Border Security, Asylum and Immigration Bill

Lord Faulks Excerpts

Committee stage
Tuesday 8th July 2025 Lords Chamber

How do we deal with that? It is very important that we stop being so binary about this. The truth of the matter—to go back to my original point, and then I will finish—is that the refugee convention does not help us here, because there is a situation, a national crisis, in which undocumented people are arriving in the country. It is the day after the anniversary of 7/7. We know the potential security problems. It means that we have no control over the border and, to their credit, the Government are trying to do something about it. I might have criticisms of the Bill, but there is an attempt to say that this cannot go on. If the refugee convention, other international agreements or, basically, the burden of moral guilt are thrown upon any of us who are worried about this—as if somehow we do not care about people who are genuinely fleeing war, terror and so on, or we do not care about international law or this, that and the other—we are not going to get anywhere or solve this problem. That is a betrayal of the British public, to be honest.

[Lord Faulks (Non-Afl)]

My Lords, I make just one technical point. We are here to discuss whether or not these amendments are going to work if they are passed.

Amendment 35, for example, deals with the defence of reasonable excuse by reference to a number of international conventions. I am a bit concerned as to how a court is going to direct a jury in respect to that. Certainly, it is arguable that they should reflect those conventions. As the amendment is currently framed, that is going to be legally very difficult. It is not normally the way these things are done. There should perhaps be some definition which embodies what is contained in those conventions, rather than simply reciting them as a list, because I do not think a court is going to find that very easy to interpret.

Incidentally, I entirely agree with the noble Baroness, Lady Chakrabarti, that the insertion of the word “reckless” does not help in terms of clarity. It is one of the most difficult words in the legal context. Courts of all levels have struggled to find any clarity with the word “reckless”.

[Lord German (LD)]

My Lords, the debate has obviously spanned beyond the amendments before us, but it is worth stating at the outset that the focus of these amendments is to determine that the provisions are aimed at the particular people who are breaking the law—the smugglers. The focus has to be that it helps law enforcement and the judiciary to focus their resources on the people that the Government really want to apprehend in order to tackle the criminal gangs. There are words—which I will come to in a moment—on which I agree a different definition might be more helpful, but it is worth while repeating the words of the noble Lord, Lord Deben, about the international regulations and rules that guide us and we put around ourselves and the importance of those.

I am reluctant to go into this field of the reinterpretation of the ECHR, but one mistake relates to the fact that some countries signed an unaddressed letter which gave no indication whatever of what changes to the ECHR they were looking for. The person who was supposed to receive it read about it in the newspapers. I contrast that arrangement, where nothing could be made of the letter because it gave no sense of what was to be changed, to the approach of the British Secretary of State for Justice, who approached the matter in a proper manner and spoke to the people concerned, the right Committee of Ministers, who are responsible for any review of the ECHR. There is already a set of motions in place to enable that discussion to occur. It would be worth while trying to understand what people in other countries want to do and what they need to happen in order to change, but those discussions are under way because, essentially, this is a living document that needs to be changed, interpreted and looked at as time goes by, and that is happening at present.

We should be clear that these amendments would simply treat the people who are coming here with a deal of compassion. I absolutely agree that we have to separate genuine asylum seekers from the rest. We cannot do that by our own legislation until they arrive here. There are no routes by which people can arrive here, apart from the few which would not affect the people from the countries who are most affected in this matter. What makes sense with these amendments—maybe not entirely in the words they use—is that they are trying to distinguish who we are going for and who we are gunning at, as it were.

Amendment 33 seeks to ensure that the scope of the offences in Clauses 13 and 14 apply only to the smugglers. The amendments seek to link the offences to financial and material gain. If there is another way of explaining the financial and material gain as being the method by which you determine a smuggler, then obviously it would be worth noting.

In that respect, I took note of what the noble Lord, Lord Harper, said about how to deal effectively with the migrants situation. Fortunately, I went to visit the site of the Jungle in Calais two weeks ago. It is now fields; there is nothing there but fields, grass and animals grazing, and that is because the French authorities dealt with groups of people to make sure that they fit with the strategy they are adopting. They had no complaints about the way that was working at the present time. Maybe times have changed, and maybe people need to be thinking differently.

Amendment 35 proposes that the defence excuse in Clause 13 should ensure the protection of

“refugees, smuggled persons, and victims of trafficking, in certain circumstances”—

and that is the question. In mentioning “certain circumstances”, one needs to define what those circumstances are; otherwise, the courts would not be able to make the appropriate case work.

Amendment 38 suggests that the scope of offence of Clause 14 should include for financial or material gain. That is the distinguishing factor between those who are smuggled and those who are not.

Amendment 44 suggests that the defence excuse in Clause 14 should ensure protection of

“refugees, smuggled persons, and victims of trafficking, in certain circumstances”.

Again, one has to define the words “certain circumstances”, because otherwise it becomes too general.

Amendment 57 suggests that the reasonable excuse defence in Clause 16 should ensure the protection of

“refugees, smuggled persons, and victims of trafficking, in certain circumstances”.

Again, that wording needs to be tightened up.

Finally, Amendment 203 would provide

“a statutory defence for refugees in certain circumstances”

for the offences in Clauses 13, 14 and 16. Obviously, there is a need for tightening up in this matter to ensure that we can separate out the people for whom the Bill is intended to deal with: those who are causing the misery, those who are trafficking and those who are smuggling and those who are spread around Europe to make sure that these schemes work. These are the people whom the Bill should be aimed at and is aimed at. All these amendments would do is make sure that we entirely focus our efforts on those people who are causing these criminal acts.

