Modern Slavery Bill

Lord Alton of Liverpool Excerpts

Wednesday 25th February 2015 Lords Chamber

As I have said, Amendments 93 and 94 both have the backing of the British retail industry and those businesses think that inserting these changes to the Bill would not only make the Bill stronger and more effective but also make it easier for business to comply. They do not see it as more regulation; they see it as smart regulation. The BMA also believes that the definition of a commercial organisation should be extended, as I have already said. If the Minister does not feel able to accept either of these amendments, at the very least it would make sense for the Government to pledge to monitor the effectiveness of Clause 52’s operation in these respects and to undertake to review the size of businesses to be included under the legislation on a regular basis. Of course, there is a consultation exercise already in motion, specifically with regard to the threshold for companies to be included under Clause 52, and I look forward to seeing what the business sector has to say about this in May and beyond that when it reports back. I cannot help but feel that we already have a ready-made measure on the statute book which is clearly understood and deployed. I beg to move.

[Lord Alton of Liverpool (CB)]

My Lords, it is a great pleasure to follow my noble friend Lady Young of Hornsey. I strongly support her Amendments 93 and 94 and the government amendments in this group.

Like my noble friend, I thank the Minister for meeting me and other noble Lords and a number of civil society stakeholders earlier this month to discuss transparency in supply chains. Noble Lords will recall that I and the noble Baronesses, Lady Kennedy of Cradley and Lady Mobarik, raised this issue in Committee. I also spoke about it at Second Reading. The Minister kindly said that, unusually following the Committee stage, not only would he have a meeting with colleagues in the House but that he would invite all the interested groups involved in this issue to meet him and the Peers who were able to be there. With the noble Baroness, Lady Hamwee, and others, we were able to have an extremely helpful and useful discussion.

I welcome the amendments that the Government have tabled for Report, and I believe that they could take us a step closer to delivering effective transparency and accountability on action to eradicate modern slavery from the supply chain. Of course, I hope that this evening the Minister can be enticed to take a few more steps down the road that we have been travelling.

While I welcome and am most grateful for the progress that we have made, there are three areas on which I want to speak and on which I am hopeful we can agree some way forward. My Amendments 97A, 98A and 99A each raise an important outstanding issue that we ought to address before the Bill completes its parliamentary passage if we are to ensure that the supply chain clause works effectively in practice as we all want. It might be helpful to the House if I mentioned that the groups that support these amendments include Amnesty International UK, Anti-Slavery International, CAFOD, the CORE coalition, Dalit Freedom Network UK, the Evangelical Alliance, Focus on Labour Exploitation, the Law Society, Quakers in Britain, Traidcraft, Unseen and War on Want. While I pay tribute to them for the support they have given, I link with them Ruth Chambers, who has done an extraordinary amount of work on this. Sometimes the real heroes and heroines behind legislation are the people who do the hard slog.

I heard today from the Equality and Human Rights Commission and had a chance to have a brief conversation with one of its representatives. It subsequently sent me a statement about this group of amendments and, in particular, Amendment 99A. The commission’s recommendation is to:

“Support Amendment 99A … insofar as it would give the Anti-slavery Commissioner power and sufficient resource to take enforcement action”.

The noble Lord, Lord Judd, raised the issue of resources in earlier debates, and they will be the make or break for this Bill. If resources are not provided, it will not be worth the paper on which it is written, but I am pretty confident that the Government are going to back up the rhetoric in this legislation with the necessary resources. I hope we will hear more about that when Minister comes to reply. The commission also says:

“In our analysis, extending this enforcement power to the Anti-slavery Commissioner would be desirable as it would strengthen his/her role and ensure that enforcement of the duty to prepare a slavery and human trafficking statement could be carried out independently of government. We consider that the Commissioner should be given a range of further powers, including the ability to require the disclosure of data and information, to conduct investigations and inquiries and to hold agencies to account for non-compliance with laws and policies”.

I am sure the Minister will have seen this statement. It was issued only today, and I am glad to be able to draw it to the attention of the House.

Government Amendment 97, as I have mentioned, is welcome as it sets out a number of areas on which slavery and human trafficking statements may include information, but I stress “may” in this context. The amendment does not go so far as to introduce minimum disclosure measures, which are really necessary if we are going to create a sort of equality of arms. As it stands, government Amendment 97 would still leave it entirely optional as to what companies put in their statements.

