Further provision about registration

Ivory Bill – in a Public Bill Committee at 3:00 pm on 14 June 2018.

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Question proposed, That the clause stand part of the Bill.

Photo of David Rutley David Rutley Assistant Whip (HM Treasury), The Lord Commissioner of HM Treasury, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs

The clause is largely technical; it provides further information on the registration process and ensures that the Secretary of State has the necessary levers to ensure that the process works effectively and is not open to abuse or misuse. Subsection (1) ensures that the registration of an item would cease to be valid as soon as its owner changes. Unlike the exemption certificate issued for items under the rarest and most important category, registration allows the current owner either to sell their item or to engage in other forms of dealing that do not result in change of ownership, such as hiring the item. The registration is therefore associated with the individual and is valid for a single change of ownership. It is different from certification.

The owner must register an item in order to carry out dealings but does not need to register an item each time a commercial dealing is undertaken, as long as the owner does not change. For example, if the owner wishes to hire the item multiple times, they complete a single registration for the item to be subject to hire. If the owner changes, however, the registration becomes invalid and the item must be registered by the new owner before they can carry out any dealing. This applies to individuals and organisations.

Subsection (2) sets out that once the owner registers an item under clause 10, they have a responsibility to ensure that the information recorded in the registration process remains complete and accurate. As such, if the owner becomes aware that information included in the application is inaccurate or incomplete, or if any information becomes invalid or changes, they must notify the Secretary of State and provide the required information to address the issue. That could be, for example, because the item is damaged or otherwise altered at some time after registration but before dealing, or if the owner, having completed the registration process, subsequently becomes aware of some fact that might invalidate the registration. If an owner were found to be in possession of such information and had not informed the Secretary of State, they could be found to be in breach of the provision.

Subsection (3) allows the Secretary of State to cancel exemption registration, meaning that dealing in the item concerned would be prohibited. This is where the Secretary of State believes that the registered item does not meet the exemption conditions declared by the owner, considers the registration to be void because the owner of the item has changed since registration, or is of the view that the owner has failed to notify them in order to address any incomplete or inaccurate information relevant to the registration. The Secretary of State may become aware of any of those reasons as a result of compliance and enforcement activity undertaken by the Secretary of State, the regulator or the police. Such activity could include spot checks of the registration database or checks on goods subject to commercial dealing—for example, sale in shops, auction houses or online sales websites.

Subsection (4) allows the Secretary of State to add or alter information on the registration if the registration information is or becomes inaccurate or incomplete. That will be applied primarily when the owner has notified the Secretary of State of a change in information.

Subsection (5) allows the Secretary of State to ask applicants when registering an item, or once registration is complete, to provide information in a specific form or manner, as outlined in guidance. For example, that could ensure that an owner who does not complete the online registration process correctly in the first instance is given the chance to do so correctly, rather than the registration being rejected.

Subsection (6) clarifies the meaning of terms used in the clause, including with reference to other clauses in the Bill.

Photo of Sue Hayman Sue Hayman Shadow Secretary of State for Environment, Food and Rural Affairs 3:15, 14 June 2018

I thank the Minister and congratulate him on getting through that. I find this clause complex. I worry that existing and future owners might get confused about what is expected of them and when it is expected. Again, clear guidance will be incredibly important. The explanatory notes state:

“If a new owner wishes to carry out dealings in that ivory item, they must make a fresh registration”— but a fresh registration from what? Is that fresh from the exemption certificate or an existing registration? I find that slightly confusing.

Photo of David Rutley David Rutley Assistant Whip (HM Treasury), The Lord Commissioner of HM Treasury, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs

In the interests of clarification, it is important to note that certificates are required for the rarest and most important items. The certificate is in a way a passport that goes along with the items, because they are particularly rare, important and often valuable. The certificate acts a bit like a passport, moving on with the item.

The other categories are covered by the registration process. Notwithstanding the fact that I have learned through this process that some musicians have valuable items, often such items are not that valuable. In this approach, therefore, we have a registration process that is more simple and straightforward, with lower cost—this is about cost recovery from applying through an online system. Applying for a certificate will be a more costly approach, because of what we talked about this morning—where the Secretary of State is required to get advice from another body. The idea is that certificates are for the rare and most important items, and a more simple, low-cost registration approach is for all the other exemptions that we have discussed so far. I hope that clarifies matters.

Photo of Sue Hayman Sue Hayman Shadow Secretary of State for Environment, Food and Rural Affairs

Yes, it does. I am thinking about the comparison with car registration that my hon. Friend the Member for Bristol East used earlier. The language is complex, but it would be good if it were absolutely crystal clear where the responsibility lies, and when in respect of registering items. If that is not clear in the Bill, or if I have missed it, how can we make it obvious to any purchaser or seller so that people do not accidently fall foul of the law?

Photo of David Rutley David Rutley Assistant Whip (HM Treasury), The Lord Commissioner of HM Treasury, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs

I agree that the provision can sound complicated. I have tried to explain as best I can how it will move forward. The key thing is that registration is the lighter touch when compared with certification. People who have an item and want to ensure that everything is all right can use the registration system online, and there are telephone and postal arrangements for those who are not tech-savvy.

We need to ensure that we have a robust system and should remember that we are trying to stop the use of ivory. That is the balance we are trying to strike; we want something that is both robust and proportionate. Registration for those other categories is more proportionate but will enable us to ensure that the measures are properly complied with.

Photo of Sue Hayman Sue Hayman Shadow Secretary of State for Environment, Food and Rural Affairs

I thank the Minister for his response. I support the idea that the Bill needs to be robust—if it is not, we will not achieve the desired ends. Registration will affect many more people than the exemption certificates, so it is important that when the Bill becomes law there is an absolutely clear understanding of what is expected of people and the deadlines.

Photo of David Rutley David Rutley Assistant Whip (HM Treasury), The Lord Commissioner of HM Treasury, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs

I thank the hon. Lady for those further points. The responsibility will be very much with the owner—we are putting the onus on the owner—which is why we need to ensure that the system is clear. We will be working hard to ensure that it is an easy-to-use and clear system. We now have several months in which to get the provisions in place. We need to get moving to Royal Assent, but then there will be a six-month period when we can get ready for when it is put into practice.

We are moving at pace and want more pace, but at the same time we need to ensure that the systems are right. We are working behind the scenes with officials and various other bodies to ensure that there is clear guidance and that the systems, once established—we are still developing them—are fit for purpose and easy to use.

Question put and agreed to.

Clause 11 accordingly ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned. —(Mims Davies.)

Adjourned till Tuesday 19 June at twenty-five minutes past Nine o’clock.

Written evidence reported to the House

IVB 07 Rosemary Bandini

IVB 08 Amir Mohtashemi Ltd

IVB 09 Sydney L Moss Ltd

IVB 10 Action for Elephants UK

IVB 11 This person wishes to remain anonymous

IVB 12 A law firm that wishes to remain anonymous

IVB 13 Martin P. Levy