Immigration and Asylum Bill (Twelfth sitting)
Clause 49 brings us to the practical question of what happens when an organisation fails to do what the law requires. We have spent preceding groups discussing what organisations must report, and how we must publish it. Those duties need to mean something. A business that takes its responsibility seriously should not find that a competitor can ignore the rules and carry on without consequence. We support effective enforcement against organisations that fail to comply without a reasonable excuse. The clause allows Ministers to establish financial penalties through regulations. The maximum for an individual penalty will be the higher of £1 million or 1% of the organisation’s total turnover, or of a public authority’s total budget. That is a substantial power. It is a ceiling, not a standard fine, and how penalties are set below it will matter enormously. There must be a sensible distinction between a genuine mistake that is quickly corrected and a deliberate refusal to comply. An organisation that has ignored repeated requests should not be treated in the same way as one that has made an isolated administrative error. Equally, the “reasonable excuse” provision must not become a stock response for those who simply cannot be bothered. Much of that detail is left to regulation. The clause allows for warning notices, representations and appeals. Organisations should know how a penalty has been calculated and have a fair opportunity to challenge a wrong decision. I would be grateful if the Minister confirmed which of those safeguards the regulations will include, and how the seriousness of a failure will be assessed. There is a particular issue with fining public authorities. A fine on a public body ultimately comes out of public money, but that does not mean that public bodies should escape enforcement. However, moving money out of a service budget while leaving the same failures untouched would achieve very little. The Minister should explain how a penalty will lead to better conduct and how senior officials will be held accountable for putting matters right. The clause also provides for civil court enforcement; the Minister should explain how that route and the penalty regime will fit together, and who will make the decisions. There is an example here from the existing <span id="446" class="column-number" data-column-number="446"></span>law. The 2015 Act already allows the Home Secretary to seek an injunction against a business that fails to publish a statement, yet that power has, as far as I am aware, never been used. A strong power on paper is of little use if the enforcement team lacks the information or capacity to use it. The Minister should tell us what resources have been judged necessary and when the new arrangements will be up and running. Finally, we should be clear about what the penalties address. They concern failures to comply with the reporting duties. The compliance statement is not proof that exploitation is absent and a reporting penalty is no substitute for investigating evidence of slavery. Where such evidence emerges, there needs to be a clear route to the agencies that can protect victims and pursue the perpetrators. We support giving these duties proper teeth and we support clause 49. The test for Ministers is whether persistent non-compliance is tackled, whether decisions are fair and whether identified risks lead to action. I look forward to the Minister’s explanation of how the regulations will deliver that in practice.