Serious Crime Bill [HL]

I can see the great interest in this issue. I am very conscious that we will look at the framework under the clause-stand-part debate. It may be helpful at this stage for me to setthe framework out so that we can see how the amendments fit. The noble Baroness, Lady Anelay, has foreshadowed what I am going to say in relation to Amendment No. 129A, but I will come to thatin its place. We are all happily on the same side on that, but I come now to outline where we are at present. To recap on the purposes of Clauses 61 to 65, which fall into two distinct camps; that is, first, Clauses 61 to 64, which deal with data-sharing, and, secondly, Clause 65, which deals with data matching. Clauses 61 to 64 provide a legal gateway for the public sector to share information with each other and the private sector in order to prevent fraud. This sharing will be done through a specified anti-fraud organisation. Clause 61 provides a new legal gateway for those public authorities which need it to allow themto disclose information to a specified anti-fraud organisation for the purpose of preventing fraud. Clauses 62 and 63 make it an offence and provide a penalty for the onward disclosure of HMRC data in certain prescribed circumstances. So Clause 64 amends the Data Protection Act to allow for sensitive personal data to be processed for the purpose of the prevention and detection of fraud. However, this does not lift any of the other data protection requirements such as lawful or fair processing. We will return to this when we look in more detail at the clause. Clause 65 and Schedule 6 amend the Audit Commission Act 1998 to grant the Audit Commission-run exercise, the National Fraud Initiative, statutory powers under which to carry out data-matching exercises. At present, auditors match data only from bodies which are subject to audit, principally local government and health service bodies. New Section 32C would allow other bodies to provide data to the Audit Commission for matching as well, and would lift the statutory bars which might otherwise prevent this happening. This would allow other bodies in both the public and the private sectors to participate in the National Fraud Initiative provided—this is an important proviso—that the Audit Commission thinks it appropriate. At present, data matching is only undertaken to combat fraud, and new Section 32G allows the Secretary of State by order to add to this purpose. The section also allows the Secretary of State by order to add to the bodies which the Audit Commission will be able to insist provide data for data matching. It is accepted that the private sector should be included only on a voluntary basis. The new provisions will also allow disclosure across the United Kingdom on a cross-border basis with the relevant Auditor-General if they choose to undertake similar data-matching exercises.