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Gangmasters Licensing (Exclusions) Regulations 2006

No, I am not striking on this. The Committee will agree, however, that flexibility should not be provided at the expense of the workers. That is the point. Licensing will oblige gangmasters to operate their business in an ethical and legal manner. It will also create a clear distinction between legal and illegal operators. These arrangements provide the ability to ensure that those gangmasters who try to operate without a licence can indeed be prevented from doing so, so that there is no place for unlicensed gangmasters in the future. We have come a long way from the kick-off of the Bill in 2004 and since Richard Body’s debate—I have not reread it—in which he gave some horrifying examples of abuses by gangmasters. At the latest date for which I have figures, 81 licences have been issued and there have been 295 applications. The licensing authority is to be congratulated on working from a standing start. Concerns have been expressed about the late start for shellfishing. I am certain that they are genuine, and that Members of the Committee are not seeking to criticise the licensing arrangements. I hope that I have given a satisfactory explanation of that delay. I will address some of the detailed points raised. Does the word ““business”” cover sole traders? Yes. I do not need to say more than that. On the resources available to ensure adequate publicity, Defra is funding the licensing authority’s set-up costs, and has made provision for publicity in the budget. On the appointed person hearing, the regulations prescribe a timetable for appeals. An expedited procedure applies when a decision has immediate effect, and an appeal must be lodged within 20 working days. The aim is to determine an appeal within 35 days, where the decision has immediate effect. The noble Baroness, Lady Byford, asked why records must be kept for one year under paragraph 22. It is a requirement of the Conduct of Employment Agencies and Employment Businesses Regulations 2003. The relevant part of these regulations is contained in the schedule to the Gangmasters (Licensing Conditions) Rules as they apply to gangmasters. So that already operates elsewhere. Accommodation for workers is covered in the licensing standards, and checks are made to ensure that workers are not overcharged. That is the greatest rip-off in some other sectors. The chair of the Gangmasters Licensing Authority is Mr Paul Whitehouse, and there are 29 board members. Paul Whitehouse was a police chief constable and is a man of considerable experience, and we wish him and his colleagues well. What does the application inspection charge cover, and how is it calculated? The application inspection fee covers the cost of a visit to the labour provider’s business and interviews of the workers supplied, which is normally estimated to take two days. The noble Baroness asked why the age specified was 22 rather than 21, and I wondered about that myself; but 22 is used because that is the age at which the national minimum wage applies. The licensing scheme applies both to UK-based labour providers and to labour providers based overseas, so no distinction is made on the basis of a worker’s nationality—I will get confirmation on that. That was among the noble Baroness’s opening points—it was only that that reminded me that I had done it, indeed for Concordia. Paragraph 13 of the schedule to the Gangmasters Licensing (Exclusions) Regulations applies to the first day when the worker is employed and does not restrict the agency from supplying a second worker on the next day.