Conclusions and recommendations
1. The
reality, then, is that the Government is no nearer obtaining a
comprehensive picture of the scale and nature of the problem of
illegal gangmaster activity than it was when we published our
original report eight months ago. Other than issuing a tender
for one piece of limited research, the Government has made no
progress. So we repeat our previous observation: the Government
cannot develop an appropriate policy response to a problem, or
allocate appropriate resources, if it cannot make even a rough
estimate of the scale of that problem. (Paragraph 11)
2. We strongly recommend
that the Government take urgent steps to develop a better picture
of the extent and nature of illegal activities by gangmasters.
It should do so through a combination of research in the field
and by centrally compiling data from sources such as regional
Operation Gangmaster operations. Anecdotal evidence suggests that
this is a widespread problem: the Government should now produce
figures which at least attempt to estimate how widespread it is.
(Paragraph 12)
3. We recommend that
the Government look at the various tenders it issues which relate
to research into gangmaster activity, and consider what scope
there might be for amalgamating the 'pot' of funding available
to allow for more extensive, better-funded research in future.
(Paragraph 13)
4. There is some evidence,
such as that presented by Geraldine Smith MP, that enforcement
continues to be held back to an extent by a lack of resources
and an absence of coordination. We are surprised that so much
current enforcement activity is apparently carried out by agencies
acting alone, rather than in concert through Operation Gangmaster.
We once again urge the Government to coordinate all attempts to
enforce existing legislation, even if only by ensuring that agencies
report their activities to regional Operation Gangmaster meetings,
and through them to central Government. That said, there is also
evidence of increasing levels of enforcement activity, and we
commend all those involved for their efforts. (Paragraph 21)
5. We repeat our earlier
recommendation that the Government take steps better to understand
the nature and scope of illegal activity by gangmasters. Unless
it does so it is extremely hard to assess how effective enforcement
has been. (Paragraph 22)
6. It is regrettable
that Ministers do not seem to have been sufficiently seized of
the urgency of the need to deal with illegality on the part of
gangmasters until prompted into action by external pressures,
principally the Gangmasters (Licensing) Bill. We trust that they
now understand how important this matter is, and will commit themselves
to continuing to treat it as a high priority in future. (Paragraph
26)
7. On reflection we
are sure that the Government will agree that a Minister should
have visited Morecambe Bay much sooner after the incident there,
to offer condolences to the community involved, and to support
the emergency services. We are concerned that Ministerial reaction
to the incident reflects an underlying problem of confusion and
uncertainty, with no-one in Government quite sure who is responsible
for policy relating to gangmasters and illegal working. (Paragraph
28)
8. We urge the Government
to take seriously the threat of illegality on the part of gangmasters
and ganged labour from the European Union accession states. It
should, as part of its research into the problem, look at this
particular issue and, if it proves to be a matter of concern,
take steps to address it. (Paragraph 30)
9. We note that the
chart refers to Cabinet Sub-committee MISC20. We recommend that
the Government provide us with details of the role played by the
Sub-committee in determining Government policy relating to gangmasters.
(Paragraph 32)
10. We are convinced
that the overly complicated structure of bodies put in place to
deal with this cross-departmental issue hinders rather than helps
a coherent response to the problems of illegal working and of
gangmasters. We recommend that the Government rationalise and
streamline the steering groups, working groups and other bodies
that operate in this policy area. Currently co-ordination of activities
appears only to take place on the ground: we recommend that a
single co-ordinating body for illegal working and the informal
economy be established. We again recommend that a single Minister
be made clearly responsible for the issue. Given the wider responsibility
to be taken on by that Minister we accept that the responsible
Minister probably should not be from Defra - a Minister from the
Home Office would be more appropriate. (Paragraph 34)
11. We are now persuaded
that licensing and registration are required to deal with the
problem of illegal gangmasters. Therefore we support the Bill,
and call on the Government to ensure that time is made available
- in Government time if necessary - for its successful passage.
However, the Bill cannot be regarded as a panacea: greater political
will and resources are required to ensure that the provisions
of the Bill, and of existing legislation, are enforced. (Paragraph
40)
12. We obviously recommend
that the Government introduce the secondary legislation envisaged
in the amended Bill as soon as possible after the Bill is passed.
It should commit itself now to a timetable for doing so. We further
recommend that the Government set out its views of exactly how
gangmasters and their employees can in practice be identified
when working in the fields and elsewhere. (Paragraph 41)
13. We are concerned
that if the cost of the licence is too high some farmers and others
might be tempted to use unlicensed gangmasters due to their lower
costs. We recommend that the Government ensure that the licence
fee is set at a low level, so as not to harm legitimate gangmasters,
and that the penalties for operating without a licence should
be set at a high level. We again emphasise the need for vigorous
enforcement of the new legislation. (Paragraph 42)
14. We continue to
believe that retailers should take greater responsibility for
ensuring that their goods are produced using high labour standards.
We therefore recommend that the Government give consideration
to extending liability under the Gangmasters (Licensing) Bill
to retailers which do not take reasonable steps - perhaps by mechanisms
to be defined by the new Gangmasters Licensing Authority - to
ensure that their suppliers contract only with licensed gangmasters.
(Paragraph 44)
15. It is worth noting
that the consequence of driving down prices for consumers of food
may very well be a diminution in the wages and a deterioration
in the working conditions of those who produce it. We therefore
call for the provision by supermarkets of information for consumers
about the means of production of their food, a point to which
we will return in our forthcoming inquiry into food information.
(Paragraph 45)
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