Therefore, I suggest that these amendments have a right sense of direction in what they intend. They enshrine the international regulations which we sit within. It is not just one convention; it is quite clear from the opening speech of the noble Lord, Lord Alton, that there are a raft of international conventions, laws and rules that we sit behind. We are part of that international way of dealing with matters, and if we lose that way of dealing with it and do not follow it through, we will never be able to solve something which is so international in its nature.

Illegal Migrant Returns Agreements

Lord Faulks Excerpts

Tuesday 3rd December 2024 Lords Chamber

[Lord Hanson of Flint (Lab)]

I do not know whether it is fashionable to say this, but I do not know the answer to the question about the death penalty in Iraq. I will certainly find out and write to the noble Baroness accordingly.

Where they have been deported to is a range of countries, which again is too long to list. The noble Baroness will be aware that there are lots of countries where those transfers are taking place, including Zimbabwe, Iraq, Senegal, Gambia and Algeria. If she wishes to know about the 9,400, that is like asking whether one can name the crew of a particular ship. I cannot, but I can find someone who can.

[Lord Faulks (Non-Afl)]

My Lords, I welcome the prospect of a returns agreement with Iraq, but some of those who come across from Iraq on boats may not be anxious to return, for one reason or another. They may, of course, get rid of their passports and conceal where they came from. Do the Government have any idea how to deal with that problem?

[Lord Hanson of Flint (Lab)]

The Government are obviously continually trying to look at that very issue, and that is a fact of life. Since 5 July, four flights have taken place and they are the four biggest return flights in the United Kingdom’s history, with 852 people leaving on them. It is an objective of this Government to remove those people who are identified as not having the right to live in the United Kingdom. We have started doing that with nearly 1,000 people—852 on four flights. We will continue to do that with the 9,400 we have mentioned. That number will only rise and will continue to do so.

Police: Firearms Officers

Lord Faulks Excerpts

Tuesday 22nd October 2024 Lords Chamber

[Lord Hanson of Flint (Lab)]

As with the noble Lord, Lord Hogan-Howe, the noble Lord, Lord Paddick, brings great experience to this matter. He has made a suggestion that is worth reflecting upon, but I do not wish to give consideration to it today. There are areas that we are looking at in this whole process that I will discuss with this House in due course, but today I would rather reflect on the fact that we have confidence in our police to do the job, that the jury and the CPS came to a conclusion in the trial yesterday that respects the rule of law, and that the jury has been unanimous in its decision. We will reflect on how we approach the situation post today, if the noble Lord will allow it.

[Lord Faulks (Non-Afl)]

The Minister said that the jury was wholly unaware of the recent evidence that we have now been given in relation to the victim and various activities that he had been involved in. But, of course, the police will have been aware of all those matters; equally, the prosecution authorities will have been aware of those matters when deciding whether or not it was appropriate to charge and try the defendant. Is the Minister happy that, with all that information, it was nevertheless considered appropriate to bring this matter to trial?

[Lord Hanson of Flint (Lab)]

It is for the Home Office to make decisions on a range of issues. Rightly, I am not eligible to become the Crown Prosecution Service and determine what information it presents to a jury; nor am I in a position to be the jury in the trial because I have not been party to the information that was presented to it. It is for the CPS to charge and the jury to determine, and then—if a conviction takes place, which in this case it did not—for the judge to pass sentence and for the criminal justice system to manage that sentence in an effective and appropriate way. I hope the noble Lord will accept that his points are interesting but not for me.

Safety of Rwanda (Asylum and Immigration) Bill

Lord Faulks Excerpts

2nd reading
Monday 29th January 2024 Lords Chamber

[Lord Faulks (Non-Afl)]

My Lords, the Government have stuck with the Rwanda scheme despite the Rule 39 decision in Strasbourg in June 2022 and despite the decision of the Supreme Court, which concluded that Rwanda was not safe.

The Strasbourg court’s interim ruling has been described as a ruling by a foreign court delivered by a judge in pyjamas. I do not think that is a helpful way of characterising it. All courts need to have the ability to make interim orders, sometimes at inconvenient times of day, and the court is not foreign to us as long as we remain members.

However, the decision was based on the Strasbourg court’s own rules rather than on what is in the European convention. It was made by a still-anonymous judge. No reasons were given and there was no chance for the Government to come back on a return date. This breaks just about every rule of natural justice and procedural fairness that normally applies in applications for interim relief.

As to the Supreme Court’s decision, it said that Parliament should not legislate to reverse the decision of what is the final court of appeal in this country. But Parliament has done precisely that in relation to three decisions, to my certain knowledge, in the last two years. I was chairman of the Independent Review of Administrative Law and the panel considered carefully whether it was appropriate for Parliament to reverse decisions of the Supreme Court. We concluded that Parliament should think long and hard before doing so, but that it was perfectly orthodox for it to take such a course. Indeed, the submissions we received from all senior judges did not suggest otherwise.

[Viscount Hailsham (Con)]

I thank the noble Lord for giving way. Is there not a difference here—a difference between disagreeing with a view and disagreeing with a finding of fact?

[Lord Faulks (Non-Afl)]

I am grateful to the noble Lord; I am coming on to that point. There were certain unusual aspects of the decision of the Supreme Court, which is normally concerned with points of law of general public importance rather than findings of fact. It might be better to describe the decision as rather more of a risk assessment based on the evidence before it rather than a finding of fact but, in any event, the Government have since responded to the court’s concerns, as your Lordships have heard.

