Employment Relations Act 1999 (Blacklists) Regulations 2010

My Lords, in response to the comments made by the noble Lord, Lord de Mauley, it is important that we explore the genuine concerns that he raised. In relation to legitimate lists, lists in themselves do not present a problem. It is the use to which lists are put and the abstracting of names from those lists, as we saw in the case that was put before us. It would take an employer making a decision to go down this road before there would be any danger of a prosecution under this Act. The noble Lord, Lord de Mauley, asked why we do not amend the Data Protection Act. The problem is that it would involve changing primary legislation. We have a specific regulation-making power to prohibit blacklisting. It therefore makes sense to use this power rather than amend an Act which deals with many other matters relating to data protection. He said that there were not enough targeted measures and only signals for employers. The regulations make it clear that not only is blacklisting illegal, but set out remedies for the victims. The CBI said that this is a "knee-jerk reaction". As the noble Lord, Lord Lee of Trafford, pointed out, we waited until we saw whether there was any need for regulations, and indeed it was nearly 11 years before a case emerged. Quite frankly, we hoped that there would not be any need for them, but it was obvious from this case that there was such a need. We do not believe that we have underestimated the impact assessment. We think that we have it right and that for small firms there will be little or no effect and, for larger firms, little other than familiarising themselves with the provisions. We think that that is absolutely right. Good employers have nothing to fear in these regulations and they will not need to adjust their behaviour. The covert listing of personal information is already unlawful under the Data Protection Act. We have prepared guidance on the regulations for the direct.gov and BIS Business Link websites which will be posted when they come into force; indeed the draft guidance has been available on the BIS website since 12 January. The noble Lord asked what consultations had taken place. As I said, there were two rounds of consultation, the first taking place between February and May 2003 and the second between July and August 2009. A further question was put in relation to monitoring. I feel sure that we will need to monitor the impact and I am looking for inspiration from the Box. I think the answer is that we will review the regulations after two or three years and will check on any tribunal cases that arise. However, we doubt whether there is a good case for undertaking an early and formal review because of the rarity of blacklisting. In conclusion, we firmly believe that these draft regulations are forceful enough to put a stop to this outdated practice once and for all. Some trade unions have indeed asked us to go further and make blacklisting a criminal offence, but it is worth remembering that these regulations do not exist in isolation. They operate in the context of closely related protections concerned with trade union rights and the use of personal data. It will be their combined effects which will curb blacklisting. We believe that the draft regulations are targeted, balanced and proportionate. I stress that they should not affect normal listing activity by employers so that fair and open vetting procedures can continue as before. Most businesses will be unaffected by the regulations and, as I have said, we estimate that the compliance costs will be low. Motion agreed.