Serious Crime Bill [Lords]

The new clause effectively provides additional provisions relating to freezing orders, which come under section 245A and the subsequent sections contained within the Proceeds of Crime Act 2002. Those additional orders were introduced under the Serious Organised Crime and Police Act 2005, and apply only in certain circumstances where proceedings are under way to recover the proceeds of unlawful conduct. The freezing orders need to describe the property concerned and prohibit any person to whom that order applies from dealing with the property. As we said when the freezing order was introduced, it plays an important part in ensuring that we bear down on organised criminals who may be intent on misusing proceeds of crime, and in ensuring that such proceeds are recovered. We have stated on record that the orders are a good thing, and therefore, the gap that the Minister has highlighted is relevant. In the Minister's letter to me, and the hon. Member for Taunton (Mr. Browne), he states:"““The amendments I have tabled to the Proceeds of Crime provisions in Part 3 of the Bill will create a Civil Recovery Management Receiver. Creating these receivers will fill a legislative gap as it is not currently possible to have a receiver whose only function in civil recovery proceedings is to manage property while it is frozen. Civil Recovery Management Receivers will provide this function.””" There is clearly a gap, and it is interesting that it has taken a little while for it to become apparent and for us to be made aware of it through the consideration of the provisions in the new clause. The proposal seems sensible because one of the concerns that arises in relation to frozen assets—the Minister alluded to this point—is that, when ensuring full proceeds are received, it may be necessary to manage assets while they are frozen to ensure that they do not diminish in value, and that the funds obtainable are as full as they should be. I recognise the intent behind the provision and the gap to which the Minister refers in his letter. It needs filling to ensure that we get the full proceeds required, and that there is no diminution in the value of the assets subject to the freezing order. We understand the context of the new clause and the point that the Minister makes. We hope that it will act to ensure that the proceeds of crime are realised in a more effective way, that the value of those assets is maximised through the procedures and process undertaken, and that the issue is dealt with appropriately. The Government have also tabled many other amendments, which are largely technical. I want to concentrate on amendment No. 27, which deals with section 435 of the Proceeds of Crime Act 2002. The section originally ensured that the director of the Assets Recovery Agency could use the information that he obtained in the exercise of one set of functions in connection with any of his other functions. In other words, under the 2002 Act, the director could use information gained for one purpose in another context. When the Bill was in Committee, the Government tried to delete section 435 from the 2002 Act. The measure before us reflects that. However, amendment No. 27 would reintroduce section 435, but in a modified fashion. The amendment would expand the scope and application of the Bill. Proposed new section 435 would apply especially to the Director of Public Prosecutions, the Director of Public Prosecutions for Northern Ireland and the Director of the Serious Fraud Office. The relevant point about the proposed new section is that it provides that the relevant Director—of Public Prosecutions, of Public Prosecutions for Northern Ireland or of the Serious Fraud Office—can use information obtained under part 5 or part 8 of the 2002 Act,"““in connection with his exercise of any of his other functions (whether under, or in relation to, either Part, another Part of this Act or otherwise).””" I am concerned about the extent and scope of ““or otherwise””. Perhaps, when the Under-Secretary replies to the debate, he can confirm whether it is intended to have a much broader application than the original section 435—in other words, whether ““or otherwise”” covers all the relevant duties of the directors in all their contexts. Clearly, amendment No. 27 is another late amendment. A change of approach was felt to be required to section 435 of the 2002 Act, given that it was meant to be deleted, not used, at the outset. It would be interesting if the Under-Secretary shed some light on the reason for the change of approach. Why is the sharing of information felt to be required now when it was not believed to be necessary previously? I appreciate that the amendment's application to several different bodies reflects the way in which the Assets Recovery Agency has been divided—its authorisations do not go to only one body but several different ones. From an enforcement perspective, the relevant directors to which subsection (4) of proposed new section 435 applies reflect the intended expansion of the enforcement agencies and bodies. However, there remains a question about whether the amendment proposes an appropriate or reasonable use or expansion of the previous power, which would have been limited to those under the 2002 Act. The proposed new section is much more wide ranging—there appears to be no limit on the use to which information gained under the 2002 Act can be put. That may be appropriate for ensuring that illegal acts or information relevant to other prosecutions and proceedings are discovered through the powers granted by the 2002 Act. However, it is a change to the previous position and it would therefore be helpful to inform the House of the intention of the proposed new section. Is it intended to be all encompassing? Are any protections intended? Will any limits be applied? Is the amendment as wide ranging as the words ““or otherwise”” suggest? We need to understand more clearly the Under-Secretary's intention in amendment No. 27. We need to know its scope and I hope that he can answer the points that have been highlighted because it would be helpful to know the extent of the information-sharing powers and the use to which the information will be put so that we can properly understand the exact purpose of amendment No. 27.