Modern Slavery Bill

Paul Blomfield Excerpts

Tuesday 4th November 2014 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

I will indeed bear that in mind, Madam Deputy Speaker, and will speak briefly, although I think that the issues that I wish to raise are fairly substantial. While I agree with all who have congratulated the Members on both sides of the House who have brought us to this point, I think that there is still a lack of action on key issues, and that the Bill, as it stands, falls a long way short of providing justice for victims of slavery.

There are three core gaps in the Bill. First, we need to get the definitions right, which is the aim of my new clause 24. If we do not do that, we shall risk leaving open legal loopholes that will allow traffickers to thrive. Secondly, the Bill must deliver for victims, which is the aim of new clause 21. Thirdly, there are issues in relation to prevention, which I hope to address later in the debate around new clause 1.

The definition of human trafficking was established in an internationally binding treaty and was integrated into the national laws of some 134 countries. That definition brings with it significant victim protection and a comprehensive framework for addressing trafficking, which is why I propose that we return to that in new clause 24. Unlike the international definition of trafficking, the trafficking provision in this Bill does not criminalise the “harbouring” or the “reception” or the

“exchange or transfer of control”

of victims or even the “recruitment” of victims where those acts do not involve the arrangement or facilitation of travel. We should recognise that there is a real problem in cases involving large criminal networks where different people take different roles in the trafficking process. There is also a problem where victims arrange their own travel into and around the UK and to the site of exploitation, as often occurs when individuals are deceived about work conditions or conditions deteriorate over time. The Bill’s definition, which is narrowly focused on the movement of victims, adds nothing but confusion and will let traffickers off the hook for the crimes they commit, as my hon. Friend the Member for Kingston upon Hull North (Diana Johnson) pointed out.

Let me turn briefly to the purpose of new clause 21. In its current form, it is hard to see what this Bill would provide for the 40 Hungarian men found last year living in squalid conditions and forced to work for less than £2 a day in a mattress factory in Dewsbury, west Yorkshire. The men were barely surviving on limited food. They were crammed into a two-bedroom flat and threatened with violence if they resisted. They were exploited by gangmasters who supplied their forced labour to a factory run by the bed manufacturer KozeeSleep, which provides its products to some of our major national retailers.

Those victims of human trafficking have a right to compensation for the appalling wrongs that have been inflicted upon them. Clauses 8 and 9 include provisions for reparation orders to be made in cases where the perpetrator is convicted and a confiscation order is made, but from 2011 to 2013 only 252 trafficking and forced labour cases were prosecuted, and just 78 of them—less than a third—resulted in convictions. Not only are conviction rates low, but compensation orders are rare. The Government do not keep statistics on this, but we know from victim support providers that they are few and far between. I have tabled new clause 21 to allow victims themselves to bring civil claims in the county court, to seek compensation directly from the trafficker—not from the public purse—in the many cases where a criminal prosecution has not been possible. A similar provision is currently in use in the US Trafficking Victims Protection Reauthorization Act 2003, and is frequently used successfully to secure compensation for trafficking victims.

These steps are essential to get a Bill that makes a difference to the lives of victims. We must get the very foundations of this Bill right by aligning our definitions with international law and, where people are exploited, making absolutely sure that they are compensated for the abuse suffered. I recognise that we may not get that through agreement on these amendments today, but I hope that these issues will be addressed when the Bill is debated in another place. These measures, together with real action on prevention, can make the difference between a Bill that will deliver headlines and a Bill that will deliver justice.

[Stephen Barclay]

The official figures for this year showed that more people were trafficked for labour exploitation than for sexual exploitation. The crux of that is money, and new clause 20, which is supported by the right hon. Member for Birkenhead (Mr Field) and my right hon. Friend the Member for Uxbridge and South Ruislip (Sir John Randall), seeks to identify how we can make it easier to recover money from criminals and strike at the heart of what is driving this trafficking trade.

There are two reasons why at present we recover so little from this organised crime. According to the National Audit Office and the Public Accounts Committee, we currently recover just 23p in every £100 that is identified as criminal assets. That has two results. First, increased pressure is placed on law enforcement agencies when, at a time of austerity and many other demands, investment in forensic investigators is often not a priority. The second reason relates to the high hurdles relating to evidence, which create a disincentive for the Crown Prosecution Service to apply for restraint orders. If there is insufficient evidence, the CPS can incur costs through losing an application. The resulting delay in freezing assets often means that they can be difficult to trace and expensive to identify. The Joint Committee has looked at this matter.

The new clause seeks to make it easier to freeze assets within the first 24 or 48 hours. I know that my right hon. Friend the Member for Uxbridge and South Ruislip has spoken in the House previously on the merits of that, and of learning from the example in Italy. Amendment 151 seeks to achieve that in relation to the presumption about criminal assets being dissipated post-arrest. We need to give the police a clearer incentive to invest in forensic investigators. If I were a chief constable, why would I make such an investment this year if I knew that it would take several years to recover the money, and that if the money were recovered, the Home Office would take 50% of it? We need to change that. We need to overcome the objections of the Home Office and the Treasury so that those who carry out the investigations are those who benefit from the assets that are secured, once the victims have been compensated.

We also need to place a higher duty on financial advisers. At the moment—I say this having worked for such an institution—it is very easy to hide behind a suspicious activity report. In essence, that report is a defensive mechanism, and more than 350,000 are filed with the Serious Organised Crime Agency each year. At the point of an arrest following an investigation by financial investigators, a higher duty should be placed on financial institutions, should they then choose to move the assets in question. We should freeze any assets over and above those that are required for reasonable living and business costs, so that money can less easily be moved offshore. We should also require an asset declaration that could be used to demonstrate an aggravating factor, should assets that had not been declared be discovered following further investigation.

There is a suggestion from the Home Office that some of these issues will be addressed in the Serious Crime Bill, but it is clear that it will not address many of the matters that have been raised in the Joint Committee and by Members here today, so I hope that the Minister will look again at the extent to which the measures in this Bill that relate to the financial proceeds of crime can be strengthened so that we can tackle the root cause of the problem—namely, the funds.