I ask the question rhetorically: if the matter were before the Supreme Court today, would the judges come to a different conclusion? One should bear in mind that, even before the new steps taken by our Government and that of Rwanda, this case was finely balanced. The Court of Appeal was not unanimous on the matter and the Divisional Court found in favour of the Government. I also note Lord Sumption’s evidence to the Joint Committee on Human Rights acknowledging the Government’s response to the Supreme Court.

The Bill tackles some really big legal issues. In the view of the lawyers for the Government, it has gone as far as it can go without infringing international law. We know that there remain opportunities for litigation—lawyers have already announced their intention to take them—but the arguments on the law will have to wait until Committee.

At this stage, it is important to consider what the alternatives to the Rwanda scheme are, and so I turn to Labour’s position, and here I would like to mention Sir Keir Starmer. He has been criticised as being a “lefty lawyer”. I have had the privilege of being against him in court and, if he is a lefty lawyer, he is certainly a good one. I think it inappropriate to criticise him for the fact that some of his clients would not necessarily feature high on everybody’s desired guest list for a dinner party. What is his policy vis-à-vis the boats? There has been some talk of better relationships with France and better safe routes, but at the absolute centre of what is said to be the strategy is apparently Sir Keir himself. He reminds us regularly that he was DPP from 2008 to 2013. He was not in charge of Border Force or the National Crime Agency; he was supervising prosecutions at a very macro level—which is why I am reluctant to blame him for shortcomings in relation to the prosecution of, say, Jimmy Savile, or even the poor victims of the Horizon scandal. But he cannot have it both ways. Is it really suggested that, on the very arrival of Sir Keir, a former DPP, at No. 10, the smugglers will simply roll up their rubber dinghies and give up their promising and profitable business model? Is Labour’s alternative deterrent none other than Sir Keir himself? I am afraid I am unconvinced by that.

It comes to this: Rwanda is, at the moment, the only game in town. We all agree that we must stop the boats. The Government have made progress but need to go further. This Bill will enable the scheme to take effect—courts here and in Strasbourg permitting—and I admit it may deter those who sustain the people smugglers’ business. Other European countries face the same challenges and are actively considering similar schemes. Of course your Lordships’ House will scrutinise this Bill carefully, but we should retain some constitutional modesty. The elected House has passed the Bill. Many people in this country consider that their Government should be able to control our borders against illegal migration, and we should not ignore them. In the absence of any cogent alternative, while we should strive to improve the Bill, we should not wreck it.

Economic Crime and Corporate Transparency Bill

Lord Faulks Excerpts

Consideration of Commons amendments
Wednesday 18th October 2023 Lords Chamber

[Lord Garnier (Con)]

If one wants to learn anything from the speeches made in the House of Commons, I suggest that my noble friends on the Front Bench— and other noble Lords if they have a moment—read those of Sir Robert Buckland and Sir Jeremy Wright, two former law officers. They agree with my remarks of 11 September and find it puzzling that their own Government, a Government who are in favour of producing cogent and cohesive criminal law, have come up with this dog’s dinner.

I have done my best to be accommodating. It is not an accusation that is often levelled at me, but on this occasion, I think that it can be, justly. I have done my best to meet some of the Government’s less organised thinking. As I said at the outset, as a matter of principle. I cannot understand why there should be an exemption for anyone from the proposed criminal law, just as there is not under the Bribery Act and the Criminal Finances Act. However, to make life easier for the Government, on the last occasion I suggested that microbusinesses should be exempted from the failure to prevent fraud offences provision. I abandoned my provisions relating to the failure to prevent money laundering. The Government did not find that attractive, even though I tried to explain my abandoning of the principle on the basis that just as we have an age limit for criminal responsibility—10—we could perhaps also, by a rather clumsy analogy, exempt microbusinesses from criminal responsibility under the failure to prevent provision. That did not seem to go down very well with the Government—certainly not with Mr Kit Malthouse.

I have now moved a little further towards the Government. You may say, “Well, that’s a bit wet. If you’ve got any principles, why not stick to them?” Well, okay, accuse me of being wet, but I am doing my best to help the Government get out of an unnecessarily sticky hole. I have amended my proposal so that rather than microbusinesses being exempted, “small” businesses should be exempted—I define a small business on page 5 of the amendment paper, which states that, for the purposes of this provision,

“a relevant body is a ‘small organisation’ only if the body satisfied two or more of the following conditions in the financial year of the body … that precedes the year of the fraud offence”.

Those conditions are that the turnover of the business should be

“Not more than £10.2 million”,

the balance sheet should be

“Not more than £5.1 million”

and the number of employees should be “Not more than 50”.

In speaking against my own case, I rather wish that I had not put that down, but I have because I am trying to assist my noble friend on the Front Bench in getting his Bill enacted before the end of this Session.

I repeat that the criminal law should be uniform. Defences to the criminal law should be uniform. We should not have exemptions based on the size of the business. The Theft Act applies to all suspects—I am seeing whether my noble friend still enjoys my old joke about the six feet six burglar—regardless of whether they are six feet six or five feet six. We do not exempt people on the basis that they are small people or do not fit a particular height, so why are we doing it here? I have yet to find out. I am afraid that unless the Government move a little closer to me, I will invite your Lordships to join me in the Division Lobby.

