hampers any market. It is reassuring that the Minister has made it clear on the Floor of the House today and previously that she does not want the market to be hampered. I thank her for that assurance.

The clause 17 offence of dealing in unlawfully exported property depends directly on the clarity and understanding of what is meant in the Bill by the term “cultural property”. As it stands, the punctuation that is used in article 1(a) of the convention, which is reproduced in schedule 1, means that cultural property is not limited to

“property of great importance to the cultural heritage of every people”.

Although the Minister has previously reassured us that cultural property can be protected if it is of great importance to every people, the market seeks absolute clarification on these points, as has been said by other hon. Members. Other categories of property are covered by the definition, regardless of their cultural significance, including

“works of art; manuscripts, books and other objects of artistic, historical or archaeological interest”.

I am delighted that the Minister today confirmed her statement in the House of 31 October that the Government intend to take the same restricted approach to the definition of “cultural property” and that the clause 17 offence of dealing in unlawfully exported property will apply to only a very small but special category of cultural objects—those that are of great importance to the cultural heritage of every people.

Another area of uncertainty is an auctioneer or dealer’s ability to identify the occupied territories to which the law applies, particularly if an item may have been here previously. Of course, a lot of trading goes on between countries all the time. That is why the points that have been made about certainty and the dates of an occupied territory need to be clarified.

Clause 16 states that the Secretary of State’s confirmation that a territory was occupied is “conclusive evidence” of that status once legal proceedings have begun. If the Secretary of State’s word may be provided after the beginning of proceedings, cannot the list of occupied territories, together with the relevant dates of occupation, be drawn up for all to see? Alternatively, could the criteria that the Secretary of State would apply when determining whether and when a country is considered to have been occupied be clarified? I could add to the list east Jerusalem, the west bank, northern Iraq, Libya or southern Sudan. I am sure that other countries could be added. For the avoidance of doubt, art and antique dealers need to know at what point since 1954 a particular territory is covered by the legislation, and whether or not that will be retrospective.

Even if those operating in the art market can identify the territories and the periods when they were considered to be occupied, there is the added issue of determining whether objects left those territories during the period of occupation or at another time, and whether those objects were here before, during or after that period. We need that clarity. The precise historical date or year when an object left a territory could well be difficult to ascertain, which is why the trade asks for clarity in and guidance on the final definitions. We are talking about territories that were deemed to be occupied prior to 1954, so surely this is historical and factual information that should be readily available to the arts and antiques trade, and others, to provide absolute clarity.

In 2008, the Government’s response to the territory question was that a dealer who had carried out proper due diligence checks would be unlikely to be convicted of a criminal offence. I urge the Minister to ensure that that response is clarified and brought up to date.

The Government added that they were unaware of any other parties to the convention having drawn up such a list. I struggle to understand how a law concerned solely with objects unlawfully exported from occupied territories can be expected to operate effectively when there is no means by which anyone is able to identify those territories. Do the Government expect a dealer or auction house to submit requests for confirmation of a territory’s status to the Secretary of State on a case-by-case basis, prior to handling an antique, as part of their due diligence? I urge the Government to prepare a list of the territories covered and the relevant dates, so that proper guidance can be given. As the application is retrospective to 1954, that information must be available and must be a point of record. I ask the Minister to consider these points and others when preparing the regulations governing the Bill.

Question put and agreed to.

Bill accordingly read a Third time and passed, without amendment.