Gangmasters Licensing Authority (Civil Fines)

Debate between David Heath and David Morris

Tuesday 11th June 2013 Westminster Hall

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr David Heath)]

It is a pleasure to serve under your chairmanship this afternoon, Mr Hollobone. I congratulate the hon. Member for North East Cambridgeshire (Stephen Barclay) on securing the debate. I am pleased to see his colleagues, the hon. Members for Peterborough (Mr Jackson) and for Morecambe and Lunesdale (David Morris) here. I know that they share a common concern about the operation of gangmasters in their constituencies.

It is important that I open by saying how significant the operation of the Gangmasters Licensing Authority is. We need it to work for precisely the reasons that the hon. Member for North East Cambridgeshire set out: to ensure that very vulnerable people are not exploited by criminals—let us be clear, they are criminals—who wish to use the opportunities that arise from people coming from overseas and finding themselves in a vulnerable situation.

I would like to respond to the points that the hon. Gentleman made, but also to say a few words about the proposed improvements to the operation of the GLA, which has done and continues to do a great deal of valuable work, which most people recognise, to protect and enforce the rights of vulnerable workers. Many reviews over recent years, including the farming regulation task force and forestry regulation task force, have looked at the GLA’s work, and there is general recognition among stakeholders that it has been effective in improving working conditions in the regulated sectors.

In recognising the highly valuable work the GLA has done, the reviews have also shown that there is room for improvement, so there is an opportunity to make the GLA a modern enforcement agency that better targets criminal activities, while applying a light touch elsewhere. That is one of the thrusts of the work we have done. Part of the consultation that is happening at the moment is about how we can take our foot off the pedal in areas where it is not needed, to concentrate resources on the areas that the hon. Gentleman has drawn to the attention of the House.

Through the employment theme of the red tape challenge, the continuing need for the GLA’s work was endorsed, alongside the need to bring forward measures to ensure that it can become more focused on the worst excesses of worker exploitation in the sectors it regulates. As the hon. Gentleman said, my predecessor, the right hon. Member for South East Cambridgeshire (Sir James Paice), announced, via a written statement to Parliament a year ago, the range of reforms that would come forward.

The GLA will increase joint working with other agencies involved in stamping out serious organised crime activities, including human trafficking, money laundering, tax evasion and other serious organised crimes. To enable that increased focus on the serious criminal elements in the supply of labour to the food and food processing sector, the GLA will modify its processes and deploy its resources in a way that relieves the burden of regulation from highly compliant businesses, but targets criminals through improved intelligence gathering.

[David Morris (Morecambe and Lunesdale) (Con)]

In Carnforth in my constituency, the Morecambe bay hybrid fishery order is being drafted at the moment. Can the Minister assist the legislation to go through quicker? It will enable the licensing and policing of the bay for shellfish farmers and harvesters and cockle pickers.

[Mr Heath]

I am not sure that I am in a position to help with what is presumably private legislation, in that it is independent of Government processes, but I have heard what the hon. Gentleman has said. Having such an order in place would clearly benefit his constituents, which is why he has raised it today. I do not blame him for doing so.

Before that intervention, I was suggesting that in areas where the experience of GLA enforcement over the years has shown that there is less need for regulation, we can safely remove those currently licensed activities from the scope of regulation and redeploy the resources elsewhere. My Department launched a public consultation in April this year on proposed reforms to GLA operations, as the hon. Member for North East Cambridgeshire said. That consultation includes proposals to exclude some activities that currently require a licence from the scope of licensing, where evidence suggests that there is a low risk of exploitation of workers. That proposal would remove about 150 businesses from licensing, saving those businesses about £60,000 and enabling GLA resources to be deployed elsewhere to tackle serious abuses.

Changes are proposed to the size and constitution of the GLA board, to make it smaller and better able to provide clear strategic direction for the organisation. The consultation also looks at the scope to introduce civil penalties—exactly the point that the hon. Member for North East Cambridgeshire made—into the range of enforcement tools that the GLA has available.

The GLA is a designated regulator under the Regulatory Enforcement and Sanctions Act 2008—the so-called RES Act—which permits the use of civil penalties as an alternative to prosecution in certain circumstances. The point that the hon. Gentleman made, and he quite properly set out exactly why this is an obstacle for us, is that the sectors that the GLA regulates are overwhelmingly made up of small and medium-sized enterprises.

The scope for use of civil sanctions in the RES Act is constrained by Government policy in that area, and I recognise immediately that what the hon. Gentleman is asking me to do is to challenge another Department’s policy. I think that is implicit in what he says, but for the benefit of the record I want to state that Government policy in that area was clearly set out in a written statement to Parliament last November, by the Department for Business, Innovation and Skills Minister, my right hon. Friend the Member for Sevenoaks (Michael Fallon).

That statement made it clear that, in general, SMEs should not be subject to monetary fines because of the risk of smaller companies feeling less equipped to challenge the basis for such fines. That is very clear Government policy and if I wished to engage in a dialogue with my right hon. Friend the Member for Sevenoaks on the issue, we would need to establish why this matter should be the exception to that rule.