[Lord Faulks (Non-Afl)]

My Lords, I shall speak to my Motion B1, as an amendment to Motion B, which is being debated within this group. It would

“leave out from ‘House’ to end and insert ‘do insist on its disagreement with the Commons in their Amendment 161A, do not insist on its Amendment 161B, to which the Commons have disagreed for their Reason 161C, and do propose Amendment 161D in lieu’”.

That is very clear.

We return to what has been described as a cost-capping amendment. Since this is not the first time that we have had the debate, I will try to be brief. This Bill has been a welcome, if late, addition to the government agencies in their fight to combat fraud. The scrutiny of the Bill through your Lordships’ House has been thorough and constructive. It has also been non-party political. I do not think that either the noble and learned Lord, Lord Garnier, or I would consider ourselves to be natural rebels.

All noble Lords have participated in this debate—and I very much include the Ministers in this—with a common purpose: to make this legislation as effective as it can be. Two themes emerged during the many debates. The first was the scale of the problem. The Government estimate, for example, that £100 billion was laundered through the United Kingdom last year, and yet under the Proceeds of Crime Act assets of only £345 million were recovered: that is 0.3%. The second theme was the frequent imbalance that exists between the resources available to enforcement agencies and those of the fraudsters, who may well employ expensive lawyers and have significant resources to enable them to do so. This modest amendment tries to do a little to restore that balance. I would have liked the enforcement agencies to have had complete protection against costs orders in the event that they lost a recovery claim, but in the course of ping-pong I have had to compromise somewhat, hence the form of the current amendment before your Lordships’ House.

The amendment does not prevent a judge from doing what is fair on costs in any particular case, but it is a nudge towards him or her to take into account the reasonableness of the agency bringing proceedings at all and the potential impact on its ability to carry out its functions if left with a substantial costs order. I struggle to understand the Government’s objection to this amendment and its predecessors; they seem, with respect, to be adopting a somewhat tender approach to fraudsters.

There is a clear precedent for this sort of amendment: when your Lordships’ House introduced a provision concerning the much-underused unexplained wealth orders. If it loses a case, the enforcement authority will have to pay costs only if it has acted unreasonably. As to the objection that it offends the “loser pays” principle, that is a misconceived argument. Judges regularly, in ordinary cases, make orders that each side bear their own costs, or make issue-based costs orders, or other orders which reflect the justice of the individual case. Parliament has legislated in ways that depart from this so-called principle: for example, QOCS—that is Qualified One-Way Costs Shifting—in personal injury litigation; or by Section 40 of the Crime and Courts Act; or in relation to unexplained wealth orders. This amendment is intended to reduce the possibility of an agency saying to itself, “We cannot afford the risk to the budget if we lose a case, even when we’ve got good evidence to bring it”.

Spotlight on Corruption suggests that a number of cases are in the pipeline which bear costs risks. These are said to include over 60 cases being reviewed by one agency, and close to £1 billion in assets frozen by an enforcement body.

Another advantage to this amendment is that those defendants or respondents to an application who defend these cases will know that, even if their legal strategy prevails, they may not recover their costs. This may mean that they are keener to reach a compromise.

The amendment has the support of all those bodies that are concerned with anti-corruption. Incidentally, it also has the support of Bill Browder, who regards it as one of the most significant potential improvements to the Bill. Let us please not kick this into touch and have yet another report, which is the Government’s suggestion. If necessary, I will move Motion B1 and test the opinion of the House.

[Lord Agnew of Oulton (Con)]

My Lords, I support both Motion A1 and Motion B1. I turn first to my noble and learned friend Lord Garnier’s Motion and offer three reasons why I believe the Minister is completely wrong.

First, the smallest SMEs include some of the most unscrupulous enablers. Take estate agents, for example: they are a conduit of bad money into this country from all over the world. The gaps that the Minister is proposing to leave in the Bill will ensure that this continues. I have seen one case, for which I had to sign an NDA, of an individual who spent £150 million buying property but is apparently allowed to take only $12,000 a year out of the country. How did he manage that? That is a perfectly good example and no doubt we will hear more like it.

Secondly, on this set of rules, I offer the Minister an example. We do not say to the manufacturers of small cars that they do not need seat belts and that for some reason they are exempted. That would be an absolute nonsense and the same applies here. He mentioned costs—£300 million and £40 million—but they are entirely specious. We have seen no proper analysis of these figures; they are just waved around as a convenient excuse not to do something.

My last reason is that these smaller businesses need to be most alert to fraud. A failure to prevent helps them to make sure that their own systems are able to face these risks. We know that 40% of crime in this country is economic crime, but we deploy less than 1% of our resources on dealing with it. Surely smaller businesses should be equipped to know when they are dealing with crooks. I will have to support my noble and learned friend Lord Garnier if the matter is put to a vote.

In relation to the Motion in the name of the noble Lord, Lord Faulks, we again pursued this relentlessly for six months. Bill Browder said to me on several occasions that, if this Bill is to go through, we must make sure that we have some cost capping in it. It is a war of very unequal proportions. We know that the agencies have small budgets and that they have to go cap in hand to the Treasury if they need more money, which is never given. They even have to return the costs they recover to the Treasury. All this is doing is sending a message to these bad actors that, if they take on this kind of behaviour, they will have significant risks. We have amended this on several occasions to give more discretion to the courts to ensure that, if an agency overreacts and behaves rapaciously or capriciously against individuals, those individuals are not penalised.