I listened very carefully to what the Minister said in Committee on this matter and recognise that different types of businesses will face different challenges in relation to their supply chains. It is a perfectly fair point that he has made, but he also indicated that the Government want a level playing field for industry. This is also something that businesses have called for. Sir Richard Branson, for example, has been supportive, as has Associated British Foods, the parent company of Primark, which I was able to meet in January with my noble friend Lord Patel. I was particularly appreciative of their support. My noble friend Lady Young referred a few moments ago to the tragedy in Bangladesh, and it was partly arising out of what happened there that I felt it would be helpful to have a discussion with Primark. I believe that the wording I have suggested in Amendment 97A strikes an appropriate balance that will allow for some flexibility while ensuring a level playing field between businesses on what they must disclose information about. This will also enable comparison across industry sectors as we will then be able to compare like with like.

One area about which I am particularly disappointed that the Government have not changed their position is the need for a central place in which the slavery and human trafficking statements can be uploaded and scrutinised. This is a very reasonable proposition. My Amendment 98A would introduce a requirement to upload the statements on to a central website maintained by the office of the Independent Anti-slavery Commissioner. Significantly the designate commissioner, Kevin Hyland, is supportive of this idea and I am grateful to him for meeting Ruth Chambers last week to discuss this.

Ensuring that each company uploads its own statement is a light-touch, practical way of spreading the administrative costs so it is onerous neither for business nor for government, but I am aware that the commissioner will have limited resources, so if this amendment is accepted then his budget will need to reflect this new responsibility. Why is this central repository needed? Quite frankly, without it the role that the Minister has described on many occasions for civil society, investors and the media to hold businesses to account for their supply chains—as he wants them to do—will be nigh on impossible to achieve. This is because of the time and the effort which would be needed to be spent just working out website by website which companies had reported and which had not. Then of course there are the difficulties that such stakeholders face in accessing the annual turnover information that would indicate which companies fall within the compliance threshold.

Amendment 98A would also require companies to include within the director’s report a fair summary of the statement and the web address of the full statement. This link to the director’s duties in the Companies Act 2006 would ensure that company directors took this provision seriously, and will help to propel responsibility for tackling slavery and supply chains into the boardroom. It would not be burdensome or costly to have this additional reporting and it reinforces a point that my noble friend Lady Young made in her remarks a few moments ago. It will also draw the slavery and human trafficking statement to the attention of mainstream investors who might otherwise not be aware of it and empower them to ask questions of the company. Making directors responsible for reporting on what the company is doing to eradicate modern slavery will ensure that it is part of core business. Boardroom responsibility will also change the culture of businesses and create an environment of a race to the top, thereby increasing the pace at which slavery is tackled within supply chains. I think this would also be good for UK plc, if I can put it that way, as it would promote better business practices which would in turn lead to better profitability and enable UK businesses to play a more leading and competitive role on the global stage.

On Monday the almost ethereal presence of William Wilberforce was regularly drawn to your Lordships’ attention and he was cited on a number of occasions. It is significant that when William Wilberforce was campaigning for an end, first, to the transatlantic slave trade in 1807, and later to all slavery, some argued that to abandon slavery would be ruinous for UK business interests. Of course, that did not turn out to be the case at all. Indeed, our reputation worldwide was enhanced by the results that the Clapham group was able to bring about as a result of its concerted actions in both our Houses of Parliament.

--- Later in debate ---

I took on board the point that was raised about a possible three-year review—I think it was the noble Lord, Lord Alton, who mentioned a triennial review. I think we can go one better than that: it would be a very good section to have in the annual report of the designate Independent Anti-slavery Commissioner. Of course, he is independent and therefore one would hope that—through osmosis—he would see that we might find it helpful to have that in his report. Certainly, it is something we need to monitor very carefully indeed. In that spirit, I hope that noble Lords may feel reassured, particularly the noble Baroness, Lady Young, and that she will withdraw her amendment.

[Lord Alton of Liverpool]

I am grateful to the Minister for the response he has given to my amendments. He will have heard the noble Lord, Lord Rosser, ask him whether, between now and Third Reading, he would look at the matter again. Let us forget some of the fringe or side issues as to where the website should be based and so on, but surely between now and Third Reading the principle of there being a central repository where this information is gathered, which the noble Lord has just accepted during his remarks—for which I was grateful and I appreciated what he said—could easily be clarified. I think that would meet a lot of the anxieties that have been expressed in your Lordships’ House this evening.

The reality is that the caravan moves on and as soon as this legislation has been enacted—and we will all cheer when that happens because it is profoundly important, worthwhile legislation—the pressure will be off to put some of these other things into place. Welcome though reviews, consultations, tech sessions and the rest are, the reality is that we should put in a requirement that there should be a central repository—and I personally wish we could go as far as requiring directors to have a summary of it in their annual reports as well—the principle of which has been accepted by the Minister. Surely we could have an assurance that that could be considered between now and next week.