HC Deb 11 September 2003 vol 410 cc469-70
18. Mrs. Cheryl Gillan (Chesham and Amersham)

How many secondees are working in the Serious Fraud Office; and if she will make a statement. [128961]

The Solicitor-General (Ms Harriet Harman)

Two secondees from the private sector are working in the Serious Fraud Office, and two staff are on loan from other Government Departments. It helps the effective investigation and prosecution of serious and complex fraud if there is a good understanding between the SFO and the private sector and between the SFO and other Departments and agencies.

Mrs. Gillan

Does the Solicitor-General think that that is enough? Given the recent high-profile collapse of Customs and Excise cases, particularly the London City Bond prosecution, the Butterfield review recommended that there should be more systematic dialogue between Customs and other Departments. Does the Solicitor-General believe that that could be facilitated by more secondments between the SFO and Customs and Excise? If so, what can she do about it?

The Solicitor-General

The hon. Lady makes an interesting point. Obviously, the SFO must achieve the right balance between permanent staff, those seconded and those employed on contract to increase capacity or bring in specialist knowledge during a particular case. She raises the question of Customs, particularly in the LCB case. A statement was made to the House in July by the Economic Secretary to the Treasury following the report of Mr. Justice Butterfield, who made a number of recommendations for building on progress already made in Customs and Excise investigations and prosecutions. There will be a report later in the autumn on how we intend to take things forward.

Mr. John Burnett (Torridge and West Devon)

Every year fraudsters and so-called white-collar criminals rob thousands of victims, causing untold damage. In spite of the presence of secondees, there are continuing reports of low levels of prosecution by the SFO. What percentage of cases referred to the SFO resulted in prosecutions in the most recent year for which statistics are available? Is the Solicitor-General satisfied that all cases that deserve prosecution are prosecuted by the SFO?

The Solicitor-General

Of the cases referred to the SFO, something like 40 per cent. of those that the SFO decides to take on for vetting result in prosecution. Obviously, many cases are referred to the SFO in which people have not realised what the SFO's remit is, and those cases are more appropriate to another prosecutions agency. So, something like 40 per cent. of those taken on for vetting end up being prosecuted. That is quite a high figure.

On whether all serious fraud that ought to be prosecuted by the SFO is being prosecuted, I think we must all agree—including the SFO—that the answer is no. Something like £14 billion worth of fraud occurs annually in our economy. The Attorney-General and I, like the SFO, are in no doubt that we must take white-collar crime very seriously. The law must be even handed in ensuring that those who are money laundering in the City are dealt with effectively and fairly.

Mr. Nick Hawkins (Surrey Heath)

The Solicitor-General will recognise that there is great concern among the Opposition and outside the House about the collapse of the Customs and Excise cases to which my hon. Friend the Member for Chesham and Amersham (Mrs. Gillan) referred. Does the Solicitor-General recognise the need for all-party discussions on the implications of the Butterfield report? Will she meet me, and colleagues such as my hon. Friend the Member for Huntingdon (Mr. Djanogly) who expressed concerns to the Economic Secretary when he made his statement, so that we can ensure that fraud prosecutions are much better conducted in future, whether by Customs and Excise, the SFO or any other body?

The Solicitor-General

Of course, I will arrange for those meetings to take place. We would want to discuss these important issues of prosecuting Customs cases and serious fraud cases with the hon. Gentleman and any other hon. Members who take an interest in them. I will get back to him with a response. With more focus on the issue, with the right framework and procedures and with the right amount of resources allocated to serious fraud, I think that we can take matters forward.