If we are serious about dealing with the tidal wave of economic crime that is coming to this country, the Minister will give us the assurance that this is being dealt with. If not, I will have to support the noble Lord, Lord Faulks, in his Division.

--- Later in debate ---

Moved by

[Lord Faulks]

Leave out from “House” to end and insert “do insist on its disagreement with the Commons in their Amendment 161A, do not insist on its Amendment 161B, to which the Commons have disagreed for their Reason 161C, and do propose Amendment 161D in lieu—

161D: After Clause 187, insert the following new Clause—
“Civil recovery of proceeds of crime: costs of proceedings
Civil recovery: costs of proceedings
After section 316 of the Proceeds of Crime Act 2002 insert—
“316A Costs orders
(1) This section applies to proceedings brought by an enforcement authority under Part 5 of the Proceeds of Crime Act 2002 where the property in respect of which the proceedings have been brought has been obtained through economic crime.
(2) When assessing what order to make in relation to the costs of proceedings, the court should take into account—
(a) the merits of the case,
(b) whether the enforcement authority acted reasonably in bringing proceedings,
(c) whether costs were reasonably incurred by any party to the proceedings, and
(d) the impact of any order on—
(i) the enforcement authority, and its ability to carry out its enforcement functions, and
(ii) any other party to the proceedings.”””

[Lord Faulks (Non-Afl)]

My Lords, I will not amplify what has already been said. I am grateful to all noble Lords, including the Minister, for engaging in this debate. He said that it was not a bad amendment, which was kind of him; I would say that it is an amendment that this House, for the reasons that I have already given, should welcome. It is an improvement to the Bill and I beg to test the opinion of the House.

National Crime Agency: Fraud and Economic Crime

Lord Faulks Excerpts

Monday 11th September 2023 Lords Chamber

[Lord Faulks (Non-Afl)]

My Lords, the Minister will know well that one of the themes that emerged during our debates on the Economic Crime and Corporate Transparency Bill was the inequality of bargaining power that often existed between the agencies that have to pursue fraudsters and those fraudsters, who were often heavily lawyered-up to enable them to resist any applications. One of the initiatives brought forward by this Government under the Criminal Finances Act was unexplained wealth orders. Can the Minister explain why they have been used on so few occasions? Is it because of lack of resources? Is it because of the risk on costs? What other explanation is there for such a powerful potential weapon not being utilised?

[Lord Sharpe of Epsom (Con)]

The noble Lord will be aware, from other conversations that we have been having around the various aspects of the Bill that will go through the House this afternoon, that the agencies tell us they are appropriately resourced. I cannot account for the small number of UWOs that have been issued, but I will continue to keep it under review and report to the noble Lord.

Illegal Migration Update

Lord Faulks Excerpts

Wednesday 6th September 2023 Lords Chamber

[Lord Murray of Blidworth (Con)]

Clearly, safeguarding is a significant consideration. The Kent Intake Unit, where unaccompanied asylum-seeking children are initially triaged, is certainly somewhere where safeguarding concerns are taken very seriously. The staff there pay very close attention to ensuring the best possible care for the children who pass through the centre. Careful consideration is given in the cases of very young children that they are not sent to hotel accommodation but, rather, to local authority accommodation if it is at all possible.

I should add that, of course, the vast bulk of unaccompanied asylum-seeking children are nearer the age of 18—that is, 16, 17 or 18 years old.

[Lord Faulks (Non-Afl)]

My Lords, the Statement and, indeed, the Minister emphasised how lawyers have been, and are, capable of frustrating this process in ways that would often constitute serious criminal offences. Of course, those are matters for prosecuting authorities or the Solicitors Regulation Authority if the stories that the Daily Mail has helpfully published are true, and there is no reason to think that they are not true.

The Statement talks about the Professional Enablers Taskforce. Can the Minister set my mind at rest about whether this will help very much? Is there not a danger that having a bureaucratic organisation such as the Professional Enablers Taskforce may get in the way of the fairly straightforward process of prosecuting by the authorities or, indeed, pursuing professional matters under the regulation authority?

[Lord Murray of Blidworth (Con)]

I thank the noble Lord for that question. The Professional Enablers Taskforce will perform the important function of ensuring that information is shared between the Home Office—of course, it has access to the documents relating to the various cases and could arguably provide witnesses in relation to them—the regulatory bodies of the various lawyers concerned, the police and the prosecuting authorities. The exchange of information in such circumstances is a great enabler to the successful prosecution and conviction of these people who would abuse our asylum system and our system of humanitarian protection for personal or professional financial gain.

Economic Crime and Corporate Transparency Bill

Lord Faulks Excerpts

Report stage
Tuesday 27th June 2023 Lords Chamber

Moved by

[Lord Faulks]

94: After Clause 183, insert the following new Clause—
“Strategic lawsuits against public participation
(1) It is an offence for a person or entity without reasonable excuse to threaten civil litigation against another person or entity with intent to suppress the publication of any information likely to be relevant to the investigation of an economic crime.(2) A person guilty of an offence under this section is liable—(a) on summary conviction in England and Wales, to a fine;(b) on summary conviction in Scotland or Northern Ireland, to a fine not exceeding the statutory maximum;(c) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both).”Member’s explanatory statement
This amendment introduces a new criminal offence to deal with groundless threats in pursuance of SLAPPS in order to suppress investigations into economic crimes.

