Modern Slavery Bill

David Nuttall Excerpts

Tuesday 4th November 2014 Commons Chamber

[Mr Hanson]

The Minister said:

“The case has not been made for extending the GLA’s remit at this stage beyond the core areas the Act sought to address.”––[Official Report, Modern Slavery Public Bill Committee, 14 October 2014; c. 480.]

She has recently undertaken a review into gangmasters legislation, and determined that there should be no extension of its remit. I am saying—I hope the hon. Member for Redditch (Karen Lumley) will take heed of this—that new clause 1 simply gives power to the Secretary of State to extend that remit, should they seek to do so. Were I to be Minister in a few months’ time, I would want to consider extending the scope of the gangmasters legislation because widespread views from trade unions, charities and academics suggest that many people are underpaid or exploited in areas not covered by current legislation.

[Mr David Nuttall (Bury North) (Con)]

As I understand it—forgive me if I have the wrong end of the stick—new clause 1 is simply to make it easier should a future Minister determine that it is necessary to widen the scope of section 3 of the 2004 Act. Will the shadow Minister give the House some indication as to what difference that would make in terms of time scale and bringing forward that legislation?

--- Later in debate ---

[Stephen Barclay]

I want to develop the theme of how we can make prosecution and enforcement quicker and easier. I am aware that a number of Members who wanted to speak earlier have not yet been able to do so, and I shall therefore keep my remarks short.

I want to speak about new clauses 16, 17, 18 and 19. Let me begin with new clause 16. At present, it is very difficult for police in areas such as Wisbech in my constituency to identify houses in multiple occupation. The presence of 20-odd people in a two-storey house often does not meet the legal definition of an HMO. One of the ways in which we can make life easier for the local police is to give them clearer powers and rights to inspect letting agencies, and require gangmasters to keep records in the form of rent books and tenancy agreements. At present, when there is a breach of a tenancy agreement, it falls to the tenant to bring a private prosecution. How realistic is that? How realistic is it to expect someone who has been trafficked, who does not speak English and who does not understand the law to bring a private prosecution against his landlord?

We need to make it quicker, easier and therefore cheaper for the police to identify concentrations of HMOs. They need to be able to go into those houses, establish whether the law relating to, for instance, rent books is being adhered to, and take action if necessary. That will necessitate rights of access to the records of letting agents, and a requirement that the Gangmasters Licensing Authority can then use for leverage in relation to gangmasters.

New clause 17 seeks to build on the lessons this House can learn from scrap metal merchants being forbidden from taking cash payments and asks how we can create an audit trail for financial investigators in terms of the known abuse around the minimum wage legislation and the way people are being paid. At present wage slips will often simply show that someone was on for one day—it could have been seven hours, it could have been 12 hours—and when payments are made, they are made in cash. Straight away, deductions are taken for accommodation and for vehicles, so the abused worker never actually receives that money. Often they are told when they come into the country that they are not allowed a bank account. Obviously that is erroneous information, but they do not know otherwise. New clause 17 therefore addresses how we can make it easier for the police to follow the money—follow that audit trail—so that once money goes into an account, it is with the worker and it becomes harder for the rogue gangmaster to deduct it at source, which is what currently happens.

New clause 18’s provision is, I fear, almost a well-worn theme. I had a debate on it in Westminster Hall in 2012 and 2013. The measure was being blocked by the Department for Business, Innovation and Skills, although I was told privately that the Department for Environment, Food and Rural Affairs was supporting it. The reality is that the Gangmasters Licensing Authority does not have the full range of tools available. It has draconian penalties available in terms of criminal sanctions, but they are almost never used because the standard of proof is high and the amount of time required is extensive.

To put this in context, do Members know how many inspectors the GLA currently has? It has 35 for the whole country. There is one covering the whole of Cambridgeshire and Lincolnshire. An inspector could spend their entire time just driving around my constituency, never mind the rest of the county and the two counties combined. The LGA has 35 inspectors and a budget of £4 million. We need only think about how much a supermarket makes in a week to see how well resourced the GLA is.

[Mr Nuttall]

Not Tesco.

[Stephen Barclay]

Tesco has some serious questions to answer in terms of its supply chain and the way some of its operations have been conducted. I do not want to return to the earlier debate, but if one looks at some of the difficulties Tesco is having in terms of its profit warnings, one wonders how accurate some of its statements on its website might be, especially given its statements on other areas.

My point is we need to make it easier for the GLA, at a time when it is resource-constrained, to take enforcement action. One of those ways is to hit rogue gangmasters in the pocket, through civil fines. There is a lower evidential requirement for that and it is quicker and cheaper, and we should be facilitating that. I hope the move of the GLA from DEFRA into the Home Office gives more clout within Whitehall for this long-overdue change.

New clause 19 addresses what happens when a gangmaster is found abusing workers in one sector. The shadow Minister touched on that in his opening remarks. It is illogical that where someone is operating in one sector or industry illegally, we seem to assume that that sinner is suddenly a saint in another sector. The additional costs of the extra 1 million temporary workers currently within the unregulated sector would place a huge burden on the GLA, so I am sympathetic to the Minister in terms of the constraints on extending into the unregulated sector, but we need to make that easier. Where a gangmaster has been shown to be rogue in one sector, that is the gateway through which we can make a foray into the unregulated activity of that specific gangmaster, not of the whole unregulated industry.

This is a very good Bill that will make a huge difference in constituencies such as mine and it signals the Government’s intent in this area. When the Minister responds, I hope she will consider the operational difficulties faced by the police and the GLA in particular, and bring forward measures that make their job easier, quicker and cheaper, and therefore more likely to be achieved.