Modern Slavery Bill

Jim McGovern Excerpts

Tuesday 4th November 2014 Commons Chamber

[Michael Connarty]

I have absolutely no reservation in supporting that as a principle. We are doing the right thing. We have set together a number of pieces of legislation in the Bill that will deal with those who will wish to avoid its provisions, and I will mention some of the measures in new clause 11 that I think are effective and welcome.

I am glad that Government amendment 62 says there will be an affirmative resolution for regulations, because it is right that we will go into a Statutory Instrument Committee with them, and that we are given the chance to debate them with the Minister. I will mention some of the things I hope we will discuss when we get there.

New clause 5, which was tabled by my hon. Friends on the use of the Companies Act 2006, is something we should look at, because it is right. The hon. Member for Enfield, Southgate (Mr Burrowes) made the point that we need as many tools as possible as well as the court of public and business displeasure when people do not act as we want. Therefore, we should look at how we can put some firmer things in the Bill, but I think that the big change in the Government’s thinking is to be welcomed, because they are using the principle of the California Act, which is much wider than the Companies Act.

By the way, I notice that the British Retail Consortium wants to include smaller companies. When I introduced my Bill, I used the figure of £100 million. In California, the figure was $100 million, and my amendment used £60 million, which is the equivalent. Clearly, quoted companies under the Companies Act are likely to be well outwith that in size. We want to respond to that and use the same reporting structures as the Act would use.

I tabled amendment (a) to new clause 11 because we should look at international standards. I have respect for the Secretary of State and the civil servants who advise her, but international organisations have looked at the issues again and again. In my Bill, I had a reference to the 1999 International Labour Organisation convention No. 182, which is about the definition of the worst form of child labour, because there can be difficulties with that in other countries.

I will tell a quick tale. When I was 10, I went out and found a job as a milk boy. I wanted to go out and become useful to my family. My brother had a job delivering rolls. I got 10 shillings—50p now—and about 1 shilling and sixpence in tips a week. I walked from the centre of town home and gave my mother 11 shillings and sixpence for the family budget. There were five of us and basically one labourer’s wage. It was not easy to survive. Was that child labour? I did not feel exploited. I loved it—I loved every bit of it. I am sure it is why I am so healthy now in my older age. I ran and ran, and perhaps built up the infrastructure for a long life. It was great and I loved it.

In other situations, people say, “If a woman takes a child with her when she is making bricks in India, at what age does that become a breach of child labour? When is that child able to contribute to a very low family budget and when do they want to do so?” The ILO has looked at those questions but we have not looked at them in great detail in the House. Hopefully, the ILO’s considerations will be used in the recommendations made under new clause 11(8), which is about giving guidance on the information that should be reported.

There is a bit missing from this Bill that was in my Bill: my clause 3 said that there should be some way of ensuring that the company that is found to use such labour provides assistance and protection for the victims of slavery. The guidance should continue that. It should say what a company should do as a benchmark. We should not just say, “We’ll not use that company any more,” but do something about it.

Mention was made of consumers. When I went around talking to people in supermarket networks—Mumdex is in many supermarkets in my area—they had a concern about slavery and the things that bothered their conscience, but they said, “If you’ve got four or five kids coming up to the summer, you buy the cheapest stuff you can get that is going to last the summer, because most of it’s going to be thrown in the bin by the end of the summer anyway. It is the company’s job to make sure I am not buying something that is contaminated by slave labour.” That is totally right. Perhaps some people who go up the high street and buy very highly priced goods ask themselves about that, but most people in my constituents’ environment will not.

I therefore welcome new clause 11(9). It is fantastic to see. If hon. Members read what is on the net about the Bill, they will see that people in Scotland think it has nothing to do with them. They think it is an English Bill. People should look at the new clauses to realise that it is a trans-border, transnational Bill. Subsection (9) states that people in Scotland can take an organisation to the Court of Session to enforce the fact that it is not carrying out the duty in the Bill. That will be very welcome.

I do not know whether the new clause covers Northern Ireland—I had that question in mind because it does not mention Northern Ireland. Do people there go to the Court of Session? Where do they go? Do people in Northern Ireland go to the High Court in England if they feel that a company in Northern Ireland is not doing something they should be doing? I am grateful to the Minister for including Scotland. That is an important measure.

We are making progress and I welcome the proposals. I hope the Government are listening when the Bill goes to the other place because they could add other things to it.

[Jim McGovern (Dundee West) (Lab)]

I, too, was a milk boy, and a butcher’s boy and a paper boy, in my younger days. My hon. Friend has raised the subject of tips many times over the years. My wife and I booked a cruise two years ago through a British travel agent company. The cruise sailed from Southampton. When we spoke to the staff on the cruise, they said they did not receive any wages, and that they only got tips. If that is not modern slavery, I do not know what is. I was not fortunate enough to be on the Joint Committee. Does the Bill cover that?

[Michael Connarty]

I could not quote the legal detail, but I would think that if a company based in the UK did things like that, it could be taken to the Court of Session in Scotland or the High Court in England and found not to be complying with the law.

As a Scot and as an economist, I read Adam Smith’s “Wealth of Nations”. It talks about comparative advantage, but before that, he wrote a document about the morals of competition. The good thing about the Bill is that it says, “We believe in competition.” We are not talking about pricing people out of the market entirely. We are saying that it must be morally justifiable as well as economically justifiable.

I want to finish with a response to one of my constituents, who, when it was reported that we were discussing the Bill, wrote in an e-mail blog: “What’s that got to do with creating employment in Scotland and your constituency?” The reality is that, if we can stop people using cheap labour, and particularly slave labour at the worst end, we give British companies the chance to compete better. That is why the BRC is behind the Bill. If there is a voluntary code, the bad companies just will not comply, whereas if there is a mandatory code and if we can take people to law to enforce it, everyone must do the right thing or be held to account.