[Lord Faulks (Non-Afl)]

My Lords, we now come a group of amendments about strategic lawsuits against public participation, or SLAPPs. These were much debated at Second Reading and in Grand Committee. As noble Lords will be aware, SLAPPs is the rather ungainly acronym to describe the abusive threats of litigation and actual litigation by deep-pocketed individuals with the intention of preventing journalists or others from revealing the truth, very often about economic crime or, at the very least, economic activity which the claimant would much rather was not revealed at all, or certainly not to the general public. This is a worldwide problem which has received a variable response.

In a sense, there is nothing new about SLAPPs. Powerful men have often used litigation to try to silence their critics, but there have recently been some egregious examples. The difficulty always exists in separating out genuine complaints by powerful men or organisations and those which have been commenced for a collateral purpose. When SLAPPs were debated at Second Reading, it was thought that amendments to prevent or limit such lawsuits would be outside the scope of the Bill. I am glad to say that that has now proved not to be the case, although it is clear that the relevant amendments, either mine or the Government’s, are focused on economic crime as opposed to wider areas of criminal activity which might provoke a strategic lawsuit. The Government’s position at Second Reading appeared to be that they were sympathetic to the notion of legislation in this area. However, they thought that the whole issue needed separate and mature consideration and should not be part of any amendment to this Bill.

I am delighted that the Government have changed their mind and brought forward amendments in this group which we will debate. I understand that the new Lord Chancellor has had much to do with this, and I thank him and the Minister for tabling the amendments.

A number of noble Lords have spoken about SLAPPs, including the noble Lords, Lord Agnew and Lord Cromwell, who gave a graphic description of the mischief at which any change in the law should be directed. My difficulty with any potential amendment was always that the courts have powers already to strike out abusive proceedings, but they tend to be extremely cautious about doing so, on the basis that striking out is a somewhat draconian remedy. Courts tend to be persuaded that it is better to see how the evidence emerges before putting a case out of its misery, but that can be too late. Huge expenditure will have been incurred, often by relatively impecunious defendants. Sometimes they have no realistic alternative but to capitulate—delay is plainly the friend of those who use SLAPPs. The best chance, in my experience, of striking out a claim is when there is a clear point of law, but even then there can be appeals and further expense, which work in favour of an abusive claimant.

The government amendments are clearly aimed in the right direction, but I can already foresee a few difficulties. There will be significant arguments as to what does or does not constitute a SLAPP, for example. That issue of itself has a lot of litigation potential. I am also concerned about the process of making the relevant Civil Procedure Rules. This can be a lengthy process, and is always a carefully considered process. I have studied the recent minutes of the Civil Procedure Rule Committee, so as to inform myself as to how the committee approaches rule changes. I would be grateful if the Minister could explain to the House how this amendment will make its way into the rules and the likely timescale.

Those reservations apart, my view is that we should go further. As pointed out at Second Reading by the noble Lord, Lord Thomas of Gresford, who has put his name to this amendment, there is no obvious reason why there should not be a criminal offence in this area.

I invite the House to consider a client consulting his expensive lawyers. He wants to take every step he can through litigation to suppress and exhaust the funds of those who would expose him. He utters those words which lawyers tend to love: “I don’t mind how much it costs”. The advice that he will or should receive after the government amendments become law is that there is a risk that the courts might decide to stop the litigation if it is regarded as abusive. “But”, the litigant says, correctly, “It will surely still be a lengthy and expensive process before a court even gets to consider that option”. However, if the Government were to accept my amendment, then the advice he should receive is that he risks criminal prosecution if he, without reasonable excuse, threatens litigation with the intent to suppress the publication of any information likely to be relevant to the investigation of an economic crime. This potential offence gives room for a defence, of course, but its very existence should act as a considerable deterrent against the sort of behaviour we want to stop. If this amendment becomes law then the hypothetical client might think much more carefully before threatening or embarking upon abusive litigation.

This amendment is particularly relevant to journalists, who have a huge role in tackling economic crime. I declare my interest as chair of the Independent Press Standards Organisation. It is also of importance to anyone who wants to reveal economic crime. It is entirely consistent with the aims of the Bill. Let us bear in mind that the opportunity to legislate in this space is unlikely to present itself again, or at least not for some time. I beg to move.

[Lord Thomas of Gresford (LD)]

My Lords, I remind your Lordships that, at Second Reading of this Bill, on 8 February, I referred to a legal action brought by Yevgeny Prigozhin, founder of the Wagner Group, who has been somewhat in the news over the last weekend, against the journalist Eliot Higgins, who had investigated his activities. When his case was justly struck out last May, Prigozhin said that he brought court cases against journalists because

“in any issue there should be room for sport”.

The cost to Mr Higgins was in the region of £70,000, although he won his case. That is the sort of abuse of the English legal system that the current crop of so-called reputational lawyers have brought on behalf of Russian oligarchs and many other large co-operations that resent too close a look into their operations.

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I think and hope that I have answered the various points that have rightly been raised. I therefore urge my noble friend Lady Stowell not to press her amendments and I will move the government amendments in due course.

[Lord Faulks (Non-Afl)]

My Lords, the Minister quite rightly emphasised that these amendments are concerned with two fundamental points: free speech and the public interest that exists to expose wrongdoing. He also said that the power, to be further elaborated by the rules, already exists. He is absolutely right to do so. In a way, the government amendments, which I welcome, tell the courts to do what they already can do. The question is whether they go far enough.

