My Lords, I am grateful to the right reverend Prelate the Bishop of Derby for having moved the amendment. He has been an integral part of the cross-party team that has been working so constructively on the Bill and taken us to where we are now. I particularly note, and offer my respect for, the work that he has done in the diocese of Derby in tackling the issues of modern-day slavery. It is an example of what could be done elsewhere as well.
Let me put on record the two difficulties that we have with the amendment. I do not think that, on the general principle, we are a million miles apart. What we had was a Gangmasters Licensing Authority, after the noble Lord, Lord Whitty, introduced legislation in this House in the wake of the awful tragedy that we saw—and it was working rather well. It was targeted at a particular group, where there was a real problem in the food processing industries and that sector of agriculture and fisheries. About 1,200 businesses a year are regulated,
and there is a cost to that. They have to get their licence and pay between £1,000 and £2,000 a year, and when they are regularly inspected they also have to pay a fee for the inspection.
There is a discussion about this. I am sure that when the noble Lord, Lord Whitty, was introducing the Gangmasters Licensing Authority legislation, he was thinking that we did not want to impose this on everyone unless it were strongly proven that it was absolutely necessary to cover everyone, because there are some serious burdens placed on small and micro-businesses. I take the point that the noble Lord, Lord Judd, made about resources. Resources are scarce at present: there is a big debate, which I am sure my predecessors had when they were trying to secure the necessary resources for the changes being made in the national referral mechanism. That would account for a significant amount, and resources also have to follow the child trafficking advocates, the extension of legal aid and the office of the Independent Anti-slavery Commissioner-designate. I accept that.
Let me explain the difficulties to the right reverend Prelate. There are two difficulties with an enabling power on the GLA remit. First, such a power assumes that the main issue is with the GLA’s remit, and may not consider the broader landscape in terms of how we tackle abuse of workers. Secondly, even if we concluded that the answer to the problem was an extension of the remit, the enabling power would almost certainly not achieve its aim of avoiding the need for further primary legislation.
As has been mentioned, it has also been enormously helpful that we have been able to have discussions outside the Chamber, and build our mutual understanding of these issues. It is important that we look at the GLA’s role in the context of our overall approach to tackling abuse in the labour market.
The House will note that sectors not covered by the GLA are already regulated. Last year more than 53,000 callers were helped by the pay and work rights helpline, and more than 23,000 workers were helped to recover wage arrears by the national minimum wage enforcement team. In addition, employment agencies not covered by the GLA are regulated by the Employment Agency Standards Inspectorate, which between 31 March and 1 April 2014 brought seven prosecutions in the magistrates’ courts and in five cases secured convictions. The Employment Agency Standards Inspectorate also has a unique power to apply to ban those who have shown themselves to be unfit to run any employment agency, and there are currently 16 people on the list of people banned from running an employment agency. We need to make sure, through consultation, that we come to a coherent position and that these bodies work in a co-ordinated way to prevent and stop abuse.
I understand why an enabling power might appear attractive as a way of potentially avoiding the need for future primary legislation after a consultation, but such a power simply would not achieve the objective of avoiding the need for primary legislation. Any significant change to the GLA would
be likely to require both reform of the Gangmasters (Licensing) Act 2004 and substantive changes to wider primary legislation related to how the labour market is regulated, such as the Employment Agencies Act 1973.
The enabling power would be limited to changes in the remit. I accept that it would be hard to justify a delegated power wide enough to allow for the types of enforcement powers the GLA might need in future. But a truly open and evidence-based consultation might well highlight the need for changes in the powers of the GLA that do not relate to the remit.
The amendment also focuses on the use by the GLA and others of the Proceeds of Crime Act. I should point out that the GLA already uses that legislation to identify proceeds of crime—a subject raised by the noble Lord, Lord Alton. Indeed, since 2010 the GLA has identified over £1.5 million in criminal assets through that route. I am sure that, like me, noble Lords will all applaud the GLA for its achievements in this regard. The GLA already receives a share of the assets recovered under the asset recovery incentivisation scheme: it has received £118,000 since 2010.
I acknowledge the points that have been made. When we prepare the consultation document we will reflect on today’s debate and see whether there are ways in which we can make greater use of the Proceeds of Crime Act, alongside increasing and making better use of our existing resources devoted to worker protection.
I shall now deal with one or two of the points raised in the debate. I have highlighted the problems we have with the amendment, which are technical rather than substantive in terms of the issue that the right reverend Prelate has raised. If he felt able to withdraw his amendment now, I would certainly give an undertaking to reflect further on it and consider whether we should look at this subject again before Third Reading. There are some drafting issues. What the amendment proposes is a review of one area under one Act, whereas we would like to see a wider consultation covering many areas and many Acts. To do that we need an approach different from that taken in the amendment. If the right reverend Prelate will take that into account, we shall be happy to come back to the subject.