I have already indicated that I see a great deal of litigation potential in the definition of what SLAPPs may or may not be, notwithstanding the drafting. The Minister said that, with the comfort of these new rules, editors will be able to say to their journalists, “Well, we can go ahead. Sit back and do your worst”. I wonder how realistic that is, given that a journalist seeking after truth and attempting to expose wrongdoing will nevertheless expose him, her or their journal to a considerable hurdle before there is any chance of a striking out taking place. We hope the rules will come into effect in due course to encourage courts to take that view, but my experience, sadly, is that courts are reluctant to strike out claims on the basis that it is very difficult, without evidence, to come to a conclusion that something is an abusive process.

However, I accept that, for the moment, the view is taken that this amendment to create a criminal offence goes too far. I am afraid I do not accept the characterisation that it would “criminalise access to justice”; that was a most unfortunate phrase. In fact, it would create an offence that would help prevent the suppression of the publication of any information likely to be relevant to the investigation of economic crime. That is not criminalising access to justice; that was a most unfortunate characterisation.

However, I accept that the Government are with the spirit of the debate entered into in various stages on the Bill, and that they want to encourage the courts to intervene where necessary. I accept that, although it has expressed real concern, the House does not, for the moment, want to go as far as my amendment suggests. With some reluctance, but accepting the will of the Front Benches and of the Minister, I beg leave to withdraw my amendment.

Amendment 94 withdrawn.

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[Lord Agnew of Oulton (Con)]

My Lords, I shall be very brief. First, I thank my noble and learned friend the Minister for his active engagement on this; he knows how strongly I feel about it.

We have a complete mishmash on the principles of cost capping at the moment. For example, cases taken in the magistrates’ courts have cost capping, as do cases taken by the SRA. However, we do not have cost capping for the most important of all: those large cases where the enforcement agencies are trying to take on big-time oligarchs.

The only other thing I would say is that we have heard about Bill Browder tonight. I have spoken to him a lot over the past few months. He said, “The one clause you must get through in this Bill is the one on cost capping”. I beseech the Government to listen to us on this and bring forward a clause on cost capping.

[Lord Faulks (Non-Afl)]

My Lords, I rise briefly to support the noble Lord. Two key themes emerged from our lengthy debates on the Bill. The first was that the scale of economic crime is a major threat to the prosperity of the country. The second was that there is a significant inequality of arms between the enforcement authorities and the perpetrators of economic crimes. I could weary the House at length but I will not do so. This is an attempt to redress that inequality and not provide a disincentive for the authorities to pursue the perpetrators of economic crime.

[Lord Ponsonby of Shulbrede (Lab)]

My Lords, if the noble Lord chooses to move to a vote, we will support him. This amendment would build on last year’s Bill, which introduced similar changes to unexplained wealth orders. It is a welcome development, and I hope that the noble Lord presses his amendment to a vote.

Economic Crime and Corporate Transparency Bill

Lord Faulks Excerpts

Committee stage
Tuesday 9th May 2023 Grand Committee

I go back to what the noble Lord, Lord Fox, and other noble Lords have said all the way through the passage of this Bill. We basically support the Bill and want it to work, although there are improvements that need to happen. However, if the Bill has no teeth and no enforcement, and there is no way in which it will change the culture and deal with some of its seriously dysfunctional parts, it will not achieve what it wants. That is not what we want. Everyone in this Committee wants it to succeed, so I hope that the Minister will respond positively to my amendment and those in the names of the noble Lord, Lord Fox, and the noble Baroness, Lady Bennett.

[Lord Faulks (Non-Afl)]

I want briefly to add to that. I am sure that the Serious Fraud Office is full of capable and conscientious men and women who go about their jobs with enthusiasm. However, they are often pitted against rather formidable adversaries in terms of lawyers and the resources that are available to those lawyers to defend people who are the potential targets of the Serious Fraud Office.

It may be that one of the problems with the Serious Fraud Office is the career structure. The American equivalent often engages lawyers with very considerable abilities who are at a relatively stage in their practice. They may not be paid particularly well when they do it, but it is a feather in their cap. In other words, the Serious Fraud Office’s equivalent in America often has extremely high-quality lawyers. I wonder whether thought has been given to restructuring our whole approach to those who prosecute these matters so that we can somehow incentivise the very best people to get engaged in this business to render the playing field a lot more level than it currently is.

[Lord Agnew of Oulton (Con)]

My Lords, I rise to support the amendments tabled by the noble Lord, Lord Coaker, in particular Amendment 106B. He is becoming quite an expert on an area that has troubled me for 18 months or so.

The figure of £37 billion used in Amendment 95 is only a small part of the story. The National Audit Office talks about a separate £30 billion bottom-end estimate of losses to fraud in the public sector, so this is a huge issue; that is why I have tried to put as much effort into it as I can. The noble Lord, Lord Coaker, made the point that it is a hotchpotch landscape. There are 22 economic crime-fighting agencies scattered across the whole landscape. They do not join up or talk to each other. They have different remits and different legislation to use to effect any kind of outcome.

A report of the kind that the noble Lord suggests would bring real clarity to this. It would explain to people what is going on. It would not cost very much; indeed, as usual, it would save money because there is, I am sure, a great deal of duplication going on in the system. I urge my noble friend the Minister not to respond today, because it is so hard to respond on the hoof to these sorts of things, but to take this away and write to us to explain what is against the logic of a single reporting point once a year for all the agencies involved in economic crime.

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[Baroness Wheatcroft (CB)]

My Lords, I shall speak to Amendment 103. Thanks to the comprehensive introduction from the noble Lord, Lord Oates, I can be relatively brief.

The International Criminal Court in the Hague was established in 2003. Later this month, it will take evidence from representatives of some of the victims of war crimes in Darfur. That is typical of the essential work that the International Criminal Court can do. It is no wonder that there are now calls for Putin to be indicted to this court. Few today would question the need for such an organisation, and now it seems clear that there is a need for an international anti-corruption court.

The noble Lord, Lord Oates, made the case very positively. Kleptocrats are financial war criminals, inflicting huge damage on their countries but, like the dictators who commit genocide and other war crimes, they have impunity to act as they wish in their home countries. They control the police, the prosecutors and the courts. The damage that their greed inflicts on their countries is huge, but those countries are rarely able to bring them to justice. That is why this new court is so essential.

The Panama papers and Pandora papers provided appalling glimpses into the scale of the corruption in which senior officials in many jurisdictions have been involved. The proceeds are scattered around the world. The international anti-corruption court would provide a mechanism for prosecuting those individuals and retrieving those funds.

The United Nations has demonstrated its ineffectiveness in this area. The General Assembly adopted the UN Convention against Corruption in 2003. Getting on for 200 countries have signed it but, sadly, those signatories include most of the worst offenders on Transparency International’s corruption index. Too many countries treat the convention with contempt because their leaders and senior officials preside over corruption-rife regimes. That is why we need this court, and why I put my name to this amendment. It could be set up relatively quickly and could be hugely effective. Its very existence would deter corruption. If the Government want to fight corruption, why would they not support this project?

[Lord Faulks (Non-Afl)]

My Lords, of course, I echo the concern that has been expressed in the speeches so far about international corruption on an enormous scale.

In our debates, we have very much focused on what happens here in the United Kingdom. In our attack on the Government, it is worth bearing in mind that, in 2016, this Government hosted an international corruption summit; it was hosted by the then Prime Minister David Cameron, so many Prime Ministers ago. It was partly as a result of that that we had the then Criminal Finances Bill and there was an impetus—a very slow one, sadly—to set up a register of overseas entities. It was felt that, at least in this country, we should do all we could not to allow our properties and companies to be infected by corruption. Indeed, this Bill seeks to improve what has already been achieved although, in many ways, it has not gone far enough.

I respectfully submit that what is contained in this amendment is pretty aspirational stuff. There is nothing wrong with being aspirational. The International Criminal Court—I have been to conferences there—has had some success, but it must be remembered that Russia is not a party to the ICC and nor is the United States. It is one thing to say that it is relatively easy to set up a court, but you must have the proper means to enforce it and you have to invest huge sums of money in infrastructure. There has to be a degree of realism about this. Surely we should sort out matters at home as best we can first of all; that in itself will contribute to reducing international corruption. Putting on the statute book an obligation to set up an international court of this sort, which is what this amendment suggests, is premature at this stage, although one can do nothing but applaud the sentiments that lie behind it.

[Lord Ponsonby of Shulbrede (Lab)]

My Lords, this has been a very interesting debate; it is the first debate in which we have spoken on a more international level. As we heard in our earlier debates, a large proportion of the quantity of money involved in fraud—well over 90%; probably 99%—has an international element; that is at the core of so much of the fraud with which we are dealing.

I congratulate the noble Lord, Lord Oates, on the way in which he introduced this group. I found his introduction rich and compelling. He set out things very fully. The other noble Lords who have spoken have talked about the aspirational nature of this amendment. I do not think that that is a criticism. It is good to hear about the other countries that are already taking a lead in trying to get the IACC set up.

From the Labour Party’s point of view, I have looked at what David Lammy has said on this matter. He has spoken about working internationally—I know that my noble friend Lord Hain led the work on that when he was a Foreign Office Minister—and promised that an incoming Labour Government would fight against dirty money in the UK by creating a transatlantic anti-corruption council alongside the US, EU and other allies. That is a different model from the one proposed in these amendments.

I do not want to stand here as an opposition spokesman saying that we are against what the noble Lord, Lord Oates, and the noble Baroness, Lady Bennett, are proposing but there are other potential models for bearing down on corruption. I listened with some interest to what the noble Lord, Lord Faulks, said about the practicalities of doing this and using legislation such as this to do everything we can on a domestic level, and internationally where we already have direct interest, to bear down on this huge level of corruption. Nevertheless, I thank the noble Lord for introducing this amendment.

Economic Crime and Corporate Transparency

Lord Faulks Excerpts

Committee stage
Thursday 27th April 2023 Grand Committee

I am under no illusions that these discussions will continue—I say to the noble Baroness, Lady Bennett, that even Ministers get that. However, given those reasons, I respectfully ask the noble Lord to withdraw his amendment.

[Lord Faulks (Non-Afl)]

Before the noble Lord sits down, during the passage of the first economic crime Bill, when the question of sanctions was discussed, much reference was made to the very lengthy Explanatory Notes which accompanied that Bill—the longest I have ever seen—particularly as regards the human rights implications of depriving people of their assets in the sort of way that the noble Lord, Lord Alton, envisages in his amendment, in particular A1P1 of the European convention and various other rights. Is it part of the Government’s position that the sort of suggestions made in this amendment are in fact stymied or may be frustrated by the provisions of the European convention and the Human Rights Act?

[Lord Sharpe of Epsom (Con)]

The noble Lord has strayed into an area with which I am not familiar. I shall have to write to him.